Posts tagged Charlottesville short sales

Short Sales Might be Getting Easier (maybe)

Short sales still comprise parts of the Charlottesville area real estate market; in some segments they are a greater percentage, in others they are nearly nonexistent. I’m sharing this information with you so that you can be as well informed as possible. Short sales remain an adventure – for buyers, sellers and their Realtors – and hopefully this settlement signals some progress.*

You may have heard about the $25 billion mortgage settlement … for a look at some of the critical numbers in the settlement, ProPublica has a great breakdown, including:

60-200: documents signed daily by different individual loan processors working for Bank of America, according to the government audit.

12-18 inches: height of the stacks of documents one Bank of America employee signed “without a review.”

$1 million: fine to be levied on the banks for each violation of the terms of the overall settlement, escalating to $5 million for repeat violations. (Exactly how fines will be tallied is still unclear.)

But did you know that the settlement ostensibly makes short sales, often the bane of existence who are fans of things happening in a timely fashion, logic, reason and accountability … better?

The NAR put together these takeaways from the mortgage settlement. As Sarah says, these may become helpful reality or they might be representative of another shiny unicorn that does nothing other than frustrate us — these are only for the top 5 banks, not all of the servicers, of which there are many.

1. Short Sale Timeline. The settlement contains short sale standards that are similar to the Treasury Department’s Home Affordable Foreclosure Alternative, or HAFA, program. A number of these standards will improve the short sale process including making short sale requirements publicly available, development of co-op programs to evaluate short sales prior to marketing the home, and the implementation of a 30-day response requirement after receipt of all required information and third party consents.

2. No Dual Tracking. As part of the settlement, the five servicers will no longer be able to proceed with a foreclosure sale if a short sale or deed-in-lieu of foreclosure has been approved by all parties (first lien investor, junior lien holder, and mortgage insurer, as applicable) and proof of funds or financing has been provided to the servicer. Servicers will also face strict foreclosure referral guidelines if borrowers have requested a loan modification.

3. Single Point of Contact. NAR has long called on servicers to establish a single point of contact for borrowers. This provision will not only assist in maintaining consistency and coordination of loss mitigation options, but will reduce the amount of time agents and brokers spend discussing individual short sale files with new negotiators.

4. Establishment of Loan Portal. Though processes have recently improved, many members report that lost documents requiring multiple submissions continue to cause delays. The five servicers have agreed to consolidate information for borrowers by developing online loan portals that will provide borrowers with access to information, eligibility factors for loss mitigation programs, and inform borrowers of required documentation that is missing.

5. Strong Enforcement Mechanism. The success of a number of well-intentioned programs has been hampered by voluntary servicer participation and a seemingly lack of compliance oversight. The five national banks party to the settlement will be required to regularly report compliance to an independent, outside monitor that reports to state attorneys general. State attorneys general and the U.S. Department of Justice can seek redress if the banks don’t follow the settlement terms.

Sarah Stelmok in Fredericksburg’s excellent post on the new short sale guidelines spurred this post.

* I doubt it.

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A (Congressionally Mandated) Faster Short Sale Decision on the Horizon?

For context, in the Charlottesville MSA – Charlottesville, Albemarle, Fluvanna, Greene and Nelson, right now, there are 2513 active residential listings. 72 are marked as Short Sales.

…‘(4) SHORT SALE- The term ‘short sale’ means the sale of the dwelling or residential real property that is subject to the mortgage, deed or trust, or other security interest that secures a residential mortgage loan that–
… ‘(B) requires authorization by the securitization vehicle or other investment vehicle or holder of the mortgage loan, or the servicer acting on behalf of such a vehicle or holder.’.

…(b) Applicability- The amendment made by subsection (a) of this section shall apply to any written request for a short sale made after the date of the enactment of this Act.

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Charlottesville Short Sales and Buyer Agents’ Responsibilities – Part 2

Fourth – Prepare our buyer clients for what they may run into. (more to come on this) What’s a Charlottesville buyer to do in this market with more and more short sales? – Be patient. – Be aware that there are some things that neither you nor your agent can control . – Be informed . – Be qualified.

…Maintain confidentiality of all personal and financial information received from the client during the brokerage relationship and any other information that the client requests during the brokerage relationship be maintained confidential, unless otherwise provided by law or the seller consents in writing to the release of such information;

…The second section is a protection for the Buyer, should the Seller find out in the course of the transaction that they cannot pay off all indebtedness and need to revert to a Short Sale transaction. Much like how good Charlottesville Buyers’ Agents should be researching a property’s true continuous days on market (quote from a client regarding Days on Market, “The MLS lies” 🙂 ) [ Realtors gaming the MLS ] – Buyers’ Agents should be doing extreme due diligence.

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The Most Succinct Example of Charlottesville Real Estate Market’s Meteoric Up and Down

February 2005 : Asking Price – $345,000 Selling Price – $345,000 Days on Market – 119 April 2007 : Asking Price – $399,000 Selling Price – $399,000 Days on Market – 13 March 2010 : Initial Asking Price – $366,000 Current Selling Price – $299,999 Days on Market – 76 Now in a short sale It’s a very interesting house. If you’re interested, ask me . 🙂

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Charlottesville Short Sales and Listing Agents’ Responsibilities – Part 1

If I were a buyer and saw potential short sale/foreclosure, I would probably move on to some other property given the amount of time I hear it takes to complete a short sale. … The Charlottesville MLS now has a required field from which Realtors much choose one of the following when inputting a listing: – Standard – Lender Owned – Short Sale (of 2323 active listings, 53 are noted as being short sales … this seems ridiculously low ) Short sales take longer – in everything, they take longer . … Let prices fall until the goods find a buyer.    The question in the first paragraph was posted on a conversation at the Charlottesville Bubble Blog , and it is very pertinent question, particularly as short sales are becoming more and more a part of the Charlottesville* real estate market.

…Buyer Agents would be wise to put language in the contract that ensures the Buyer’s contingencies (such as home inspections) do not begin until approval from the Lender to proceed at the current price.

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Short Sales and Foreclosures in Charlottesville

As of this writing, short sales and foreclosures are not yet considered “the market” when appraisers are doing their analyses, but I as a Realtor representing buyers and sellers am absolutely considering short sales and foreclosures when advising my clients. … When advising sellers who may be considering short sales, we will have a long and in-depth conversation (or two or three) about the considerations, ramifications and things that they and I need to do in order to effectively conclude a short sale transaction.

… • Death –of a borrower • Dying-Sickness of a borrower affecting their ability to earn and pay their debt • Destitute-an involuntary loss of income Divorce- in this case, when one of the occupants leave and it affects the income of the house it can be deemed an acceptable hardship.

… Foreclosures in Charlottesville: Two properties with $100k price reductions A quick look at some of the foreclosures in the Charlottesville/Albemarle area shows that there are foreclosures ranging from $25,913 to $1,010,000. (more trustee sales notices get posted every day) These are some of the foreclosures in Charlottesville and Albemarle that are listed in the Charlottesville MLS: — Part 1- Quick Update on the Charlottesville Real Estate Market Part 2 – Short sales and Foreclosures in Charlottesville Part 3 – Homebuyer tax credit in 2010 – Who’s Eligible?

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