Archive for The Crusade
Amen Outreach Women’s Shelter obtains grant for $15,000 (from a lender!)
Posted by: | CommentsAmen Outreach Women’s Shelter obtains grant for $15,000 (from a lender!)
Take a look below. It warms my heart when I hear of these things happening. Scott Wheeler is one of our top protege students and also is very active in charity work. As you can see our work extend way beyond teaching people short sales strategies.
This is what can happen when a bunch of committed people get together–including the banks and lenders. There’s always another side the banking story. This is it.
- Jeff Kaller
Hey Jeff,
GREAT NEWS!! We just got confirmation yesterday that GMAC has approved the grant for the Amen Outreach Women’s Shelter. Get this, it’s for $15,000!!!!! The check has already been cut and should arrive sometime next week.
Can you imagine that we started out trying to get the foreclosure stopped and a loan modification in place. Not only do we succeed in getting that done, but get the foreclosing lender to GIVE THEM A GRANT FOR $15,000. AMAZING!!!!!!!!!!!!!!!
Speak with you soon,
Scott Wheeler
The Foreclosure, Short Sales and Deed in Lieu Numbers Tell the Story:
Posted by: | CommentsThe Foreclosure, Short Sales and Deed in Lieu Numbers Tell the Story:
As foreclosure moratoriums provided temporary relief to troubled borrowers earlier this year, two other kinds of home forfeiture–short sales and deed-in-lieu-of-foreclosure actions — rose sharply.
In a mortgage study released last week, federal financial regulators reported a 176% jump in short sales and deed-in-lieu proceedings from the first quarter of 2008 to the first quarter this year.
Short sales and deed-in-lieu actions require borrowers to forfeit their homes to eradicate their mortgage debts, generally for less than the full amount due.
Selling a home or handing it back to the bank in this manner does less damage to a borrower’s credit rating than a foreclosure, and can be less of a hassle for the lender.
In a nutshell, year-over-year first-quarter short sales jumped from 5,523 to 17,036, according to the report from the Comptroller of the Currency and Office of Thrift Supervision, the U.S. Treasury Department agencies that oversee banks and S&Ls.
Quarterly deed-in-lieu-of-foreclosure actions edged up from 1,065 to 1,158.
Completed foreclosures still far outnumbered the alternate forfeitures. They totaled 78,936, up from 76,548 in the year-earlier quarter but far below the high of 126,266 in the third quarter last year.
But things are NOT getting better. In fact, they will probably get worse.
Foreclosure statistics are expected to spike again soon as federal, state, local and lender-imposed moratoriums expire.
The regulators said their report covered 64% of current home loans in the United States. Astonishingly, they noted that most of the short sales involved borrowers with prime loans, not subprime or alt-A mortgages.
The press release here describes other facts and findings by the regulators. Here is a link to the complete 42-page report.
Now’s the time to invest. Steals not just deals.
- Jeff Kaller
Can you say “Opportunity???”
Posted by: | CommentsCan you say “Opportunity???”
Sacramento as an example … 70% of all resales were distressed sales!
Here is the June data.
Sacramento Association of REALTORS® started breaking out REO sales last year, but this is the first monthly report with short sales.
This means just over 70% of all resales, meaning single family homes and condos, were REOs and short sales! Amazing.
This is indicative of the market at large.
Opportunity abounds! Now is the perfect time to invest. We are entering the biggest liquidation sale in history.
- Jeff
Something to watch out for with short sales…
Posted by: | CommentsSomething to watch out for with short sales…
This is nothing new but most people would be rather shocked to learn…
From the San Francisco Business Times July 10th: Sellers owe balances after short sales (ht Michael, SocketSite)
The rising tide of “short sales” by troubled home owners facing foreclosure is prompting lenders to become more aggressive in their attempts to pursue former homeowners for their loan losses in a short sale. In a short sale, a house is sold, with a lender’s approval, for an amount that won’t pay off the mortgages on the property.
Often, the troubled home owner assumes the loss will be eaten by the lender. But Bank of America and Chase have quietly added language in their short-sale agreements that require the borrower to sign a promissory note for the shortfall.
A spokesman for the American Bankers Association said this week that he wasn’t aware of the practice, suggesting how little attention has been paid so far to collection of these notes from troubled borrowers.
BofA says its intention is to protect investors holding the mortgages.
This is nothing new.
Zach Fox (when he was still at the NC Times) reported in April: Lawyers say lenders set stage to collect on ’short sales’
Lenders have been inserting language into short sale contracts that allow them to sue for any “deficiency,” or the amount lost by a bank by selling a home for less than the mortgage —- opening the door to collection agencies and court judgments that can run into the hundreds of thousands of dollars for some North County homeowners.
…
One real estate agent who specializes in short sales, Chris Mackey of Carmel Valley, said about 50 percent of the short sale contracts he has seen include the language before he requests its removal. Banks generally have removed the language, he said.
… the North County Times obtained a short sale contract issued by Countrywide Financial Corp … The contract warned the homeowner, who owned a house in El Cajon, that Countrywide “may pursue a deficiency judgment for the difference in the payment received and the total balance due … ”
based upon my experience, you should be aware banks and lenders will most likely remove this language, if requested. I strongly suggest having an attorney review the contract, and make sure “all loans are extinguished and debts forgiven”.
Happy 4th of July!
Posted by: | CommentsHappy 4th of July!
Don’t know about you, but we’re headed to the beach today. Pulling out the wave runners and taking them for a spin.
Hope you and your family are enjoying your holiday too!
-Jeff Kaller
