Yep you are reading this correctly, we have received not 1, but 2 short sale approvals today, from none other than Bank of America. I am having a capt n coke to celebrate. These, of course were Countrywide loans, which account for oh, about 20% of all loans in the US in 2006. Whoa! Needless to say B of A has been playing clean up, but appears to have their sh*t in order. Their stock took a dive after the Merrill Lynch fiacso and the Countrywide fiasco, but they are getting back on their feet again.
So what is the secret agents? I think if you turn on your tv say after 12 pm, this information can be purchased for $19.99. HA HA! Because I am listening to Itunes Classic 80's and in a great mood I am going to spit it out for free. The key is to having your agent talking to and explaining the situation to, the decision maker. If they cannot reach him/her then escalate until it reaches them. Yesterday I made 23 phone calls, mostly to low level employees. However, eventually I was able to express my concerns to an executive level type at B of A and guess what, approval received within 8 hours. Now, why can't the other 80k B of A foreclosures (Corelogic numbers) be approved and this recession moved closer to an end? Because there are still people working at B of A who make a low wage with NO inentive to help you.
So bottom line, I have two approvals today and I have saved two families from disaster so I am going to celebrate and then get back on the horse tomorrow. There is still a lot of work to do and again I want to help every person I see or meet, because the only way out of this recession is for the middle class to take it upon their shoulders and make it happen. What do you think the rich are doing right now.......yep planning their next million!
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Friday, August 27, 2010
Sunday, August 1, 2010
Short Sale will not get approved
So, I just posted earlier about our loan modification failure, let's just keep the positive vibe going and explain the recent rash of short-sale failures too.
First, Indym*c Bank (One W*st Bank), B of A, Ch*se and Wells F*rgo have been good to work with, so long as you NEVER refinanced your home and/or took cash out. This really only accounts for about 12% of the US population, but hey who cares, everyone is doing it right?
We have applied for, started and received approvals for 3 short sales so far. We have applied for, started and been denied on 3 short sales as well. Not bad, 50% approval, but let's dig deeper.
1. Purchase money loans in CA have a "one action rule" which means they get they home or they come after you, they cannot do both. Good for about 12% of the popluation, the other 88% percent of us are screwed.
2. For the rest of us who have "cash-out" loans, it means that once the first lender takes the home, the second lender or "cash-out" lender has to come after you personally since the first lender has the collateral (home). So, if you want to short-sell in CA then you must understand that the second lender will need a large incentive to let the home go in short-sale.
3. Not all lenders are participating and better yet, the Government has not forced any lenders to participate and truely HELP people, so there is no guarantee you will even get a loan mod, a short sale or deed in lieu of foreclosure, in the end. So, with all of the good news, what is a home owner to do? Especially one who needs to ditch a $600k boat anchor that is now worth $250k?
First, get an agent familiar with short sales. Second, do not worry about the first lender, they are in the drivers seat and will get cash or a property. It is time to schmooze the ugly girl in the back seat who is commonly referred to as the "second lien holder". They will typically ask for 20% of their lien balance in cash, at the close of escrow. USAA once asked us for 90% of the loan balance and when we said "HELL NO" they ended up foreclosing on the home owner, so be careful. If you have a private lender second, good luck they are tough! The only alternative is to have the first lender contribute cash and/or the agents each contribute cash to the second lender. However, from experience we know that first lenders only contribute $3k and an Agent will typically tell his clients that the home is not available and show them something else. That will not help bring us out of this recession, will it!
So, if you are a home owne who wants to save your credit, short-selling is your best bet. Otherwise, walk away and be prepared to have a huge hit to your credit, receive a large bill from your lender and possibly a bill from Uncle Sam as well. Always check with your CPA first for exceptions, otherwise good luck to you and your Agents it is tough out there for the middle class!
First, Indym*c Bank (One W*st Bank), B of A, Ch*se and Wells F*rgo have been good to work with, so long as you NEVER refinanced your home and/or took cash out. This really only accounts for about 12% of the US population, but hey who cares, everyone is doing it right?
We have applied for, started and received approvals for 3 short sales so far. We have applied for, started and been denied on 3 short sales as well. Not bad, 50% approval, but let's dig deeper.
1. Purchase money loans in CA have a "one action rule" which means they get they home or they come after you, they cannot do both. Good for about 12% of the popluation, the other 88% percent of us are screwed.
2. For the rest of us who have "cash-out" loans, it means that once the first lender takes the home, the second lender or "cash-out" lender has to come after you personally since the first lender has the collateral (home). So, if you want to short-sell in CA then you must understand that the second lender will need a large incentive to let the home go in short-sale.
3. Not all lenders are participating and better yet, the Government has not forced any lenders to participate and truely HELP people, so there is no guarantee you will even get a loan mod, a short sale or deed in lieu of foreclosure, in the end. So, with all of the good news, what is a home owner to do? Especially one who needs to ditch a $600k boat anchor that is now worth $250k?
First, get an agent familiar with short sales. Second, do not worry about the first lender, they are in the drivers seat and will get cash or a property. It is time to schmooze the ugly girl in the back seat who is commonly referred to as the "second lien holder". They will typically ask for 20% of their lien balance in cash, at the close of escrow. USAA once asked us for 90% of the loan balance and when we said "HELL NO" they ended up foreclosing on the home owner, so be careful. If you have a private lender second, good luck they are tough! The only alternative is to have the first lender contribute cash and/or the agents each contribute cash to the second lender. However, from experience we know that first lenders only contribute $3k and an Agent will typically tell his clients that the home is not available and show them something else. That will not help bring us out of this recession, will it!
So, if you are a home owne who wants to save your credit, short-selling is your best bet. Otherwise, walk away and be prepared to have a huge hit to your credit, receive a large bill from your lender and possibly a bill from Uncle Sam as well. Always check with your CPA first for exceptions, otherwise good luck to you and your Agents it is tough out there for the middle class!
Loan Modification Failure
I am back! I have taken a 7 month haitus to work on...well my work. California has created an amazingly new and overly-complicated process for licensees to continue selling loans and real estate, so I have decided to just focus on Real Estate Sales and drop loan sales altogether. Even though I have been licensed and legit for over 7 years, the DRE and the Gov't have again created a process so complicated, only a few lucky souls will understand it and make it through. They might not be the most qualified, but they are educated in California and Federal red-tape manuevering and hats off to them.
Anyway, back in 2009 I wrote about our personal loan modification with a small company called Indy*ac Bank, who promised they could help. Well, they filed BK but were saved by the taxpayers of the US, and then that debt was purchased by a group of Billionaires for pennies on the dollar. They became One W*st Bank. I did not see any refund or interest payment from the Gov't after the sale of the bank, did you? One W*st Bank spent the better of 10 months telling me that I am perfect for a loan mod and if I would just make the reduced payments "on-time" for 3 months, that I would be approved automatically. Well after 6 months of on-time payments, they deemed my household financially sound and bammmm, NO Loan Mod! Just so happens that I made $10k that month, but $0 the two months before, but who cares right? I was so enraged that I did a search (thank you Google) and found out that they have a sweet-heart deal with the decision makers in Washington. They could make $2k on my foreclosure or $500 on a loan modification. Gee George what do you think?
Anyway be in touch with more from Indym*c, One W*est Bank and Government waste.
p.s. did you read about the corruption in Bell, California? Wow!
Anyway, back in 2009 I wrote about our personal loan modification with a small company called Indy*ac Bank, who promised they could help. Well, they filed BK but were saved by the taxpayers of the US, and then that debt was purchased by a group of Billionaires for pennies on the dollar. They became One W*st Bank. I did not see any refund or interest payment from the Gov't after the sale of the bank, did you? One W*st Bank spent the better of 10 months telling me that I am perfect for a loan mod and if I would just make the reduced payments "on-time" for 3 months, that I would be approved automatically. Well after 6 months of on-time payments, they deemed my household financially sound and bammmm, NO Loan Mod! Just so happens that I made $10k that month, but $0 the two months before, but who cares right? I was so enraged that I did a search (thank you Google) and found out that they have a sweet-heart deal with the decision makers in Washington. They could make $2k on my foreclosure or $500 on a loan modification. Gee George what do you think?
Anyway be in touch with more from Indym*c, One W*est Bank and Government waste.
p.s. did you read about the corruption in Bell, California? Wow!
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