Minnesota Short Sale Homes

Have you seen this article on other markets?East Bay  They are predicting it could be 2014 before this market even recovers. The question is will it be that long with other states also?  If we feel Minnesota’s market may not recover for 3-4 more years at least and you can’t afford the payments or you simply are falling behind in payments and can’t catch up.  Let me ask you this, do you want to sell the house?  Could you sell the house?  It’s a fact that many people right now are over leveraged on their current mortgages and simply don’t have enough money to bring to the closing, and or to pay holding costs, repairs, or an agent to just get out of the house. They have to pay to get out of the house.  There is a solution.  It’s referred to as a short sale.  A short sale can be a better solution in many ways then completely losing the house.  There are new fannie mae guidelines that state this.  I have shown these guidelines on other short sale posts.  With the financial economy problems right now, it’s just making the housing market move like a snail.  Some people are able to weather through it, some are not.  Also as more houses go back to the bank more houses will sell very cheaply as foreclosure, forces the comps to lower prices in all types of neighborhoods, leaving it even harder to sell.  With a short sale, the bank will pay our 3rd party negotiators to help out, put the paperwork together and negotiate.

Learn about Minnesota Short Sale Homes to see if it makes sense for you. This article is very long and descriptive and tells you if it’s right for you.  You can view the full article on www.MinnesotaInvestors.com

Minnesota Short Sale Homes 1 in 6 Underwater now

It’s time to learn what a short sale is at this article: Minnesota Short Sale Homes
Have you read the latest article on MSNBC?     http://www.msnbc.msn.com/id/27089919
1 in 6 now owe more on their mortgage then their property is worth.

This article is from Oct. 8th , 2008:

The idea of this is that it makes people feel less rich, the total opposite of the last 5-7 years and makes people want to shop less, eat out less, etc.  As you probably know that most people can’t refinance the house because they get behind in payments or they simply don’t have the value or equity needed to refinance the property. Many choose to let the house go back to the bank.  This will lower the price of comps in that neighborhood.  For those who bought a home in the past 5 years, it’s estimated 29% of all homeowners are underwater on their homes. Meaning they owe more than the house is worth.  The article reads as Minneapolis being back to 2004 price levels. I personally have seen many houses even from 2001-2002 selling for the same or less money.

The article goes on to read that “9.16 percent were a month or more overdue or were in foreclosure in the second quarter” , That’s a lot!

So the estimate is that 12 million homes are underwater right now.

Many people even think they have $5000 in equity still need to pay an agent commission when listing the house, holding costs, and other closing expenses. If you are behind on payments, about to be behind on payments, or clearly owe too much on your home, I have associates who can negotiate with your lenders and get paid by the lenders. They take care of the work. You hand in some initial paperwork and they do most of the rest just listing the house, taking in PA’s submitting to banks, etc.  Selling your home on a short sale is far better than giving it back to the bank.  If you can afford the payments and aren’t behind much you could rent it out for awhile, but if you are under water by a lot, you may not want to wait 5-10 years for the price to catch up, that is if you can’t afford the payments or your ARM is about to adjust.  Health bills, layoff at work, loss of employment, death, divorce, these all cause foreclosures, it’s a part of life that many go through. You don’t have to be a foreclosure expert, we have those who are.

Minnesota Short Sale Homes

Minnesota Short Sale Homes

I don’t know what the total number of American households underwater with negative equity is, but I am hearing some pretty big stats these days. I thought I heard 30% of the USA and climbing by the day, this may be based on people that bought since 2003, which is a lot of people.  Something as simple as 5% more depreciation in homes and it could be quite a bit more.   If you don’t believe me watch this video

http://www.mortgagenewsdaily.com/video/embed.asp?id=1777

That has now been followed up with a story about how 25% of sales from the past 12 months have resulted in a loss to the home sellers , meaning they sold the house for less than what they orginally paid for the house.  This number could climb if houses keep going down.   These articles are saying that  Mercid, California and Stockton, Californiareally got hit hard.

Check out that link here for the article:

http://money.cnn.com/2008/08/13/real_estate/sellers_suffering_huge_losses/index.htm?postversion=2008081317

The end of the article talks about the short sale solution and how it’s becoming inevitable that people make the decision to just do a short sale, and that’s why I posted this article to help you in that direction. Please email me ron@minnesotainvestors.com and I can help you with getting your house sold via a short sale.

Please read the short sale homes article I wrote earlier

I have posted a new link that is important to read about fannie mae foreclosure guidelines where it talks about the benefit for buying a future home based on doing a short sale compared to letting the house go back to the bank.

Minnesota Short Sale Homes

Ron did a longer more detailed article at this link for minnesota short sale homes

This article was written by Mario, a mn short sale process specialist….

I always submit the package to both 1st & 2nd simotaniously to get the

ball rolling on both because they are slow. I sometimes will have the

Estimated Hud1 going to the 1st say that they are going to pay the 2nd

2000-2500 knowing that the chances of them doing so is small and i send

the 2nd one saying they are getting 500 or 1000. Y would i do this?

Because it gives me room to negotiate and let both sides feel like they

got a deal. The 1st will normally says they will not do more then 1000 to

the 2nd and the second will say they will not accept less then

1000-2000 to release their lien. If i can get the 1st to pay even 1500 it will

make the 2nd jump a lot faster because they normally are stuck with

1000 and the first feels like they negotiated down on the amount they

were paying. one thing to always remember is that the 2nd is pretty much

forced to play along if the 1st is taking a discounted payoff. Once the

1st has shown they are taking a hit, you are simply convincing the 2nd

that they need to take the 1k-2k payoff. The trick with short sales is

all in the BPO. If you can get the BPO value down low enough you are

golden. Even if the 2nd puts up a fight because their bpo came in higher,

you can try to convince them to let you order a 2nd opinion on the

property (this works best if you are adiment about the bpo agent being

crazy and way off on his numbers. believe it or not if you keep pushing

they will usually break and put the bpo into review or allow the 2nd

opinion) and in some cases you can even get the 1st to send over a copy of

their BPO or appraisal even though they are not supposed to. when the

2nd sees what the 1st is going by… usually they break. 1 trick that

normally gets the 1st to give you their bpo value (crucial when

negotiating with the 1st) is to act like you already know what it is. Call and

talk to the account rep a few days after they recieve it (they dont

remember what they already did and didnt tell you because you are 1 in 300

files) and say this word for word in normal conversation about the bpo

coming back “yeah well, now that the bpo came back at …… (has to be

lower then you think it really came in at/make sure it is lower then

what you are shooting for) what else do you need from me to get this

approved” like they already told you and I will bet you money that they

will come back and say “no…. it didnt” then you say “that’s weird,

thats not what i was told, are you sure?” say it with conviction and they

will say.. “let me see something” they will say “looks like it came back

at ….” and bam you know what you are working with. they can usually

play within 10-15% of that value depending on the lender. at least you

know you are in the ball park. Bring that value back to the 2nd and rub

it in their face that they have no chance getting more then what the

1st agreed to because the 1st sees the house valued much lower then what

they are owed. The more confident you talk to these people

(respectfully of course) the more they will take you seriously. When i first

started i thought that policies were stiff and the mitigator couldnt get

things pushed through but you would be suprised what a little pressure and

posture will do to a tough deal. This business takes a little hustle

but when you get it down, life gets a little easier and deals are more

predictable (faster too). Hope this mini book helps you.

Minnesota Short Sale Homes

This article is written by Mario who has experience doing mn short sale homes

Yes you are right about making sure you have the authorization letter

in and that you are polite with the mitigators. Sometimes its as simple

as making sure they recieve the letter because these lenders swap

numbers around like shoes and there is no way to know if you got it to the

right people. Give you an idea of the process to ensure you are not

doing anything wrong and then if it them being dumb how to get some reply.

1) make sure the lender you are working with is worth working with.

Some people may disagree but i know the lenders I will and will not work

with because some lenders are just not worth dealing with. The only way

you will learn this is by doing enough deals to learn their systems. I

will tell you the main ones i will not touch. Wells & ASC which is a

servicer of Wells’ risky paper. I recently had a house with a 410k

mortgage with wells and i was only looking for a 30k discount (nothing!) and

they let it ride all through redemption and took it back. there was

absolutely nothing else i could do. So make sure the lender you are

working with is worth it.

2) Contact the lender at the before you do anything and ask where to

send the Auth Letter and see if they will send you a “short sale package”

(sometimes referred to as a workout package). This is simply a check

list of what is needed and where to send it when you have it. sometimes

they will send a borrower financial statement that the borrower needs

to fill out to tell the bank what the borrowers finances are looking

like. Sometimes they will not even give you that until you send the Auth

letter and in that case fax the letter over and 48 hours later call in

and request it. This simple step can make a big difference. Sometimes i

get a little cocky and figure i have done it so many times that i know

what they need… and every time i end up holding the deal up because

they changed the needed docs and it puts me back in my place. With this

also make sure that you give them EVERYTHING they want at the same

time. do not send 1 thing in at a time and to make it idiot proof for these

people put it in the order that they have it written on their

checklist and make sure it is obvious what each thing is. Include acct numbers

on top of EVERY page. These people dont care and they will not take the

time to look for things. On cover sheet make an index of what is

included in the packet and the order they are in. Some lenders time stamp

you and if you request the shortsale pack and take too long to get the

requested info in they will close the file. Usually if you send most of

things in and miss something but they dont call you to tell you. There

is a good chance this is y you are not getting a response to your calls.

Resubmitt the FULL packet and attempt to start it over. I went 2

months one time with no response for that reason and never knew it because

no one would return my call to tell me. also on the cover sheet Write in

big letters “URGENT - FULL SHORT SALE PACKAGE” you know most people do

that but The word full is important because it tell the lazy people

that they have a pack that is ready to go and less work on them. if a

sheriff sale date or end of redemption is coming soon put “REDEMPTION ENDS

2/14/07!” to set a sense of urgency.

3)Make sure that when you submit your packet you followup every day

after to see if your packet has been processed. These banks are large and

it sometimes takes them a couple days just to put your packet in the

system to start the process. Each time ask if a mitigator has been

assigned to the file. The reason i say this is because the mitigators get

tons of files everyday and they easily overlook yours unless you stay on

them. You want to talk to them the second they get it on their desk. If

the say there has been someone assigned to the file then ask right away

for their name, direct number, fax, and email (depending on the bank

they may not give you that) but if you get their email… Game Over! Now

begin contacting the mitigator directly from there on out. A little

tip for you… their phone systems are all similar and after a while you

will start to learn your way around them. If you are not getting calls

returned by the assigned person start to call the loss mit number and

when they ask for the ext number dont hit anything and a lot of times it

will bring you to a random rep (sometimes it is even an option to

press extension or wait for next available rep). When someone hops on the

line explain to them that you have been attempting to contact “John” the

assigned person and he has not returned calls for a few weeks. I have

had other people take over the file and help me out and get the deal

done in a very short period of time. These mitigators take more

vacation/sick days then any other profession i have seen so far. So a rep may be

out of office for an entire week and let all their files just sit

there or i have even had a rep get transfered out of that department or

laid off and no one takes over their files. If the person that gets on the

phone is blowing you off and seems to busy to deal with your file then

politely tell them that you know they are very busy and you dont want

to waste their time and to put you through to a supervisor. most likely

they will just to get you out of their hair. When they do this… it’s

like getting the deal on a silver platter because now when the

supervisor puts u with a new rep, you can always go back to them and tattle on

the rep if they are not doing a good job and the supervisor will put

some fire under their but and sometimes take over the file themselves.

If you still have no luck, call customer service number and ask what

the mailing address for Loss mit is and mail them the full package with a

cover letter explaining how it has been impossible to get in contact

with them. Send the letter priority so you can see when it was recieved.

Also send Faxes with the same letter to thier main fax line addressed

to Loss mit supervisor. Do that 5 times a day and it will eventually

annoy someone handling the faxes enough to do something about it.

Hope this stuff helps. Just make sure you submit your stuff right

because 99% of the time it is our fault they cant move forward, do to our

laziness!

Ron did a longer more detailed article at this link for minnesota short sale