Just 8 weeks to an FHA short sale approval with Guild Mortgage!

HOME SALE CHALLENGE:

Just a year into their new home, this Simsbury, CT couple decided to part ways, but found themselves upside down in their mortgage and stuck in their property. Their only option to get out of the home was a short sale.

REID REAL ESTATE GROUP APPROACH:

With a single FHA insured mortgage with Guild Mortgage, we anticipated a fairly smooth road ahead. FHA short sales are very predictable and smaller lenders like Guild generally have small but efficient loss mitigation departments that usually move quickly.

RESULTS:

It took less than a month to secure a strong buyer for the property and as predicted, Guild went right to work on the short sale. Less than 2 months later ourshort sale was approved! We closed just a few weeks thereafter, with the sellers walking away from their upside down home with full debt forgiveness and even a $3,000 incentive!

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

 

TOP 5 REASONS YOUR SHORT SALE IS NOT CLOSING -AND WHAT TO DO ABOUT IT!

 

Less than 50% of all listed short sales in CT actually reach closing. With most of these homeowners in a must-sell situation – why do only 1 in 2 short sales close? Something obviously goes wrong in the process as lenders are generally looking to approve short sales rather than foreclose to reduce their own losses. Having closed hundreds of short sales in CT over the last 7 years with over a 90% success rate,and having taken over plenty of  other realtors’ failed short sales only to bring them to close, I can tell you there are generally only a few reasons a short sale would not be approved and close:

5. INCOMPLETE DOCUMENTATION: Short sales involve a lot of paperwork and the lenders pick over every detail. If paperwork is not reviewed for completeness and accuracy and not followed up on consistently, the short sale submission can simply die in document delay, and it is unlikely the lender will reach out to tell you what is wrong or missing. Knowing what documents the lender will anticipate, reviewing every document for possible issues and following up with the lender regularly is key to keeping a short sale package moving.

4. INACCURATE APPRAISAL/BPO: Lenders will order a valuation of your property as part of the short sale process. If planned for well, these generally go as planned and support the purchase price of the home. Once in a while appraisers and BPO agents completely miss the mark, leading lenders to have an inaccurate idea of value – frequently leading to a short sale denial. When this happens, there are always options. Theparty in charge of negotiating the short sale can dispute this value – leading to a more accurate value, or sometimes the value just needs to be waited out to its expiration date.

3. LATE START: Foreclosure in CT is not fast. Lenders are not quick to start foreclosure proceedings, and the actual suit itself can take years. When faced with a possible default – you have plenty of time to take action and attempt a workout. However, much too frequently I get a call from a hopeful seller just weeks away from a foreclosure law date. The odds of a successful workout in such a limited time are just not very good. You have time – but take action early!

2. UNPREPARED BUYER: Unfortunately I see this happen about as often as I see short sales fail for many of the reasons above.  The short sale gets approved, an approval letter is issued…and then the sale dies with the buyer. This is usually caused by the buyer’s agent not understanding the process to prepare their buyer properly, slow mortgage processing on the buyer’s end, and/or lack of timing inspections and other contingencies in line with the expected approval timelines. This can be avoided by preparing all the parties involved thoroughly and timing inspections and mortgage contingencies strategically.

1. INEXPERIENCED LISTING AGENT AND/OR ATTORNEY: This is #1 for good reason!!! The most common reason short sales fail is because someone involved simply didn’t know what they were doing. Without significant experience in closing short sales there is simply no way a Realtor or attorney could possibly anticipate or understand the nuances of all the different lenders, investors and short sale programs involved with the seller’s short sale. Here’s where you have the best chance of not only listing your home as short sale, but by having it actually close – do your homework and get the best representation possible! The difference could very well be a smooth sale and closing…or facing a foreclosure and a possible deficiency judgement.

QUESTIONS TO ASK THE REALTOR YOU ARE CONSIDERING FOR YOUR SHORT SALE

READ RECENT CT SHORT SALE SUCCESS STORIES

GET OUR FREE GUIDE TO SURVIVING YOUR CT SHORT SALE!

 

Considering a short sale? Contact Reid Real Estate Group – CT’s #1 short sale experts to find out if a short sale is right for you.

 

 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

TOP 4 TIPS TO GETTING THROUGH YOUR FHA SHORT SALE

Short sales on martgages backed by FHA are a little different than your average short sale. FHA has their own short sale program called the PFS (pre-foreclosure sales) program. FHA follows their own specific guidelines for who qualifies and FHA keeps some pretty strict rules for their short sellers:

FOUR TIPS TO GET THROUGH YOUR SHORT SALE WITH FHA:

  1. DO NOT MOVE OUT UNLESS YOU HAVE AN EMPLOYMENT RELATED REASON TO DO SO: This is #1 for a reason! FHA provides help to owner occupants…not investor owners, or owners who left for ANY OTHER REASON. Even if you can no longer afford your loan, stay in the house! In the state of CT time is on your side. The only reason FHA sees as acceptable for you moving out is having to relocate for an employment reason…We can tell you many sad stories of homeowners who thought otherwise….JUST DON’T DO IT!
  2. THINK TWICE BEFORE RENTING OUT YOUR FHA BACKED PROPERTY: FHA has very strict rules about who qualifies into their PFS program. One reason for disqualification is renting out your FHA backed home for any period over 18 months (see #1). While this is a rather absurd rule, this will also get you denied. FHA is an owner occupant loan product and they strictly back this in their workout products.
  3. IF YOU HAVE A LARGE SECOND LOAN OR LIEN, BE PREPARED FOR SOME OUT OF POCKET COSTS: As most FHA loans have very small down payments, we rarely see large second mortgages associated with FHA first mortgages, however, they do happen! If you have a large second mortgage, there is a high likelihood of you coming up with funds out of pocket to settle junior liens. FHA is very strict about payments to other lien holders.
  4. BE PREPARED TO SHOW A FINANCIAL HARDSHIP: While most lenders are more flexible regarding reasoning FHA is very black and white. If you cannot show a monthly loss on paper – you will be denied. While we can make a case for a future in-affordability (for example: upcoming move and new housing expenses, divorce or imminent retirement, etc), we must be able to show a loss somewhere.

Did I mention FHA is strict? Getting through a short sale with FHA is predictable…but you have to follow their rules! 

STILL WANTING TO DO A SHORT SALE WITH THE FHA? CONTACT US TODAY TO FIND OUT IF THIS IS AN OPTION FOR YOU

READ SOME OF OUR FHA SHORT SALE SUCCESS STORIES

VISIT OUR SHORT SALE FAQ PAGE FOR THE ANSWERS TO ALL YOUR SHORT SALE QUESTIONS

 

 

 

 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

Jumbo mortgage short sale success with SLS and PNC!

Sold Home For Sale Real Estate Sign and Beautiful New House.HOME SALE CHALLENGE:

After a business loss and years of unsuccessful attempts atmodifying their loan, our Essex, CT homeowners realized their only remaining option was a short sale.

REID REAL ESTATE GROUP APPROACH:

SLS (Specialized loan Servicing) held the first mortgage on the property (a jumbo loan) and there was a large second mortgage with PNC, along with a lien from a creditor, for a total owed exceeding $700,000. Multiple lien situations can be complex to resolve so we expected no easy road ahead. Complicating matters was the property which was highly unique, and would appeal to a very small buyer pool.

RESULTS:

It took over 5 months and $125,000 of price reductions to secure a buyer for our unique home and we were finally able to begin processing the sale. As expected getting three lien holders to all come to terms was painstaking and difficult and a total of 8 months passed until we were able to negotiate satisfactory approvals on all.  Some more troubles with the buyers ensued, but a month later this jumbo mortgage short sale closed, with the sellers walking away with over $400,000 of forgiven mortgage debt!

GET OUR FREE GUIDE TO SURVIVING YOUR CT SHORT SALE!

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

Sales of foreclosed homes rage on – CT sees highest levels of foreclosures in 5 years!

2016 YTD presents the biggest hike in sales of foreclosed bank owned homes (REO) in CT in the last 5 years:

With 1,789 REO sales through the end of April alone (the highest of all 5 years), 2016 is likely to reach record levels of distress property sales through the end of the year.  Of all closed sales in Connecticut 15% have been foreclosed on by a lender.  Lack of any significant appreciation in recent years has left many homeowners unable to recover their lost home value. While some have decided to simply walk away, many more have been unable to succeed in their attempt to work out an alternative to foreclosure.

UPSIDE DOWN AND WANTING OUT? WE PROVIDE FULL SERVICE SHORT SALE SOLUTIONS!

WANT TO LEARN MORE ABOUT BUYING A FORECLOSURE? WE CAN HELP! 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

Short sale on a jumbo loan? Here’s what you need to know!

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A jumbo mortgage is a home loan exceeding conforming loan limits, mainly used to buy high end or luxury property. Conforming loan limits in Connecticut are $417,000 in all counties except Fairfield county – where the conforming loan limit is $601,450. When the balance on the mortgage is greater than the home’s value but you need to sell anyway, a short sale is one possible solution.

If you are considering a short sale on your Connecticut jumbo loan– there are several things to keep in mind:

  • While conforming loans all generally follow set standardizedinvestor guidelines for short sale processing, none of these rules apply to jumbo loans as these investors are free to make up their own! What that means to the seller in the short sale of a jumbo loan is that while we are always able to guide you and give you the most likely outcome of your situation during our first consultations, the terms of approval are not always highly predictable in advance in a jumbo short sale and may likely need to be negotiated throughout the process.
  • Conditions of short sale approval including requests for cash contributions or notes are more likely, and there is no guarantee upfront forwaivers of deficiency balances in advance. When entering into a short sale with a jumbo mortgage (or any portfolio loan for that matter) it is absolutely critical to have a highly experienced short sale specialist handling the sale to ease negotiations and assure the most desirable terms of approval possible.
  • Jumbo loan short sale approval timelines are generally faster than conforming loan short sales. Because these are almost always portfolio notes (the lender actually owns the loan) there is an improved timeline for approval as fewer entities are involved. Loss mitigation turnaround time and responsiveness is generally an improvement over other short sales.

As Connecticut’s leading short sale experts since 2010, we have successfully closed hundreds of short sales throughout the state, including many portfolio and jumbo loans. We provide a seamless, full service solution for your possible short sale.  For your best odds at a successful short sale CONTACT US TODAY FOR A FREE CONSULTATION.

We also now service all of Fairfield County: Bethel, Bridgeport, Brookfield, Danbury, Darien, Easton, Fairfield, Greenwich, Monroe, New Canaan, New Fairfield, Newtown, Norwalk,  Shelton, Sherman, Stamford, Stratford, Redding, Ridgefield, Trumbull, Weston, Westport, Wilton.

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

Falling behind on the mortgage? Know your options!

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Connecticut home prices have not recovered significantly over the last ten years, leaving many folks still underwater in their homes. While many have decided to sit tight and stick it out, sometimes life makes that impossible. When facing an employment relocation, job loss or change, divorce, income change or other life event – sometimes just holding out is not possible. When facing the prospect of no longer being able to keep up with the mortgage – you  have several options:

  • Work out payment arrangements with your lender: While changing payment terms won’t help you out of a negative equity situation, if you wish to remain in the home and you just need a payment adjustment or some time to pull it together (your hardship is temporary), most lenders have programs available that may help with the size/terms of your payment. Just keep in mind you will still be upside down so if negative equity is your main issue – a change on terms will ultimately not help you (and may in fact increase the amount owed on the home). Loan modifications also do not remove parties on the mortgage so loan modifications rarely ed up being a viable solution in divorce situations.
  • Short sale: If your main issue is being over-leveraged in the home and you are not able to stay (or wish to move away), a short sale is likely your best option to sell the home and settle your mortgage debt. This is generally the most viable solution when there is a relocation, divorce in which joint mortgage debt must be dealt with, when efforts to modify have failed, or when simply cutting loose from the home is the most reasonable solution but the loan balance makes a traditional sale impossible.
  • Deed in lieu: A deed in lieu is basically a voluntary foreclosure. Instead of forcing the lender to foreclose to get title to the property, they agree to let you sign over the deed and give them the property. Deed in lieu’s are generally not possible if you have more than one mortgage or other liens against the property. Most lenders will also prefer that you attempt a short sale before they will allow you to apply for a deed in lieu.
  • Foreclosure: Your least favorable option, especially in CT, where lenders are able to pursue for their losses after a foreclosure. Not only will foreclose take a significant amount of time (years likely), but after the home is foreclosed, you can be sued by the lender for the deficiency, and still have to deal with the possibility of paying up anyway. If you are already in foreclosure, CT offers a very helpfulmediation program free to owner occupants.

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.