The number of U.S. home short sales surpassed foreclosure deals for the first time as banks became more agreeable to selling houses for less than the amount owed on their mortgages, according to Lender Processing Services Inc. (LPS).    

Short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by the Jacksonville, Florida-based company show. A year earlier, 16.3 percent of transactions were short sales and 24.9 percent involved foreclosures. Short sales exceeded foreclosure deals for the first time in November, according to the firm.  (READ MORE)

Now You Can Substitute a New Buyer for One Who Walked Without Restart
 
As an example of our commitment to improving the short sale process, Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale.  This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist.  This change will save you time by not having to repeat a number of process steps.

When a Backup Offer Is Ready – Your short sale processor will send a message to the Bank of America short sale specialist via Equator when the original buyer is no longer interested in the property.  Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit.  If you have another buyer prepared to make an offer, the short sale can proceed without having to repeat the short sale initiation steps.

A recent study estimates 36% of Americans think walking away is a viable option when they owe more on their home than what it’s worth. Clearly, few know the financial consequences of these actions. Even fewer understand the options available to them.  If you or someone you know is at the crossroads of deciding whether or not to walk away or “strategically default,” you’ll find nothing strategic about foreclosure, especially when there are solutions to avoid it. Find out more at:      www.supremetitlellc.com

Giving the Green Light to Financial Stability.
Fortunately, there are options to avoid foreclosure and protect your financial future.  From short sales and loan modifications to renting your home, it’s vital that you know what you can truly do to avoid the financial damage of foreclosure. Most homeowners who decide to strategically default face the burdens of:
     **Credit issues
     **Current employment challenges
     **Future employment challenges
     **Issues with security clearance
     **Possible debt collections
     **And more

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider “strategic default”—another term for walking away from your mortgage—if they were underwater (owed more on their home than what it was worth).  Now that more than one in four American homeowners is “underwater,” I feel that it’s important for the community to know the truth about strategic default.  The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That’s why it is vital to explain the 3 reasons why the term “strategic default” is misleading:
1. There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
2. The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.
3. A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.

If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.  If you have any questions about what steps you or someone you care about should take next, contact me today! 

**IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not

Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.

“Since the start of the ‘Great Recession,’ many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” said Pete Flint, CEO and co-founder of Trulia, in a statement.

“Though necessary for achieving true economic recovery, stricter bank lending practices have also further aggravated the struggling housing market in the short term. Even highly qualified homebuyers face intense scrutiny on their income, savings, existing debt and credit history before they can get a mortgage loan.”

Trulia’s rent vs. buy index compares the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of Jan. 10, 2011.

A price-to-rent ratio of 1 to 15 means that it’s much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it’s more expensive to rent than to buy, but, depending on the family’s situation, buying could “make financial sense,” the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.

In 36 out of 50 of the country’s most populous cities, buying a two-bedroom home is less expensive than renting one. These cities include many areas that have been hit hard by foreclosures, such as Las Vegas, Phoenix and Fresno, Calif.

5 Steps for a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.

First, do you qualify?

You must:

1. Have a verifiable hardship, like unemployment, medical bills, or relocation
2. Must have a monthly income shortfall
3. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency

If you meet these qualifications, follow these five steps to a successful short sale:

1. Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale
2. Gather financial information (i.e., bank statements, pay stubs) from at least the last three months
3. Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford
4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency
5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved

For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

Here are some of the updates to the HAFA program……..

• Servicer no longer is required to verify any financial information (but still can). Borrower must still sign Hardship Affidavit.
• Property can be vacant or rented up to 12 months prior to SSA (short sale approval), as long as Borrower can prove property was primary residence and had not purchased 1-­4 family property in the 12 months prior to SSA. Relocation no longer has to be work-­‐related, nor is there a minimum relocation distance requirement. 
• The 6% cap has been eliminated. The servicer determines the amount or percentage of the unpaid principal balance going to each junior lien holder up to $6,000.
• If a servicer offered a HAFA short sale to a borrower, and the borrower responded, the servicer had to issue an SSA within 30 days from the date of the borrower’s response.  Also including borrowers that haven’t been directly offered a HAFA short sale by the servicer. If an “unsolicited” borrower requests approval and is eligible, the servicer must respond within 30 days.
• There is now a 30­‐day response requirement for a servicer to reply to an executed contract.
• 6% commission cap remains, but servicers must include a statement in the SSA that they will not deduct 3rd party vendor fees from agent commissions.
• Alternative Deed-­In­‐Lieu Programs now qualify for HAFA relocation incentives, but only if the DIL is final.
• The servicer can still qualify the borrower’s eligibility for HAFA while the borrower is considering HAMP.

For more information: link to government housing programs.

Lenders Primed for Short Sales in 2011 – Short sales are a terrific option for homeowners struggling with unaffordable mortgage payments. In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales. Lenders are projected to incur losses as severe as 85 percent in foreclosure! Meaning, after deducting the expense of the foreclosure process on a $100,000 loan, they may only get back $15,000!

It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale.  In fact in Brevard County, short sale transactions have increased. 

It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners. 

Call me today; I can help you develop a plan to work with your lender and avoid foreclosure.  Tracey Kandell 321-725-0115

Beginning a new year with the prospect of losing your home is a situation no one wants to be in. The reality is that millions of Americans across the country are struggling with unaffordable mortgage payments, and more than ever lenders are motivated to work with homeowners to come to a resolution. I can help inform you of your options and show you how to create a strategy that will loosen the hold that foreclosure has on your future.

Relieve the Pressure – When you owe more on your home than it is worth and are struggling to make payments, the pressure you feel can go through the roof!  If you are in a situation where your expenses exceed your income, have a verifiable financial hardship and no other assets to pay off the balance of your mortgage, you may qualify for a loan modification or short sale. I will help relieve the burden of an overwhelming mortgage by showing you ways to execute a dignified solution.

Calm your Fears – You may be anxious about whether your lender is motivated to work out a solution with you. The reality is that lenders lose much less in a short sale or loan modification than they do in foreclosure. The costs of foreclosure may cost your lender up to 50% of the loan amount while a short sale could only cost them from 15-30%.

Call me today!    321-725-0115  www.supremetitlellc.com - I know that you are grappling with unfortunate circumstances, and dealing with all the emotions that come with it. I’m trained to guide you through this process, help you to restore hope, and empower your future.  I’m here to help.