SCOTTSDALE REAL ESTATE BLOG

The Obama administration has released detailed guidance on a new Home Affordable Foreclosure Alternatives program that features cash incentives for borrowers, servicers and investors for executing short sales or deeds-in-lieu of foreclosure.

The HAFA program is available for loans that otherwise meet the criteria for the Home Affordable Modification Program but can’t be restructured successfully. The guidelines issued recently as HAMP Supplemental Directive 09-09 only apply to loans not owned or securitized by Fannie Mae and Freddie Mac, which have their own short sale and deed-in-lieu incentive programs.

The new program takes effect April 5, 2010, and servicers are expected to develop their own written policies to implement it. All HAFA loans must first be considered for HAMP modification, and data collected in that process can be used for assessing a possible short sale or deed-in-lieu transaction.

If the servicer hasn’t already done so, the borrower must be advised in writing about the availability of a short sale or deed-in-lieu and have 14 days to mull it over. Servicers are expected to perform a financial analysis to determine whether a short sale or DIL is in the best interest of the investor or mortgage insurer, but the HAMP net present value model does not project such cash flows.

The servicer has to get an independent property valuation that cannot be charged to the borrower, and a title check must also be completed. If neither a short sale nor DIL is available, written notice must be made to the borrower.

Before approving a short sale, the servicer has to determine the minimum net proceeds that will be accepted by the investor. Customary transactions costs must be taken into account. The program requires servicers to use a standard short sale agreement that outlines the responsibilities of the servicer and the borrower that includes a fixed termination date not less than 120 days after the agreement takes effect.

A DIL transaction must include the full release of the debt and waiver of all claims against the borrower. The borrower has to agree to vacate the property by a certain date, leaving it in clean condition with a marketable title.

Servicers may agree to a DIL even if the borrower hasn’t already made a good-faith effort to market the property, if that’s acceptable to the investor.

No Foreclosure

Servicers may initiate or continue with a foreclosure proceeding during the short sale or DIL process, but the foreclosure can’t be completed while assessing a borrower’s eligibility, waiting for the return of an executed agreement, during the term of a short sale agreement or pending transfer of the property during a DIL.

The borrower’s mortgage payment cannot exceed 31 percent of gross monthly income while a short sale or DIL is pending, and servicers may waive payment altogether. The borrower is responsible for clearing up any other liens on the property, although the servicer may negotiate on the borrower’s behalf. Second lien holders can get up to $3,000 from the proceeds of the sale to release the loan.

Following successful completion of a short sale or DIL, the borrower can get up to $1,500 to cover relocation expenses. Servicers are paid $1,000 to cover administrative and processing costs for these transactions. Investors will be paid a maximum of $1,000 for allowing up to $3,000 in short-sale proceeds to be paid to second-lien holders.

The program features a complete set of required standard documents and reporting requirements. As with HAMP itself, Fannie Mae is serving as the administrator for the short sale/DIL program and Freddie is the compliance agent.

To get in touch with a Scottsdale Real Estate Specialist about Scottsdale Real Estate Foreclosures call please call 480-274-2487 and please visit our website at www.scottsdalerealestate-az.com

Scottsdale Short Sales, AZ 85255

$247,000 - Scottsdale Short Sale Picture-Perfect Home in Neighborhood of Much Higher-Priced Homes! Saltillo Tile in ALL Traffic Areas,Vaulted Ceilings in All But 1 Bedroom/Scattered Plant Shelves, Huge Kitchen/Family Room (French Doors to Pool)/Breakfast Room Give the Great Room Effect, Oak Cabinets T/O w/Tile Counters in Kitchen, Beehive Fireplace in Master w/Huge W/I Closet & French Doors to Pool, Private Backyard w/Nice Playpool, New Carrier A/C 2000, SO MUCH MORE!!!

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Beds/Baths: 4 / 2
SF: 1,754 / County Assessor
Year Built: 1979
Pool - Private: Diving Pool
Spa: None
EF: 42RXP2G
Lot Size: 10,001 - 12,500
Level: Single Level
Dwelling Type: Single Family - Detached

High School Dist #: 069 - Paradise Valley Unified District
High School: Horizon

Ele Sch Dist: 069 - Paradise Valley Unified District
Elementary School: Sandpiper
Jr. High School: Desert Shadows

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View ALL Scottsdale Reduced Listings 

Scottsdale, AZ 85255

$322,000 - BANK has APPROVED Scottsdale Short Sale $235,000 and will pay 3% toward buyers closing costs !! Get into a very desireable Scottsdale neighborhood at an incredible price! Great schools. Light, open floorplan with living room, family room and good sized eat in kitchen. Kitchen has very nice granite counters. Cabinet doors have been removed, ARE IN GARAGE for painting. Large covered patio across the back of the house provides lots of shade and overlooks diving pool and grassy area. Pool replastered and cool deck redone in last several years. Water heater also recently replaced. Home has an incredible amount of storage space both inside and out. Large laundry room area off kitchen has huge walk in pantry with room for an additional fridge. Outside storage room could be a small work shop.

Beds/Baths: 3 / 2
SF: 2,516 / County Assessor
Year Built: 1955
Pool - Private: No Pool
Spa: None
EF: 32RS
Lot Size: 10,001 - 12,500
Level: Single Level
Dwelling Type: Single Family - Detached

Ele Sch Dist: 069 - Paradise Valley Unified District
Elementary School: Sandpiper
Jr. High School: Desert Shadows

Scottsdale Short Sale, AZ 85260

$217,000 - SHORT SALE Scottsdale. EXCELLENT BUYER FIX-UP OPPORTUNITY!!! LARGE INTERIOR N/S LOT. EXCELLENT LOCATION NEAR ALL CONVENIENCES INCLUDING 101 ACCESS. TRI-LEVEL FLOOR PLAN: UPSTAIRS FEATURES 3 BD 1 BATH, MAIN LEVEL LIVING RM, DINING, & KITCHEN. DOWNSTAIRS FEATURES FAMILY RM, LAUNDRY RM, 1 BDRM / 1 BATH. LENDER SAYS SELL AS-IS WHERE-IS WITH NO WARRANTIES OR REPRESENTATIONS EXPRESSED OR IMPLIED WHATSOEVER BY SELLER. SUBMIT ALL AS-IS OFFERS FOR SELLERS REVIEW & APPROVAL.. Don’t miss this home and please contact us for more Scottsdale Short Sales.

Beds/Baths: 3 / 2
SF: 1,817 / County Assessor
Year Built: 1978
Pool - Private: No Pool
Spa: None
EF: 32FRD2G
Lot Size: 10,001 - 12,500
Level: Single Level
Dwelling Type: Single Family - Detached 2

High School Dist #: 075 - Morristown Elementary District
High School: Paradise Valley

Elementary School: Paradise Valley
Jr. High School: Paradise Valley

WHAT IS A SHORT SALE >>

Short sale in real estate is not always a pleasant transaction.

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale.”

More than half of my sales in Scottsdale over the past few years are short sales. That’s how prominent Scottsdale short sales have become.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

If you are considering buying Scottsdale short sales, there could be drawbacks. For your protection, I suggest that all borrowers obtain legal advice from a competent real estate lawyer. As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

Call the Lender
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the “real estate short sale” or “work out” department, you want the supervisor’s name, the name of the individual capable of making a decision to approve your Scottsdale Short sales.

Submit Letter of Authorization
Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:

Property Address

Loan Reference Number

Your Name

The Date

Your Agent’s Name & Contact Information

Preliminary Net Sheet
This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your closing agent or lawyer should be able to prepare this for you, if you do not know how to calculate any of these fees. If the bottom line shows cash to the seller, you will probably not need a short sale.

Hardship Letter
The sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.

Proof of Income and Assets
It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.

Copies of Bank Statements
If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it’s probably a good idea to explain each of those line items to the lender. In addition, the lender might want you to account for each and every deposit so it can determine whether deposits will continue.

Comparative Market Analysis
Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA). Your real estate agent can prepare a CMA for you, which will show prices of similar homes:

Active on the market

Pending sales
Solds from the past six months.

Purchase Agreement & Listing Agreement
When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to pay for certain items such as home protection plans or termite inspections.

Now, if everything goes well, the lender will approve your short sale. As part of the negotiation, you might ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request. We help thousands of homeowners and agents across the nation quick sale (short sale) their properties. We understand it can be difficult for homeowners to pay their bills during a time of hardship, so there is no out of pocket fee for our services.

WE SPECIALIZE IN SCOTTSDALE SHORT SALES

Phoenix Short Sales

Chandler Short sales

Tempe Short Sales

Gilbert Short Sales

Glendale Short Sales

Peoria Short sales

Glendale Short Sales

Litchfield Park Short Sales

Goodyear Short Sales

Scottsdale Short Sales

Unlike investors and other loss mitigation companies, quick sale or short sale properties are our primary focus. We serve as a neutral third party to the transaction, and we do not take an ownership position when negotiating your short sale. Because we have been in business since 2004, we have developed contacts within the banks that we utilize to assist in getting your short sale approved. And, you’ll know that we’re always working hard for you, because we only make money when we successfully close your short sale of real estate.

We also Specialize in BANK OWNED PROPERTIES

$277,000 - Scottsdale Bank Owned LARGE PRICE REDUCTION OF $45K+***HIGHLY DESIRABLE ZIP CODE*** THIS HOME IS IN A GREAT LOCATION!! Quite Cul-de-sac. You will not see this last long! 8′ ceilings and wood beams in family room. Bring your investors. Pre Forclosure. All offers to be approved by bank. All measurments to be confirmed by buyer. Sold AS-IS.

Beds/Baths: 4 / 1.75
SF: 1,929 / County Assessor
Year Built: 1980
Pool - Private: No Pool
Spa: None
EF: 41.75FRDO2G
Lot Size: 7,501 - 10,000
Level: Single Level
Dwelling Type: Single Family - Detached

Ele Sch Dist: 069 - Paradise Valley Unified District
Elementary School: Desert Shadows
Jr. High School: Desert Shadows

This home is a great value! For those that are sick of the beat up foreclosure and short sale homes you will love this one. Private owner ready to sell at Bank Owned Price. In 2006 the home was remodeled with a new kitchen, baths, roof, dual pane windows and flooring. You will love the kitchen with the gorgeous cabinets and 18” tiles throughout the home. Large room w/French doors for use as craft room/ playroom, etc. Another room for 5th bedroom/den/office. Very private backyard and on a super quiet street near hospital and many types of medical doctors. A large variety of stores and restaurants only minutes away. Seller open to lease option with large down payment.

For more info about this home or to get in touch with a Scottsdale Real Estate Specialist about Scottsdale Short Sales for sale, Scottsdale Land or Scottsdale apartments for sale please call 602-214-2675  or e-mail  us at info@scottsdalerealestateaz.com or please visit our website at www.scottsdalerealestate-az.com