The question I get every day "How long will it take to have my short sale approved?" Here is current information to help answer that question. As noted in Distress Property Institute's Blog, how are the banks doing with regards to approving the short sales and their timelines....
Prime:
1. GMAC - 6 months
2. Citigroup's servicing arm CitiMortgage - about 7.5 months
3. Wells Fargo - roughly 8 months
(Countrywide - now owned by Bank of America - had the slowest short sale timeline at an average of more than 13 months)
Subprime:
1. Wells Fargo - more than 15 months
2. HomEq Servicing - 16 months
3. Morgan Stanley's servicing arm Saxon Mortgage Services - at a little more than 17 months
(Equicredit and Ocwen came in last with an average of more than 29 months on their short sale timeline)
Option-ARM:
1. JPMorgan Chase's EMC Mortgage - just over 8 months
2. Aurora Loan Services - 10 months
3. GMAC - just more than 10 months
(Again, Countrywide brought up the rear with a short sale timeline at almost 14 months)
Alt-A:
1. First Horizon - just over 9 months
2. Both Wells Fargo and Aurora - roughly 11 months
(Here's Countrywide again at the bottom at more than 13 months for their short sale timeline
Let's hope that the new HAFA programs will help speed up the process.
WASHINGTON - July 13, 2010 - It's a common Realtor complaint: A property going to contract appraises for less than expected. The buyer cannot put more down; the seller will not lower the price; the sale falls apart.
In some cases, however, the appraiser is not the cause. Banks - fearful of Fannie Mae and Freddie Mac policies that mete out punishment if a house is over-valued - err on the side of caution by shaving value off the appraisal. If guilty of price inflation, they could be forced by Fannie Mae to buy back the mortgage at a substantial cost. By dropping the appraisal value, they hope to avoid any suggestion that they inflated the numbers.
Frank K. Gregoire of St. Petersburg, vice chairman of the National Association of Realtors' Appraisal Committee, calls the problem widespread. Many sales are "sabotaged by lenders and underwriters arbitrarily reducing the (appraiser's) value estimate."
According to Gregoire, many lenders try to double-check an appraiser's work by ordering a low-cost electronic valuation. The electronic version uses only readily available public records and no on-site inspection, making it less reliable than a true appraisal. However, banks many times get scared if the electronic version is lower than the physical version, and they downgrade the true appraisal value to protect themselves. At other times, they ask the appraiser to explain the price difference, which can also delay closing.
The rules are about to change
Recognizing a problem, Fannie Mae instituted a new rule that becomes effective on Sept. 1. After that date, banks selling their loans to Fannie Mae can no longer simply drop the appraisal value. In guidance issued June 30, Fannie Mae told its participating lenders that they must contact the appraiser to "resolve" disagreements. If that fails, banks must order a second appraisal. In either case, lenders cannot simply drop the original value that supports a sales contract.
A number of appraisers hailed the change as great news.
Pat Turner, an appraiser in Richmond, Va., said that electronic appraisals don't consider property condition and "are often inaccurate." According to Turner, he once did a physical appraisal of a property that a California-based firm also did electronically. Afterward, the lender's review company asked Turner why he did not use one of the comps the electronic firm used. Turner investigated and said he found out that one "comp" was actually a vacant lot, and worth far less than the property being sold.
Fannie Mae's rule change also attempts to deal with other appraiser complaints, such as the use of inexperienced appraisers who travel to unfamiliar territory by clarifying "appraiser selection" standards.
Fannie Mae and Freddie Mac back about half of all U.S. mortgages, and Freddie Mac officials, when asked about Fannie Mae's announced rules, said they're "looking at it."
Source: Kenneth R. Harney
© 2010 Florida Realtors®
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Article courtsey of Condo Vultuers Sunday, 11 July 2010 19:52 http://www.condovultures.com/home/6335-banks-repossess-4000-south-florida-properties-per-month-in-2010.html
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Banks repossessed an average of 4,000 South Florida properties per month in the first half of 2010, representing an 83 percent year-over-year increase for the tricounty region of Miami-Dade, Broward, and Palm Beach, according to a new report from CondoVultures.com. Miami-Dade led the surge, experiencing a 125 percent spike in repossessions - also known as Real Estate Owned by banks (REO) - on a year-over-year basis. Palm Beach experienced a 112 percent jump while Broward's repossessions increased 42 percent, according to the report based on Circuit Court records from Miami-Dade, Broward, and Palm Beach. At the current pace, nearly 50,000 properties would be repossessed in South Florida in 2010, which would significantly outpace the modern day high of 30,400 repossessions that lenders took control of in 2009. Lenders repossessed nearly 26,250 properties in 2008 after taking title to 10,100 properties in 2007, according to the report. "South Florida's real estate market is at a crossroads," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "The number of bank repossessions in 2010 is higher than at any time in at least two decades. This additional bank-owned inventory will undoubtedly be coming onto the resale market in the near future as discounted REO product. "The flip side is, the number of new foreclosure filings in South Florida is down 34 percent in the first half of the year, putting the region on pace for less than 70,000 actions in 2010 compared to 97,000 in 2009." Despite the spike in repossessions, bank-owned properties still represent only about six percent of the 67,000 residences on the resale market in the tricounty South Florida region as of July 12, according to a new CondoVultures.com report. South Florida's residential inventory has increased on a weekly basis for five of the last six weeks, representing a 2.7 percent jump in available product since May 31. Still, the overall resale inventory is down more than 37 percent from November 2008 when there were nearly 108,000 residences available in South Florida, according to licensed Florida brokerage Condo Vultures® Realty LLC. Market conditions aside, another key reason the number of bank repossessions has increased this year is the implementation of a new online auction technology being used by the South Florida circuit courts to clear the backlog. The online auction technology now allows hundreds of properties to be auctioned off more efficiently, industry watchers said. Before the online auction software was adopted independently in the first quarter of this year, each of three South Florida counties fulfilled the last step in the foreclosure process by holding courthouse auctions as many as five days a week in attempt to clear the backlog of properties. The problem was, only so many auctions could be held each day despite the best efforts by the court officials. With the new improved online auction process, lenders are taking title to properties from defaulted borrowers at a much quicker pace but still not as fast as before the South Florida real estate crash, industry watchers said. At the start of the housing crash in 2007, lenders estimated the typical foreclosure would take about six months to repossess a property at a cost of about $40,000 in the loss of debt service, damage, court courts, and attorneys fees. By 2009 as the foreclosure filings were spiking, the process extended out to an average of 18 months with an estimated cost of at least $100,000 per repossession, according to a recent CondoVultures.com report. Lenders repossessed 15,100 properties between April and June 2010, representing a 152 percent increase compared to the 6,000 properties repossessed during the same three month period in 2009, according to the report. In the first quarter of 2010, lender repossessed nearly 9,200 properties, representing a 25 percent increase over the 7,300 properties taken back between January and March 2009, according to the report. Miami-Dade, where Aventura, Coral Gables, and Miami Beach are located, has experienced more than 11,000 bank repossessions this year. After experiencing only 700 and 750 repossessions respectively in the first two months of 2010, the repossessions spiked to 1,300 in March, 1,700 in April, and 2,500 in May. In the month of June, Miami-Dade's repossessions eclipsed 4,000 in 30 days, according to the report. Broward, where Fort Lauderdale, Hollywood, and Pompano Beach are located, has experienced a more consistent number of bank repossessions in the first half of the year. Broward's monthly repossessions have consistently ranged from 1,200 to 1,900 in 2010, according to the report. Palm Beach, where Boca Raton, Delray Beach, and West Palm Beach are located, has experienced between 350 and 950 bank repossessions per month in the first half of 2010, according to the report. Since the housing market crashed in 2007, there have more 91,000 repossessions in South Florida with Miami-Dade accounting for 43 percent, Broward an additional 42 percent, and Palm Beach the remaining 15 percent, according to CondoVultures.com. "The unknown is how many of the more than 240,000 foreclosure filings initiated in South Florida since January 2007 are going to end up as bank repossessions," Zalewski said. "Right now, the ratio for repossessions-to-foreclosure-filings is about 38 percent and climbing." Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Don't forget to sign up for our weekly Market Intelligence ReportTM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures DatabaseTM or view our Video Gallery. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals DatabaseTM. Our new books, the Official Condo Buyers Guide to MiamiTM , Official Condo Buyers Guide To South BeachTM, Official Condo Buyers Guide to Sunny Isles BeachTM, Miami's Great Condo Crash: A Chronicle of the Boom and BustTM , and the First-Time Home Buyers Guide To South FloridaTM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure DatabaseTM. Copyright © 2010, Condo Vultures® LLC |
House approves homebuyer tax credit extension
By Tami Luhby, senior writerJune 30, 2010: 8:44 AM ET
NEW YORK (CNNMoney.com) -- The House of Representatives voted Tuesday to give first-time homebuyers three more months to close on their purchases and land an $8,000 federal income tax credit. But the Senate had better act fast - the deadline is currently Wednesday
The bill doesn't help anyone currently shopping for a home. Buyers must have signed a contract by April 30 to qualify for the tax break. At issue is when the deal must be finalized.
The House voted 409 to 5 to delay the closing deadline to Sept. 30 in a stand-alone measure. The move comes nearly a week after the Senate failed to advance a much larger jobs bill that contained the tax credit provision.
The smaller House bill would raise the deficit by $9 million over a decade. An estimated 200,000 people may miss out on the tax credit because they won't be able to close by close of business Wednesday. Many are trying to take advantage of short sales, which are complicated deals to complete.
The measure also seeks to reduce fraud associated with the credit. Some 1,300 prison inmates are thought to have claimed and received more than $9 million in tax credits, according to a Treasury Inspector General for Tax Administration report released earlier this month. The bill would allow the Internal Revenue Service to disclose tax return information to prison administrators.
Senate Democrats introduced a similar bill Tuesday, with Majority Leader Sen. Harry Reid, D-Nev., saying the measure "should be passed swiftly."
In a related move, the House failed to pass a measure extending the deadline to file for unemployment benefits until Nov. 30. More than 1 million people are estimated to have exhausted this lifeline since the deadline expired earlier this month. The provision, which would raise the deficit by $34 billion, was also included in the Senate bill that failed to advance last Thursday.
The House is expected to take up the legislation again on Wednesday. The Senate bill introduced Tuesday evening would also extend benefits through November. 
Home Affordable Modification
Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.
Home Affordable Foreclosure Alternatives
Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives Program offers homeowners $3,000 to help transition to more affordable housing when they complete a short sale or deed-in-lieu of foreclosure.
For more details on the HAM and HAFA program and how it can benefit you and your client please feel free to contact me.
Colonial Guaranty & Title , Inc. located in Miami Fl is providing FREE Seminars on the 411 of these two programs...
Here is the Direct link for Elibality to the HAM or HAFA programs...
http://makinghomeaffordable.gov/eligibility.html
As a Real Estate Professional it is my duty, responsibility and pleasure to earn and maintain your complete satisfaction.
I would like to help you with your Real Estate and Short Sale needs ! If you are a first time buyer or an experienced investor, making the right decisions in today's real estate market can be one of the most important decisions you will have to make. Sometimes finding the right real estate agent can be challenging.
•· You'll want an agent ready, willing and able to make a commitment to you and your situation as a seller and/or buyer.
•· You'll want an agent with the experience needed to know the recent short sale trends and current market updates
•· You'll want an agent who embraces technology without losing that personal one to one touch. .
I was born and raised in Miami, Florida in 1980. I attended Monsignor Edward Pace High School and graduated in 1999. Throughout my High School years I worked part time at my Mother's C-21 Real Estate franchise branch, C-21 Capital Realty in Miami , FL. My part time duty was "cold calling" all the possible potential clients in through infamous yellow and white pages.
In 2000, I began my journey as a college student studying and earning an Associate's degree in Political Science. I later began to work full time for my mother's Title Insurance agency, Colonial Guaranty & Title, Inc. in Miami Florida process Title Insurance transaction. Here is where I started to full understand and appreciate the Real Estate Industry. As a result, fell in love with the Business and began to learn and experience what a short sale transactions was and how to handle it. Back in the early 2000's a short sale transaction may have not been of the norm; however there were several cases a year that were processed and successfully closed. Hence leading me to the short sale specialist that I am today.
In 2009 I obtained my real estate license and became a Licensed REALTOR sales associate. I became a member of the Florida Association of REALTORS® and The National Association for Realtors organizations following in the footsteps of many Real Estate Professional that I look up to.
I have been in the Real Estate business for more the 10 years and with in this decade I have accomplish a many great tasks. I have received the "Rising Star" award in 2008 and 2009 Women's Council of Realtors Miami - Dade Chapter as well as served in the committee as the 2008 Ways and Means Chair, and was elected to be part of the Governing Board as the 2009 local chapter Treasurer and 2010 Secretary. I have been a member of the REALTOR® Association of Greater Miami and the since 2007.
I have attended numerous of Short Sale and foreclosure Seminar with in the 2007- 2010 earning the CRS SFR (short sale and Foreclosure specialist) certification. Currently I am in training for the Homeowners Retention Consultant for Titanium Solutions, Inc. A nationwide agency assisting thousands of distressed homeowners.
As a Real Estate Professional it is my duty, responsibility and pleasure to earn and maintain your complete satisfaction. I take great pride in providing all my clients with the attention they need at the level of service they seek. My goal is not only to meet you expectations, but also to exceed them. I truly work my hardest to provide you, my client, with the best quality in your real estate purchase or selling experience.
You are free to contact me by e-mail at meylingcalero@aol.com at anytime or you can fill out the contact me form and provide me with a brief description of the South Florida Real Estate inquiries you are considering.
I look forward in assisting you with your real estate needs.
Are you having trouble with your Mortgage payments?
Are you going to miss any payments in the future?
Are you facing a foreclosure?
Are your mortgage payments too high?Do you owe more than your house is worth?Do you want to sell your house but there is not enough equity? Do you want to avoid or stop a foreclosure ?
If you can answer YES to any or all these questions, regardless of your financial situation,
A Short Sale may be a viable option for you and your family.
Today, 1 out of every 8 homeowners in America is behind on thier mortgage payments. These are tough and frustrating times for almost anyone. Did you know that there are options other then a foreclousre ?
2008 Women's Council of Realtors Miami-Dade Chapter Ways and Means Chair.
2009 Women's Council of Realtors Miami-Dade Chapter Board of Directors Treasurer. 2010 Women's Council of Realtors Miami-Dade Chapter Secretary.
2009 Short Sale & Forecloure Specialist
2009 Modify My Debt Now Loan modification advisor.
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