Congrats to our clients who are short selling their homewith the JYH Team in the Saratoga Hunt Neighborhood of Woodbridge, VA…both of their lenders have approved the transaction and we’re headed to closing. The sellers bought this home in 2007 for $625,000. The home is now under contract with a list price of $415,000. That’s a difference of over $200,000. Now, many times when homeowners in this same situation call to ask about how a short sale works, they will almost always ask how we manage to get both lenders to agree to the short sale. In this case and in many others, we request the main lender (1st trust) pay a certain percentage of the 2nd trust’s remaining balance so the second lender will release their rights to any money owed. That percentage can range anywhere from 7% to 15%, depending on what they counter us at. With this sale, the 2nd trust agreed and both lenders will report the mortgage balances “paid in full” and waive all rights to the unpaid $$. Congrats to our clients at this stage in the process. Here are the approval letters for research purposes. If you or anyone you know needs my help, call me at (703) 774-9572 or email me at me.

Exciting to see this one on Aquia Dr in Stafford making it to closing…after numerous snags. Bank of America changed their guidelines 3 times during the negotiations, but we stuck with it. This is a cash deal and the homeowners will be able to walk away from over $100,000 in debt since they owe that much more than what the home is selling for this month. Congrats to our sellers! For more information on short sales and how we can help someone you know who might need our help, call me at (703) 774-9572 or email me at me.

Great news from a friend of mine this week concerning her upside down mortgage…her lender, Bank of America, told her that her 2nd trust would be written off and paid in full! Here was her breakdown of the conversation with BofA…

“I just got back from Mexico yesterday. There was a FedEx package on my front door when I got home, and it was from bank of America. As most of you know, I bought my home in 2007 and am upside down on it. The package was a letter addressing my second trust and saying that the FULL second trust amount was being forgiven and that after 30 days I will no longer have a second trust. I was honestly floored and thought that it was some type of scam. Then I got a call from them today asking if I received it and wanting to make sure I wanted to accept. I asked a lot of questions and they said that my loan was part of the settlement that the  agreed to with the attorney generals regarding the robo signing. I asked why I was chosen and they said because my loan was with countrywide originally, it was chosen. She said that MOST second trust that were originally with countrywide will be totally forgiven and wiped away. I asked if there would still be a second lien on my property if I ever wanted to sell, and they said they will remove it totally from the title and will report it on my credit as paid in full!!” S.R.

For more information about short sales, 2nd trusts, Bank of America or anything else regarding upside down mortgages, feel free to call me at (703) 774-9572 or email me at me.

Our Short Sale on McKenzie in Manassas, VA has been approved by Virginia Housing Development Authority. We’ve been working with the sellers since the first of the year and this is their investment home. VHDA has agreed to waive their rights to the deficiency, but insisted on having a promissory note from the sellers to make up for part of the loss. Congrats to our clients on this next step in the process. We are expected to close on this property by the end of August. For more information on short sales in Virginia, call me at (703) 774-9572 or email me at me.

I read this and had to share…published by dsnews.com:

Parents going through foreclosure may see it as a nightmare, a broken promise of the American Dream. Many might try to hide the stress and the effects of foreclosure from their children to keep them from worrying. However, researchers from the Children’s Hospital of Philadelphia (CHOP) are saying that children may actually suffer because of foreclosure more than anyone.

According to a study conducted by CHOP’s PolicyLab and published Monday in the journal Pediatrics, there is a strong relationship between the rate of child physical abuse and local mortgage foreclosures. The study, titled “Local macroeconomic trends and hospital admissions for child abuse, 2000 to 2009,” found that overall physical abuse increased by 0.79 percent per year in the period between 2000 and 2009, while traumatic brain injury increased by 3 percent in the same time. This data, based on reports pulled from 38 children’s hospitals, stands in contrast to national child welfare data, which shows a decline in physical abuse.

“We were concerned that health care providers and child welfare workers anecdotally reported seeing more severe child physical abuse cases, yet national child protective services data indicated a downward trend,” said Joanne Wood, MD, MSHP, an attending physician at CHOP and lead author of PolicyLab’s report. “It’s well known that economic stress has been linked to an increase in child physical abuse, so we wanted to get to the bottom of the contrasting reports by formally studying hospital data on a larger scale.”

Researchers found that each 1 percent increase in 90-day mortgage delinquencies over a one-year period was associated with a 3 percent increase in hospital admissions due to child physical abuse and a 5 percent increase in admissions due to traumatic brain injury suspected to be caused by abuse.

According to another report written by researcher Julia Isaacs for First Focus and the Brookings Institution, foreclosure affects more than eight million children in the United States: An estimated 2.3 million are living in homes that have already been foreclosed on, and another 6 million live in rented or owner-occupied homes at risk of foreclosure. Isaacs also points out that the information the report is based on focuses on outdated loan statuses for loans between 2004 and 2008; noting this, she calls the 8.3 million estimate “conservative.”

Physical abuse is not the only issue faced by children in families suffering from foreclosure. Isaac’s report cites research dating as far back as the Great Depression which shows that financially distressed parents are more likely to engage in harsher and less supportive parenting, making it more difficult for children to interact with others. Furthermore, studies found higher rates of emergency room visits in zip codes with high foreclosure rates, pointing to the physical toll taken by stress and the need to postpone medical expenses.

Analyzing the data of Isaac’s report and the Pediatrics study, Wood and the PolicyLab team called for more collaboration between child welfare agencies and hospitals so that both can have a better idea of the extent to which abuse occurs in communities hit hard by foreclosure. They also noted that public agencies working with vulnerable children and families would be better equipped to prevent abuse if they had better working knowledge of the risk factors.

“Two major themes emerge from this study,” said Wood. “First, we see a clear opportunity to use hospital data along with child welfare data to ensure a more complete picture of child abuse rates both locally and nationally. Second, the study identifies another economic hardship–mortgage foreclosures–that is associated with severe physical abuse. As the foreclosure crisis is projected to continue in the near future, these results highlight the need to better understand the stress that housing insecurity places on families and communities so that we can better support them during difficult times.”

Thanks to our clients in Alexandria, VA who posted this review for us on Zillow.com http://www.zillow.com/profile/Jennifer-Young-Homes/Reviews/. Here’s what they had to say about our service while selling their short sale in Alexandria:

“The professionalism displayed by all members of the JYT (Jennifer Young Team) was beyond reproach. Their commitment and dedication to their client was impressive and at all times kept their client abreast of any information pertinent to the sale. I doubt that any firm could have better represented their client and acted in their best interest. I highly recommend JYT and would be first to say that if you need a firm to represent you in a short-sale, JYT is the team that you need on your side. I wish to sincerely thank every member of the team for their outstanding representation and commitment to insure client satisfaction and unparalleled service.” J.M.

For more information about short sales and how we can help you or someone you know, call me at (703) 774-9572 or email me.

Congrats to our clients who sold their investment home with us in Parkville, MD as a short sale. The lender was Wells Fargo and we negotiated a full deficiency waiver with them on our client’s behalf. The sellers bought this investment property in 2007 for $240,000…the current market dictated we sell it this month for $118,000. Approval letter from Wells Fargo are below. For more info on this sale or if you know someone that might need my help, call me at (703) 774-9572 or email me at me.

Successful Suntrust Short Sale – Jennifer Young Homes

Seller Walked Away from Owing Over $150,000 on Their Upside Down Mortgage!

All deficiency rights have been waived by Suntrust on this short sale. Our clients bought this home on Cheyenne Knoll in Alexandria, VA at the height of the market and owed over $576K. We just sold it for $420,000. Congrats to our sellers! Here is the testimonial from this seller: “Jennifer Young’s group at Keller Williams is just AMAZING!! They took care of us through the extremely difficult short-sale process and we were able to successfully sell our property in 6 months. Their negotiator, Edson, is very experienced and had the right industry connections to get our contract approved by our leaner in record time. He was very responsive and informative throughout the entire process. From start to finish, we felt we were in good hands with the team’s coordinators, Leslie and Bethany, whom guided us through the process with thorough explanations and realistic expectations. Through this stressful process the group’s expertise and personalized instruction was very helpful and appreciated. We were extremely luckily and grateful to have found this real estate group to help finally get our home short sold.” J&S

For more info on this case or to talk about your own situation, call me at (703) 774-9572 or email me at me.

This home just listed with us as a short sale on Churchill Glen Dr in Chantill, VA was referred to us by a very happy past client. This home is one of the largest in the neighborhood (over 5,000 sq ft finished) and is already pre-approved by Bank of America to sell fast. Ask about seeing this home today – great find – $725,000! For more info on these types of sales or if you know someone who needs our help, call me at (703) 774-9572 or email me at me.

Congrats to my awesome team for raising the bar in 2011 – taking us to #81 in the Nation for Sales Volume!

In just one year, we closed over $80 Million in sales. It takes incredible teamwork to make that happen – thanks so much everyone! The reviews we receive say it all. Check out my profile on Zillow.com, where Jennifer Young Homes is ranked as a “Premiere” team: http://www.zillow.com/profile/Jennifer-Young-Homes/Reviews/

Both Freddie Mac and Fannie Mae will be offering additional consideration to military personnel who may be facing problems with their mortgage due to service related orders.  The two GSEs were directed to address mortgage servicer practices that pose risks to home owning service members and to ensure compliance with applicable consumer laws and regulations. The “guidance” came from regulators the Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation and other regulators.

The guidance pertains to risks faced by homeowners who have received Permanent Change of Station (PCS) orders, that is have been ordered by the military to relocate to a new duty station or base.  Such orders are received by about one-third of active-duty service members each year.

PCS orders are non-negotiable and carry short, strict timelines.  Homeowners with such orders, however, are still obligated to honor their financial obligations including their mortgages.  In the current environment, with so many homes underwater, these service members may be unable to sell their homes and obtain sufficient funds to pay off the mortgage debt and may have to continue mortgage payments while making rent or other housing payments in their new location.

Under the new guidelines, receipt of a PCS will be treated as a hardship for the purpose of qualifying for a short-sale even if the homeowner is current on the existing mortgage.  Military with PCS who complete a short sale will be exempt from deficiency judgments from Fannie Mae and Freddie Mac and relieved of any request or requirement to contribute cash to the sales proceeds or to sign a promissory note for any outstanding balance as long as the property was purchased on or before June 30, 2012.

In addition to holding PCS order, the homeowner must have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac to be eligible for the program.  The status of the mortgage can be current or delinquent.  Freddie Mac and Fannie Mae were instructed by regulators last year to treat PCS orders as a hardship for purposes of modifications and forbearance.

Paul Mullings, Freddie Mac’s Interim Head of Single Family Business and Information Technology said, “Freddie Mac is proud to support this important new effort to help servicemen and women when national duty requires them to sell their homes in an uncertain market.  We look forward to working with our servicers on this new short sale policy.  Together we can help ease the challenge of relocation for military families when Permanent Change of Station orders are received.”

The Federal Housing Finance Agency said it would provide final guidance by September 30 and the short-sale reforms would be effective 60 days later.

For more info on short sales call me at (703) 774-9572 or email jennifer@jyhteam.com.

Don’t miss this brand new listing in Manassas! Located on Yoder St in the Oakenshaw neighborhood, this home is priced right at $319,000. Call for showing today – and if you’d like more info on how you or someone you know can short sale in Virginia, call me at (703) 774-9572 or email me.

Successful HAFA Short Sale – Chase Bank and Citi Mortgage Short Sale SOLD in Alexandria, VA

Congrats to our client who successfully took advantage of the government’s HAFA Short Sale program last week! He received $3,000 in relocation assistance and his unpaid mortgage balances were written off and deficiencies waived. Our seller paid over $400,000 for his home on Huntley Creek in Alexandria, VA in 2006, but just SOLD for only $275,000. For more info on short sales and how you can take advantage of the HAFA program, call me at (703) 774-9572 or email me at me.

The Home Affordable Foreclosure Alternatives program, which is part of the Obama Administration’s Making Homes Affordable program, has been extended one year and now covers rental properties.

Launched in 2009, HAFA was designed to help distressed homeowners avoid foreclosure and includes a $3,000 relocation incentive for the seller. It also ensures that the outstanding loan balance is forgiven. Now, HAFA was predicted to help millions, but has only been used on about 40,000 short sales. The Jennifer Young Homes team has closed numerous HAFA short sales, each one with its system snags…but a great program all around. Here are the details of HAFA updates:

The U.S. Treasury Dept. on March 9 and April 17 issued Supplemental Directives 12-02 and 12-03, which included wide-ranging changes to the program “in an effort to continue to provide meaningful solutions to the housing crisis.” The changes, which took effect June 1, include:

EXTENSION: The HAFA program has been extended through 2013. To be eligible, an initial package must be submitted on or before Dec. 31, 2013, and the transaction must be closed on or before Sept. 30, 2014.

OCCUPANCY: The program is now available on investment properties. Previously, HAFA guidelines required that the applicant occupied the property as a primary residence, though they still qualified if they had moved out within the previous 12 months.

RELOCATION INCENTIVE: It remains at $3,000, but the incentive will only be paid to: Owner-occupants, Tenants who will be required to vacate after the sale, The borrowers’ legal dependents, parents or grandparents who live in the property rent-free, and who will relocate.

Investment property owners are not eligible for the incentive.

JUNIOR LIENS: The amount allowed to pay off a junior lien, such as a second trust deed, has been increased to $8,500 from $6,000.

Note: The HAFA program has often been rejected because the junior lienholder was unwilling to accept $6,000 payoff because it was less than 10% of outstanding balance. Though the new $8,500 limit is a greater incentive for junior lienholders, HAFA still may not be viable for homeowners who have large home-equity loans.

MILITARY DEPLOYMENT: Owner-occupancy guidelines have been expanded to include active military members who have been deployed or forced to relocate for service, as long as the home was their primary residence, they plan to move back in after their service is completed, and the home is not occupied by a tenant.

MORTGAGE LATES: Homeowners do not have to be delinquent on their payments to apply. And the homeowner can elect to make full payments during the short sale process, in order to stay current on their loan.

***The Treasury’s version of the HAFA program does not apply to all mortgages. Loans owned, insured or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or the Rural Housing Service are not eligible for this program.

***Fannie Mae and Freddie Mac have their own versions of the HAFA program, and they have not adopted the frequent updates along with the Treasury.

Alexandria Short Sale Approved by Suntrust

Seller More Than $156,000 Upside Down on Mortgage!

All deficiency rights are being waived on this one as well. These sellers are more than ready to get to closing on this short sale on Cheyenne Knoll in Alexandria. The subdivision is Windy Hill at Lincolnia…they bought at the height of the market and owe over $576K. We currently have it listed for $429,900 and it is expected to close this month. The approval letter on this one is below. Note that if the short sale does not make it to closing for some reason, the sellers have agreed to sign a Deed-in-Lieu with Suntrust within 15 days. We DO NOT want to see that happen. For more info on this case or to talk about your own situation, call me at (703) 774-9572 or email me at me.

With rules that take effect in a few days, federal regulators have hopes of greatly streamlining the short-sale process.

According to The New York Times, Starting June 15, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, will require both agencies to give short-sale buyers a final decision within 60 days. (In a short sale, a lender agrees to accept less than the balance on a mortgage.)

Fannie and Freddie must also respond to initial requests for a short sale within 30 days of receiving the buyer’s submission.

In March, the most recent month for which data were available, short sales represented more than 14 percent of existing home sales, according to CoreLogic, a data analytics company, compared with 12 percent for all of 2011 and about 10 percent in 2010. And as the number of short sales has risen, foreclosures have fallen. Completed foreclosures represented 25.3 percent of home sales in March, versus 34.9 percent in all of 2011 and 42.7 percent in all of 2010.

Lenders favor short sales because they are less costly and more efficient than foreclosures. Yet the homeowners, trying to exit as gracefully as possible, never know how long the process will take or how badly their credit will be hurt. Both short sales and foreclosures remain on the credit report for seven years — but foreclosures don’t appear until the legal paperwork is filed, and that could take months, Mr. Griffin said.

As for the actual credit score, the effect was measured in an analysis by VantageScore, a provider of credit scores used by lenders. The higher the credit rating a consumer has, the more points he or she would lose in a short sale. If consumers started with, say, an 830 score, they would most likely lose 100 to 110 points from a short sale, 120 to 130 points from a foreclosure. But a homeowner with a 625 score, who is behind on his mortgage and some credit card payments, would lose 15 to 25 points from a short sale and 10 to 20 points from a foreclosure, the VantageScore analysis shows.

8 Short Sales SOLD in May by Jennifer Young Homes Team – Virginia Short Sale Experts!

In just one month, we were excited to help 8 clients and their loved ones sell their home for LESS than what they owed on their mortgages. Just last week we closed one of those sales in Winchester, VA where the seller owed over $220,000. In the end, the current market dictated it be sold for $127,100. This was a Fannie Mae backed mortgage and they were set on foreclosing, but we stuck with it and matched a buyer that was willing to commit to the wait involved. Here is an approval letter from HSBC on this short sale. If you or anyone you know needs our help, call me at (703) 774-9572 or email me at me.

Successful Short Sale in Alexandria, VA – Bank of America Waived Deficiency Rights on Short Sale of Condo in Sentinel of Landmark!

Our seller bought in 2004 for $226,000, but he was forced to sell in the current market on Friday for $159,000. Lender was Bank of America and we went through numerous approvals and extensions, but finally got to closing with B of A with them agreeing to waive all rights to unpaid balance (deficiency waiver). Here is a copy of the approval letter. If you know anyone who needs our help, call me at (703) 774-9572 or email me at me. Hear from this client about our work: “I believe Jennifer Young and her team are best in town dealing with Real Estate transactions. Her team was so dedicated to our complicated case that they were there with every step to explain the situation and with possible solutions.” R.M.

Jennifer Young’s 139th Short Sale SOLD Today in Purcellville, VA! Lenders: One West Bank (Indymac) & Citi Mortgage

Congrats to our clients who sold their home in the Hirst Farm Neighborhood on Towering Oak Ct in Purcellville. This one was plagued by lender delays, repeat BPO requests and buyers who backed out, but we stayed with it and closed thanks to the patience of our sellers who will now walk away from their mortgages equaling over $750,000 (refinanced in 2006 – sold this week for $469K).

Here is the approval letter from One West Bank for your research purposes:

Call me at (703) 774-9572 or email me if you’d like to discuss your options.

Fredericksburg, VA Short Sale SOLD – Chase and Citi Mortgage Agree to Waive Deficiency Rights After Selling Short!

Congrats to our seller who bought this town home on Batley Court in Fredericksburg, VA in 2005 for $275,000 – but short sold with our team this week for a sale price of $135,000. We were able to negotiate a debt settlement with the 2nd trust (Citi Mortgage) outside of the short sale to move this file along faster. Both her 1st trust (Chase) and the 2nd trust agreed to waive rights to unpaid balances! If you know anyone who needs our help, call me at (703) 774-9572 or email me at jennifer@jyhteam.com.

Hear from our client on this short sale…“The Jennifer Young team did a wonderful job of helping me with my short sale! They were very knowledgable about the short sale process and kept me updated on the status of my case. They worked so hard to make the deal happen and managed to negotiate a short sale deal for me with two different banks because I had a first and a second mortgage on the property. I would definitely recommend their services to others looking to complete a short sale!” a.w.

Chantilly, VA Short Sale Approved by Bank of America – Deficiency Rights Waived for Short Sale of Condo!

This seller was planning to file for bankruptcy but the bankruptcy attorney told her to try a short sale first with our team. We listed the property and quickly received an offer on 03/30/12. Bank of America investors requested seller to contribute $5,000 toward their loss and seller accepted.With everyone in agreement, the file has been approved and all deficiency rights have been waived!! Here is the approval letter. If you or someone you know needs our help with a short sale in Virginia, Maryland or DC, call me at (703) 774-9572 or email me at me.

Short Sale SOLD in Centreville, VA – Short Sale Was Prompted by the Lender and Closed Quick

Congrats to our clients who we  just helped to close on their short sale on William Colin Ct in Centreville, VA today! The neighborhood is Stonegate at Faircrest Condos. I have to say, this one of the most efficient files I’ve ever worked. We received the complete short sale package on 02/03/12. Seller was advised directly by HSBC to try and short sale his property before jumping into a Deed in Lieu situation. So, seller contacted us after checking out other agents, he signed the listing agreement and then we sent it on to our contacts at HSBC. With the listing agreement in the system, the lender ordered the bpo/appraisal and we listed the property at the price dictated by HSBC. We received a ratified offer and everything went smoothly from there. On 02/28/12 the short sale was fully approved with all deficiency rights being waived. It’s always great to see the lenders be proactive in the best interest of their customers. Most stories we hear from homeowners involve their lender stonewalling them…some even say their lenders told them, “You signed the papers and got yourself into this, just pay your bills.” Of course, no one knew how much the market would fall. These sellers bought in 2005 for $355,000…and as you can see, the market dictated that it sell today for only $200,000. Thanks to HSBC and congrats to our clients as they start their new life journey.

See their comments to our team…”Jennifer Young’s team is fantastic! I have a growing family and needed to buy a bigger home. I was underwater in my current home and needed to short sale. I dealt with my bank on my own for two years and always got passed around or was never able to speak to anyone that could make decisions. Jennifer’s team knew exactly who to talk to at my bank and successfully negotiated our short sale with the best possible terms. They took care of everything. They have a team dedicated to selling short sale properties, and a person whose main focus is negotiating with banks. I wish I had gone to them sooner. They knew everything about the process. Jennifer’s team also helped me buy my new house. Her agents are very knowledgeable of the Northern Virginia are, and are aggressive at negotiating the best deal. I have been telling all my friends about Jennifer Young’s team. Thanks to them my family now has a bright future and the weight of an underwater property is off our shoulders.” C.F.

If you know anyone who needs our help, call me at (703) 774-9572 or email me at me. Here is the approval letter for research purposes:

We’re getting closer to closing this short sale on Tutts Mill in Culpeper, VA. The 1st trust is with Nationstar and the 2nd is with Bank of America. Both have agreed to short sale after a long negotiation process and all deficiency rights have been waived by the lenders. Here are the most updated approved letters. If you or anyone you know need our help in getting out from under an upside down mortgage, call me at (703) 774-9572 or email me.

Thanks to our short sale client in Manassas, VA who sent in a review to www.Zillow.com today about our service. It was a pleasure to work with him on the sale of his home in Manassas. Here were his great remarks:

“This team worked constantly to get my house sold. They went above and beyond my expectations. It was a short sale with two mortgage companies and one of the mortgages got sold TWICE during the process…making everything much harder and longer. The overall process was almost 11 months long. The Jennifer Young team pulled though, got approvals and made sure that we went to closing on time! They never gave up…even when things were not looking very promising. Highly recommend them! Huge thanks to Leslie who did everything humanly possible to make this all happen!” c.f.

If you know anyone who needs our help, call me at (703) 774-9572 or email me.

Many homeowners who are upside down on their loan and having trouble making mortgage payments are getting phone calls from a company called Dignified Transition Solutions and being told about a new program called Streamlined Cooperative Short Sale Program…some of our callers are asking what this program is and what their options are.

Here are a few facts about the Company and the Bank of America program they offer:

–    The Streamline Cooperative Short Sale Program offers borrowers an opportunity to complete a short sale in a shorter than average time with very little paperwork required. Additionally, the borrower can receive a $2500 incentive from Bank of America to complete the Short Sale.  Reviews across the country are mixed.

–    To qualify for a Streamline Cooperative Short Sale from Bank of America you need to be selected by Bank of America and submit the appropriate agreement.

–    Dignified Transition Solutions is a privately held company that was started by former Bank of America executives and it hand picks real estate agents in the sellers market area to list short sales and, as a third party company, receives a portion of the sales proceeds…much like REO servicers that assign REO listings to area agents.

As it stands, if you receive a call from DTS, you have been tagged as a potential short sale client – but you do not have to work with DTS to short sale your home. Call me if you’d like to explore all your options concerning your mortgage nd find out how the system works. We can help at NO COST to you. I can be reached at (703) 774-9572 or email me. Our team has sold over 100 short sales in Virginia, Maryland and DC. Always be sure to ask how many short sales an agent has listed, under contract and/or sold in your area before hiring him or her.

(DSNews.com) Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days. The new guidelines, released this week, are aimed at bringing greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, it also keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.

If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.

In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response.

GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

To find out if your loan is backed by Fannie Mae or Freddie Mac, click on the links below:

Does Freddie Mac Back My Loan?

Does Fannie Mae Back My Loan?

Manassas Park, VA Short Sale SOLD by JYH Team – Lenders on Investment Home Were JP Morgan Chase & Seterus

Congrats to our clients who just closed on the short sale of their investment home at 9700 Elzey Place in Manassas Park, VA! The 1st Trust was with Seterus (www.seterus.com) and the 2nd was held by JP Morgan Chase. Both approved the short sale, with some special stipulations. Sellers were asked to bring some cash to closing, but little compared to full forgiven debt. Sellers bought the home in 2006 for over $343,000 – we just sold it at current market value of $146,162. That’s a difference of nearly $200,000. Here are the approval letters for your research purposes. Call me at (703) 774-9572 or email me at jennifer@jyhteam.com if you or someone you know may need our help. For quick contact, my QR Code for Smart Phones is also attached here.

Woodbridge, VA Short Sale SOLD by JYH Team – Bank of America Approved $2,500 in Relocation Assistance for Seller!

We closed on our client’s short sale yesterday on Cressida Place in Woodbridge, VA after an unexpectedly longer negotiation process with Bank of America. This one took 6 months, even though the lender had appraised the home ahead of time AND approved the sale price for a short payoff. Our client bought the home for over $313,000…we sold it for $180,000. (BofA originally wanted the home listed for $200,850.) In the end, we were able to secure $2,500 in relocation assistance for the seller, some of which they needed to use on unexpected costs, like past due HOA fees. BofA also agreed to waive deficiency rights. Congrats to our clients! For more info on this case or if you know anyone who needs our help, call me at (703) 774-9572 or email jennifer@jyhteam.com . Here is a copy of the instructions sent to our seller when BofA first told them to list their home as a short sale.

Cressida Short Sale Instructions from BofA

HAFA Short Sale Approved by Bank of America in Locust Grove, VA – Deficiency Rights Waived!

After 9 months of negotiations, our sellers’ short sale on Lakeview in Locust Grove, VA is headed to closing. Our clients owe more than $250,000, but have an approved sale price around $109,000. This is a HAFA short sale and Bank of America has agreed to waive deficiency rights to the unpaid mortgage balance. Here is the approval letter – if you know anyone who needs our help, let me know at me or call me at (703) 774-9572.

Our 106th Short Sale closed today after 4 months of negotiations. Our client bought this home for $560,000 in 2005, but just sold for $380,000. The lender for the 1st trust was American Home Mortgage Servicing Inc.  and the 2nd trust was held by GMAC Mortgage. Both formally approved the short sale this month and agreed to waive all deficiency rights. Here are the approval letters for more info…if you or anyone else you know needs help selling their home for less than they owe to their lender, call me at (703) 774-9572 or email me at me.

Another successful short sale – this one on Stratton Major in Centreville, VA. Our clients bought in 2006 for $642,000 and we sold it days ago for $450,000. We went back and forth quite a bit with the lender, Chase Mortgage, but they agreed to work with us and they granted our sellers a deficiency waiver on the unpaid balance. Below is the approval letter for your review. If you’d like more information on how to short sale your home or you know someone who needs our help, call me at (703) 774-9572 or email me at me.

Congrats to our client who just Short Sold their town home with us on Forest Pond Ct in Centreville, VA. The lenders, Green Tree and PNC Bank, both waived deficiency rights and the seller only had to bring $750 to closing. Our seller bought this home in 2006 for $330,000 – we sold it for her for only $215,000. Here were her words of thanks to the Jennifer Young Homes team – thanks Christina…

“Hello all!  Just wanted to say THANK YOU for all your efforts in selling our property. Woohoo!  Almost a year later, but it is done!  I appreciate all your hard work!” Thanks, Christina

If you or anyone you know might need our help, call me at (703) 774-9572 or email me.

Manassas Park, VA Short Sale Approved by Seterus and JP Morgan Chase – Jennifer Young Homes

This Condo Short Sale at 9700 Elzey Place in Manassas Park, VA is headed to closing next month! 1st Trust is with Seterus (www.seterus.com) and the 2nd is held by JP Morgan Chase. Both have approved the short sale now, with some special stipulations. Sellers are being asked to bring some cash to closing, but little compared to full forgiven debt. Sellers bought the home in 2006 for over $343,000. Today’s market dictated our listing price at $119,900. That’s a debt forgiveness of over $120,000. Here are the approval letters for your research purposes. Call me at (703) 774-9572 or email me at jennifer@jyhteam.com if you or someone you know may need our help. For quick contact, my QR Code for Smart Phones is also attached here.

Distressed Homeowners Could Face a Painful Tax Bill Without Law Extension By Kenneth R. Harney

Given the huge public and private resources being devoted to helping financially distressed homeowners — including the recently announced $25 billion national mortgage settlement with five major banks — you might assume that a key federal tax-law benefit underpinning these efforts would be a shoo-in for renewal.

But it’s not. The Mortgage Forgiveness Debt Relief Act is set to expire in 10 months, and there are early indications on Capitol Hill that it might not make the cut. The law, first enacted in 2007, allows homeowners who have received principal reductions on their mortgages as the result of loan modifications, short sales or foreclosures to avoid income taxation on the amounts forgiven.

Loss of that tax help would endanger huge numbers of distressed mortgage arrangements in the months ahead. For example, the $25 billion mortgage settlement with state attorneys general requires the banks to provide more than $10 billion in principal reductions to borrowers. Meanwhile, other lenders and mortgage servicers that are not parties to the settlement already provide principal reductions to troubled borrowers. Many of these owners would face hefty and ill-timed taxable-income hits in the event the law is not extended.

Yet election-year politics and a contentious lame-duck congressional session loaded down with tax and budget issues could doom renewal of the debt-relief legislation and put large numbers of loan modification participants deeply in the hole. Republican strategists say the cost of continuing the program — $2.7 billion for two years — is substantial enough to catch the eyes of budget-deficit hawks.

Beyond that, they add, some members of Congress may be opposed to what they see as still another targeted federal benefit for people who didn’t pay their mortgages — a benefit subsidized by taxpayers who did the right thing and stayed current on their loans even while underwater or facing severe financial distress.

Douglas Holtz-Eakin, president of the center-right American Action Forum, former director of the Congressional Budget Office and economic adviser to Sen. John McCain’s 2008 presidential campaign, said in an interview that there is “a powerful sentiment,” especially among conservative freshman House members supported by the tea party, that tax-code “bailouts” to delinquent and underwater homeowners are fundamentally unfair.

“It’s going to be an uphill fight” to get an extension through, he predicts.

Real estate and housing groups are worried about the same political dynamics and are gearing up campaigns to try to save the tax provisions in advance of the November elections and well before the expected year-end squeeze. Some industry lobbyists put the odds of getting a pre-election, stand-alone extension bill through Congress at less than 50-50.

Here’s what’s involved, and how it might affect someone who is contemplating a short sale or loan modification that involves debt forgiveness:

Prior to 2007, all cancellations of debt by creditors — whether on auto loans, personal loans or mortgages — were treated as taxable events under the federal tax code. If you owed $200,000 but paid off only $150,000 through an agreement with the lender, the $50,000 difference would be ordinary income, taxable at regular rates.

Under the debt relief law for qualified homeowners, married couples filing jointly can avoid taxation on forgiven mortgage amounts up to $2 million; the limit is $1 million for single filers. To be eligible, the debt must be canceled by a lender in connection with a mortgage restructuring, short sale, deed-in-lieu-of-foreclosure or foreclosure. The transaction must be completed no later than Dec. 31.

That impending deadline — and the risk that Congress won’t reauthorize the law in time — already has real estate professionals and tax planners on edge. “This is serious,” said Harrison K. Long of Coldwell Banker Residential Brokerage in Irvine, Calif. “Anybody thinking about doing a short sale this year needs to get moving on it now,” given the long timelines needed to complete such transactions — often from four to 12 months.

Picture this scenario: You negotiate for months with your lender, realty agents and potential buyers. Finally you pull together a short-sale package calling for the bank to forgive $100,000. But the deal runs into hitches and doesn’t go to closing until after the Dec. 31 expiration date. Now your house is gone, your credit is shot, you’re looking for a place to rent and the IRS demands taxes on your phantom “gain” of $100,000 on the sale.

For more information about YOUR situation and how you can get your home short sold before The Mortgage Forgiveness Debt Relief Act expires, call me at (703) 774-9572 or email me at me.

JP Morgan Chase Short Sale SOLD in Burke Centre – Burke, VA Short Sale Success!

The lender for both trusts on this short sale listing on Quiet Pond in Burke, VA is JP Morgan Chase. They are currently owed over $400K, but we SOLD it as a short sale for $238,000. We received the file in March of 2011 and the foreclosure date had been set already, but we helped the owner get approved with HAFA and we were able to help stop the foreclosure without an actual contract in on the property. During negotiations, the lender actually agreed to pay the sellers a cash incentive at closing of $20,000. They were excited at first, but after talking with a tax professional, they decided to skip the incentive and lower the selling price to help with possible appraisal issues before closing. The deficiency rights are waived and the sellers were NOT asked to bring money to closing. Here was their note to us after closing:

Hi all,

We wanted to take the opportunity to extend our appreciation for all the help you have provided throughout the short sale process.  There were very challenging times and tedious to say the least, but you helped us get through it.  Without your help it wouldn’t have been possible.  For that we will always be grateful.

I think the wide smile on our faces at the end of closing should have said tons – for those that weren’t present – A SINCERE THANK YOU!

Thank you all again!
Sincerely,

The Reyes

Thanks to our clients for placing their trust in us! If you know anyone who might need our help, call me at (703) 774-9572 or email me at me. If you would like a referral to a tax professional with short sale experience, email me and I can get you that info as well.

Woodbridge, VA Short Sale Approved – HSBC Waives Deficiency Rights!

We’re weeks away from closing on this short sale on Esquarre Ct in Woodbridge, VA. Sellers bought in 2004 for $235K and now we are listed for sale at $174,900. We were also able to help the sellers negotiate a “rent back” so they can stay in their home until school wraps up. All deficiency right waived by HSBC. Here is the approval letter – call me if you have any questions (703) 774-9572 or me.

Seller Decides to Pass on $20,000 Cash Incentive from JP Morgan Chase Because of Taxation Costs!

The lender for both trusts on this short sale listing on Quiet Pond in Burke, VA is JP Morgan Chase. They are currently owed over $400K, but we listed it at only $260K. We received the file in March of this year and the foreclosure date had been set already, but we helped the owner get approved with HAFA and we were able to help stop the foreclosure without an actual contract in on the property. During negotiations, the lender actually agreed to pay the sellers a cash incentive at closing of $20,000. They were excited at first, but after talking with a tax professional, they decided to skip the incentive and lower the selling price to help with possible appraisal issues before closing. The deficiency rights are waived and the sellers are NOT asked to bring money to closing. If you know anyone who might need our help, call me at (703) 774-9572 or email me at me. If you would like a referral to a tax professional with short sale experience, email me and I can get you that info as well.

Centreville, VA Short Sale Approved – Chase Agrees to Deficiency Waiver!

This has been a tough one, but if all goes as planned, we will  close on it in the next couple of weeks. Our client bought this home on Stratton Major in Centreville, VA in 2006 for $642,000 and we are now listed for sale at $449,900. We went back and forth quite a bit with Chase, but they have now agreed to short sell and grant our clients a deficiency waiver. Below is the approval letter for your review. If you’d like more information on how to short sale your home or you know someone who needs our help, call me at (703) 774-9572 or email me at me.

Loudoun County Short Sale Specialist – New Listings from Jennifer Young Homes

LO7751913 – LOUDOUN

21062 HAWTHRONE CT, STERLING, VA 20164

Woodland Village Neighborhood

4bed/2.5bath   2,848 sq ft

$365,000

LO7745368 – LOUDOUN

20373 COTTSWOLD TER #75, STERLING, VA 20165

4bed/2.5bath   2,778 sq ft

Medinah Homes Neighborhood

$399,900

LO7745385 – LOUDOUN

47795 SCOTSBOROUGH SQ #119, STERLING, VA 20165

3bed/2full bath/2half baths

3,168 sq ft

Medinah Homes Neighborhood

$399,900

Another HSBC Short Sale Approved in Winchester, VA – All Deficiency Rights Waived!

We started this file in September 2010, receiving three offers in the lows 120s price range…but all of them were denied by the investor backed HSBC loan. Then on June 2011 we were informed that the investor (Fannie Mae) wanted to move forward with the foreclosure, so we pushed even harder. On 12/05/11 we ratified ANOTHER offer and managed to get the file assigned to the same negotiator that denied the file three times before…this time it was approved! In this case, the seller bought in 2006 for $272,500 – we listed it for sale at $125,000. Here is the approval letter for your review. If you know anyone who needs our help, feel free to call me at (703) 774-9572 or email me at me.

JP Morgan Chase Agrees to Pay a $20,000 Short Sale Incentive to Seller at Closing!

This short sale listing on Quiet Pond Terrace in Burke, VA is approved and with great news for the seller – a $20,000 incentive payment! The lender for both trusts is JP Morgan Chase and they are currently owed over $400K, but we listed it at only $260K. We received the file in March of this year and the foreclosure date slot machines had been set already, but we helped the owner get approved with HAFA and we were able to help stop the foreclosure without an actual contract in on the property. In the end, we were ratified a couple of times with different buyers and the lender did counter us on the high end twice – once at $300K and another time at $315K. But, with a strong rebuttal and the demand by us for a new negotiator, we got this one approved. Deficiency rights are waived and the sellers were NOT asked to bring money to closing. Here is the approval letter on this one…if you know anyone who might need our help, call me at (703) 774-9572 or email me at me.

Another Bank of America Short Sale SOLD in Fairfax – Condo Short Sale Expert Jennifer Young – Deficiency Rights Waived!

This is our 4th Short Sale Approved in East Market at Fair Lakes in Fairfax, VA. This is a great newer complex that a lot of buyers moved into during the height of the market. In this case, our client bought in 2007 for $470K with Bank of America – 2 trusts, with second being a HELOC. Our client successfully bought a new home in Maryland before short selling this condo, which he considered renting out, but rents in this neighborhood at the time were only around $2,000 while his monthly mortgage payment was closer to $3,300. So – he listed as a short sale with us and we closed on the sale on Friday for list price of $335,000. If you know anyone who might need our help with the short sale process, have them call me at (703) 774-9572 or email me at me. Here is the approval letter for this case:

Herndon, VA Short Sale SOLD – Deficiency Waived on Investment Short Sale!

Congrats to our client who closed on their short sale this week for an investment home on Clearwater in Herndon, VA. This short sale was in the Four Seasons Regime neighborhood. Our client had been renting this property out since 2006, but current rent prices would no longer cover the mortgage and he needed to sell. He owed Bank of America over $330,000, but the market dictated we sell for $202,000. BofA approved the short sale and waived ALL deficiency rights! Here is the 1st page of the approval letter for you to see. Call me at (703) 774-9572 or email me at me if you need help with your underwater investment home.

Manassas Park Short Sale SOLD – Lender Waived Over $150,000 Deficiency!
We just closed on a short sale we’ve been working since June of this year. The listing is on Wheats Way in Manassas Park and the homeowner bought in 2006 for $314,000. We listed the home comparable to the neighborhood at a price of $149,900.  The lender was originally EMC, but was transferred mid-process to Chase and we had to start all over. Congrats to our sellers and buyers. If you know anyone who needs our help, they can call me at (703) 774-9572 or email me at me. Approval Letter is here for your review.

Chase Military Department Works with Jennifer Young Homes to Stop Foreclosure and Short Sale Townhouse in Woodbridge, VA!

It’s always great to see lenders be proactive and flexible when it comes to actually helping their clients avoid foreclosure! This is expected to be an awesome outcome (still have to make it to closing of course) for our active duty military client who is currently deployed overseas. Chase Bank currently has a military department that works specifically to help active duty members and veterans avoid foreclosure and even get qualified for a home loan (see link to more info below). This seller’s home is located on Avocet in Woodbridge. He owed $419,000 and SOLD with us months ago for only $270,000.Chase is the 1st trust and Citi Mortgage the 2nd. Both lenders also waived deficiency rights. Approval letter below – if you know anyone who needs our help, call me at (703) 774-9572 or email me at me.

BofA Offered Seller “Hope for America” Program – Did Not Work Out and Now Their Short Sale Is SOLD – Lovettsville, Virginia

This homeowner worked double time to save their home on Tritapoe in Lovettsville, VA from foreclosure. They tried to keep up with payments, but got behind and asked Bank of America for help. They were getting no where, so they listed as a short sale with our team. Then after we were ratified and headed to approval, BofA reached out to them with their “Hope for America” packet offering loan modification…so they withdrew their listing and we sent our apologies to the buyers. (This does happen sometimes and we’re the first to encourage our sellers to try everything they can if they want to stay in their home with refinance or loan modification, but many times it does not work out in their best interest.) That was in April 2010. Then 2 months ago, the loan modification they thought they could handle ended up being a payment they could not sustain, even with the lower price. So we re-listed their home and Bank of America has approved their short sale. The sellers bought in 2005 for $520,000 – it SOLD today for $360,000. The approval letters are below for you to see. FYI – the 2nd trust actually was approved for HAFA in the end. All deficiency rights were waived on this one by BofA! Call me at (703) 774-9572 if our team can help you or someone you know as well.

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

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 jennifer@jyhteam.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   jennifer@jyhteam.com.