Birmingham Short Sale

Reasons why a bank may reject a Short Sale

First and foremost, if you are still unsure of what a short sale is, a short sale happens when the homeowner is no longer able to keep up with mortgage payments due to a financial hardship that has occurred, so they in turn are forced to sell their home with hopes of their lender agreeing to accept a lower amount on the home because it is no longer worth what it once was.

When a homeowner has found a short sale to most likely be a solution for them, they then seek approval from their lender. Your lender will typically require you to put together what is called a Short Sale Package. This package consists of important financial documentation to prove your hardship. If for any reason all of these documents cannot be presented or if they are misplaced, this could become a huge problem in the decision making on the lenders part on whether to continue with the short sale process. This particular reason is why it is extremely important to have an experienced Short Sale Specialist Realtor by your side, from the start.

Other reasons a bank may reject a short sale:

1. Loan Ownership: sometimes it so happens that even the bank do not own a loan, they are just a face to the organization that actually owns it. In such conditions, it is not in the hands of the bank to accept a short sale. It has to put up the request with the owning institution and if it agrees, a short sale happens.
2. Seller’s Credibility: The bank needs to be totally convinced that the seller won’t be able to pay back the mortgage in any condition. For this, the bank needs to see a lot of documents explaining the hardships the debtor is going through. For this purpose, a letter is drafted called the hardship letter. This letter explains the income, expenditures, bank statements and other financial points that make it clear that the seller is in a bad condition. To accept a short sale a bank has to accept the seller’s hardship letter.
3. Buyer Disqualification: sometimes it is not just the credentials of the seller that matter but also that of the buyer. The buyer who is taking up the offer put up in the short sale has to be appropriate too. The buyer will be asked to provide documents as well verifying they are financially able to afford the home.
4. The Price: the first and foremost point that brings on rejection is the price that has been put up on the short sale list. Usually the short sale price is less than the loan price; which is a loss for the bank, so the banks reject the offer until a proper price is put up. Sometimes, the list prices may be too high and may be unable to attract an offer. So, in both situations if the bank thinks the offer is not appropriate it rejects the short sale.

So those are a few reasons why a short sale could be rejected. I cannot stress enough how important it is to have an experienced Short Sale Specialist by your side from start to finish. Our agents are so advanced in successful short sales that they look forward to the opportunity of helping homeowners get back on their feet and on with their lives! Contact us now and acquire all there is to know about a short sale on your home and how we can make it a comforting one for you!

Alabama Short Sale Process

The Alabama short sale process is becoming increasingly popular in the Real Estate market mainly due to the advantages they have over foreclosures. They not only enable one to preserve their credit rating, but also make it far easier for them to move on with life sooner. Given the chances of it having little or almost no effect to one’s credit rating, it is no wonder that most homeowners are opting for it rather than go through the long, costly and tedious process of a foreclosure. It is therefore important for any wise homeowner to know how to make a short sale to not only beable to conduct one efficiently, but also be adequately prepared for the process and ensure a smooth sail through the procedure. While also ensuring that the homeowner get the most out of the process.

The most important thing to keep in mind when carrying out any financial transaction, a short sale included, is to know your options. This will require you to do research in the area of mortgages and short sales. Information about the options available to a borrower, whether in default or not, may be found in the internet on various sites that are dedicated to providing such kind of information. The options may also be available at the various credit bureaus or even from the lenders themselves. Knowing your options is very important as it gives you the opportunity to choose the best options available to you and thus saving you from a lot of hardships that may be associated with some of the options.

Some of the information about mortgage short sales may be technical and take a lot of time to understand. It may therefore be advisable to look for professional assistance form an attorney and a CPA concerning the viability of carrying out a short sale in the circumstances. This may be an advantage despite the fact that you will have to pay them their fees since they may be able to factor in some elements such as costs which are usually hidden and taxes that may affect the viability of the short sale. The information and assistance obtained from them may also serve to your advantage when trying to negotiate with the lenders.  This is so because you will have to convince them that it is a far much better idea to do a short sale rather than waiting. You may have to present the information relating to the property including its market value to the lenders to convince them that it will be less costly and for them to accept the short sale. You may need help from an agent to do this if you are not very familiar in making presentations.

What you should be aware of is the fact that in order to do a mortgage short sale versus a foreclosure, the lender has to agree to it. It is therefore not a must that the lender give you permission to make the sale. You cannot make an unilateral decision that since your home is valued at far much less than the current mortgage, that it should be sold. One has to fill out an application first to the bank and it is more advisable to contact the lender, usually a financial institution, personally to try to accept a short sale. This will however require you to be versed with information about mortgages which may be quite daunting. It may therefore be necessary to have an agent do the negotiating for you. Since there are varying procedures and terms to a short sale depending on the lender, it is advisable to contact a Short Sale Specialist to walk with you along the way and help you to acquire the proper documentation.

When the lender consents to a short sale, then you can go out into the market with your Short Sale Realtor and make the sale.. There will be various offers on the house with prices. You will be in a position to choose which buyer is offering more favorable terms.  Usually, the higher the price offered, the more favorable the offer for you.

Although a short sale may take a little bit longer, the time it takes to the short sale process is usually far much less compared to the time spent in foreclosing a home. The process is usually faster due to the less technicalities involved and the fact that the homeowner is in control of the whole short sale process. The reduced formalities make the whole process simpler and thus making it a better option when compared to a foreclosure. Out agents are extremely familiar with the fine print and haven the complete skill it takes to perform a successful short sale. Don’t delay any long, contact one of our highly experienced Alabama Short Sale Specialists now!

Birmingham AL Short Sale Specialists

With the real estate market changing drastically these last several years, homeowners have been turning to short sales as a safety net. This has been a wonderful alternative to foreclosure in time of need. Birmingham short sale Realtors has educated their selves in how to manipulate the short sale system to the homeowner’s highest benefit.

When you owe more on the home than its worth in today’s market and you can prove you are having financial difficulty due to hardship. A Birmingham short sale then occurs and the lender will than agree to accept less than the remaining balance on the mortgage. Some of the hardships that can qualify include: job loss, reduced income, divorce, relocation, medical expenses, property damages, death, and others. It is common for forgiveness on the deficiency amount though this is not guaranteed. Your Birmingham short sale specialist can help speak to the lender on your behalf to see if the option is available to you.

Your Alabama short sale specialist is a huge factor to the success of the short sale. The specialist will list your home as a short sale property. Once the offer is received, your specialist will send this offer into the lender along with your short sale package. Your Realtor will remain in the process until it is settled.

Trying to have any Realtor short sale your home can bring complications. Without short sale experience Realtors haven’t a clue what steps need to be taken to complete the transaction. Skip the many problems you might have from choosing someone else inexperienced and hire a specialist in the beginning.

Borrowers through this process are not charged out of pocket expenses. These are all covered by the lender including closing costs and Realtor fees. Additionally, incentives from lenders and HAFA give you money at the close to help with relocation expenses. These can range from $3,000 to over $30,000.  Why wouldn’t you want to short sale?

To see if you qualify for the HAFA program and to find a short sale specialist call 1-877-737-4903.

Wells Fargo short sale Requirements

Are you looking for answers on who to talk to, where to go and what you should do with your distressed home? Well then you have come to the right place. I am going to tell you how a Wells Fargo short sale is the solution you have been waiting for and the answer to your questions!  Wells Fargo has a known reputation for being advanced in short sales and having one of the highest percentages because of their constant verbal exchange and their advanced expertise. With Wells Fargo you can feel at ease and see for yourself that they will be gentle with you in your time of need.

Just to get you a little more familiar in what a short sale is I’ll explain.  A short sale happens when the homeowners home has been in distress and facing foreclosure. The lender will come to an agreement on selling the home below its value because of the market today, decreasing. Short sales are not for everyone and most certainly not for the fortunate. It’s the unfortunate homeowners who need a short sale that will more than likely qualify. After inquiring about what a short sale is and of it is right for you, then the qualifying step is next.

In order to qualify for a short sale you will need to put together a Short Sale Packet. Inside of the packet you will need proof of the hardship which has brought you into the situation you are facing. Hardships come in all different sizes and depending upon the individual may seem very dramatic, but when qualifying for a short sale, the hardship will need to be legally legit.  You will need to type a hardship letter up clarifying, in detail what happened. The following are examples of accepted hardships, within reason:  Disability, Illness, and loss of employment, reduced income, and death of a spouse or family member who was a contributing factor to the bills, divorce, property damage (natural and unnatural accidents). You will also need two months of pay stubs, two recent bank statements, the previous year tax return and W-2 and a financial statement. Be sure to include your loan number in every piece of documentation and keep your packet together. If ever you are not able to provide all of the necessary paperwork, type a letter explain why you cannot present the particular document. Again, loan number, sign and date it.

There is a program titled HAFA, which stands for Home Affordable Foreclosure Alternative Program. They have incentives of up to 3,000.00 towards your relocation. I would insist you click the highlighted link to understand more on what this program has to offer:  Wells Fargo HAFA Program Requirements.

A short sale specialist realtor will stand confidently beside you while efficiently and imperatively making your short sale a priority and finding a buyer for your home! A short sale specialist will bargain on your behalf with Wells Fargo. You have zero financial liability with this once qualified. That’s right, 100% free for you! No charges or costs! The short sale specialists are a nationwide network and there leading job is to help you in your struggle and avoid foreclosure!

Here is a brief summary of the Wells Fargo Short Sale Requirements:

● Hardship letter

● Last two months of bank statements

● Last two months of pay stubs

● The previous year tax return and W-2’s

● A financial statement

● Short Sale Specialist

If you are ready to take this leap and get things moving, contact one of our specialists because although it is important to have a trained short sale specialist to help sell your home, there is absolutely NO substitution for experience! Contact us today for an experienced short sale specialist and let us get you back to the life you deserve! Contact a Short Sale Specialist right now! What are you waiting for?!?

Birmingham  Distressed Property Expert Certified

Is your house distressed? Are you running out of options? Don’t know who to ask advice from? Are you scared of facing foreclosure? If this is you then a  Distressed Property Expert Certified is the answer! Distressed Property Experts are specially trained for handling the tough job of maneuvering through the mazes to save your home from foreclosure or to make sure it doesn’t reach that fate. When trained in distressed homes there is a higher knowledge then most agents about the options available for the specific homeowner and how to guide you through it.   Distressed Property Experts Certified specialize in being able to deal with the lender and real estate markets to get the most efficient and thorough work so you aren’t confused and overwhelmed.

When hardships occur it may set you back on payments. This can make your home distressed and headed for foreclosure. This may make you worried for the outcome, confused because you don’t know the steps to fix it, stressed because of the pressure to make sure you handle everything adequately, and sad because of all the overwhelming emotions that take place during this time. One of the most challenging aspects of the process is to know the right questions to ask your lender to know the options that you’re s pecifically qualified in. The highest occurring problem is homeowners rushing the process out of frustration and trying to fix the problem quick and ultimately disqualifying themselves from options available to them from not taking the right steps. This isn’t the homeowners fault this may be the first time you’re in this situation and are trying to solve this stressful issue blindly. This may be your second time or more after thinking you have gotten past this problem before and then life throws you a loop. You may try and repeat the same process without knowing the new government approved programs to date. Options change regularly and if you aren’t following this information you may pick a lesser beneficial option.

Distressed Property Experts are trained to work specifically on distressed homes. This means it’s their job to know the right paths, the loop holes, the options that are currently being offered , and which ones you would qualify for. When you have someone on your side defending the better interest of your home and is highly educated in these processes it’s easier to get the best outcome for you. This can relieve a lot of the negative emotions that the homeowner would bring to the table and the Distressed Property Expert can work with you from an outsider’s perspective keeping calm to the mess and holding your hand through the process.

Distressed Property Experts Certified are known for specializing in short sales. Short sales are where your lender agrees to take less than the owed amount due to the value of the house in today’s market. There are not as many agents available to help specialize in short sales. This is because short sales are only recently popular from the drop in the market and lenders agreeing to accept them thereafter.

If you would like more information on your local  Distressed Property Experts Certified in Birmingham call 1-877-737-4903.

Like the rest of the country, Birmingham’s real estate market isn’t exactly what it used to be. Many homeowners are finding themselves underwater on their mortgages and are seeking a way to stop Birmingham foreclosure.

A short sale takes place when a lender allows a borrower to sell their home for an amount that will not fully satisfy the loan. To qualify, borrowers must prove to be facing financial trouble such as job loss, divorce, relocation, decreased income, job transfer and others. If a borrower can prove their hardship in the form of a short sale package, with the help of a stop foreclosure Realtor, the lender will likely release the borrower from the deficiency that remains after the sale.

After listing your home with a Baltimore stop foreclosure Realtor, you will wait for the first offer. After an offer is received, it is sent into the bank along with the rest of the short sale package in hopes of a quick approval. If approved, a closing date will be set. If rejected, the worst thing that can happen is foreclosure. You really have nothing to lose!

If you are wondering when to begin the short sale process, the time is now, especially if you are already late on mortgage payments. Since your credit score will be negatively affected by each late payment, it is necessary to begin the process right away.

Birmingham Short Sale Specialists are here to answer any questions that you may have. Taking the time to talk about your specialized Realtor can save you time and money. Short sales give you the opportunity to sell your house for less than it is worth. The bank will eliminate the debt owed to them by a short sale. This process takes at least six months to close, but will relieve you from your outstanding debt.

The hardship letter is the first step in the short sale process. This document explains the reason why you can not afford your mortgage payment anymore. The letter ask things like, have you lost your job? Did you have to take a pay cut? What is your debt to income ratio? Providing your Birmingham Short Sale Specialist and bank with this information will be the deciding factor whether you qualify or not.

Banks hates owning property. Also spending thousands of dollars to foreclose on your property is not something that they want to do. This gives you the chance to sell your home never paying a dime for the rest of the mortgage owed. This works out for the sellers. The bank takes responsibility of the rest of the money owed. Taking your name off the note free and clear.

Making the decision to short sale your home will elevate the stress of your debt. The bank may also pay for any closing costs that may take place in the transaction. Feeling free and living free of  this debt will open new doors to opportunity. You will recover! One or two years down the road your credit will rebuild itself allowing you to get a loan or even owning another home. It all starts with a Birmingham Short Sale Realtor. Ask for help today because the longer you wait the closer you get to foreclosure.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a Birmingham AL short sale Realtor? Look no further! Our stop Alabama foreclosure specialists provide FREE short sale expert services to Birmingham homeowners in hardship. Call today to see if you qualify for a short sale! Need a Birmingham  Distressed Property Expert in short sales to offer free Chase short sale services? Our Birmingham AL area  Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Alabama Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

What is a short sale loan servicer?

Most people believe that the bank they submit their mortgage payments to is the actual owner of their loan. However, in most cases it is not the reality. There is someone else who owns the loan and utilizes the services of a bank to handle their loans and get their fee. An individual person or a company can own a mortgage loan.

You will be amazed to know that more than 80% of all loans dealt by Bank of America are not actually owned by it. It is Fannie Mae and Freddie Mac, the two leading companies that own about 60% of mortgages in the US. The US government possesses an estimated 10-15% through the FHA (Federal Housing Administration) and VA loan guarantee programs. And still some 10-15% mortgages are possessed by Pension Funds, Wall Street Firms, and other companies.

Therefore we can safely claim that the banks that receive mortgage checks every month are merely the servicers that are paid for their services including maintenance of accounts and escrows, monthly payment collection, recovery of delinquent accounts, and performing as trustees for the owners of the loan. They transfer the money they receive to their lenders after excluding their fees.

Incompetent Loan Servicers

It is the legal and ethical duty of a loan servicer to work in the best interest of the loan owner because he is somewhat equivalent of a trustee. No one allows his trustee to work on his own discretion; he is in fact required to perform his fiduciary duty for the best interest of whoever he represents.

However, if a trustee appears to vandalize the interest of his trustier, he will not only be an incompetent servicer but also legally liable for any loss that his loan owner incurs as a result of his negligence. In a similar way, banks are required to act in the best interest of their clients. Unfortunately banks are not discharging their responsibilities in a transparent manner and are appearing to be incompetent loan servicers.

Here are some examples of how they breach their duty to their clients.

- Rejecting loan modification requests

Very often loan modification requests are rejected that actually promise to repay a higher amount than what the bank can net through either a short sale or foreclosure. Just take this example for better understanding. A homeowner suffers a financial hardship and therefore cannot afford his mortgage payment. However, he makes a loan modification request offering to pay $1,500 per month for the next 25 years. $1,500 a month for 25 years will repay a mortgage of $450,000. But the bank rejects to modify the loan and paves way for a short sale or foreclosure of the home. Both of these will surely consume at least six months without mortgage payments and end up repaying $300,000 to $350,000. Had the bank approved the loan modification request, it would have evaded this enormous loss.

- Turning down short sale requests

Incompetent loan servicers do not help their investors recoup as much money as possible. They can accept short sale requests within a reasonable time frame but the general practice is that they employ the dilly dallying tactics prior to approving short sale requests in one way or the other. Some servicers are incompetent to such an extent that they end up misplacing very essential documents and contribute in brining about loss to their investors.

- Not listing foreclosed properties earlier

Courts also play a role in the procrastination of a foreclosure case but even then loan servicers are no less incompetent in delaying to put up a house for sale. They consume six to ten months in general prior to listing it for sale. This long duration works a great deal in decreasing the worth of a house and damaging the interest of investors.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a Birmingham AL short sale Realtor? Look no further! Our stop Alabama foreclosure specialists provide FREE short sale expert services to Birmingham homeowners in hardship. Call today to see if you qualify for a short sale! Need a Birmingham Distressed Property Expert in short sales to offer free Chase short sale services? Our Birmingham AL area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Alabama Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

As more and more homeowners are falling behind on their mortgage payments, banks are left with no choice but to foreclose on their properties. There are alternatives to foreclosure, but unfortunately many delinquent borrowers are unaware of such solutions. An Alabama short sale is one of these solutions, and it is the option we have seen the most success in.

A short sale takes place when a lender allows a struggling borrower to sell their home for an amount that will not fully satisfy the mortgage on the property. The homeowner must first prove to their lender that they are experiencing a financial hardship that keeps them from paying on the home. Loss of income, relocation, divorce, health problems, medical expenses, job transfer, and vacant rental properties are all viable hardships.

Perhaps the most important aspect of a successful short sale is to have an experienced Hoover AL short sale Realtor by your side. A short sale transaction cannot be easily completed by an average Realtor. They require short sale Realtors who are trained and experienced in the field of short sales and who have worked with all major lenders. Since the lender makes the final call, it is important that whoever represents you is very familiar with your lender’s practices.

Borrowers are charged nothing throughout the entire short sale process. The lender will pay all traditional seller closing costs which includes Realtor fees. A short sale does cause some damage to your credit, but the most damage that is done results from missing mortgage payments. This is why it’s important to begin the short sale process as soon as possible. The quicker your home sells, the less payments you miss.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a Hoover AL short sale Realtor? Look no further! Our stop Alabama foreclosure specialists provide FREE short sale expert services to Hoover AL homeowners in hardship. Call today to see if you qualify for a short sale! Need a Hoover AL Distressed Property Expert in short sales to offer free Chase short sale services? Our Hoover AL area Distressed Property Expert real estate agents are here to help, and are Certified or training in the Alabama Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Our organization does NOT directly offer short sale or foreclosure rescue services in the state of Alabama. CLICK HERE for more information on our
services.

Copyright First Coast Realty Associates 2011

According to a recent survey conducted by Pew Research, it was found that the housing market continues to make attempts to regain its balance. The finding of this survey also includes that under some circumstances almost 36 % of the respondents accepted the act of walking away from their mortgage. About 16 % of the research population thinks that even if there is no financial struggle it is quite okay to sacrifice their payments and to surrender their property. The term strategic default is defined as the act of walking away from the house even if the person is capable of making payments. Today more and more people are mimicking this.

According to a study conducted in 2009, it was found that about 26 % of the default which exists today comes under the category of strategic defaults. There are so many factors that draw people to this situation. People are not aware of the happening when they walk away from their mortgages. From a financial aspect, there are so many advantages and disadvantages for doing this. These people have to think whether it is ethical to do so. The practice of strategic default is the decision taken by a money borrower to stop the debt payment irrespective of the fact that they have financial stability. Such borrowers are called the “walk aways.”

All the strategic defaulters cannot be considered wealthy; some are solid middle class people. A study conducted by the Law professor Brent White at the University of Arizona reports that the main factors that influenced this decision are fear and anxiety, hopelessness, anger and sense and relief of empowerment.

The decrease in the value of properties and negative equity arouse emotions especially when relating to financial matters. When these emotions become strong, it will tempt the homeowners to default strategically. Another emotion which leads to this type of decision making is the feeling of hopelessness. In the study it was found the decision making process regarding strategic default is not so easy. Heightened levels of anxiety force these people to take this action such as modifying their loan or a short sale, but they will be turned away by the money lenders.

Those people who find no way for the repayment often feel resentful about their predicament. Most of the people blame themselves for this condition for purchasing the house at the wrong time, but the strategic defaulters direct this blame on the government and financial institutions. This causes the feeling of anger in them. When this process is completely over, the strategic defaulters will feel relieved.

For those people who think their home as a business deal or an investment, the chance for quitting the payment is more. There are a lot of advantages and disadvantages of strategic default. The advantages include financial benefit, free rent for up to two years and more in some cases, freedom to move from one area to another and if you are in a state of non-recourse; no one is able to sue you. The major disadvantages include bad credit score, serious consequences pertaining to tax, Fannie Mae penalties as well as social consequences.

www.Short-Sale-Specialists.com

877-737-4903

Contact a local short sale expert.

Are you looking for a Birmingham AL short sale Realtor? Look no further! Our stop Alabama foreclosure specialists provide FREE short sale expert services to Birmingham homeowners in hardship. Call today to see if you qualify for a short sale! Need a Birmingham AL Distressed Property Expert in short sales to offer free Chase short sale services? Our Birmingham area Distressed Property Expert real estate agents are here to help, and are Certified or training in the Alabama Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Our organization does NOT directly offer short sale or foreclosure rescue services in the state of Alabama. CLICK HERE for more information on our
services.

Copyright First Coast Realty Associates 2011