Jun
12
2010
This is a very important, and often confusing… In most Short Sales, your lender will authorize in their Short Sale approval the payment of Real Estate Commissions that are “customary” in the area. This is one of our most asked questions… most of our clients “think” they have to pay the commission that their listing agent, as well as the buyer’s agent would earn when the Short Sale closes. Fortunately for you and our clients, that is not the case. On all of our Short Sales we’ve negotiated, our sellers never have had to pay the Realtor’s commissions.
May
22
2010
If I do a Short Sale, how long until I can buy another house?
Fannie Mae on conventional loans up to $417,000 has finally addressed the issue of buying after a short sale. The following guidelines are effective after July 1, 2010:
• Two year wait with 20% down
• Four year wait with 10% down (and mortgage insurance company approval).
If there are extenuating circumstances defined as nonrecurring events that are beyond the borrower’s control such as a death, or act of God, or serious illness (divorce or a change in employment does not count), the following is the guideline also effective July 1, 2010:
• Two year wait with a minimum of 10% down
The extenuating circumstance will need to be documented. A few years ago, back when you could do low credit score borrowers, one of our clients was late on her house payment due to a tornado destroying it. (No, it wasn’t a mobile home) She provided before and after pictures. As a result of her careful documentation she was approved for her loan.
Desktop underwriting requires tweaking to mirror the updated short sale requirements. What does that mean to you? As of today, the automated underwriting systems may spit out a positive decision if the credit scores are high enough. An unknowing loan officer may think the loan is approved. Your client could get all the way to underwriting, only to find out the borrower does not meet the current guidelines.
Also, credit will need to be re-established. Fannie is still working on the exact requirements. But a good guess would be the following:
• Credit scores above 680
• No late payments or collections
• Three lines of current, established credit
This was provided by Diane Gerdes of The Mortgage Advantage. You can call The Mortgage Answer Hotline at 480-304-8230.
May
16
2010
What is Deed in Lieu of Foreclosure?
A deed in lieu is a part of your mortgage that you, the borrower, give up all interest in the real property to the lender to satisfy a loan that has defaulted or to prevent foreclosure proceedings.
A deed in lieu is just one option that you may have, please call or email us today to discuss all of them.
May
13
2010
Can I do a Short Sale with a FHA, HUD or VA Mortgage?
Yes, our experience shows that we can Short Sale a home that has any of the above mentioned loan types. Each type of loan, as well as each bank, have different criteria and systems in place for accepting a Short Sale.
May
10
2010
According to Lender Processing Services (LPS), a leading source of mortgage performance data and analytics, there are close to 7 1/2 million non-current and/or REO (bank owned) loans in the market place. LPS reported this number based upon data from the end of March, 2010.
The report had the foreclosure inventories at 3.27% more than the national average in Florida, Nevada, New Jersey, Arizona, California, Illinois, Indiana and Ohio with 16 states showing an increase in default loans.
Do you currently owe more than your home is worth? Email or call us at 480-305-0937.
