West Town Chicago–With the Robo signers out of the shadows.. and bad title issues out in the open there are real serious legal challenges related to deals and much inventory could  be taken off the market while class actions suits go through the courts…

When you hear about owners who call for months and month and then their loan has never been modified and calls have never been returned you have to wonder if any bank is functioning properly. People want to stay in their homes and their intent to do right with the resources they have are being thwarted in large part.

To now learn that banks have been going to foreclosure with “robo signed” documents while ignoring “work outs” like short sales and loan modifications makes you wonder where the justice department has been. There are documented missing paper trails on mortgages owned by people that have not missed  payments.  It looks like this could be very wide scale. This is a big problem for all of us because it could jam up the housing recovery that was poised to just begin to take hold in 2011-2012.

The person who is in the best position is the buyer. Or the seller who is in a short sales situation.
The buyer will benefit from even longer period of lower prices.

The short seller will benefit because banks will be running to short sell and agree to short for six months or so while the foreclosures are ironed out.

So for the smart owner who needs to short sale.. and was on the fence about it… a true window of opportunity has openened.

That paperwork mess in a Pennsylvania office park now has given people who are short selling a thirty percent or higher chance (in my opinion) of getting a short sale approved.. and approved faster!

Now realize how BIG this market is.. and the machinery that is grinding to a halt…. 40 percent of residential sales were headed to be distressed property in 2010…. that is almost half the market…. Ouch…

See why this could hurt the housing recovery.. if a good chunk of that 40 percent of all deals are jammed up for months as title works outs… are verified and Robo Signors are called forth to unsign and verify.. .etc.

Keep in mind that unemployment is at 9percent… then recall that out of the last seven recessions housing has been the life line that pulled us out of it… we remodeled or refinanced our ways out of past recessions and spent out of them. But that’s not going to happen this time.

GMAC and JPMorgan  Chase and Bank of America were stopping foreclosure proceedings in 23  states was merely the beginning. Federal lawmakers now want a  federal investigation, and the Ohio attorney general filed a fraud suit  against GMAC. This is just the tip of the iceberg … there is political gain to come out of taking it further. Every politician is going to want to help the many people the banks  thrown out of their home without legal right to. Wait until we start seeing their faces, hearing their stories … etc…

In at least eight states, attorneys generals are taking action…

There are class action suits starting up…. in Illinois,  Maine and Kentucky — entire neighborhoods will be going after Chase and BOA etc. They are going to find some former industry  employees to tell us how they robo signed their way through dinners etc… low-level bank employees in question were supposed to have  reviewed mortgage documents and did not. This is going to be juicy as people dig and dig and dig.

Banks say the violations are minor… and I’m sure they are in some instances but GMAC has already been downgraded by Standar and Poor’s and there will be more to follow.
Title insurer Old Republic National – stopped offering policies of title to insure property that is foreclosed. Without title there is not sale going to happen. And other title companies have followed suit. BOA has since come out and said it will guarantee it’s sales… etc. but there is still a lack of confidence at hand.

The industry has to see how big this is… and how big it will get between now and Christmas.

Meanwhile short sales will be the way to go and the deals that will get approved at a lot higher rate than ever before in my opinions.

Chicago IL – I recently met a realtor in a another town. “I hate short sales”, she told me. “They are so frustrating. They take forever. Most of mine have dragged out for 9-12 months. The short sale lenders are so tough to work with.”

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

The closest comparison I can think of is learning to ride a bike. Remember the first time you tried to ride a bike and you crashed and fell off? You felt like you would never be able to ride a bike. Maybe you told your mother, “I’m just not as smart as Timmy. He knows how to ride a bike.”

Apparently this agent does not specialize in short sales. Neither do a lot of the other agents that complain about them.

These agents openly admit they hate short sales. They say stuff like, “Maybe lenders worry about what would happen if they approved too many short sales.” This is a huge misconception.

Most loans are not owned by the lenders or banks who hold them. As an example, Bank of America does not own 80% of the loans they process.

I heard a story about a large national lender that processes short sales. They have more and more short sale files coming in every month. Do they hire on more people to handle the files?

No. Instead they hire on more people to answer the phone and forbid the people who negotiate the files (called Loss Mitigators) from returning calls. Here is the real reason short sales are so frustrating. The lenders don’t want to hire on more staff to process them.

Loss Mitigation is a specialized job. It isn’t simple. The decisions to approve or deny a short sale offer are not cut and dry. They are legally required to follow the rules laid out by the owner of the loan.

An experienced loss mitigator probably gets paid 2-3 times more than a person that answers the phone. Just like a loss mitigator needs to know what they are doing; the person negotiating a short sale with a lender needs to as well.

The agents that hate short sales haven’t taken the time to learn how they work. They don’t know who owns the loan, or their short sale requirements.

(This is all readily available information for anyone who has an internet connection.) Maybe these agents have chosen to specialize in other area of the real estate business, such as new construction or first time buyers.

Or they specialize in commercial property. All of a sudden they want to short sale your house. Where does that put your odds of a successful short sale?

I agree that short sales can be frustrating. But, most short sales do not take 9-12 months when you follow the proper procedures. Since I know how to find the owner of the loan, I am ahead of ninety percent of all the other agents out there.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at phil@teambrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great tips and news on Chicago short sales www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Chicago Short Sale Realtor Advice: I’ve heard banks won’t do short sales. Is that true is provided as a courtesy to our viewers to help them make informed decisions.

Chicago- I recently talked to a homeowner in foreclosure. She had heard of the short sale option. But, someone had told her that short sales are tough.

They told her, “Banks never accept short sale offers. You are wasting your time if you try one.” As a result, she never researched her options and lost her home to foreclosure.

Many agents close short sales day in and day out. Short Sales are a specialized endeavor. They are much more complicated than your average real estate transaction.

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

The closest comparison I can think of is learning to ride a bike. Remember the first time you tried to ride a bike and you crashed and fell off? You felt like you would never be able to ride a bike. Maybe you told your mother, “I’m just not as smart as Timmy. He knows how to ride a bike.”

But, then you try it again. This time you make it a few feet before crashing. By the end of the day you are riding your bike around. Turns out Timmy wasn’t so smart after all.

Short sales are like that. The first one is very frustrating. You find yourself saying, “I just don’t know what these banks want. This is crazy.” But, the next few are a lot easier.

Soon you understand the process. And you realize that short sales are just like anything else in life. Once you figure out how the system works, then it becomes easy.

You learn what words like BPO, FHA, VA, Fannie Mae, Freddie Mac, deficiency, servicer, sliced and diced, and delegated mean. Pretty soon you can negotiate a short sale with confidence.

Are you are looking to short sell your house? Experience and persistence are the keys to short sale success. Experience because you have learned what to do. Persistence to keep on going when others would quit.

Not all short sale offers get approved the first time. After that first offer gets turned down, you now know what the lender wants. This makes it easy to get the next short sale offer accepted.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at phil@teambrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (312) 953-6725.

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. Click here to request a copy.

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.

View My homes for sale at .
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Chicago Short Sale Realtor Advice: I’ve heard banks won’t do short sales. Is that true is provided as a courtesy to our viewers to help them make informed decisions.

Chicago IL – According to a story in the Sun Sentinel [1], Bank of America foreclosed on a paid off house. Here is an excerpt from the story.

“ When Jason Grodensky bought his modest Fort Lauderdale home in December, he paid cash. But seven months later, he was surprised to learn that Bank of America had foreclosed on the house, even though Grodensky did not have a mortgage.

Grodensky knew nothing about the foreclosure until July, when he learned that the title to his home had been transferred to a government-backed lender. “I feel like I’m hanging in the wind and I’m scared to death,” said Grodensky. “How did some attorney put through a foreclosure illegally?”

Court records show Countrywide Home Loans filed a foreclosure case in Broward County civil court against the former owner of the home on Southwest 14th Street in 2008. Bank of America took over Countrywide at the end of that year.

The following year, Grodensky and his father Steven bought the house for cash as an investment property. Jason Grodensky’s brother Kenny Sloan lives in the house now. They negotiated a short sale, which means the lender agreed to accept less than the mortgage amount. Documents show the sale proceeds were wired to Bank of America. The sale was recorded in December 2009 at the Broward County Property Appraiser’s Office.

But in court, the foreclosure case continued, the records show. There was a motion to dismiss the case in July, followed the next day by a motion to re-open it. A court-ordered foreclosure sale took place July 15. The property appraiser’s office recorded the transfer of the title to Fannie Mae the same day.”

As you can see, Bank of America is very disorganized. Many agents claim they are the worst lender to do short sales with. Make sure you hire an experienced short sale agent if you plan on short selling your house and your loan is with Bank of America.

Short sales happen with them every day. But, their short sales are more difficult and usually take more time.

If you have questions about the short sale process, then please send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great tips and news on Chicago short sales www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on will my neighbors find out that I am short selling my house is provided as a courtesy to our viewers to help them make informed decisions.

Chicago IL – Many of the people we help are concerned that their neighbors will find out about the short sale. No one wants their dirty laundry put out for the entire neighborhood to see.

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

Here is what we do when a customer has a concern with that. First, we will make sure that everything your neighbors see does not say “short sale” on it. The sign will look like all the other for sale signs in town.

Your neighbors will simply think that you are selling your house. The for sale sign will not say “foreclosure” on it. Neither will any real estate website say “short sale” or “foreclosure” on it.

We won’t discuss it with the neighbors or tell them what is happening. After all, your privacy is important to us. We know this because of our work with other families facing financial difficulty.

With a short sale, you will be able to get your life back on track. Many people are relieved after the process is complete. They no longer have to live their life in uncertainty.

They can stop thinking about, “When is the sheriff going to come and kick me out”, or “Will I ever be able to buy another home.” They can stop worrying about how to pay back the money for their upside down house.”

Fortunately all of those are taken care of with a short sale. After a short sale you are eligible to buy another home in as little as 2 years. In addition, in most cases all of the upside down debt will be wiped out.

The lenders know people do not short sale unless they are having financial problems. They are willing to forgive the debt because a short sale reduces their losses.

The short sale process usually takes 3-6 months to complete. We will update you on when you need to move. Once we let you know that the short sale has been approved, you will have about 30-45 days to move to a new place.

If you have questions about the short sale process, then please send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great short sale tips and advice www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on will my neighbors find out that I am short selling my house is provided as a courtesy to our viewers to help them make informed decisions.

Chicago IL – Most people are shocked to learn that 80% of all loans held by Bank of America are not owned by Bank of America. That means someone else owns those loans.

A large majority of these loans are owned or insured by Uncle Sam. They own them outright thru Fannie Mae & Freddie Mac. And they insure the actual owners against loss thru FHA and VA.

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

The rest of the loans are owned by Wall Street Firms, Hedge Funds, Pension Funds, and other various investors. So who makes the decision on a short sale?

It depends. If the loan is “delegated”, then Bank of America can make the decision to approve or deny the short sale. The actual owner of the loan has “delegated” the authority to make a decision to the lender handling the loan.

Usually a supervisor at Bank of America will make the final decision. This is an advantage because you are able to get an answer faster on the short sale.

A Non Delegated Short Sale can drag out longer. First you have to submit everything to the short sale lender. They look everything over.

They will ask you for any missing documents or anything else needed for the file. Then they submit the complete short sale package to the loan owner. The loan owner looks everything over and makes a decision.

The first question we ask when negotiating a short sale is, “Are you delegated.” I want to know who the decision maker is on the file. This improves the odds of getting the short sale approved.

Here are a few guidelines for whether or not a short sale has been delegated. Is the loan one of the following?

FHA Loan. Not delegated. The lender assembles a package and submits to FHA for approval.

Fannie Mae Loan. Sometimes delegated, but not always.

Freddie Mac Loan. Our experience is they usually are not delegated.

VA Loan. Not delegated. The lender assembles a package and submits to VA for approval.

Sliced and diced loan (Wall Street Owned.) Almost always delegated.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for greats tips and information on Chicago short sales www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.betterlivingrealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on how short sales affect home values in the neighborhood is provided as a courtesy to our viewers to help them make informed decisions.

Chicago IL – Short Sales and foreclosures have a big impact on home values. But, how they affect them varies dramatically. Every short sale helps stabilize the housing market.

The reason is because short sales sell for much more than a foreclosed property does. Most short sales have a homeowner who still lives there. The homeowner has kept the home in good shape.

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

They mow and water the lawn, trim the bushes, and keep up on the house. Now, let’s contrast this with how banks keep up on their foreclosed properties.

A bank usually takes 2-6 months to put a foreclosed property up for sale. Sometimes they take even longer.

They usually do not turn the power until the home is listed. So the house sits empty. In the summer mold will grow on the walls inside. In the winter water pipes can freeze and break. Water may even leak all over the house.

The lawns are rarely watered or mowed. The homes are simply not kept up. As a result they sell for substantially less than a short sale or traditional sale.

Here is a good example. A house was listed for sale as a short sale. A $310,000 offer was obtained. The short sale was not approved. The home was foreclosed upon and sold as a bank owned property.

It sold for $230,000. Buyers know that they can get a better deal on a bank owned home. So they start their offers at a lower price.

The bottom line is that short sales help support home values. So the next time you see a short sale seller, thank them for supporting home values, and as a result the entire economy.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great information and news on Chicago short sales www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.  We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa.  Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on how short sales affect home values in the neighborhood is provided as a courtesy to our viewers to help them make informed decisions.

Chicago IL – Banks reject short sale offers for a number of reasons. The biggest reason is because they feel the property is worth X and the price is below that number.

For example, you might have a buyer willing to pay $119,000 for a short sale. The bank orders an appraisal.

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

The appraisal comes back at $135,000. Usually the bank will turn down the offer and ask the buyer to increase their offer. Often times the buyer will agree to pay the higher price.

Here is another reason short sale offers get turned down: The lender doesn’t have a complete short sale package. Maybe the seller’s last 2 bank statements are missing.

Or, a page is missing from the sales contract. In that case, the necessary paperwork will be sent to the lender.

Reason #3: The offer doesn’t meet the short sale guidelines. Every lender has different guidelines for whether they will accept or reject a short sale.

For example, the owner of the loan might be Fannie Mae. Fannie Mae has specific short sale guidelines. Unless the short sale offer meets those guidelines, it will be rejected.

Reason #4: Unrealistic expectations from the lender. Every lender has a specific employee who negotiates and processes the short sales. That employee is called a short sale negotiator.

This employee has a lot of discretion over what they will and will not approve. We have seen those employees make up their own guidelines.

They decide that Fannie Mae’s short sale guidelines aren’t good enough. So they demand more money from the buyer. Or they want the seller to give up their entire life’s savings.

If the seller or buyer do not agree, then they will turn down the short sale offer. Never mind that they do not own the loan. If the short sale is turned down then the owner of the loan, Fannie Mae, risks losing even more money.

Most short sales that are foreclosed upon end up selling as a bank owned property. The Boston Consulting Group recently did a study on short sales. They studied what a lender would net when selling a home either as a short sale or a bank owned property.

They discovered that banks lose twice as much money on bank owned sales versus what they lose on short sales. What should your agent do with a short sale negotiator at the bank who doesn’t follow the short sale guidelines?

We gently remind them of the loan owner’s guidelines. They usually approve the file. If that doesn’t work, then we will notify their supervisor or someone higher up at the bank.

That solves the problem most of the time. But, if it doesn’t, then we contact the owner of the loan directly and let them know what is happening. That is the basis of what we do to get your short sale approved and help you move on with your life.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great tips and information on short selling in Chicago www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

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

Looking to buy or sell in Chicago?  Check out my Chicago blog at www.BetterLivingRealty.com

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.

We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Chicago IL – Fannie Mae & Freddie Mac (I’ll call them Fannie & Freddie in this article) are finally starting to realize that lenders are not doing their job. Between the two of them, Fannie and Freddie own around 55% and 65% of the country’s mortgages.

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

Freddie and Freddie have other companies act as the lender on their behalf. Those companies collect all the payments, run the accounting, and forward the check to Fannie and Freddie.

In my opinion, these lenders are not doing their job. The owner of the loans lose lots of money because of these lenders incompetence. I have seen this first hand. Let me give you a few examples.

Homeowners that would like to keep their home get no help on a loan modification. Homeowners that would like to sell have to suffer through a long, drawn out short sale process.

A clear cut example was a property that the bank refused the short sale offer on. The owner of the loan was Fannie Mae.

The property was listed as a short sale and a $119,000 offer was presented to the lender. The lender rejected the offer. The house was later foreclosed upon and resold for $96,000.

It appears Fannie Mae lost over $25,000. I am sure many loan modifications are turned down only to see the lender lose more money through foreclosure.

Here is how this would work. Someone can’t afford their payments. They ask for a reduced payment. The homeowner offers to pay the lender the amount that would pay a $200,000 mortgage. The lender turns it down.

The house is foreclosed upon and sells for $165,000. It looks like the owner of the loan lost $35,000. Make sense? This has been going on for 2 years, and probably even longer.

But finally, the “chickens are coming home to roost.” According to a recent story in American Banker, it sounds like Fannie and Freddie discovered what was happening. [1]

The story says that Wells Fargo will stop granting extensions for certain short sales. But, why start doing that now? Why didn’t Wells Fargo do that 12 months ago?

Because Fannie and Freddie actually started looking at what was going on. They didn’t like what they saw and told lenders to stop delaying foreclosures. Lenders that delayed the foreclosure faced fines and on-site reviews. [1]

An on-site review would scare any lender. Who wants the investors they are supposed to represent going through their files one by one. I think those lenders are scared that they would find mistakes and negligence right and left. It looks like the crazy world of short sales just got a little nuttier!

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great tips and advice on short selling in Chicago www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

References

1. http://www.americanbanker.com/news/wells-nixes-extensions-1026457-1.html

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Fannie Mae & Freddie Mac are cracking down on lenders is provided as a courtesy to our viewers to help them make informed decisions.

Chicago IL – Gainesville FL – The nation’s big banks have gotten themselves into how water over the last few weeks over allegedly fraudulent foreclosure paperwork. Two of the largest US Banks, Bank of America and JP Morgan Chase have paused foreclosures in around half of the states.

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

The banks are taking pause over allegations of forged documents and signatures. One news story is titled “Bank exec checked only date on foreclosure docs.” [1] According to the story in USA Today, a Wells Fargo acknowledged that he signed foreclosure documents without verifying all the information.

Many fear that homeowners could use these developments to contest and stop foreclosures. An attorney that we know said that lawyers could put run ads saying “Did your lender wrongfully foreclose on you?” They could expect calls from homeowners in foreclosure and people who had already lost their home to foreclosure.

Because of these problems, some title companies have decided to stop writing policies on foreclosed homes. [2] According to the story in USA Today, Old Republic Title Insurance will no longer write new policies for homes foreclosed upon by JP Morgan Chase.

These title companies guarantee the title for the new homeowner. If the foreclosure were to be reversed they would be stuck in a bad place, both financially and legally. “I want my house back!”, the foreclosed homeowner demands. “You better defend these legal problems. After all, you guaranteed that this would be my house!”, howls the new homeowner.

But, what started this fiasco? It all started because the so called lenders do not own the loans they are handling. They are actually working as a “servicer” on behalf of the real owners of the loan. Who owns the loan?

All sorts of different entities. Uncle Sam has ownership interest through ownership of Fannie Mae and Freddie Mac. Those two entities combined own around 50-60% of all US Mortgages.

They purchase a mortgage from a company like Bank of America. Because Bank of America no longer owns the mortgage, they are now a “servicer.” They “service” the loan for Fannie Mae. That means they accept payments, do all the accounting, manage escrow accounts, and all the other things involved with managing a loan.

But, that also means they handle problems when someone stops paying. It’s their job to negotiate loan modifications. It is their job to manage the foreclosure process. The underlying problem is that they get paid the same money, whether they do a great job or a lousy job.

There is no incentive to do a better job. The actual owners of the loans hardly ever follow up and review their files. They don’t realize that the servicers are doing a lousy job on many different things. As a result the owners of the loans are losing money. But, they don’t realize it.

A source who wants to remain unnamed alleges that the banks have had problems with forged documents for over 8 years. Here is his explanation of what is happening.

“Let me give you a scenario. ABC Bank loans money to Joe Homeowners. ABC Bank then wants to get their money back to relend to someone else.

So they sell their loan to Fannie Mae. But, they continue to collect the payments and handle the tax escrow. The forward all payments to Fannie Mae, minus a small fee to themselves for the servicing work.

For one reason or another Fannie Mae decides to have another lender take over for them. The new bank, let’s call it XYZ Bank starts collecting the payments. Then the homeowners stop paying.

Here’s where it gets tricky. XYZ has to prove they have the right to foreclose. But, the original mortgage was given to ABC Bank. So technically only ABC has the right to foreclose. ABC Bank is no longer in business. So XYZ can’t really prove they have the right to foreclose.

But, don’t tell that to Fannie Mae, the owner of the loan. XYZ has to foreclose. They use a legal loophole that allows them to do so. They often file an affidavit with the court stating that they own the loan.

I saw these affidavits used in foreclosure lawsuits 8 years ago. The problem starts when the employees signing these affidavits don’t actually research the files. In one news story in a Bank of America exec acknowledged that she signed up to 8,000 foreclosure documents a month and normally did not read them. [3]

In other words their foreclosure case was based on faulty logic. I am not going to go into all the issues, but there are a lot of issues there. I’ve seen homeowners get a loan from ABC Bank. They stop paying on their mortgage.

Several months later they get a foreclosure filing. But, is ABC Bank foreclosing on them? No! XYZ Bank is foreclosing on them. Even more crazy is that XYZ has no paper trail to prove they own the loan. Nothing is provided. It’s insane!

That’s what my unnamed source told me about this situation. It sounds kind of crazy. I just don’t know how these banks got away with this for so long. Makes me wonder what would happen if we reversed the scenario. What would the hypothetical XYZ bank think if I tried to cash a check that was written from an ABC Bank checking account? What do you think would happen? Leave your comment in the comments section below.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

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

Remember to visit my Chicago short sale blog frequently for great information and news on short sales in Chicago www.Chicago-ShortSaleBlog.com

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. Click here to request a copy.

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.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

References

1. http://www.usatoday.com/money/economy/housing/2010-10-04-wells-fargo-mortgage_N.htm

2. http://www.usatoday.com/money/economy/housing/2010-10-02-old-republic-foreclosures_N.htm

3. http://www.cnbc.com/id/39464483/

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Big Banks in Hot Water over Foreclosure Paperwork is provided as a courtesy to our viewers to help them make informed decisions.