Author Archives: Katerina Gasset
Author Archives: Katerina Gasset
FOR IMMEDIATE RELEASE
Nancy Braun, Owner & Broker-In-Charge
315 Main Street
Pineville, NC 28134
Local Real Estate Broker Answers Tough Questions about the Foreclosure Freeze
Nancy Braun of Showcase Realty, LLC gives relevant information for local homeowners about the recent foreclosure news.
CHARLOTTE, NC October 28, 2010 – Nancy Braun, owner and broker-in-charge of Showcase Realty, LLC, has set out to answer your questions regarding the very intimidating “Foreclosure Moratorium”. This issue has flooded the news headlines recently, but it is not a new problem. There have been foreclosure freezes before and they seem to be becoming a trend for the fourth quarter of each year since 2006. Being that Nancy has worked in real estate for 14 years specializing in foreclosures and distressed properties she has a well-rounded understanding of the issues at hand. She has also recently attended and spoke at the REOMAC Fall Summit where it was addressed in detail. The following are a few “Frequently Asked Questions” that Nancy feels could make the issue easier to understand and helpful to homeowners who have an unclear view of what the future could hold for their home and their families.
Q: What is a “Foreclosure Moratorium” (a.k.a. Foreclosure Freeze)
A: When a bank stops processing foreclosures and starts investigating previous filings. Currently, four of the largest banks in the US: Bank of America, JP Morgan Chase & Co., Ally Financial’s GMAC Mortgage unit and PNC Financial have foreclosure moratoriums placed in multiple states. Bank of America placed their moratorium on all fifty states, but has since lifted it to only include 23 currently. Foreclosure moratoriums are placed on a state-by-state basis, the federal government currently cannot place a blanket moratorium over all fifty states for all banks.
Q: Why is this happening?
A: With the rise in foreclosure filings, suspicions have risen regarding the amount of paperwork being signed in such a short amount of time. It is alleged that mistakes were made and some homes were foreclosed on that should not have been. In turn, there have been questions about the banks having one or more employees signing documents without reviewing them or “robo-signers”. The banks are stopping their current processing to go back and investigate previous paperwork.
Q: What does this mean for the future of my home?
A: If you have any doubts about your mortgage payment status and you are in a state which has activated foreclosure moratoriums, this means you have some time to catch up. Start helping yourself by saving, saving, saving. There is no telling when the moratorium will be lifted, though most of the time it lasts until the end of the first quarter of the following year, but you want to make sure you are ready when it does. Make payments and catch up – or proceed with the option of a Short Sale which can help you sell your home without being foreclosed on.
Q: What does this mean for the economy? Will it help or hurt?
A: There are mixed reviews on this. Some experts say it will only lengthen the recovery process by two years, others say it will lengthen it by five or more years. From past experiences with foreclosure moratoriums, it seems to only stall them then they shoot back up after it is lifted.
Q: Is there a way to get help before my home is foreclosed on?
A: Always – A short sale may be one option that could help. Also, speaking with an agent who specializes in foreclosures and distressed properties could help take some of the burden off of your shoulders and clarify many questions you may still have. Visit www.shortsaleadvisors.us to view market updates as well as tips when dealing with short sales.
23 States within Foreclosure Moratorium:
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• South Carolina
• South Dakota
If you need more information or assistance regarding this issue, please visit Showcase Realty’s website www.CharlotteREOBroker.com. Feel free to contact Nancy Braun at 704-889-5600 or by email at firstname.lastname@example.org.
For IMMEDIATE Publication
July 26, 2010
For Information Contact:
Nancy Braun Attends WinDS and AREAA Leadership, Education and Networking Seminar in Las Vegas
Charlotte, NC – Nancy Braun, Owner-Broker of Charlotte-based Showcase Realty, recently attended the successful Women in Default Services (WinDS) and Asian Real Estate Association of America (AREAA) – Las Vegas Chapter, Leadership, Education and Networking Seminar held at the Westin Causarina Hotel and Casino in Las Vegas, Nevada.
According to Ms. Braun, the special seminar brought together over 300 members from these two leading real estate and default servicing industry trade associations from across the country.
“Featured during the two-day event were sessions on the SBA’s 8(a) Program, and how to do business with the U.S. department of Housing and Urban Development,” said Braun. “There were also lender roundtables featured during the seminar and we also were so pleased to have Lynn Effinger, Senior Vice President of Olympus Asset Management and a long-time veteran of the mortgage default servicing industry, as our luncheon keynote speaker on Thursday. He was very inspiring.”
According to Shelley Kaye, Executive Director of WinDS, in addition to the educational sessions the seminar offered a number of networking opportunities to the attendees including a charity poker tournament that benefit a local women’s shelter in Las Vegas.
“Real estate professionals are among the most generous business people in the country and the officials at AREAA, which is a non-profit organization dedicated to promoting sustainable homeownership opportunities in Asian American communities by creating a powerful national voice for hosing and real estate professionals that serve this dynamic market, readily agreed to hold this chartable poker tournament,” added Kaye.
The default services business comprises a multitude of disciplines and a wide variety of activities that are essential to the goal of handling the glut of defaulted loans and foreclosed properties negatively impacting the entire U.S. economy. According to Kaye, the members of WinDS, are involved at all levels within this niche of real estate and many of these successful members own their companies, while others are engaged as independent contractors or employees at firms of all sizes in every state.
“Among the many shared goals of WinDS and AREAA is to provide ongoing, meaningful educational, leadership and networking opportunities to our members,” said Kaye. “This special seminar was just one example of our commitment to our members in that regard.”
According to Kaye, numerous positive comments were made by attendees to directors of both trade associations regarding the quality of the seminar leaders and panelists
For more information about this seminar, please visit the WinDS web site at www.WomeninDS.com. For more information about Showcase Realty, please visit www.showcaserealty.net or www.charlottereobroker.com .
“At the REO CON summit, the short sale presentation discussed how Fannie Mae and Freddie Mac loans were exempt from the HAFA short sale program that was put into effect by the Treasury on April 5, 2010. Fannie Mae has just created its own version of HAFA with regulations that you can find at http://shortsalesr.us/FannieMaeHAFA.pdf. Similarly, Freddie Mac has created its version of HAFA with regulations you can read at http://shortsalesr.us/FreddieMacHAFA.pdf.
Does this addition to HAFA make Realtors happy? In general, the terms are similar to the Treasury’s short sale program that is supposed to expedite the review and approval of short sales by pre-approving the seller for the short sale and establishing the amount the lender will accept at the time the Short Sale Agreement (SSA) is entered into. In other words, you qualify the seller and get the amount needed from the sale at the time you list the property. However, there is a difference with Fannie and Freddie. With the Treasury’s program, the lender considering the short payoff may tell the Realtor how much they will settle for. For those of you who do a lot of short sales, they will specify the amount they want to be paid at closing as shown on line 504 of the HUD.
In the Fannie and Freddie program, the servicer is prohibited from telling the seller, buyer and Realtor what this amount is. Instead, the servicer will establish an asking price based on the condition of the market in the area. Who is better at setting an asking price: (1) the Realtor who works there every day or (2) a Loss Mitigation negotiator with files from all over America? When the contract is submitted, you hope that this asking price results in the Minimum Acceptable Net Proceeds (MANP). If you do HAFA short sales, you have to love the acronyms 🙂 .
Having the Broker Price Opinion or appraisal already done at the time the offer is presented is a benefit, and the servicer does not tell the Realtor what they will accept as net proceeds in most of the non-HAFA short sales (except for FHA short sales where you know to the penny). So, in this manner the program gives a benefit of the BPO already being done and the same result as the old fashioned short sale where you play “guess again” on the amount the lender wants. But, it could have been better if Fannie and Freddie followed the Treasury’s lead.
The other bad news is that the servicer tells the Realtor how to market the property, and supervises the marketing plan. Again, who knows better what will work (1) the Realtor who has developed an effective program or (2) the loss mitigation negotiator who just took the HAFA training course. The guidelines mandate that the marketing program includes ” a “For Sale” sign, Multiple Listing Service(s), flyers, print ads, open houses as well as appropriate usage of the internet;” Few will argue with a for sale sign and putting it in the MLS, but open houses work less than 2% of the time according to NAR statistics. Print ads have dramatically fallen because they are not that effective. However, if you want to comply with the Short Sale Agreement you will do these things, because the agreement can be cancelled if you violate it.
Another problem is that a seller cannot be considered for a Fannie or Freddie HAFA short sale if a foreclosure is pending that could sell the property in 60 days, or if the state laws would allow a foreclosure in the next 60 days. States like Texas can go from a dead start to a full foreclosure in less than 60 days, so does that mean you cannot do a Fannie or Freddie HAFA short sale in those states?
There are some great benefits. The servicer must respond to an offer within 10 business days. That beats the months of waiting we do now. The servicer must allow at least 45 days to close the sale after approval, with a maximum of 60 days. Also the foreclosure must be postponed during the sale period, which is at least 120 days.
The financial incentives are similar. The seller gets $3,000 in moving assistance. The servicer gets more under Fannie and Freddie than the Treasury by receiving $2,200 for an approved short sale, as opposed to $1,500 for the Treasury.
So, like everything else in short sales, there is some good news and some bad news. But, at least there is a program that provides some tools that a savvy Realtor can use to help a borrower in trouble.
If you need an encyclopedia of information on short sales, go to www.CreateAShortSale.com and for the complete Fannie Mae guidelines go to http://shortsalesr.us/FannieMaeHAFA.pdf and for the Freddie Mac guidelines go to http://shortsalesr.us/FreddieMacHAFA.pdf.
I hope this helps.
Raleigh, NC 919-812-5111″
In the current real estate market, the purchase of a home by a short sale transaction can make a lot of sense. Buying the home at a less inflated price can save you money. If you really want to succeed, you might want to consider working with a Realtor when completing a short sale in NC.
If you were not going to work with a Realtor, what other options would you have? You may or may not get lucky enough to find a home owner smart enough to negotiate such a deal on their home, but they will NOT be looking out for your best interests. It is not necessarily going to be an easy task. At best, you will still need some legal representation.
You might also end up talking to a real estate investment company or specialist. In this case, you may be working with someone who has the expertise to negotiate with your lending company, and guide the transaction through to closing. You gain some legal and technical expertise here, but there is a catch. The real estate investor is not required to be licensed, and therefore does not have to abide by the same code of ethics as a Realtor. These folks are strictly in the deal to turn a quick profit. They can have a buyer waiting for your house, as the property is closed. The REI route has also become quite the “get rich scheme.” There are lots of people that teach the basic concepts of real estate investment to anyone. Chances are, you may end up working with someone with little to no experience negotiating a short sale transaction.
The final thing to consider is that, most of the time, banks like working with Realtors for short sale NC transactions. They realize the Realtor will be paid a fairly consistent commission for their work, versus the type of profits that real estate investors can often turn. If they know they are working with someone licensed, with a good reputation in the local community, you will often get a better deal from the bank. Working with a Realtor during short sale can make the transaction a win-win for you and your lending institution.