i Short Sale

2010-06-16T16:11:00.000-07:00

Here is the dramatic story of a struggling Chatsworth family. The family won't lose home due to the help of I Short Sale, Inc.http://www.dailynews.com/news/ci_14772426

2010-06-15T11:41:00.000-07:00

Here are some of the new Federally Mandated short sale key rules:

Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
The seller will be released from all liability for repayment of the mortgage debt.
Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.
The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.

Here is the link to the FED program

Facing foreclosures? A short sale may be a better option

2010-06-14T08:53:00.000-07:00

Click here to listen or download (short sales.mp3, 14.89 MB)

• Why more distressed homeowners are taking the short route
• ‘Reduction of principal used to be taboo’

Millions of Americans, especially in California and a few other states, are living underwater – in homes whose market value is less than their mortgages.

For those unable to make the payments, foreclosure is often the result, since government “help” programs have often been seen as too little, too late and applicable to too few.

But Southern California real estate investor Eli Tene says there is a better way for many: the short sale.

“Reduction of principal used to be taboo. Finally, they are getting to it,” says Mr. Tene, managing president of IShort Sale Inc., which describes itself as one of the largest short sale firms in the U.S.

“They are still putting some limitations. It only works for people who didn’t missed payments,” says Mr. Tene, who notes that as many as 10-12 million homeowners face a serious risk of foreclosure over the next three years.

But he says lenders are waking up to the fact that getting something in a short sale is better than getting stuck with owning the homes they have foreclosed on.

(Eli Tene talks about when the short sale may be the right sale in today’s CVBT Audio Interview via Skype. Please left-click on the link below to listen now or right-click to download the Mp3 audio file for later listening.)

Mr. Tene has some advice for those faced with mortgage problems.
• Communicate with your lender from the moment you are having difficulties making the mortgage payments. Many times, continuous communication with the lender prolongs the time frame from the beginning of the default to the initiation of the foreclosure proceedings.

• When communicating with lenders and when being asked over the phone to provide financial information, never furnish such data without organizing it on a piece of paper and studying it. People tend to provide wrong or un-audited financial information over the phone, which is being recorded by the lender. Changing these figures later might be difficult.

• Substantiate an income. The most important key factor of obtaining a modification is to substantiate an income. A lender will not grant a workout to anyone who is not able to show hard proof of income. Make sure your records are straight, especially if you are self-employed. Go thoroughly over your income and expenses. Cut all unnecessary expenses and trim existing ones. Lenders like to see the borrowers living on a tight budget before they are being asked to cut their mortgage charges. Make minimum payments to credit cards. ?

• Know the programs available on your loan. Obtaining a loan modification is somehow considered as a "mini loan." As such, you have to know the programs available on your loan, know the exact numbers and ratios the lender is looking for (in most cases the lender will not provide it to you), and understand the lender's language. If you don't feel secure communicating with the lender and obtaining the modification, consult a professional.??

Short Sale Myths De-Bunked

2010-06-11T12:23:00.000-07:00

With short sales making up almost 35% of home sales in March and the country in a national foreclosure crisis, I Short Sale, Inc., one of the largest short sale firms in the U.S. sets the record straight on common short sale myths.

Short Sale Myths

1. You must be default on your mortgage to negotiate a short sale. Short sales are not a function of default status on a mortgage. They are the result of the bank mitigating a potential default situation that, in the long run, will cost more money to the investors. We have completed many short sales in instances when the borrower was not in a default situation.

2. Listing my home as a short sale is embarrassing. Anytime we get ourselves into a tough financial situation it can cause some embarrassing feelings. It is important to remember that those feelings will not help us get back onto stable financial ground. We need to overcome our feelings and do what is right to protect our financial futures.

3. Buyers aren't interested in short sale properties. Short Sale properties are often times available at a competitive price to other properties on the market. In many cases, short sale properties are very well cared for and have not had to endure the deferred maintenance of a REO property. Short Sale properties are in great demand in the marketplace.

4. There's not enough time to negotiate a short sale before foreclosure. A good negotiator takes into account the timeline affiliated with a foreclosure. There is always a chance that a short sale can be negotiated. However, the only way to know for sure is to try.

5. The bank would rather foreclose than complete a short sale. Banks do not want to foreclose on property. It is expensive and carries a high level of liability once the bank owns that property as an REO. Wherever possible, banks are seeking other loss mitigation options before foreclosure.

6. Short sales are impossible and never get approved. Short sales are complicated, but not impossible. We negotiate short sale approvals every day.

About I Short Sale, Inc.

I Short Sale, Inc. is a leading nationwide short sale and loss mitigation advisory firm that has assisted thousands of property owners and lenders in the intricate business of short sales, loan modifications, forbearances, deeds in lieu and other loss mitigation solutions. Since 1991, I Short Sale's principals have helped property owners and lenders avoid the lengthy and costly process of foreclosure and the stressful act of eviction. With over 18 years of experience, I Short Sale principals have developed a far-reaching network of contacts consisting of property owners, mortgage companies, banks and realtors. The firm's success is based on integrity and delivering on their client needs. Compliance with all State and Federal laws is our mandate. Learn more at http://ishortsale.com.

Eli Tene just spoke about short sales on Fox Business News

2010-03-14T10:01:00.000-07:00

Steps to Avoid Foreclosure

2009-08-18T13:54:00.000-07:00

The following options may be available to borrowers who are unable to afford their mortgage payments and who wish to avoid foreclosure: If your problem is temporary, you may want to consider the following options:
Reinstatement - Your lender may be willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
Forbearance - Your lender may be able to temporarily reduce or suspend your payments for a fixed period of time. At the end of that time, you must make a lump sum payment or enter into a long term repayment plan to pay back the reduced or suspended amount. Forbearance may be a good option when the cause of your default is specific and temporary and it is reasonable to assume you will be able to resume making payments at the end of the forbearance period.
Repayment Plan - Your lender may be able to arrange a simple repayment plan whereby you make your mortgage payment plus an amount of the total in default. The plan could be a few months long, or may extend to a year. At the end of the time period, you would have paid off the past due amount and your payments go back to the original payment amount. Your lender or servicer may require a good faith payment upfront to begin the plan.
If your problem appears to be long-term or will permanently affect your ability to bring your account current, you may want to consider the following options:
Mortgage Modification – If you can make payments on your loan, but don’t have enough money to bring your account current or you can’t afford your current payment, your lender (We) may be able to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways:
Adding the missed payments to the existing loan balance
Changing the interest rate, including making an adjustable rate into a fixed rate.
Extending the number of years you have to repay.
Partial Claim – If your mortgage is insured and you qualify, your lender may be able to help you get a one-time, interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan.
If keeping your home is not an option, you may want to consider the following options:
Sale - If you can no longer afford your home, your lender will usually give you a specific amount of time to find a purchaser and pay off the total amount owed. You may be expected to use the services of a real estate professional who can aggressively market the property.
Pre-Foreclosure Sale or Short Sale - If you can't sell the property for the full amount of the loan and you qualify, your lender may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs.
Assumption - A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.
Deed-in-lieu of foreclosure - As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but may help your chances of getting another mortgage loan in the future.
Regardless of which option you choose, it is important to note that for the majority of these alternatives to begin, you will need to collect the following documents in order to work with a HUD-certified counseling agency.
2 Most recent pay stubs
2 most recent bank statements
2 most recent IRS Tax Returns (W2’s & 1040’s)
Financial Statements
Recent mortgage statement (mortgage payment notice/coupons) of each loan.
A “Hardship Letter” describing in your own words the reasons you are unable to pay your mortgage.

Source: www.reosas.com

I Short Sale, Inc.

What is a Hardship?

2009-07-23T11:22:00.000-07:00

A hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are:
Separation or Divorce
Medical Bills
Inability to work due to health reasons
Death of Spouse
Job Relocation
Reduced Income or Unemployment
Business Failure

Don’t Just Walk Away – Short Sale v. Foreclosure

2009-07-22T09:52:00.000-07:00

he deteriorating economic situationin our country has caused millions of homeowners to get behind on their mortgage payments. Households are being squeezed from all directions as the job market contracts while costs for healthcare, food, and gasoline continue toclimb in chorus. Americans wonder how times could ever get so bad.

With access to cheap credit, Americans pumped the bubble by securing financing without even undergoing simple background checks. Questionable lending practices allowed for home prices to become inflated as more and more people jumped into the property market. The law of gravity states that what goes up must come down. Everyone can agree that this crisis has been more like an airplane crash than the soft landing predicted by our government officials.

The house of cards has collapsed and our nation is now left with a myriad of borrowers burdened by the inability to cover their monthly mortgage bills. Millions of homeowners now owe money on a mortgage that exceeds the value of their home. Realtors have coined this term as an upside-down mortgage. Unfortunately not many homeowners know their rights and alternatives to relieve themselves from this burden.

Short sales and foreclosures are the two most common ways to close a delinquent loan. In a short sale, the lender agrees to accept less than what is owed in exchange for avoiding the expensive and lengthy foreclosure process. In a foreclosure, the lender will repossess the property from a borrower and then try to sell it on the open market in order to recover a portion of their money.

Over the past year millions of borrowers have decided to simply stop paying their mortgage and from their homes, handing ownership over to the banks. Individuals who default on their mortgage and go through foreclosure have their credit ratings ruined for 7 years further complicating their lives. They will find it virtually impossible to secure a future mortgage or financing for any other purpose. Homeowners should weigh the benefits of a short sale (better credit ratings, and elimination of debt) versus ruined credit and the embarrassment of being evicted from their own home during a foreclosure. The Federal government has recognized that short sales are a favorable option to bring the current housing meltdown to an end.

Industry experts agree that it is in both the homeowners and lenders best interest to perform a short sale. Congress recently passed legislation that ceases taxation obligations on short sales and encourages lenders to negotiate solutions with distressed homeowners.

Raffi Tal, COO of I Short Sale, Inc. (ishortsale.com) explains, "The passage of the Mortgage Forgiveness Tax Relief Act in 2007 eliminated the tax obligation for homeowners who have their mortgage debt released through a short sale and foreclosure (up to $1 million per individual or $2 million per couple)."

Tal, makes clear that with taxes no longer an issue, short sales are clearly the best option for homeowners in distress as well as for lenders. This legislation helped create a surge in demand for short sale services. Banks recognize that foreclosures hurt the homeowner, scar neighborhoods, and most of all are expensive. Beyond the financial implications, a short sale upholds the homeowners dignity and helps avoid the unpleasant process of eviction.

Theres no doubt that tough times are upon us, but homeowners can take comfort in the fact that there is a light at the end of the tunnel. The market will naturally adjust itself as savvy buyers purchase property at affordable prices alleviating the glut in housing supply. Most industry experts agree that the housing market will begin recovering towards mid to late 2009 (Wall Street Journal) and that the increase in short sale transactions may be speeding up the recovery process. Homeowners must avoid the foreclosure option completely and turn to other practical solutions. Companies like I Short Salenow provide free consultations to property owners by working on their behalf to alleviate the burden of debt and give them a fresh start.

5 Tips on How Short Sales Could Save Homes

2009-07-21T10:01:00.000-07:00

1. Talk to your lender as soon as possible. Don't wait to go further into delinquency. Time works against you. Once your payment is overdue, your opportunity to get the lender's cooperation declines.

2. Don't be afraid of your lenders. The lender is in the lending business, not the real estate business. They do not want your property. They want to work with you to ensure the loan is paid.

3. Beware of scam artists. Predatory lenders and distress opportunity scammers often target people in financial distress. They try to force you, in a time of panic, into high cost mortgages, which increase your financial problems and the risk of losing your home. Predatory lenders usually offer loans with hidden fees and rate increases. Be aware of "magicians" who pitch dream solutions that sound too good to be true. If it sounds too good to be true, the dream will likely become a nightmare. There are no magicians in this industry. Don't agree to promises that are unrealistic. Look for a real solution.

4. If your loan is insured by the department of Housing and Urban Development or the FHA, you may be eligible for a one-time payment to bring your mortgage payment current.

5. Don't try to negotiate a "short sale" on your property by yourself. When you are sick, you go to the doctor. When you go to court, you take a lawyer. For a successful short sale, seek professional advice. In most cases, you will have ONLY ONE chance at a successful negotiation with your lender.

Source: www.ishortsale.com

Short Sales: For Commercial Properties Also?

2009-07-20T17:47:00.000-07:00

As the landscape of the American real estate market continues to erode, many borrowers are increasingly turning to loss mitigation specialists to help negotiate "short sales" to avoid foreclosure. Experts report that the growing inventory of homes on the market has helped in this surge and there is no foreseeable relief in many areas across the country. Are short sales just an opportunity to bailout homeowners?

Raffi Tal, Chief Operating Officer of I Short Sale, Inc. (ishortsale.com) reports, "We continue to help borrowers that own commercial properties throughout the country. At first, all we were seeing were homeowners; but sure enough the investors followed and we were here to help!"

For commercial investors, financial hardship occurs when you least expect it. A new shopping plaza opens down the street and your retail outlet can no longer generate enough revenue to cover monthly costs; you cannot rent warehouse space because the local railroad track is under construction; or the once thriving manufacturing facility has to shut down its doors due to overseas production. Unforeseen circumstances can arise at a blink of an eye forcing a property owner into foreclosure. In the commercial sector, the expertise of the negotiator is even more critical due to the complexity of the underlying property. "With foreclosures reaching a record high this year, it is no wonder that so called "specialists" are popping up everywhere. Often these specialists concentrate only on one specific region of the residential market," suggests Tal.

"With our experience from the last cycle in the early '90s, we have a business model that caters to all types of property owners, including industrial, office, retail, and multi-family." A short sale is an agreement wherein the lender allows for the property owner to sell the property at a price lower than the current mortgage debt amount.

As short sales require additional time and effort from both the property owner and/or the realtor, many people turn to loss mitigation specialists to negotiate with lenders, as well as find buyers to purchase their distressed real estate.

9 Tips You Should Know About Loan Modifications

2009-07-20T17:41:00.000-07:00

An increasing number of homeowners are currently seeking a loan modification but not everyone can get one. Many troubled homeowners are simply getting lost in the system and are dangerously close to falling victim to a preventable foreclosure. With assistance from a loan modification specialist, distressed homeowners can effectively adjust the terms of their mortgage and avoid foreclosure.

There are many types of loan modifications: lowering payments by lowering the interest rate and/or by stretching out the term of the loan, converting an adjustable interest rate to a fixed interest rate, taking past due payments and adding them on the back end of the loan balance, variable step payment plans, and, in rare cases, reducing the principal balance or any combination of the above.
These 9 tips will help you navigate safely through the process of getting a bank approval for a loan modification.

1. Don't Wait. Act Now!

Falling into foreclosure is a time sensitive situation. If you wait, saving your home will become more difficult. It is imperative you take action right away.

2. Hire a loan modification specialist.

Lenders are knowledgeable and experienced and they hold a significant advantage over the borrower. Their job is to represent THEIR interest. On the other hand, a loan modification specialist's job is to represent YOUR interest.

You wouldn't go to court without an experienced attorney. Why would you go to your lender without an experienced loan modification specialist? This is especially important because your mortgage is probably the biggest financial commitment you will ever carry.

3. Is Your Loan Modification Specialist Licensed by the DRE?

Don't let anyone take advantage of your sensitive financial situation. Make sure that your loan modification specialist is licensed by the Department of Real Estate. Only consider firms that comply with all necessary California Real Estate Laws and the California Foreclosure Consultant Act.

4. Get the Right Documents.

You and your loan specialist will need to decide on a strategy based on your hardship, your needs and your lender's requirements. You will need to provide current income and expense information to document your financial situation.

5. Loan Modification Does Not Impact Your Credit.

One of the most common misconceptions is that executed loan modifications will negatively impact your credit. In fact, being behind on your mortgage payments is what affects your credit rating. Complying with the modified payments will probably be the fastest way to remedy your credit rating.

6. Know Your Loan.

Lenders may give modification priorities to certain types of loans that were previously allocated even if the borrower is current on payments. A seasoned loan modification specialist should be able to identify if you are in a category of preferred loan types.

7. Be Realistic.

Don't have unrealistic expectations. Remember that people tend to exaggerate. Each modification is unique from lender to lender and from investor to investor. Don't expect to pay next to nothing for your loan.

8. Be Thorough.

Based on your current and projected income, make sure that the new modification terms and conditions are something with which you can comply. Be certain to obtain a full financial review from your loan modification specialist that includes a budget for paying your home loan on time.

9. Never Give Up.

If for some reason your loan modification request is denied by the lender, resubmit it. Lenders often change their rules and programs and what might not work out today may work out tomorrow. In addition, consult with your loan modification specialist about alternative foreclosure prevention options. There are other effective ways to avoid falling into foreclosure. Never give up!

Source: ishortsale.com