NEW Short Sale listing! Amazing condo with garage on Handerson Pl. inManassas Park City, VA 2bed/2bath listed @ $159,900. Homeowner bought their condo during the height of the market and has faced a hardship. We’ll keep you posted on the approval and closure of this Short Sale! Call (703) 774-9572 or email Jennifer@jyhteam.com if you or someone you know needs help.
We delivered good news to another borrower in Bealeton, VA – CitiMortgage approved their short sale and it will close at the end of August. This homeowner bought in 2007 and now owes $349,000 to the lender. This home was listed for $155,000 and is under contract. The homeowner’s hardship letter included information about how the family was growing too fast and there were medical issues involved. They needed a new, bigger home, but could not sell this one and pay off their lender to be able to buy again. Here is the approval letter for you to see CitiMortgage SS Approval Letter July 2010
DSNews.com – June 21, 2010 RealtyTrac released its Midyear 2010 Foreclosure Report Thursday, which shows that 1,654,634 U.S. properties received a foreclosure filing during the first half of this year. That figure means that one in every 78 homes received at least one foreclosure filing between January and the end of June. The midyear total represents a 5 percent decrease from the previous six months but an 8 percent increase from the first six months of 2009.
“The second quarter was a tale of two trends,” RealtyTrac CEO, James Saccacio said. “The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.”
Even after you list a home as a short sale to avoid foreclosure, the bank will typically continue their work on foreclosure until we can get the clock to stop and acquire short sale approval. A homeowner in Aldie, VA (Loudoun County) has had his loan change hands more than twice and now Cardinal bank owns his note. The homeowner is behind and has been since April due to a hardship. Even after listing his home with us as a short sale, he has received continued notices of foreclosure proceedings. Typically the letters come in the following order over time as the bank pushes forward with default proceedings:
1) Mortgage Acceleration Letter – All that you’re behind on must be paid ASAP, or they’ll foreclose.
2) Notice of Default (Default Notice) – You have only so much time to pay ALL that you owe, typically 30 days.
3) Notice of Foreclosure (Foreclosure Notice) – An actual date has been set for foreclosure and notice to be announced in paper that the foreclosure sale will be happening.
Here is an example of a Foreclosure Notice letter as sent to the homeowner in Aldie, VA Notice of Foreclosure Letter and here is the letter announcing the sale and details for the newspaper Notice of Trustee Sale Example. If you’ve received any of these letters, we can still help you. And, if you’re thinking it would just be easier to walk away and give the home back to the bank, check out Page 2 of the Notice of Foreclosure…you are still liable for the amount the trustee sale does not cover of what you owe on your mortgage. So, if you owe $500K and the sale brings in $300K, the bank will come after you for the remaining $200K. When you short sale, we can negotiate a Deficiency Waiver that guarantees they won’t come after you! Call (703) 774-9572 or email firstname.lastname@example.org for more info.
Another nail-biting foreclosure fight. This short sale we listed was facing a 7/23 foreclosure date from a mortgage company called Emigrant Mortgage (Emigrant Savings Bank). The home, listed on Munsons Hill in Stafford, VA, is part of a situation that may sound familiar to some…the homeowners faced foreclosure back in 2008, but were offered a refinance deal at a 12% interest rate from Emigrant, with Wells Fargo as the 2nd trust. They were desperate to save their home and agreed. Now, the home is worth less than it was back then and the interest rate on the 2nd trust is about to adjust as well. Its a tough situation to be in! Our short sale team worked hard and convinced the bank to stop the foreclosure proceedings in order to give the homeowners more time to short sale. Time-line typically goes like this:
1) homeowner fills out detailed paperwork in a short sale package, along with a hardship letter explaining their situation
2) package is reviewed and the home is put up for sale
3) we get a good contract in and ratify it with the homeowners signature and send in to bank
4) finally our short sale negotiator makes non-stop calls to check on progress and find a contact to handle the file
5) foreclosure postponement is confirmed and we have breathing room to work on getting short sale approval from the banks involved
These are the basics, of course, but that’s the progression. We are tough at negotiating and we don’t take “no” for an answer. Call if you’d like to talk about this or any other topic relating to short sales (703) 774-9572 or email email@example.com. Also, click here if you’d like to see an example of a hardship letter typically used when submitting a short sale package Sample Hardship Letter
Here’s one of those situations many potential clients ask about….Can I buy a new home first and then short sell my home afterwards so that my credit is not a factor/problem in buying again? This homeowner who is short selling their home on Chimney Circle in Middletown, VA is almost to the finish line and did just that. They needed to downsize and their mortgage payment was getting too high to handle. One of our partner agents in Winchester, Terri Evans of Keller Williams Realty, helped them find and buy a new, smaller home in Stephens City and then we listed their home as a short sale in Middletown. There were 2 trusts – we had received one approval letter already from First Tennessee Bank, and now we’ve secured this final one from Everhome Mortgage. Everhome did require that the borrowers bring $1,000 to the table for closing and they are able and willing to do this. But, we have to tell you, Everhome reps REALLY questioned why the homeowner would buy a new home and then stop making payments on their mortgage for the home on Chimney. This one took some doing, but we’re almost there. Here are the approval letters from Everhome:
Thanks to everyone who came to visit with us last night at our Short Sale Seminar and Happy Hour. We heard a lot of great questions focused mainly on Condo short sales and the issues that many homeowners are facing right now. Many bought their condos in the height of the market when prices were high in new and existing communities and now they’re trying to decide what they’ll do about the fact that they can’t sell for the amount they paid and owe their lenders. Here were just a few questions we answered:
Can we live in our home during the short sale process? Yes you can. Whether you continue to make your payments or not, you can live in your home until the day of closing.
What cash are we required to bring to the table at closing? In the majority of cases, nothing. There are times when a particular bank will be tough in their negotiations and insist the borrower pay for some items, like, for example, overdue condo fees not paid during the duration of the short sale process. The key is to communicate regularly with your realtor so we know everything and can deal with it proactively.
Can I get a guarantee that the lender won’t come after me for the remaining balance of the loan not paid off at closing? Yes, as part of our service we work to negotiate what is called a waiver of deficiency. The bank states in an official approval letter that they will “charge off” the remainder of the loan that’s due and then give instructions concerning tax consequences. There are minimal cases where we simply cannot get the bank to agree to issue this letter, but we – to this date – have never seen a bank go after one of our clients for the remaining balance of their loan.
Can I short sale and still be able to qualify for Security Clearance? It is our experience to date that YES, you can. A short sale on its own does not challenge most security clearances. We have closed short sales for clients who have security clearance and they have not had a problem. The key, we understand through industry experts, is that the employee be “proactive” in protecting their security clearance and be very honest about their situation. We also suggest our client/government employee write a letter explaining their plans and experience. Click here to see a sample of a letter used for such a situation: Security Clearance Letter
Thanks again for coming everyone. If you or someone you know need our help, call me at (703) 774-9572 firstname.lastname@example.org.
Thousands of foreclosures were canceled or postponed in June 2010 according to ForeclosureRadar. Researchers at the company received varying answers as to why the cancellations are up. The best answer came from one unnamed REO professional. According to the source, the Home Affordable Foreclosure Alternatives (HAFA) program had the most to do with the cancellations. The Treasury Department launched HAFA in April to provide incentives to servicers for conducting short sales and deeds-in-lieu of foreclosure to homeowners who fail the Treasury’s Home Affordable Modification Program (HAMP).
“Now that servicers have systems in place to administer the program they are removing delinquent loans from the foreclosure pipeline to allow a reasonable short sale time period,” the source told ForeclosureRadar. “Predictably (also my opinion) the period would be expiring just after the November elections so there would be less political blow back as those properties that don’t conclude with a successful short sale are taken to foreclosure and ultimately, REO.”
We love to hear praise for our team member’s hard work – and our buyers agents do work HARD! Here’s what a client had to say about our team member Ingrid Vargas at closing this week. He bought a home for his daughter in Purcellville, VA:
“Ingrid was great to work with. She was very responsive and knowledgeable about properties in the areas I was looking in. I would HIGHLY recommend her!” – Mr. Slocum
Great job Ingrid and thank you Mr. Slocum. Our home buyer website is www.jenniferyounghomes.com. Or you can call Ingrid directly at 703-965-9663.
NEW Short Sale listing! Fantastic Townhouse/Condo with garage on Rosebay Ter. in Aldie, VA, 3 bedroom/ 2.5 bathroom listed at $254,900. Homeowner bought their townhome during the height of the market and has faced a hardship. We’ll keep you posted on the approval and closure of this Short Sale! Call (703) 774-9572 or email Jennifer@jyhteam.com if you or someone you know needs help.
Whenever we receive a new approval letter, we like to post them so you can see the language the banks like to use. This short sale approval is for a short sale listing on Cobble Pond in Manassas, VA where the homeowner is expected to sell with the bank taking a loss of over $101, 000. You’ll want to check out the highlighted language though, since this is another way of the bank trying to hold onto the right to come after the homeowner for the deficiency at a later date. The big thing is, First Tennessee has used the language “charged off”. This is what will appear on the homeowner’s credit report instead of “foreclosed”. Now, the language also says “this short sale transaction should not be deemed as a waiver of any rights or claims…” The fact is, this is typical language, but we have not to this date seen a bank come after one of our clients for the remaining balance unpaid on their mortgage. Call me with questions (703) 774-9572 or email me at email@example.com.
ick on link here to see approval letter: First Tennessee Bank Approval 7.12.10
A Bank of America short sale that we’ve been negotiating since January abruptly hit the skids today, even though we had short sale approval secured. We are terribly disappointed for our clients and friends and have now connected them with the real estate agent assigned to handle the foreclosure sale – to at least gain some moving expenses through cash for keys negotiations. Here’s the basic time line of what eventually happened to make this short sale derail at the last minute…
If you are a real estate agent or a homeowner struggling to work out your mortgage troubles with Bank of America, you KNOW it is tough going. This case was no different. We listed the home, fought to stop the first foreclosure date (and did) and started making things happen. Months of negotiating continued and short sale approval on the 1st trust with Bank of America came in and the approval letter was uploaded into BofA’s “Equator” system used for short sales. Quickly after reviewing the approval letter, our negotiator noticed the sales numbers on the letter – stating what the home would sell for, who would pay for what, etc – were incorrect. With three days or so until the new (2nd) foreclosure date was scheduled (since the homeowner was still behind on mortgage payments) the negotiator pushed BofA to 1) correct their approval letter and 2) contact Fannie Mae to request another foreclosure STOP date. BofA worked to correct the letter and then said they made a request to stop foreclosure and we confirmed this with Fannie….but the foreclosure happened anyway. We were going crazy trying to figure out WHY? Well, the reason?? Fannie Mae informed our negotiator that they require the lender (BofA) to send over a “detailed explaination” of why the foreclosure date needed to be stopped. When Bof A requested the 2nd foreclosure stop, they did not include the “detailed explanation”. Foreclosure happened hours later.
We hate to see this happen to our clients and friends and we especially hate admitting to our losses, but the truth is, they do happen. Mistakes by lenders and negotiators happen – and we learn from them each time and conquer the next hurdle because of it. Bank of America is by far the toughest lender to work with in the short sale industry, but we HAVE closed BofA short sales and we’re still fighting on many more. Call me if you have any questions concerning this story or other news at (703) 774-9572 – or email firstname.lastname@example.org.
NEW SHORT SALE listing…Bright and Open townhouse on Prairie Willow Ln. in Centreville, VA 3 Bed/2.5 Bath listed at $399,900. Both 1st and 2nd trusts are with Wells Fargo Home Loans. We’ll keep you posted on the approval and closure of this Short Sale! Call (703) 774-9572 or email Jennifer@jyhteam.com if you or someone you know needs help.
Why Can It Be Tough to Get Short Sale Approval (or Foreclosure Postponed) When Mortgage Is Backed by Freddie Mac?
When homeowners are working against the clock to stop a foreclosure date, knowing who backs your loan can make ALL the difference! In the case of Freddie Mac backed loans, we find ourselves explaining to potential clients why it can take time to get the clock stopped. It’s because of how the system is set up.
Here’s how it works for Freddie Mac residential single-family mortgages: 1) A homeowner sends the monthly payment to the lender or a mortgage servicer that manages the payments, 2) the servicer keeps a small fee for managing the borrowers’ payments and sends the rest of the monthly payment to Freddie Mac, 3) Freddie Mac passes through the remainder of the mortgage payment to investors who hold its mortgage securities.
So, if your loan is backed by Freddie Mac, investors gave Freddie Mac the funds so you could get your mortgage. That means the servicer/lender (like Chase, Wells Fargo, etc) have to take your short sale package and pass it on to Freddie, who then passes it to the original investors involved to have EVERYONE agree to postponing the foreclosure date. Here are some links to help you find out if your loan is backed by government interests…
Wells Fargo Short Sale Just Listed in Leesburg, VA – Working to Negotiate $3,000 Moving Expenses for Client in Loudoun County
Homeowners in the Red Cedar and surrounding neighborhoods in Leesburg, VA bought in the height of the market and some are now having trouble making their payments due to ARM loans adjusting and/or hardships they’re facing. This is a Wells Fargo customer who owes much more than what the home can sell for. This listing is a stunning 4/BD/4.5BA home with many upgrades. We’re hoping to get the client a $3,000 cash incentive payment at closing from Wells Fargo – we’ll let you know how things are going once we have the home under contract. For more info call (703) 774-9572 or email email@example.com.
New short sale listing hitting today…condo on Bellforest Ct in Vienna, VA. 2 BD/2BA listed for $315,000. Both 1st and 2nd trusts are with Wells Fargo Home Loans. We’ll keep you updated. We closed 8 short sales in June and the approvals keep coming. Let us know if we can help you or someone you know. Call (703) 774-9572 or email firstname.lastname@example.org .
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We brought you the story of the HAFA short sale that was still headed to foreclosure even though the owner was approved for the new government short sale program. Well, the foreclosure was stopped just a day before foreclosure and now Wells Fargo has sent in the short sale approval letter and we’re scheduled to close on August 16th. So, the homeowner has time to make the transition and the closing will happen within 3 months total for the new buyers. Now, the item that is starting to becomea trend with Wells Fargo is their demand for cash at closing from the seller. If it had been a direct loan backed by Wells Fargo, that would not be requested by Wells. But this loan was backed by an investor, so Wells Fargo has asked for $5,000 cash from the seller at closing. Of course, we’re still working on negotiating this down and we’ll keep you posted. The biggest news for the seller is – they’re waiving deficiency and they’re not asking for a promissory note for the amount not paid off. Here is a copy of the approval letter:
For additional info on this case, here is the first article written on this short sale:
It’s was a last minute scramble to close this deal yesterday to help the buyers to meet their tax credit deadline…thanks to our short sale client for his ability to respond quickly. What some people asking about short sales is that fact that there are NUMEROUS deadlines to meet and if you miss a closing date, it can be costly and the deal could fall through all together! This home was located on Palmetto Bay Ct in Centreville, Virginia. The home owner bought in the height of the market in 2005 for $382K. The home sold yesterday for $261K…the bank took a loss of $121, 000. The homeowner was able to find a new rental home and start over fresh. This was the 3rd short sale closing this week for the Jennifer Young Homes team!! Congrats to my hard working group and to this homeowner on the successful short sale of his home…. firstname.lastname@example.org (703) 774-9572.
Bank of America Co-Op Short Sale Program Works to Pay Sellers CASH at Closing!
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About Jennifer Young
Jennifer Young is the CEO and Team Leader of Jennifer Young Homes with Keller Williams Realty. Jennifer is a highly experienced real estate agent and industry leader specializing in the Virginia, Maryland and Washington DC market. Jennifer sells Regular Sales, Short Sales, Foreclosures, Rural Residential & Land. Her team has helped hundreds of troubled homeowners for FREE! Call Jennifer today for a free consultation at (703) 651-5655 or email her.
Hear from our clients…
Jennifer Young was a great agent, especially because of the amazing team working behind the scenes. Her and her staff knew so much about short sales.
Jennifer Young sold our home for us in Fairfax, VA and did an incredible job. It was priced right and went under contract in less than 10 days.
We worked with Jennifer Young and her team when short selling our property. They were on-the-ball and completely on top of my case at all times. .