Real Estate Know-How

Missing Mortgage Payments?

rapidrealestatesolutions — Thu, 07 Jul 2011 23:38:18 +0000

Missing Mortgage Payments?

It’s Not Too Late

Wondering what a homeowner should expect when payments are missed? The most important thing to know is that no matter what stage of default a homeowner is in, there is almost always a way to avoid foreclosure. That being said, the quicker a homeowner does something about the situation, the less challenging it will be to resolve.

First, here’s what a distressed homeowner should expect to happen when payments are missed:

30 Days Late: The lender will attempt phone contact or send a notice in the mail.

60 Days Late: The lender will attempt to make contact by phone and follow up with another letter in the mail.

90 Days Late: The lender will send a letter demanding all past due amounts within 30 days and start the foreclosure process.

120 Days or More Late: The lender’s attorneys will take over and the homeowner will be responsible for their fees in addition to missed mortgage payments and the loan amount due.

Not late yet, but about to be?

Homeowners that are not late but foresee missing payments should communicate this to their lenders as soon as possible. In the past, many banks wouldn’t work with homeowners unless they were one or more payments behind. In light of the mortgage crisis, most lenders who would rather take a proactive stance and decrease their loan losses. They are more willing than ever to work with homeowners to avoid being late.

If you are visiting my website, www. DonnaHelpsHomeowners.INFO you or someone you care about may miss mortgage payments in the near future. I can help navigate the process and put you back on a path to financial stability. Contact me today and alleviate the stress that comes with unaffordable mortgage payments.

Who is Rapid Real Estate Solutions?

rapidrealestatesolutions — Sat, 25 Jun 2011 21:57:11 +0000

We Are Your Local Short Sale Specialist Team!

Why Rapid Real Estate Solutions-Manage My Short Sale?

Local Team
Simplify the Short-Sale process for you
Increased approvals and closings
Hundreds of Short Sales Accepted
Increase your listings and commissions
Protect Realtor’s Commission
92% Completion of submitted offers
Real Time updates to you
Provides Referrals to Realtors
Easy Online Submission and Weekly Updates
Protection of Homeowner Interests
NO FEES unless there is a closing
FREE Marketing of your Properties
Tenacious & Friendly

The Competitive Edge When We Work Together!

Working with Professionals

Rapid Real Estate Solutions, LLC is part of a leading nationwide short sale and loss mitigation network. We have assisted many homeowners with all types of real estate challenges and debt reduction. We are specialist in the area of loss mitigation and debt reduction. We look forward to working with you.

We are your Local Professionals.

Everyone needs a specialist working on their side.

Short Sale Package is crucial. It is one of the top reasons short sales are not approved or close
We work and track every file at every stage to avoid delays and get results.
We are tenacious & friendly with diligence to see each file is received and processed
We track and update you through real time web based updates.

————————————————————————————————

Rapid Real Estate Solutions

616-929-7304 or 616-868-2160

Fax: 1-888-350-4711

RapidSolutions4u@gmail.com

www.ShortSalesRRES.com

www.RRES.ManageMyShortSale.com

PRESS RELEASE-MAY 10, 2011

rapidrealestatesolutions — Tue, 10 May 2011 21:55:40 +0000

FOR RELEASE: IMMEDIATE

DATE: May 10, 2011

DONNA TASHJIAN EARNS PRESTIGIOUS DESIGNATION

TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE

Donna Tashjian of Keller Williams in Grand Rapids has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In the Grand Rapids area, one in every 348 homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Tashjian “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as (NAME) with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335.

U.S Treasury Updates HAFA Guidelines

rapidrealestatesolutions — Wed, 13 Apr 2011 22:53:41 +0000

The U.S. Treasury Department has updated its Home Affordable Foreclosure Alternatives (HAFA) program guidelines. The changes take effect June 1, 2011. New policies include a new acknowledgment requirement. The servicer must send written confirmation to the borrower within 10 business days following the receipt of a request for either a short sale or deed-in-lieu to acknowledge the request.

This timeline is now no more than 45 calendar days (not business days) from the date of the borrower’s request. Within that 45 days, servicers have to give the borrower a written approval, denial or alternative offer as well as a copy of the executed sales contract and any supporting documents dealing with subordinate liens. If the mortgage loan servicer fails to do this, it must at least send the borrower a written status notice within that same time period, along with written updates every 15 calendar days until the final decision is made.

In addition, servicers will now be able to approve short sales to non-profit organizations with the stated purpose that the property will be resold or rented to the borrower. This was previously prohibited by the program’s “arm’s length” requirement.

So Realtor’s, what do you think of these changes? Will it help make HAFA more effective? Or are these new guidelines just words on paper until they get fully implemented?

Stay tuned we will keep you updated!

To Your Success!

Why Do Short Sales Take Sooooo Long?

rapidrealestatesolutions — Tue, 12 Apr 2011 16:47:33 +0000

Learn what goes on behind the scenes with short sales .

Most folks these days know what a short sale is, but here’s a quick review: A short sale is when a home is bought for less than what the seller owes the bank.

The lender being “shorted,” or getting paid less than they are owed, has to agree with the terms of the new buyer and the purchase price being offered. For more information, check out Mortgage News Daily’s explanation here: What is a Short Sale and how do they work?

Simple?, right? Wrong.

Anyone who has ever been involved in a short sale, regardless of whether they were the buyer or seller, can tell you that there is nothing easy, quick, or short, about a short sale.

A typical short sale will probably last between three to six months (after a new buyer has made an offer) and there have been cases where the transaction lasted close to two years.

No, that is not a typo. Two years.

Most people don’t understand the biggest question related to the long length of a short sale, which is: Why does it take so long? “Short sale” seems like a misnomer.

There are many reasons why a particular short sale would take so long. Some examples include the amount of sales transactions an individual bank negotiator might have in their pipeline at any given time. I’ve heard the stack can be several hundred at a time.

It could take days, if not weeks, for this person to get to the file. Another reason is the amount of documentation required (er, requested) by the lender.

It could take another couple of weeks sending emails and overnight packages back and forth before the bank accepts (not yet even approved) the new submitted offer initially, simply because the “package” isn’t how they want it to be.

The reasons above are the obvious examples of why a short sale takes so long. And, quite frankly, the perception is that these reasons are the dominant factors. There is another cause, though, that is actually more important and “eye-opening” than any other reason listed here. It’s one that most people never even conside, or are even aware exists. It is, in fact, the most important reason for the delay of a short sale.

For the explanation, I’m going to use Bank of America as the example, primarily because these statistics are actually their numbers. Of the millions of home loans that Bank of America services, it is reported that only 15 percent of them are actually “held” by Bank of America. The other 85 percent are sold on the Mortgage-Backed Security (MBS) secondary market.

The secondary market allows Bank of America to replenish the cash reserves so they can originate more mortgages to more consumers. The 85 percent of “sold” loans are comprised of approximately 500 investors on Wall Street. Of these 500, only about 50 are the big public banks and thrift institutions. The other 450 are private investors and hedge funds.

Confused yet? Now, let’s go back to the beginning of a short sale transaction.

After the buyer’s offer has been successfully submitted to the bank for “approval,” the bank negotiator has to then turn around and hand it to the entity holding the note. So, in Bank of America’s case, only 15 percent of the time can they keep this negotiation in house and get an answer quickly. Some 85 percent of the time they have to go outside the institution to get the approval from the investor holding the note.

Once the offer has been taken outside Bank of America for approval, the negotiator now has to deal with this third party investor and convince them that the offer on the table is the best they’re going to get, and to validate the value of the property (and the offer) to the investor.

Now, for those investors with hundreds of millions or even billions of dollars under management, having to lose some cash on a short sale is not a big deal, or at least it’s an acceptable loss under the circumstances.

But what happens if the investor is not a big bank? What if the investor is a smaller entity? For example, picture this scenario: Back in 2005, the Hillside Unified School District pension fund (made-up school district for our illustration) decided to invest in the MBS market, sold on the great returns that the MBS market was achieving as home values continued to skyrocket. The HUSD Pension fund took $2 million of the cash and invested into the market.

Now, fast-forward to March this year, where home values have dropped by as much as 50 percent or more nationwide. And now, you have a homeowner needing to sell their home “short,” say, $200,000 less than the mortgage owed.

The nice polite bank negotiator from Bank of America now has the lovely job of trying to convince the HUSD pension fund that they are going to have to accept a big loss on their investment.

What do you think the HUSD Pension fund says to the negotiator? NO.

That’s right, the retirees of the HUSD don’t want to agree to losing $200,000 (just on this one deal), and so they decline the first offer they get, hoping to get more.

The negotiator then comes back to the listing agent with the official decline, telling them to up their offer. The listing agent turns around and tells the buyer’s agent, etc.

The buyer, of course, says, “but the comparables in the neighborhood don’t support anything higher…” and may decide to walk away.

OR, even if the buyer is willing to up their purchase price, the appraisal probably won’t support the new, revised offer, and the run-around starts all over between buyer, buyer’s agent, seller’s agent, bank negotiator, and investor. Ugh.

While this little scenario doesn’t relieve the utter anguish involved in today’s new short sale process, I hope it certainly explains the “why” a little better.

With all of the red tape, Rapid Real Estate Solutions and many professionals are closing short sales every day. It is important to work with professionals who know the system and what each lender is looking for in their packages.

To Your Success!

2010 Foreclosures increase 1.7 percent

rapidrealestatesolutions — Wed, 02 Feb 2011 02:24:54 +0000

Foreclosure data company RealtyTrac recently released its 2010 year-end data indicating a 1.7% increase in U.S. property foreclosure-related filings. Sorry, Las Vegas, but you received the dubious honor of being #1 for foreclosure filings, with a whopping 1 in 9 properties.

Foreclosure activity also increased in 149 of the 206 metro areas exceeding a population of 200,000.

RealtyTrac CEO James J. Saccacio said in a statement, “Foreclosure levels remained five to 10 times higher than historic norms in most of those hard-hit markets, where deep faultlines of risk remain and could potentially trigger more waves of foreclosure activity in 2011 and beyond.”

Agents, turn this into an opportunity to help distressed homeowners BEFORE they get to the point of foreclosure. It is Rapid Real Estate Solutions goal to help agents assist distressed homeowners facilitate short sales in Grand Rapids and all over Michigan.

You may visit our website for solutions.

www.RRES-ManageMyShortSale.com and www.ShortSaleRRES.com

Let us know your questions!

To Your Success!

What price do you list a Short Sale? Good Question?

rapidrealestatesolutions — Thu, 25 Nov 2010 03:52:26 +0000

That is a loaded question with an equally loaded answer.

Let’s start by talking about current fair market value. If a seller contracts you to sell their home, they want you to do exactly that. They want the home SOLD. A home will only sell for its current value. Value is based upon comparable sales, condition, and micro-trends.

If market value for an equally comparable home is less than a seller owes, then what they owe is not the price the home will sell for.

So, what should you list the home for? The price the home will sell for….. Did you get that?

Agents who list a property at a price well above the current value are doing the seller a time-line dis-service. Granted, some sellers request that you list for what they owe plus the costs of sale even though the property won’t sell at that aggregate number. At that price they will likely not receive offers. You need to tell the seller the truth. If they are facing a foreclosure date or extended default clock, they don’t have time to waste.

To play devil’s advocate for a moment, you can strategically defend this decision. Dropping a list price does indicate ‘motivated seller’ and often alerts agents who set custom searches to be alerted by such price reductions. Starting too high and then drastically reducing over a short period of time can draw attention.

However, I am of the school that you should do your leg-work and confidently prepare the seller for the likely sale price. After doing this, list the property for at or near its current value from the start of the listing. To CYA and everyone else, always have the seller sign stipulations regarding the implications of a short sale list price in relation to their outstanding mortgage balance. Also, include full disclosures in the MLS and all communication with buyers and their agents.

Agents that list a short sale bottom-barrel are also doing a seller a dis-service. You simply MUST NOT list a property well below market price and expect to win the short sale battle. Remember that the lender(s) will do their own assessment of the property value. A ‘good’ BPO agent will do the same leg-work that you should have and their BPO value should be the current market value. The BPO price should match your list price or you didn’t do a good job and neither did the BPO agent.

The lender(s) is going to come back and demand an offer that nets them their required percentage of the BPO. If the property was listed way too low and the offer the lender has in review is therefore way too low, then the offer will be rejected.

To play devil’s advocate again….we all know that BPO values and actual values can vary widely! But, and I mean BUT, it does not negate the job of the listing agent to list a property in-line with its current value.

Some will argue that a low-ball offer will get the short sale rollin’. Having the lender’s minimum required net does help an agent proceed with marketing the property at a price that should get approved from that point forward. However, yo-yoing a list price in the MLS can be offer suicide. You run that risk if you started way too low just to get the process moving.

Lesson: List a short sale for its current fair market value. What amount to offer on a short sale is a topic for another article.

I welcome your take on this….please comment below.

To Your Success!

Americans Still Believe in Buying a Home

rapidrealestatesolutions — Sat, 13 Nov 2010 00:37:59 +0000

The National Association of Realtors’ 2010 National Housing Pulse Survey found that nearly eight out of 10 respondentsbelieve buying a home is still a good financial choice. Despite the current economy and rocky housing market, Americans would rather buy than rent.

The same percentage—eight in 10—said issues of job layoffs and unemployment continue to be a problem in their geographic area and that these issues were a barrier to homeownership.

Some 70% also felt real estate pricing was stabilizing in their area. And 68% believe now is a good time to purchase a home. Of those respondents who are renting, more than a quarter said they were thinking more about buying a home than they were last year. And another promising stat for Realtors, nearly 40% of renters said owning a home was one of their highest priorities.

Despite lower home prices improving affordability, 79% of those surveyed still see challenges with having enough money for a down payment and closing costs as one of the biggest obstacles to buying a home. Nearly the same percentage, 73%, have a lack of confidence in even getting approved for a home loan.

And finally, slightly more than half of respondents said foreclosures continue to be a big problem in their area, but see the foreclosure rate as being about the same as it was last year.

Agents, the possibilities are still there. Consumers just want to be reassured and have some guidance through, what seems to them, a much more difficult process of financing and buying a home now.

So get out there and serve those buyers!

To YOUR Success!

7 Million Homes in Shadow Inventory Will Take 40 Months to Clear

rapidrealestatesolutions — Sat, 06 Nov 2010 01:57:18 +0000

Global rating company Fitch Ratings has released its figures about the amount of shadow inventory in existence. It estimates 7 million homes make up the shadow inventory. Based on the current liquidation trends, an inventory of this size will take 40+ months to clear. That’s nearly three and a half years! And the U.S. housing market has already been absorbing these distressed properties for the last two years.

For the 23 judicial foreclosure states, it will take more than the 40 months estimated due to the lengthier foreclosure process. For nonjudicial foreclosure states, the inventory will clear slightly faster than the projected 40 months.

Fitch defines its shadow property supply as any loans which are delinquent, in foreclosure or are already bank-owned (REOs). The firm acknowledges that the volume of newly delinquent mortgages has started showing signs of improvement. However, the rate of liquidation for already existing distressed properties has not improved due to limited demand and expanded initiatives by mortgage servicers to attempt loan modifications for homeowners in trouble.

“While the reduced volume of distressed sales since 2009 has temporarily helped home prices, Fitch believes that the extension in foreclosure and liquidation timelines is simply prolonging the housing correction underway,” the agency said in its report issued at the start of November. “Recent concerns about the title-transfer process for foreclosed homes could further weigh on demand.”

Real estate investors will also be happy to note that Fitch is estimating an additional 10% home price decline nationally before this market correction can completely work itself out.

Rapid Real Estate Solutions serving in Michigan located in Grand Rapids

To Your Success!

Short Sale Tricks

rapidrealestatesolutions — Sun, 31 Oct 2010 01:35:37 +0000

Halloween may be just around the corner, but you hear short sale horror stories all year. Do you ever wonder if you need to ask Trick-or-Treat before showing a short sale? Not if you are working with an experienced short sale agent.

What makes an agent an experienced short sale agent? Is it the number of listings? Trick. Is it the number of closed short sales? Or is it the number of short sales closed with different lenders and lender combinations? Treat.

As an experienced short sale agent, I have to understand how Lender A works with Lender B. I just closed a short sale the first of October where I knew that Lender A on the first mortgage would be fairly easy to get approved. I also knew what percentage (5%) of the second mortgage loan balance they would approve. Sounds simple, but not so fast. The second mortgage in this instance was for $325,000 and Lender B requires 20% of their loan balance.

So what needs to be pulled out of your agent bag of tricks to get this deal closed?

Step 1. The property needs to be marketed for a cash-heavy buyer.
Step 2. Have buyer’s agent call you before showing.
Step 3. Qualify the agent’s buyer before letting them show.
Step 4. Only show to qualified buyers.
By implementing these same steps above, I was able to find the right match to buy this property. Total time on the market? Six months with less than 60 days from pending to closed!