Trying times with Shellpoint – a short sale success story!

HOME SALE CHALLENGE:

After some devastating unexpected events, this Bloomfieldhomeowner found herself unable to afford her home. With the loan balance much higher than the home’s value, and without enough funds to cover the loss she was left with a short sale as her best option.

REID REAL ESTATE GROUP APPROACH:

With Bank of America in first lien position and an HSBC second, we anticipated a quick result on the second, and a lot of hassles with Bank of America as they are generally slow, confused and disorganized. Little did we know what was actually ahead.

RESULTS:

Just a few weeks after we started working on the file we got two pieces of unexpected news. Not only did Bank of America sell the loan off to Shellpoint, but HSBC completely released discharged their note and released the lien off the property. While this was good news – unfortunately HSBC sent the lien release to the wrong town, which left us scrambling for many months to track down the release.  With the release finally found and a buyer in contract we were finally able to move forward with our short sale with Shellpoint. Unfortunately Shellpoint moves at a snails pace on a good day.
We soon lost our impatient buyers and were back on market. Several months passed until we secured a new buyer and started over. Once again Shellpoint became slow and unresponsive and 6 months later our second buyer finally walked away. Soon after our approval letter arrived, but unfortunately we no longer had anyone to sell the house to.
Back on market for the third time, many more months passed until we finally secured our third buyer. We started processing the short sale again with Shellpoint. As usual a painful exercise in frustration followed. Several attempted foreclosure law days, several value disputes and hundreds of hours of phone calls and emails later – we finally received our approval!
With a looming law day and a patient buyer ready to move, we closed a few weeks later! Over 2 years after this seller first listed her home, she was able to finally say goodbye to her former home and walk away from over $100,000 of excess mortgage debt!

reid_real_estate_group_logo_682signature_165

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.

Hamden, Connecticut VA Compromise Sale with Chase Bank

59156268_s.jpgOnce in a while I am surprised when  a lender just has it together and a short sale approval comes easy…unfortunately rarely is that the case with Chase

HOME SALE CHALLENGE:

After many months on market trying to sell his home as a traditional sale, this Hamden, CT homeowner realized there would simply be no way to get enough for the home to be able to pay off the loan, and decided instead to pursue a short sale.

REID REAL ESTATE GROUP APPROACH:

Our seller had two loans, a first mortgage – a VA loan – held by Chase, as well as a smaller Ditech line of credit. While VA Compromise Sales (short sales with loans backed by the Department of Veterans Affairs) are generally very predictable, VA tends to be pretty strict on payouts to junior lienholders, creating possible problems with second mortgages and HELOC’s. Our seller was open to a few possible workarounds and we put the home on market.

RESULTS:

It took 3 months –  much longer than anticipated, to get an offer on the property. Unfortunately the buyer decided to walk just 5 days later.

Another 6 weeks passed until our next buyer came along. We continued on our short sale processing with Chase, who senselessly dragged on for 3 months until the buyer got fed up and walked away.

Third time’s the charm! Not long after getting back on market a bidding war over the property ensued, and we were able to to secure a strong buyer. Thankfully the buyer was also patient, as Chase made us jump through hoops for another 3 months until they finally issued a short sale approval! To our surprise VA approved a rather generous payoff to Ditech, who quickly followed with their own approval letter.

A year of struggles later our seller closed on his home with full debt forgiveness on two loans, and even a $1500 incentive check for his troubles!

reid_real_estate_group_logo_682signature_165

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.

HAFA short sale program to expire end of 2016

HAFA (Home Affordable Foreclosure Alternatives) is a short sale program available to qualifying sellers. The HAFA program has been around for several years, however it was recently revised to offer:

  • Complete release from mortgage indebtedness including a full deficiency waiver
  • Up to $12,000 to settle junior lienholder debt
  • A predictable streamlined process
  • Less negative impact on credit score than a conventional short sale
  • Up to $10,000 to a participating resident homeowner (or to an occupying tenant) as an incentive for completing the program

In its early years HAFA was quite cumbersome, however,  after a few years of lenders getting accustomed to the process it has become a staple in the line of short sale programs available to homeowners.  We have actually had much success recently with the program and look forward to a predictable result when sellers qualify.

Unfortunately HAFA is set to expire at the end of 2016 and there has been no mention (so far) of further extensions.

In order to take advantage of HAFA, you must apply for the program before the end of the year!

CONTACT US TODAY TO FIND OUT IF A HAFA SHORT SALE COULD WORK FOR YOU!

 

reid_real_estate_group_logo_682signature_165

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.

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!

reid_real_estate_group_logo_682signature_165

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.

 

 

reid_real_estate_group_logo_682signature_165

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

 

 

 

 

reid_real_estate_group_logo_682signature_165

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!

signature_165

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.