Many Lenders Approve Short Sales Without Missing Payments

July 30, 2010

Chicago IL – Many people think that in order to be eligible for a short sale you must stop paying your lender. That is not true.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Many lenders will approve a short sale, even if you are current on your payments. They will consider a short sale based on another hardship, such as a job transfer, job loss, or if you foresee that you won’t be able to make the payments in the near future. Should you stop making your payments? I am not a lawyer, and therefore cannot give legal advice.

I can tell you my opinion. It all comes down to what is most important to you. If reducing damage to your credit rating is important, then continue paying for as long as possible.

Continue paying your lender until the sale closes. Halfway into the short sale negotiations, the lender may tell you that they will not process the short sale until you are late on the payments. At that point you can make the decision to continue or stop making payments.

There are some reasons to stop paying your lender during a short sale.

1. You are tight on money. Yes, you will suffer additional credit damage. But, the benefit of using that money for other bills may outweigh the credit damage.

2. You are concerned about a deficiency judgment or promissory note. Many lenders will ask you for a promissory note if they think you have the extra money. If you want to reduce that likelihood, then you can decide to stop paying.

That decision comes with all the side effects such as credit damage and other problems. Many people also say that is unethical. (I am not going to comment on that. One could make the argument both ways. Every person has to decide what is best for them and make their own personal choices.)

Disadvantages of not making your mortgage payment.

1. Credit Damage. You will suffer more damage to your credit. That credit damage should go away in 2-3 years. In addition, some people use a dispute strategy to get the derogatory marks removed much faster. Some get them removed in 6 months.

The point of this article is that contrary to public opinion, you do not have to stop paying your lender in order to short sale your home. You can minimize the credit damage by continuing to pay until the short sale closes.

Are you interested in selling your property as a short sale? Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your lender.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. phil@teambrealty.com.

Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. ChicagolandShort Sale Realtor. Chicago IL Short Sales.

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Lenders Are Not Doing Loan Modifications On Car Loans Either!

July 29, 2010

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Chicago IL – I just saw a story in the news. It appears that some companies were charging $275 to $400 for car payment reductions. They would attempt to negotiate lower payments with the lender on the car loan.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

The only problem was that lenders were unwilling to offer payment reductions. I agree with the premise that auto lenders should be willing to reduce payments in certain circumstances. For example, many car leasing companies would not offer to sell cars at the end of a lease for the fair market value.

In many cases, the person who had leased the car was interested in purchasing it. However, the lender wanted X for the car and wouldn’t budge. Sounds like a smart decision for the lender, right? It’s almost like they were thinking, “Stand up for what you believe in! That’s all you need to do to be successful in business.”

However, what happens with those cars that they are unwilling to sell for fair market value. They are sold at a car auction. A car dealership will probably buy the car and sell it for fair market value. Only the leasing company also loses the markup and profit the car dealer makes. Another great decision by these banks!

Aren’t these people in the business of trying to make money?! They are just making more bad decisions for their stockholders. Or, if they lose enough money, they’ll ask Uncle Sam for another bailout. Meanwhile the Average Jose isn’t getting bailed out!

The good news is that most lenders are willing to grant loan modifications for home loans. The bad news is it is hard to get a meaningful payment reduction. Either way, I am here to help.

I offer a loan modification guide. The most important part of the entire loan modification process is sending your lender a third party opinion of value. I offer that with the loan modification guide. Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy for yourself.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. phil@teambrealty.com.

An update on how to stop harassing debt collector phone calls

July 28, 2010

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Chicago IL – We have a new strategy in the fight to avoid being harassed day and night by debt collectors. Even though there are laws that help protect you, in my opinion, the debt collector rarely follow them.

Do you owe more than your home is worth and want to avoid bankruptcy? You can avoid bankruptcy with a short sale and get all the upside down mortgage debt forgiven. Get more info by clicking here.

Did you know that if you request a debt collector stop calling you, then they must comply and leave you alone. That is the law. However, it rarely happens. We have people tell us all the time, “I told them to stop harassing me. But, they just keep on calling anyways.”

Sure you can take them to court. But, who has the time for that? Little did we know that if you sue them once, then you’ll never be harassed again. Here is how we found this out.

We know someone in the private investigator field. He has access to the same databases that most debt collectors us. He told us that there were some recent changes to the debt collection databases. One of the databases they use to hunt down debtors now flags people who have filed a lawsuit.

So, if you want to be left alone, don’t meekly ask the debt collectors to stop calling you. Instead, get some cash and get rid of them all at once. To file a suit, go online and Google “Stop Debt Collector Calls Attorney.”

The attorneys will review your case for free. From what we know, they will even file the lawsuit for free and they get paid only from what they collect. In my opinion, the debt collection industry runs rampant over the Federal Laws that were put in place to protect the consumer.

It’s time we put a stop to the harassment. According to the private investigator, once you file a lawsuit, debt collectors will avoid you like the plague. I hope this helps you regain your sanity in this crazy world.

Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your lender.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

Chicago Short Sales: The criteria lenders use to approve or reject a short sale

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Chicago IL – Getting a short sale approved isn’t that difficult when you know the rules. We have mentioned it elsewhere on this blog, but I will mention it again. Around 80% of all loans held by large national lenders (such a Bank of America or Wells Fargo) are not owned by that bank.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

In these cases, the lender is acting as a servicer for the actual owner of the loan. They will approve or reject the short sale based on the guidelines that owner gives to them. In some cases, such as an FHA or VA insured loan, the insurer will lay out the criteria on whether to approve or reject a short sale offer.

Here are the two steps we use to find the rules for approval or denial of a short sale offer.

Step #1: Find out who the owner (or insurer) of the loan is. We have a checklist that we follow to do this research.

Step #2: Find the rules/guidelines that investor (or insurer) gives lenders for processing short sales. The majority of all mortgages are owned or insured by 6 types of investors/insurers.

The first type of loan owners are the Government Sponsored Enterprises (GSEs.) They are nicknamed Fannie Mae and Freddie Mac. Around 50% of all mortgages are owned by them.

Fannie & Freddie do not publicize their short sale approval guidelines. But, we have a good idea of how their guidelines work, based on past experience with their short sales.

Here is the good news. If your loan is owned by one of these entities, you will most likely be able to short sale with no deficiency judgment. That has been their policy for a while. There are two caveats. If you have Mortgage Insurance (also called PMI), the Mortgage Insurer may ask for a promissory note.

There is almost no way to know up front if the Mortgage Insurer will ask for a promissory note. It is hard to find out who the insurer is before you start the short sale process. In addition, they ask for promissory notes on a case by case basis.

(If you are concerned about a deficiency judgment or a promissory note, then e-mail me at myrealtorphil@gmail.com.) I can research your situation and see how your situation compares with other sellers we have helped in the past.

Here is the other caveat for a short sale deficiency judgment on a Fannie or Freddie loan. If it is determined that you have the financial ability to pay the mortgage, then Fannie and Freddie’s policies reserve the right to pursue you for a deficiency judgment. Now, whether or not they will pursue you is another matter.

In my experience, Fannie and Freddie are disorganized. Therefore, it is my opinion that the likelihood of them pursuing you for a deficiency judgment is low. Why I think that is another story for another day. Maybe I will tell you why in my next post.

Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your lender.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

Short Sale Is Often The Responsible Route

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Walking away from a home because it’s “upside down” and will “take ten years” to recover your equity.

If you have failed to modify your loan you have likely found that
* The average homeowner with a successful loan modification saves $576 a month and that might not be enough to make it work for you if you have suffered real economic hardship or a shift in economic mindset.
And you likely have discovered that
* 99% of loan modifications submitted are incomplete and rejected.
The chaos of the paperwork on a loan modification is hard to manage and it’s a fact that:
* Over half of successfully completed trial modifications are not approved because of errors and omissions in the file.

So that leave you there in your home.. .wondering what do I do with this huge payment??!!!

Call me and lets Talk.

An update on how to stop harassing debt collector phone calls

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Do you owe more than your home is worth and want to avoid bankruptcy? You can avoid bankruptcy with a short sale and get all the upside down mortgage debt forgiven. Get more info by clicking here.

Sure you can take them to court. But, who has the time for that? Little did we know that if you sue them once, then you’ll never be harassed again. Here is how we found this out.

Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your lender.

Thanks for reading this, Phil Buoscio.

I’m always here ready to serve you.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

LONG TERM OUTLOOK: How Long Will It Take For Your Home Come Back To What You Owe?

July 27, 2010

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The “return to equity” timeline is unfortunately something we all are trying to predict. There are some communities in Florida and California that got so high priced in 2005-2007 with the easy credit markets giving everyone loans that it will take them 50 years to recover lost equity of a rate of current growth.

In Chicago… in communities like Logan Square or Bridgeport I estimate that the return to a 2006 price is about 10 years return to equity equality.
Here are some forecasts from the Illinois Assoc. Of Realtors newsletter and University of Illinois.

• Forecasts for Illinois employment growth over the next 12 months indicate a gain over 70,000 jobs; already in 2010, the state has added almost 60,000 jobs but there is some concern that the surge in employment nationally may be slowing, dampening the prospects for growth in Illinois.
Longer-term Outlook
• Consumer Confidence declined in July to the lowest level in a year; the Thomson Reuters/University of Michigan preliminary index of consumer sentiment decreased to 66.5, the lowest since August, 2009. The Conference Board Index that had been on the rise for three months, also dropped sharply in June. Consumer expectations that their incomes would rise over the next 12 months also declined, reflecting in part the slow pace of job creation.
• Housing inventories continued to trend downward, albeit at a slower pace in Chicago than the rest of Illinois
• There appears to be a growing consensus that a sustained housing price recovery looks doubtful in 2010; the prospects for 2011 are clouded by the anticipated surge of additional foreclosed properties entering the market.

Process Of Short Sale, Increasing Your Success

July 26, 2010

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By partnering with us and our negotiators, you can increase your short sale success rate, and decrease your frustration and stress in this challenging market… and you can earn more money in the process!

Here is how the Short Sale Process works….

When you call about short selling how we get started is that Phil Buoscio comes out and talks you through the process, answers your questions… refers you to an attorney to review your concerns.
Then… Phil Buoscio takes your listings/markets your property.
He finds… an offer…

Meanwhile.. .you’ve been give a short sale packet that you fill out… and asks you to document your hardship and itemize your income and expenses among other things.

Once the completed application and supporting documents are received by our negotiator, they are checked for accuracy and we will then work with the partnering attorney to prepare a preliminary HUD-1.
This is one of the most critical points in the process.
Meanwhile.. Phil Buoscio of Better Living Realty should have an offer of the property.
Phil Buoscio carefully integrates a pricing strategy to ensure a fast offer process but to make sure we get the highest price possible.
Once an offer is received and approved by the attorney, SSN will submit to the seller’s lender(s). Often times, if there is no offer at the time of the application, we will submit to the lender and get the file started.
Through our negotiator, we are fortunate to have access to several major lenders new automated loss mitigation platforms, which can significantly cut down on processing time.

We will also assist in navigating the new and complex HAFA guidelines that may affect some short sales.
Once the file is accepted by a decision maker, we negotiate the offer and receive either an approval or counter offer.
Once an offer is accepted, we work with the attorney and title company to ensure a smooth and successful closing… It’s as simple as that.

Here’s the bottom line: By partnering with us and our negotiators, you can increase your short sale success rate, and decrease your frustration and stress in this challenging market… and you can earn more money in the process!

Opinion: Why Your Usually Better Off Short Selling Than Going BK Chapter 7 Over a Home Debt

July 23, 2010

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Always consult your attorney before deciding on bankruptcy or non bankruptcy. This is just my humble opinion and some others mixed in to illuminate the trade offs of BK versus Short sale.

Why you might be better off short selling than going BK?

BK is not the end all be all. The reason I bring this up is because we lose so many potential short sales to bankruptcy. People think that a bankruptcy will cleanse them of their debts. That is a myth. Here is why.

Yes, it’s true, that a Chapter 7 Bankruptcy will release a debtor of all debts. The problem is that most the bankruptcy laws were changed in 2005.

This law makes it much harder to file a Chapter 7 bankruptcy. Now the judges have to steer debtors towards a Chapter 13. What does a Chapter 13 bankruptcy mean?

It means that a debtor will have to repay part (if not all) of their debts. In addition, the debtor has their finances managed by the bankruptcy trustee. Even worse, the debtor has to pay that trustee!
If you don’t go BK route, what does that look like?
Well typically it means a person just stops paying their debts, and they actually pay less money than they would with a Chapter 13 bankruptcy. Let’s face it, the people who handle bad debt are often disorganized. Yes, it’s very similar to how a “servicer” handles a third party loan.

Most big companies don’t have the stomach to do the hard work of collecting money. That is why they farm that hard work out to a collection agency. What does the collection agency do? They just call the person over and over again.

Very few collection agencies are going to do what is actually necessary to force the borrower to pay. And that is file a lawsuit. If they ever do file a lawsuit, the court system is so backed up that it’s hard to get a judgment. And what good does a judgment do them?

Statistics show that only 20% of all judgments ever get collected.
Why do I tell you this?
Because some think it’s a real option to literally just stop paying, ignore debt collectors and be “back on track” in a few years.

A short sale as a debt is a workable method.
It’s a real solution. A workable one.
To get a lender market value, say you have no ability to pay more is doing your best to responsibly pay back that loan… in most cases. And that should be enough to settle the debt.
Because so many short sale sellers instead declare bankruptcy instead of short selling, and then “working out” or “dodging the debt.”

The idea of a Chapter 7 cleansing everything and/or ending up with a CH 13 and working it all out on payments is more orderly and clean.

It’s a quicker end to the chaos.

Some would argue that thinking that bankruptcy will get rid of their problems is not the case.
In fact, it could just make their problems worse. Be educated, talk to your attorney and I think you will find that you are usually much better off short selling.

Pending Home Sales Dropped

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NAR reports the Pending Home Sales Index dropped 30.0 percent, to 77.6 based on contracts signed in May from a reading of 110.9 in April, and is 15.9 percent lower than the May 2009 level of 92.3. In a new video, NAR chief economist Lawrence Yun says the decline was not unexpected. “Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June.”

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