Adriana Steel

Hi Everyone,

Please, take a look at this great short-sale information. This was an original post by Wanda Phillips in Fl. There are 12 keys points. If you are considering purchasing a short-sale these are such great tips.

1. There are usually no guarantees from the lender (or the seller) with short sales. Be prepared to be flexible.

2. The employees of the lender that are negotiating the sale are not there for the benefit of the buyer or the seller. Their only goal is to collect as much money possible for the lender. The lender may:
• Misrepresent their own policies or use other means to pressure the parties involved into paying more money.
• Require the seller to sign a note or new loan for the balance of the mortgage due.
• Change their price and terms up until the moment of closing.
• Pursue a judgment against the seller for the amount of the shortfall.
• Investigate the seller for indications of mortgage fraud if there are unexplainable gaps or discrepancies in the seller's current financial situation and what he claimed at the time the loan was granted.
• Expect the home to initially be listed at or close to market value and then dropped accordingly until viable offers are received.
• Require their own broker's price opinion or appraisal.
• Require the property be sold "as is".
• Require that the seller and the property qualify for a short sale.
• Require an offer be made before they will consider discussing a short sale.
• Give an "approval" letter that is just a thinly disguised "maybe".
• Set caps on payments to Realtors, title companies.
• Set restrictions for amounts paid to investors negotiating assignments or simultaneous closings.
• Set restrictions on issuing clear title.

3. The seller does not have to be in foreclosure or even behind on payments to ask for a short sale - the seller must prove that his house can't be sold for what he owes.

4. The term "short sale" or "foreclosure" does not automatically mean "under market value".

5. The time frame involved in a short sale varies from lender to lender, however, in general, it can take two weeks to 60 days just to receive an approval from the lender to consider a short sale.

6. The parties involved in the short sale will need to contact the lender's loss mitigation department to get basic procedure information such as:
• What is the process to qualify the seller and property for a short sale?
• Whom do you submit a contract to?
• What is the estimated time frame for acceptance of a contract?
• Will the lender confirm in writing that they will accept a short sale?

7. Sellers should always disclose the financial status and lender position to potential buyers upfront.

8. Sellers should always include an addendum to the sales contract stating that the sale is contingent upon approval of a reduced loan payoff by a third party - the Seller's lender.

9. Sellers should not sign a quit-claim deed subject to the mortgage. Sellers will still be liable for the mortgage payments.

10. The shortfall could be taxed as income to the seller. For example, if a seller is in a 30 percent tax bracket and has a $30,000 shortfall - they could end up owing an extra $9,000 in taxes.

11. In most cases, to make a short sale worthwhile for a buyer, the property should be priced substantially lower than comparable (easier to purchase) properties.

12. Tips for Buyers:
• Ask for verification that the Seller's lender has already agreed to a short sale.
• Get the terms required for the short sale.
• You can get some information about the mortgages and any other liens on the property.
• Verify the status of the seller's payments and where they are in the foreclosure process.
• Lenders are getting better at working with short sales but regardless - Understand there is no guarantee that the sale will close or that the price, terms and cash required will not change prior to closing.
• Protect earnest money deposit until the lender approves the short sale.
• Specify in your contract that the buyer will be permitted at their option to cancel with full refund of deposit if the sale is not approved in writing by a specific date.
• Specify in your contract that the buyer will be permitted at their option to cancel with full refund of deposit if the sale does not close by a specific date.
• It is especially important to stay in touch with all parties involved including the seller, listing agent and settlement agent, and if possible, the lender.
• All buyers should be pre-approved for a mortgage before submitting the offer.
• Wait on having a home inspection and an appraisal for the loan until after the lender has accepted the short sale proposition.

Please, let me know if you have any questions,

Adriana Steel

240-793-1791

adriana@LNF.com

www.adrianasteel.lnfre.com

www.washingtondchomesblog.com

Apparently, there have been hundreds of complaints about Chinese-made drywall in newer homes since last January. The foul-smelling drywall first emerged in Florida, but there have been cases in Virginia, Alabama, Louisiana and many other states. Homeowners are moving out of their homes fearing the health effects from the drywall and filing law suits. People have reported bloody noses, sinus problems and headaches, but the actual health effects are unknown.

With the US credit crisis many domestic manufacturers have seen their sales suffer because it seems expensive compared to Chinese-made drywall. The US imported over 309 million sq. ft. of drywall from China during the housing boom form 2004-2007. Enough to build over 35,000 homes. It is unknown how many houses contain domestic or imported drywall.

Not all of the of the Chinese drywall is likely to lead to these problems/health issues. While there is a proposed temporary ban on certin Chinese drywall imports, the problem is that the Chinese manufacturer isn't always clearly identified on the drywall. So it will be difficult to determine the exact manufacturer.

Some homeowners have reported that their jewelry, pennies, and electrical wiring have tunred black in their newly built homes.

While this is most likely just an odor problem, unfortunately, this is just something else we have to be aware of now with newly built homes.

If you have any questions let me know. Feel free to contact me anytime.

Adriana Steel

240-793-1791

adriana@LNF.com

Oh by the way......I'm never to busy for you or all of your referrals.

Hi everyone,

There have been some great changes that were just made to the HELP/Job Loss Protection program. The first is that the program cost is only $500 for sellers.

The Job Loss Protection Program will provide up to six months of mortgage payments if the borrower (or co-borrower) becomes involuntarily unemployed.

This program provides mortgage payment coverage for up to six months during the first 24 months of the loan.

Within 30 to 45 days after a buyer moves into a new home, a packet will arrive that explains the unemployment

coverage and how to handle a claim in the event of an involuntary job loss.

• Up to six months of mortgage payments

• Coverage up to $1,800 per month

• Easy enrollment process

Program Benefits

• Employed full time (minimum of 30 hours

per week) at time of mortgage closing

• Vesting period is 60 days

• Cannot be self employed, an independent

contractor, or active military

• Cannot own greater than 10% interest in

his/her employer’s business

• Must be between the ages of 18 and 66

and reside in the U.S.

• Primary residence, secondary homes,

and single unit investment properties

Eligibility

Coverage Period

Twenty four (24) months from the closing date of the mortgage.

Maximum Benefit

The lesser of the actual mortgage payment

(PITI) or $1,800 per month.

Benefit Period

Up to a maximum of six (6) payments during

the twenty four (24) month coverage term.

Vesting Period

Sixty (60) days from mortgage closing date

(if purchaser becomes unemployed during this Vesting Period, there is no coverage for this occurrence of unemployment).

Waiting Period

Thirty (30) days from commencement of unemployment.

Contribution Clause

When joint mortgagors are involved, benefit amount will be based on the percentage the unemployed person's income is to total qualifying income at the time of mortgage closing.

Conditions

a) Unemployment must commence during

coverage period

b) Coverage is limited to payments due

30 days after unemployment begins

c) Claimant must qualify for state

unemployment benefits

d) Claims payments cease immediately

upon re-employment

e) In the event of subsequent unemployment,

a new 30 day Waiting Period applies

Exclusions

a) Voluntary unemployment

b) Disability or medical (mental or physical)

c) Reasons listed for denial of unemployment

benefits

d) Borrowers that are self-employed or

are aware of a pending layoff

e) Strike/Lockout

Long & Foster has just rolled out a great Job Loss Protection Plan for buyers offered by the Rainy Day Foundation's HELP program. We are the market leader in providing this new program in most of our market area.

The Job Loss Protection aspect of the HELP program assists homeowners who’ve involuntarily become unemployed keep their mortgage payments current for up to $1,800 per month for up to six months, while looking for work. The HELP program also offers six months of telephone counseling and educational e-newsletters.

This is a seller-funded listing advantage. The program price is $550, and it is paid by the seller. It does not cost the buyer anything. Long & Foster’s Buy Confident™ Plan Job Loss Protection is a powerful selling tool. The times call for this added level of buyer confidence, and we can’t wait for you and your customers and clients to benefit from this excellent confidence-building offer.

"The HELP program, including Job Loss Protection is a seller funded program that will protect many prospective homebuyers with up to $1,800 per month for up to 6 months if the buyer involuntarily loses his or her job within the first 24 months after settlement."

Adriana Steel

240-793-1791

adriana@LNF.com

www.adrianasteel.lnfre.com

FYI~ Ladies and Gentlemen:

So......rate this morning dipped to near 4.75% and then rose back to around 5% by end of day. Many are saying that rates will be in the mid 4% range with or without the treasury plan - I completely agree. But with the dollar weakness and Opec's attempts, they may not last too long.

For $#%^# sakes! It is an absolute bargain time to buy. Read below.

Home loans cheapen after Fed steps in

By Lynn Adler Lynn Adler December 17, 2008

NEW YORK (Reuters) - The Federal Reserve's promise to expand a massive mortgage debt buying program pushed U.S. home loan rates to at least 5-year lows on Wednesday, putting them on track to hit the lowest levels in four decades.

Average 30-year fixed mortgage rates sank by about 1/4 percentage point to around 5 percent, but could end the week even lower and provide a much needed boost not only to consumer pocket books, but the economy.

The Fed said on Tuesday it might pump up a program to buy up to $500 billion of mortgage bonds issued by Fannie Mae, Freddie Mac and Ginnie Mae to free lenders to make new and lower-rate loans, and stimulate the worst housing market since the Great Depression.

Rates are still volatile in an unstable market, said Phil Immel, broker at Prudential California Realty in Dana Point, California. "But in two to four weeks, the goal of reaching 4-1/2 percent mortgage rates on conforming product should be a reality," he said.

That's a huge drop from October when the thirty-year mortgage rates were closer to 6-1/2 percent and equal to a more than $300 saving on each monthly payment for a $250,000 loan.

"It should be a great boon for home buyers and or people refinancing," added Immel.

After ending unchanged on Tuesday after the Fed action, the average 30-year mortgage fell to 5.05 percent on Wednesday afternoon from 5.30 percent, according to HSH Associates.

"The Fed did announce some important and expanding supports for other markets and mortgage markets especially," said HSH vice president Keith Gumbinger, in Pompton Plans, New Jersey.

If rates end the week at an average of 5-1/8 percent, as expected, it would be the lowest level in at least 46 years, he added.

By some other measures, the loan rate fell to 4.70 percent on Wednesday from 5.01 the day before, according to Zillow Mortgage Marketplace.

Bankrate said brokers are offering conforming loans near 5 percent. It expects to broach a new low this week or next for its 23-year-old weekly rate survey, under the prior record of 5.28 percent in June 2003.

Rates have edged lower in the past month since the Fed first announced this plan, as well as its intention to buy up to $100 billion of other debt issued by Fannie, Freddie and the Federal Home Loan Banks.

TOURNIQUET

The lowest rates in at least five years, and two years of steep home price declines improve home affordability, but will not recreate the record refinance and purchase boom seen earlier this decade.

As endemic of this cycle in which the boom turned into a bust of record late payments and foreclosures, even sharply lower rates won't be enough to help everyone.

"There will be a fair percentage, probably 35 percent or more," that might be unable to refinance because of income changes or their house is worth less than their mortgage, Immel said. "We're putting a tourniquet on a patient right now that could die easily. That wasn't happening four or five years ago."

Earlier this decade, when rates were last this low, money was easy and lenders offered a wider array of often riskier products that have been extinguished.

House prices still have room to fall because of near-record levels of unsold inventory, housing analysts said, keeping many buyers at bay. Unemployment is spiking.

The savings could be meaningful if a borrower has the employment, income and credit score to qualify, however.

A homeowner with a $250,000 30-year mortgage taken at 6 3/8 percent is paying about $1,559 each month. At the latest rate nearer to 5 percent on Wednesday, the payment could be cut to around $1,318, according to HSH Associates.

Still, "the market is very different today than four or five years ago," Gumbinger said. "Those lows were the result of private market investor appetites. We would not be at these levels without the government's stated appetite for mortgages and mortgage-backed securities."

David H. Stevens

President - COO

Long & Foster Companies