Today…

We’ve been wondering when this would be exposed…

Chase has been awarding it’s sellers that choose a Short Sale a hefty bonus for a succesful close…up to $35,000.

Many banks offer incentives, however, most are in the realm of $3000.

We have experienced this award from Chase over the last 6 months:

Here’s the article:

To avoid further clogging the already sluggish home foreclosure pipeline, some lenders have been offering cash incentives to strapped homeowners at risk of foreclosure to complete short sales and move out of their homes.

Chase, for instance, has been quietly offering as much as $35,000 to homeowners who are “upside down” on their loans — meaning, they owe more than the home is currently worth. In a short sale, the lender allows the sale of the home for less than the loan amount and often relieves the borrower of any further obligation.

The incentives began late last year and are available nationally, a Chase spokesman said. Why would the bank want to pay more money to a homeowner who hasn’t been keeping up with the mortgage payments? It generally wraps up the transaction much more quickly, and leaves the home in better shape for resale. “A short sale generally produces a better and faster result for the homeowner, the investor and the community than a foreclosure,” the Chase spokesman said in an e-mail. Chase has completed more than 140,000 shorts sales since the start of 2009. The program is continuing.

Wells Fargo also offers relocation incentives for short sales as well as “deed in lieu of foreclosure” transactions in some markets with extended foreclosure timelines, like Florida. The payments apply only to first-lien loans that Wells holds for its own portfolio (rather than loans it merely services for others), a spokesman said. The amount varies, based on factors like the loan balance and appraised value of the home, but can be as much as $20,000.

It doesn’t appear likely that the need for short sales will end anytime soon. The outlook for home prices remains glum, with a drop of 2.5 percent expected this year followed by meager growth for several years thereafter, according to a recent report from MacroMarkets LLC.

Incentives offered in California (where there are a lot of loans made by the failed lender Washington Mutual, which was subsumed by Chase) apparently depend on various factors, agents say. Daniel Klein, a real estate broker and entrepreneur, said his firm had one client with a $300,000 loan who received a $20,000 incentive for a short sale, and another client with a $500,000 loan who received $10,000.

The funds can be used by the borrower to cover expenses, like moving costs.

The programs were started after a government program, known as HAFA (for Home Affordable Foreclosure Alternatives), began in early 2010. That program provides up to $3,000 in borrower relocation assistance for short sales. That program is available through the end of next year.

Despite the incentives, Mr. Klein said, some borrowers prefer to take their chances and stay in the home. The lengthy foreclosure process in some areas appears to have made some people complacent about the prospect of eviction.

Have you been offered a cash incentive for a short sale? Did you take it?

Thanks NY Times

It seems our illustrious government representatives can’t find a common ground to on which to meet…what’s new?

With the recent defeat of HR 4213 on The Hill…it leaves an uncertain feeling in the mouths of buyers that are trying to take advantage of the $8,000.00 tax credit.

Why it didn’t pass…there’s simply too much “pork fat” tied to it…or other initiatives that clouded its intention. Along with this HR bill…there was tied another initiative that would cost Americans billions of dollars and of course, that was the area of concern for our Republican representatives.

Word is, a new bill will be sent up the flag pole to get this tax credit deadline extended…it may however, be retroactive.

God Bless America!

The proposal was simple and necessary: Extend the closing date for the home buyer tax credit from June 30th to September 30th — not the tax credit itself, which required buyers to sign a contract by April 30th, just the closing date.

Anybody who has ventured into the real estate market in the past year knows that tighter lending standards, new appraisal rules and general banking backlogs are making a two month contract-to-closing period very difficult.

This week the chief economist for the National Association of Realtors said 25 to 30 percent of the buyers who signed in April will not get to closing by June 30th; that translates into roughly 180,000 home purchases. The credit is $8000 for first time buyers and $6500 for repeat buyers. This is not to say that all those buyers will pull out of the deals, but they will lose the incentive that may have gotten them to the table in the first place.

The closing date extension was added to a tax extenders bill backed by Democrats in the Senate. That bill has failed three times already, in the face of Republican opposition to adding to the federal deficit.

But it ain’t over ’til it’s over.

Yes, it’s dead now, but Senate sources say they are looking into “other options.” The point is they can add it to whatever they want and try passing it again and making it retroactive. But June 30th is still the current deadline, and that means an awful lot of buyers will not get what the government promised, and many will likely pull out of deals.

I did speak to some builder types, and they tell me that many home builders put a closing guarantee into the contracts, so those buyers may be protected. The builders may have to pony up some kind of $8000 upgrade, or the actual cash, to keep the buyers at the table, which of course I’m sure they’re thrilled to give up out of their already bleeding builder bank accounts.
It’s just so typical.

Here you have a federal tax break, designed to stimulate a housing market in total freefall, but it somehow fails to recognize just how bad the current market conditions are.

The housing industry spent millions and millions of dollars lobbying Congress for said stimulus and its extension. So how is it that nobody mentioned that in today’s market it can often take longer than 8 weeks to close on a house?

By: Diana Olick

The numbers are telling us some crazy things…

It seems that Americans are placing themselves in a unique conundrum.  With housing prices continuing to drop, many Americans are turning to loan mods and short sales to reduce their liabilities.

As many are aware, during these processes the homeowner can stop paying their monthly mortgage payments without real concerns of  foreclosure activity. Well, that means is more “discretionary” income to spend on the items that would not have been purchased if the mortgage was being paid.

There are obvious concerns for this type of spending.  It is something of a “false-positive”.  What do I mean by that?  The individuals are obviously living above their means.  The hammer will soon drop and when the loan modification fails and the short sale goes through…these former homeowners will have to pay rent causing a slump in Consumer Spending.

This concerns us as we see this everyday with the folks we assist.  We meet with them to discuss their options of short selling their home.  The homeowners are not paying their mortgage and not saving the money.  They are panicked when we discuss the reality of renting and that their will need to be a good credit score and 2 to 3 months of rental payments in hand ready to turn over to their new landlord.

The expressions on their faces says it all!

Sergei Fedorov, better known for scoring hat tricks than missing mortgage payments, is facing foreclosure on two of his Michigan mansions.

The ex-Red Wings star owes more than $2 million on two Bloomfield Hills properties, according to Detroit News.

The PrivateBank and Trust Company filed two notices on foreclosure against the hockey player today, compounding his financial woes.

One home, purchased in 1999 for $1.25 million, has a balance of nearly $1.2 million, and is currently being sold for $999,999, per Zillow.

It’s been on the market for more than two months.

Fedorov acquired another property from his parents in 2003, which has a $915,623 balance and is currently listed for $916,000 on Zillow.

It was last sold for $325,000 in 1980, and peaked in value at more than $2 million in 2006 before falling precipitously (I guess somebody refinanced at some point).

So it looks as if Fedorov is clearly underwater on one property and pretty close to selling for a loss on the other – perhaps a short sale can be arranged?

Fedorov apparently lost $60 million after investing his money with a financial adviser, who he has subsequently sued.

The Russian hockey great played 13 years with the Detroit Red Wings, and is one of their all-time leading scorers.

He is just one of the many ex-sports stars and celebrities dealing with foreclosure, either by necessity or choice.

However, this homeowner “investor” is right!

Morally wrong?  Is it morally wrong for banks to default on their properties? or is it a business decision?

The last 4 listings we have taken were not necessarily broke or in dire financial straights…they simply were tired of trying to work with their banks to find a solution to their bad financial situation.  The banks are unwilling to work with them… because  they “were not going to work with them as long as your current”.

Please listen and give some feedback:

Comedy Central funnyman Jon Stewart has purchased a home in the city of Red Bank, NJ, in Monmouth County (about an hour south of New York City), for $3.8 million, according to redbankgreen.com.

The good thing about Red Bank is that home values have realized a 12.4% increase, year-over-year, and presently Red Bank has a Zillow Home Value Index of $386K.

Stewart’s home sounds like it could easily exist in Cape Cod or the Hamptons since redbankgreen.com describes it as a cedar-shake sided house with “… big, rambling, 1891 Victorian with turrets and wrap-around porches. ” It sits on 1.3 acres and has 166 feet of frontage on the Navesink River.

Thanks for Diane Tuman with Zillow for the scoop.

The Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA) was updated and amended in 2003 by President  Bush.  This Act was created to protect our Fellows in Arms during their “Active Service”.

Many of our soldiers we’re non-active in the National Gaurd or Reserves. When called to duty, they leave jobs behind.  T

What does the SSCRA accomplish? read Below…We are featured in this article:

LASplash.com: Home

Military Family Homes Foreclosed?

By Brian Standly

(Los Angeles, CA) May 4, 2010

Men and women serving in the United States military have protection against foreclose on their homes.

When we think of our men and women serving in today’s military, we may think of that young person who has just graduated high school or college. Enduring basic military training, and learning a demanding skill to take to the battle field. Those individuals have dedicated a part of their lives to protect us from the threats of our enemy’s.

Needless to say these brave individuals have met the demands made of them, and are committed to becoming a successful soldier in the United States military.

There is however an often overlooked area of concern among these homeland protectors. Quite often these soldiers have families and a mortgage to deal with. Not only is a soldier concerned about returning home safely to their families, the soldier is also concerned about the roof over their heads while they are on active duty or deployed overseas.

Kim Darney, Platinum Real Estate, dedicates her efforts on assisting Military Personnel in their housing needs: “With many of today’s active members in a role of Reserves or National Guard, the thought of making their mortgage payments on military personnel’s wages may leave our servicemen or women a little short each month. Many members of our Active military have secured mortgages based on the income of their “non-active” military careers such as business executives, Attorneys, Doctor’s, etc…”

Under the little known provision of the Soldiers’ and Sailors’ Civil Relief Act of 1940 or SSCRA, our fighting men and women are protected

from many of these stressful concerns. One area that is prevalent today is that of mortgage foreclosure on trust deeds that were secured prior to active duty.

The SSCRA explicitly states (50 U.S.C. App. § 532 P.3) that:
• “No sale, foreclosure, or seizure of property for nonpayment of any sum due under any such obligation, or for any other breach of the terms thereof, whether under a power of sale, under a judgment entered upon warrant of attorney to confess judgment contained therein, or otherwise, shall be valid if made during the period of military service or within three months thereafter, except pursuant to an agreement as provided in section 107 [App. § 517], unless upon order previously granted by the court and a return thereto made and approved by the court.”

What does this mean?

Darney explains:
1. “Military personnel are protected under the regulation enacted by the SSCRA from any and all foreclosure activity on their homes that were owned prior to their “active” status in the military.”
2. “Any legal action taken against an “Active” serviceman or woman as it pertains to foreclosure is not allowed during, and up to 3 months after military service is completed.”

This Act has teeth. It even goes a step further, holding any party or parties responsible for attempting to foreclose or seize the home from an active military soldier.  The punishment is severe. These cases will cost the “plaintiff” or proceeding party heavy fines, and may even be punishable by up to 1 year in prison.

When you leave to fight for your country, you need assurance you will have your home to return to.

The SSCRA is here to protect the individuals that protect us, and secures the America way.

Back in February the Mortgage Bankers Association struck a deal to sell its headquarters building. But like many Americans with real estate that has plunged in value, the trade group is getting much less than it owes its lenders.

The buyer….CoStar Group Inc., a provider of commercial real estate data, agreed to buy the MBA’s 10-story headquarters building in Washington, D.C., for $41.3 million.

That is well below the $79 million the trade group agreed to pay for the glass-walled building in 2007, near the top of the property bubble, while it was still under construction.

Can you say double standards….?

The trade group, which represents the real-estate finance industry, is at best in an awkward position. Its chief executive, John Courson, said in an interview late last year he believed “under-water” borrowers—those owing more on their mortgage than their home’s current market value—should keep paying their loans if they can afford to do so.

Defaults, he said, hurt neighborhoods by lowering property values. “What about the message they will send to their family and their kids and their friends?” Mr. Courson asked. On Saturday, Mr. Courson declined in an interview to say whether the MBA would pay off the full loan amount. “We’re not going to discuss the financing,” he said.

The message could not be any more clear….

Selling for less than owed on your property is a viable means to foreclosure!  Ask Mr. Courson.  I wonder what he was thinking when he made the deal????  Do you think that even for a second his own quote entered his mind!  “What about the message they will send to their family and their kids and their friends?”

We get it Mr. Courson, these are tough economic times, and when  faced with making life altering decisions there are valid concerns that out-way what our neighbors might think of us…….

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Always wanted our own cabin…

Colorado Ranch Sold for $46.5M — Highest Sale in U.S. This Year

By: Diane Tuman, Zillow Content Manager | April 28, 2010

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