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Posts Tagged ‘Short Sale’

CitiMortgage Launched Its Foreclosure Alternatives Program

September 15th, 2010 3 comments

[A:http://www.mortgage-foreclosure.org/news/podcast/citi-allowing-struggling-homeowners-to-remain-in-their-homes-for-additional-6-months-feb11-2010.mp3;Citibank's Foreclosure Alternatives Program]Citi launched a new program termed Foreclosure Alternatives Program which allows homeowners to remain in their homes for an additional 6 months provided if they return the deed of their property at the end of the period. The pilot program initially expects 1,000 homeowners to participate and is available in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. Citi may expand the program nationally.

During a foreclosure, the financial institution will recover the property while the ex-homeowner will have to abandon the premise. Citibank’s Foreclosure Alternative Program combines the provisions of a Deed In Lieu Of Foreclosure thus permitting borrowers to not experience a typical foreclosure. Its purpose is to provide relief to families by allowing them to reside for an extra 6 months as long as they return the deed to the financial institution.

A typical foreclosure will negatively hit the ex-homeowner’s credit score. Citibank’s program, which combines the provisions of a Deed in Lieu of Foreclosure will not negatively hit ex-homeowners’ credit scores despite their agreement to leave in 6 months

Citibank’s new solution is a method of alleviating the risk of more borrowers abandoning their houses via a popular method termed walking-away. Economy.com announced that close to a third of all U.S. mortgages are underwater. The definition of underwater means the amount of mortgage owed exceeds the current worth of the property.

Property researchers are afraid that borrowers who are in debt with 20% or more than their properties are worth are likely to abandon their properties through strategic default or walking away. Majority feel that there is a narrow opportunity for property values to make a come back to previous lofty levels in the foreseeable future.

Sanjiv Das who is CEO of CitiMortgage says that preventing foreclosure is of good interest to both parties of borrower and bank. The intention of the program is to aid the borrower in moving on to the next phase of their lives. Homeowners will still need to pay their electric and gas bills. The bank is willing to set aside a minimum of one thousand dollars per borrower for transitioning expenses including other costs involving the hiring of professional relocation advisers. Other expenses such as HOA and escrow charges will be decided based on each borrower’s ability to pay.

As part of the program, homeowners agree to sustain the well being of their residential premises and encouraged to meet with certified relocation professionals twice every thirty days as they plan to move on with their new lives after moving out of their homes.

Program Eligibility

Foreclosure Alternatives Program was set up to assist homeowners who did not succeed in getting a loan modification or short-sale. To qualify for the program, borrower must initially be eligible for a permanent modification. If the borrower did not succeed in qualifying for a permanent modification, Citibank will decide if a short-sale will fix the problem. A short sale is when the financial institution nods to selling the home at a price lower than the mortgage amount owed. If the short-sale is not viable, the homeowner may then be turned to Citibank’s Deed in Lieu program or alternatively known as the Foreclosure Alternatives Program.

To meet the requirements of this program: 1. Required to have first mortgages with a transparent title owned by Citibank. 2. Required to be presently occupy the property. 3. Required to be above 3 months late in mortgage payments.

CitiMortgage’s program was launched 90 days after Fannie Mae’s November 2009 launch of their program termed Deed For Lease.

Fannie’s Deed For Lease program facilitates an agreement with homeowners to turn in their property deeds and in exchange allow the homeowners to remain in their homes by paying rental for up to 52 weeks. The program allows borrowers to become renters once they have handed in their property deeds.

Learn how to stop foreclosure by keeping informed on the latest government assisted programs. Download the Free Podcast about CitiMortgage Launched Its Foreclosure Alternatives Program for your own use, blog or website.

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Short Sale Leads In Surprising Places

September 6th, 2010 Comments off

There is certainly no shortage of potential short sale transactions in the current housing market. As a matter of fact, according to some estimates, about 1 in every 4 homes for sale is up for short sale. That is 25% of the market! However, with the advent of government programs designed to help homeowners get short sales done in a smooth and efficient manner by working closely with their banks, the short sale process is, for many investors who relied on creativity to get their deals done and sold off to other buyers, becoming more complicated rather than less so.

Luckily, not all of the properties are qualified for these programs, and these properties are far more likely to be distressed than your average primary residence. That is right! I’m talking about vacation homes. Around the country, second homes are hitting the market in record numbers.

In Minnesota, “the Land of 10,000 Lakes,” lakefront properties are succumbing to foreclosure in record numbers as owners struggle to negotiate short sales, while analysts predict a serious foreclosure run on Florida beachfront luxury properties as vacation-home owners in that area try to get out before the oil hits the coast or simply opt to walk away.

Second homes are not eligible for federal assistance or short sale programs of any kind in nearly all cases, making them prime candidates for more traditional short sale negotiations. It is not that the lenders do not want to make a deal; it is simply that with the huge emphasis on HAMP and HAFA, most people do not know that they have any other short sale options available to them.

As a short sale investor, you can help people whose finances and livelihoods are jeopardized by second homes that they can no longer afford and that they are unable to sell in a traditional fashion. These properties are a great source of leads for you for short sales, and they even can sell at higher values because they may be considered “luxury properties.” Make sure that you do not overlook this great potential source of deals when you investigate short sale leads.

If you haven’t checked out www.FreeShortSaleCourse.com then you are really missing out

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Dealing With The Push For Deed-in-Lieu

September 6th, 2010 Comments off

Recently, Bank of America sent out close to 100,000 solicitations to distressed homeowners offering them a chance at a deed-in-lieu transaction. “Deed-in-lieu” means giving the deed to your home to a lender in order to circumvent the foreclosure process. You get to walk away from your house, and the lender states the debt resolved because you returned your collateral. Many lenders have announced that they will offer a variety of incentives for this type of transaction because it saves them a great deal of time and money in processing costs even though they may take a hit when they try to sell the home in today’s market.

Some short sale investors are viewing this new trend with concern, particularly since some lenders have stated that they find deed-in-lieu transactions preferable to short sales since short sales take a long time. Additionally, homeowners who are going to lose their homes no matter what may find this to be an acceptable alternative since it is being portrayed as a route to 100% resolving the debt rather than stressing about being followed up with later for the difference just when you have gotten back on your feet.

As a short sale investor, you should not be too worried about this, however. For starters, there are many, many, many homes that will still go through the short sale process, and not all circumstances are going to warrant or qualify for a deed-in-lieu transaction. Additionally, you can point out to homeowners who may be backing out of a short sale that unless the wording in their deed-in-lieu agreement specifies that the debt is considered entirely resolved by the return of the property, this may not be the case.

While deed-in-lieu and a short sale do go on your credit history and impact your credit score, a deed-in-lieu remains on your history for a full 7 years, and you may have to request that it be removed. According to new legislation, short sales may be removed as soon as 3 years.

In fact, some homeowners may opt for a deed-in-lieu transaction in place of a short sale transaction with you. Nevertheless, the current deed-in-lieu “push” could actually be good, since it may put a notch in homes that lenders were unwilling to short sell anyway. Just be willing to answer questions about this sort of transaction, then keep doing your short sales and helping individuals in trouble resolve their housing scenarios.

For some great video training visit www.FreeShortSaleCourse.com

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Long Term Investing With Warren Buffett

August 13th, 2010 1 comment

A lot can be learned from an American investor, industrialist, and philanthropist who even during a recession remains the third wealthiest person in the world as of 2010. Warren Buffett, often called the “legendary investor Warren Buffett,” holds onto value investing and finds “outstanding companies at a sensible price.” Author Mary Buffett discusses his strategy and emphasis on investing for the long term.

Born August 30, 1930 to a former stockbroker, Warren has demonstrated a lifetime achievement of incredible success as an investor and a philanthropist. As a child, Warren displayed early entrepreneurism by buying and reselling Coca Cola bottles for a higher price. At age eleven he bought his first shares in the stock market and learned his first valuable lesson on patience when he sold his share too soon.

If you look at a company’s earnings and consistency, you can reasonably predict how they will be in the future. Mary Buffett describes Warren’s simple mathematical equation in which he predicts profits through present and future values. Money does not have to be spent on research and development because the data is already there. “Think beer, think gum, think Hershey’s,” Mary continues, “As long as people use these predictable products, there will be predictable profits.” Warren has shown a tendency to choose companies that he knows well and avoids initial public offerings. An initial public offering or “IPO” can be a risky investment considering the difficulty in predicting how a stock or share will do on its initial day of trading.

A lot can be learned from an American investor, industrialist, and philanthropist who even during a recession remains the third wealthiest person in the world as of 2010. Warren Buffett, often called the “legendary investor Warren Buffett,” holds onto value investing and finds “outstanding companies at a sensible price.” Author Mary Buffett discusses his strategy and emphasis on investing for the long term.

About Warren Buffett: Born August 30, 1930 to a former stockbroker, Warren has demonstrated a lifetime achievement of incredible success as an investor and a philanthropist. As a child, Warren displayed early entrepreneurism by buying and reselling Coca Cola bottles for a higher price. At age eleven he bought his first shares in the stock market and learned his first valuable lesson on patience when he sold his share too soon.

Throughout his years, Warren demonstrated legendary success in the stock market and also became the largest shareholder and CEO of Berkshire Hathaway. He continues to preach his philosophy of “value investing,” which he describes as buying companies that perform well and holding on to them long term.

Looking to find the best deal on long term investing, then visit www.investorio.com to find the best advice on small caps for you.

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Real Estate Short Sale Regulations

August 11th, 2010 Comments off

real estate short sale regulations

Short Sale Specialist Network – Buyers

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