Ryan Jennings

Do you have to be delinquent or past due to short sale your home? The answer to that question is NO, but you better be able to prove your hardship in a very clear way to your lender.

Allow me to expand on this topic by giving you a recent experience I had with a client. First, I am proud to say that I was able to get a short sale approval with Bank of America on a loan that was 100% current and never past due.

I speak to homeowners almost daily that ask about short sales and as an experienced real estate in performing short sales I start every consultation by asking questions. One of the first questions...more less is, "Can you please explain to me your hardship"? When I asked this particular client that was never delinquent she told me that she had a family medical hardship and needed to move closer to her child's doctors. So, as we discussed the sellers hardship we gathered all the facts and documentations for the medical hardship (i.e. medical bills, letter from doctors explaining frequent doctor visits, etc). I believe that when dealing with a hardship that is not specifically related to a financial situation...your "hardship letter" is the most important document you can provide to the lender. Most times sellers just quickly write down why they are delinquent and do not put to much thought into the letter, but when dealing medical hardship you have to specific and provide additional documentation.

As with any short sales the process is not quick...you have to be persistent and follow-up often with the lender (at least once a week). Be sure to do your research to see what the criteria is for short sale approval. On this particular deal we new that the borrower did not have to be delinquent but had to be able to prove "imminent default". We were able to document that to the lender by expressing the increased cost of travel, time off work, inability to work extra hours, etc.

The short sale was approved in just over 4 months from start to finish. We lost around 30-45 due to lender requiring the borrower go through the HAFA program. Which the seller did not qualify and forced us to go down just the traditional short sale avenue. This turned out to be fine, since soon after that the short sale was approved with a "Full Release of Deficiency". There was no promissory note requested by the lender. The only requirement was that the lender required a $500 cash contribution from the seller at closing! The HOA payments were current and never an issue.

The BEST news about this short sale being approved is that according to FHA guidelines as long as the potential buyer was never late on a payment and has a documented hardship, which our hardship letter was very precise...the buyer could be approved immediately! Yes, now that same buyer that short sold their home a month ago is now home shopping for a new house in West Palm Beach, FL!! After all the short sale process frustrations...They were able to get closer to their family doctors and avoid lengthy travel to work and medical appointments. Now, they will be in the area that will be better suited for their family.

I believe more short sale programs should be made available for homeowner's that are facing similar circumstances like my client's to allow them selling alternatives. Hopefully, this is a sign that more lenders are taking notice that the old days of being told only delinquent mortgages will be approved for a short sale will be a thing of the past. There are definitely buyers out ready to buy up the distressed properties and those buyers don't care if the seller is current or not as long as the price reflects today's market value.

As a REALTOR in Wellington, FL when asked who do I recommend for a local real estate attorney? I immediately recommend the Law Offices of Paul A. Krasker.

Paul A. Krasker, Esq. is a principal of Trident Title and offers legal services to assist homeowner's affected by the Florida foreclosure crisis through the Homeowner Assistance Division (HAD) of his Law Office. He is one of the most experienced real estate attorneys that I have met in the industry. His office handles almost all of my short sale negotiations and closings. I highly recommend their expert negotiators and loss mitigation staff. They have assisted my team and more importantly my clients with many successful short sale negotiations!

On January 31st, 2012 from 6:30pm to 8:00pm - exclusively at the Keller Williams Realty office...The Law Offices of Paul A. Krasker will be offering a seminar FREE of charge to cover the topic "Is A Short Sale Right For You?" We encourage you to come to this informative seminar to get your questions answered by an experienced law firm.

Some key points that will be discussed during the FREE seminar will be:

1. How to take advantage of the latest programs and incentives
2. How to receive relocation money from your bank
3. How to avoid foreclosure
4. How to restore your credit
5. And any of your questions...

Contact my office at (561) 472-1236 to RSVP for this seminar.

As a experienced Short Sale Real Estate Agent if you would like to discuss your options contact me today at (561) 313-2627 or via email at Ryan@WPBhomes4sale.com

The location of Keller Williams Realty is 12008 South Shore Blvd., Suite 201, Wellington, FL 33414.

It's a new year and your house is STILL for sale...A common concern for many home sellers in the today's housing market. While the market is "improving" almost all home sellers are competing against those FORECLOSURES AND SHORT SALES that have flooded the housing market. And let's be honest...They are not going away anytime soon. The good news is that although they are not going away there are more and more buyers entering the market as the mortgage rates remain low, confidence in housing market improves, and the prices remain historically low.

So what can you do to replace the FOR SALE sign, with the sign that says...JUST SOLD? I want to HELP you get your home SOLD!

Most real estate agents will tell you incentives do create the initial interest in the property, but ultimately it is the PRICE of the home that is the key to getting the home sold! I agree 100%, but I will recommend on certain "Hard To Sell" properties some easy ways to create some needed buzz and urgency to get the home sold.

One example, would be a townhouse in a gated community that has 5 other similar units are on the market at the same time. The question would be...How can you create the interest to be sure your home is the one the buyer wants to see or the house the agent wants to show? Now, as a buyer's agent I most likely will not show all 5 homes, since they are all the pretty much the same. But, what I will do is pick the most attractive home or two - that I think my buyer will like. Which leads me to mention..."Incentives" can also be used to attract the real estate agents to your property. Attracting the Realtors is just as important as attracting the buyers, in my opinion. You want the buyer's real estate agent to promote your home and a little added incentive cannot hurt that effort!

Remember the pricing and condition has to be competitive to the comparables...but, sometimes after that a creative incentive might be the key technique that can get you the increased showings and ultimately lead to your home being sold!

Here are some ideas you or your real estate agent may want to try:

1. Offer to pay a certain amount of the buyers HOA payments or Condo dues (ex.: Seller will pay 6 months HOA fees with acceptable offer by xx/xx/xxxx).
2. Offer to increase the sales commission to the buyer's agent (ex.: Seller will pay 4% commission with acceptable offer by xx/xx/xxxx) or you can offer a bonus (ex.: Seller will give $2,000 bonus to buyer's agent with acceptable offer by xx/xx/xxxx).
3. Offer season tickets to a nearby sporting event, theatre, place of entertainment, or an annual golf membership.
4. Offer to pay the buyer's closing costs (ex.: Seller will pay up to 3% of the buyer's closing costs with acceptable offer by xx/xx/xxxx).
5. Offer a credit at closing for new carpet, new paint, new appliances to the buyer.
6. Offer the buyer a home warranty, which covers the AC, appliances, electrically, plumbing...usually just for 1 year - research and find a reputable home warranty company or contact me a will be glad to name a few that I have used in the past

As a real estate listing agent - I always like to put a deadline for the incentive...just my preference.

I will go back to my earlier point...These are ways to get the interest of buyers and create some intrigue over the property. But, if you are NOT priced right in this market your property will not sell. PRICING IS THE KING IN THIS MARKET!

If you are looking for other creative ideas to customize your marketing of your home contact me:

Ryan Jennings with Keller Williams Realty Wellington (561) 313-2627

13206 Quiet Woods Road, Unit A, Wellington, FL has just been listed for sale by Ryan Jennings of Keller Williams Realty. The beautifully maintained townhouse is located in the desireable Emerald Forest subdivision of Wellington, FL. A well established and sought after community in Wellington, featuring: lush landlandscaping, a fishing dock on Lake Wellington, low homeowners fees, and of course zoned for the great Wellington Schools!

This 3 bedroom, 2 bath (1,585 Living Square Feet, 2,034 Total Square Feet) - 1 Car Garage townhouse has been meticulously maintained by the current owner and is ready for immediate move-in! The home features: Spacious bedrooms with master bedroom on the first floor, cathedral ceilings, large covered and screened patio, tile flooring thru-out living areas, and upgraded kitchen area. The Wellington townhome was built in 1991 and over the past several years the owner has replaced the roof and also replaced the A/C system. The patio on this home is incredible and a must see! If you are looking for a townhouse in Wellington or in the Palm Beach County area...there may not be a better deal on the market at this time! Take advantage of the low prices in this absolutely move-in ready home in Wellington for only $130,000!

Call Ryan Jennings today for more information on this listing or any other homes for sale in the Wellington, FL area (561) 313-2627 or visit www.WPBhomes4sale.com

For more details view the video of 13206 Quiet Woods Road, Unit A, Wellington, Florida below:

An FHA short sale (Preforeclosure Sales Program) is different from the conventional short sale that we have often seen over the past several years. Although there are some major differences in the FHA short sale program the base idea to allow the homeowner who is in default to sell their home and to use the sales proceeds to satisy the mortgage debt, even if the sales proceeds are less than the current amount owed remains the same.

Here are some of the most important steps required in order to successfully complete an FHA short sale:

1) The borrower, with the help of a experienced short sale real estate agent (you may want to consider using a CDPE-Certified Distressed Property Expert) will need to request that the borrower be mailed a copy of the document called Information/Disclosure Form HUD-90035 from their mortgage lender.

2) The borrower and agent will then need to submit the required documentation (short sale pre-offer package) to the Mortgage Servicer (Wells Fargo, Bank Of America, Chase, Citi, Sun Trust, etc). The borrower can also submit this paperwork on their own, but I highly recommend using an experienced short sale real estate agent to guide you through the process.

3) The Servicer reviews the documentation provided and requests any missing information to make sure that the borrower qualifies for the FHA’s Pre-Foreclosure Sale Program (PFS).

4) The Loan Servicer orders an FHA appraisal on the property to determine current "as-is" market value. This is not a BPO (Brokers Price Opinion) which are used on conventional short sales. The appraisal will be good for 120 days and must reflect the "as-is" value of the subject property.

5) The mortgage lender must obtain a clear title search that verifies no un-resolvable title issues or junior liens that cannot be discharged as permitted by HUD.

6) Provided that the borrower and the property meets all of the requirements, an Approval To Participate (ATP) letter is issued by FHA to the borrower identifying the timelines, required net proceeds, and financial incentives.

7) If the property has not been officially put on the market, the borrower hires a short sale real estate agent who starts looking for buyers. The real estate agent will remain in contact with the lender and update them on the marketing efforts throughout the process.

8) In the event, that the borrower fails to sell the home within a predetermined period (currently 6 months) of time and does not qualify for an extension, the property is put on a Deed-In-Lieu of Foreclosure track.

It is highly recommended to list the home on the market with a short sale specialist at the time of submitting the application to PFS. In today’s market, finding a buyer is difficult and requires time. The inventory in our market in Palm Beach County remains high and the added competition will require time to receive an offer on your property.

Contact Ryan today to for a FREE and CONFIDENTIAL Short Sale Consultation and I will take you through the short sale process, step-by-step, until a successful completion. Whether you are looking to do an FHA short sale, traditional short sale, or just need to discuss your option to avoid foreclosure - I CAN HELP!

Here are a few additional points dealing with the FHA short sale process:

• The net required by the FHA decreases every 30 days since the issuance of ATP (Approval to Participate).
• FHA offers financial incentives to the borrowers for participating in the FHA short sale program. It ranges between $750 and $1,000 depending on how quickly the sale takes place.
• Presence of other mortgages complicates the FHA short sale process.
• Oftentimes, the ATP (Approval to Participate) will not be issued until other mortgages agree to the short sale and agree to receive a maximum of $2,500. The borrower may use the FHA financial incentive towards the repayment of other mortgages and liens.
• Some rental properties do qualify for the FHA short sale program. The property must have been purchased as a primary residence and not as an investment and can not have been rented for more than 18 months.
• No "WALK-AWAYS"! The subject property cannot be abandoned, unless due to job transfer, death, or divorce)
• Although FHA short sales are tightly controlled by the HUD, there are, at times, unexpected circumstances that arise and have the potential to complicate the process.
• HUD will allow all reasonable closing cost to be included in short sale, including 6% real estate agent commission, local/state doc stamp tax, and customary closing fees.
• UNDER NO CIRCUMSTANCES should the borrower be encouraged to default on their mortgage to participate in this program. Just like conventional short sale programs, the program provided for FHA must be approved and there are no guarantees of approval. With this said...a requirement of FHA's program is that the borrower must be atleast 31 days delinquent on their mortgage.

To learn more about the FHA short sale process and for a free short sale consultation, contact Ryan today and let my proven experience and knowledge of short sales work for you. I have helped many South Florida homeowner's avoid foreclosure by successfully short selling their homes! Call Today (561) 313-2627