Helene Moore's Blog

 Aid to Troubled Las Vegas Homeowners

Preventing foreclosures is critical for the nation’s economic recovery, and the Obama administration’s plan to help millions of homeowners who are at risk of losing their homes is a vitally important piece of legislation needed to help our nation get back up and running. 

When folks lose homes to foreclosure, our communities, the housing market and our economy all suffer.

The administration’s proposed plan, combined with provisions like the $8,000 first-time home buyer tax credit in the just-enacted American Recovery and Reinvestment Act, will help minimize foreclosures, shrink housing inventory, stabilize home values and move the country closer to an economic recovery. 

Under another element of the program, Fannie Mae and Freddie Mac will help make monthly payments more affordable for 4 to 5 million homeowners by refinancing mortgages with loans that these entities own or guarantee. The plan provides more fiscal support for Fannie Mae and Freddie Mac, which will in turn help keep mortgage rates low for all buyers and could lead to even lower rates. 

President Obama’s $75 billion Homeowner Affordability and Stability Plan would help struggling homeowners by providing incentives to lenders, loan servicers, mortgage holders and borrowers to help modify existing mortgage loans. The U.S. Treasury Department will be issuing uniform guidelines in two weeks and I’ll be bringing you an easy understanding of these guidelines as they pertain to our Las Vegas valley.

Windermere Prestige Properties
Helene M Moore
WWW.MooreVegasHouses.com

You're struggling to make your mortgage payments. Your home is worth less than you owe and your finances are so shaky your lender won't modify your loan.

Before you resign yourself to foreclosure, see whether a short sale can get you out of trouble.

With a short sale, you accept an offer on your home that's less than what you owe on your mortgage and your lender forgives the remaining debt the difference between your mortgage balance and the net proceeds from the sale. You leave with no outstanding debt and less damage to your credit history than a foreclosure. You can qualify for an FHA-backed loan two years after a short sale, compared with five years for foreclosure and seven years for bankruptcy.

A lender or mortgage servicing company will only approve a short sale if it will lose less money than going through with a foreclosure.

You may have heard horror stories about lenders taking forever to approve short sales, or deals getting squelched over a few dollars by a second or third lien holder (such as a home equity loan lender.

But banks and mortgage servicing companies are approving short sales more often, and more quickly, than in the past.

The two federally chartered companies that provide the money for most mortgages -- the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac)are even offering cash incentives to lenders that approve short sales.

With the overwhelming demand for short sales, you have to do everything just right or your deal could get lost in the shuffle or be denied by the lender.

Here are the 7 steps to completing a short sale deal:

Step 1. Find out if your lender or mortgage service company will consider a short sale and what you'll need to provide.

Call the loss mitigation department and ask a supervisor whether a short sale is possible. Some investors that own large numbers of mortgages won't accept such a loss so, if the answer is "no," the process ends right there.

You can't do a short sale without the lender's approval.

If a short sale is possible, ask what documentation you'll need to seek approval. The typical "short sale documentation package" requires:

• A hardship letter that explains why you can no longer repay your mortgage.

• Financial documents, including two years of tax returns, two months of pay stubs, four months of bank statements.

• Records on how your agent marketed your home, from reports on how many potential buyers viewed it to photos of unrepaired damage.

• Sales documents, including your listing agreement, a signed purchase offer, preliminary title report, preliminary settlement statement and written approval from all junior lien holders.

Step 2. Hire a real estate agent who's experienced in short sales.

Interview several agents and ask how many short sales they've closed in the last 12 months and whether they've received any special training in short sales. Get references from their short sales clients.

When you pick one, give the agent power of attorney so he or she can talk directly to your lender. You need a well-versed agent who knows how to work with a loss mitigation department and move your deal along.

Step 3. Find the right price.

You won't get any offers if the price is too high. But your lender may not accept a short sale if the price is too low.

A Realtor experienced in short sales makes sure that the broker checks the house inside and out and gives the broker comparable listings and other info to help the broker price the house accurately and quickly.

Step 4. Put your home up for sale and start preparing your short sale documents.

Think of a short sale documentation package as a mirror image of a loan application. You want to make your finances to look as bad as possible without lying.

Lenders are most likely to consider short sales when a homeowner has serious financial problems, so the hardship letter is the cornerstone of your case.

Like a good country song, your hardship letter tells a heart-rending tale of how you got into this mess -- for example, you've plundered your savings to pay your spouse's medical bills and you can't afford your mortgage payment now that you're living on one small income.

Step 5. Cut a deal with lenders that have second mortgages on your home.

If you have a home equity loan or line of credit from a bank or mortgage company that's not your primary lender, it must lift its lien on the home even though it won't get a cent from your deal.

Many times second lien holder will  go along with short sales because they get nothing from a foreclosure. That means they've accepted your loan as a total loss, no matter what.

But some second lein holders stop deals cold because of $10,000 owed to them.If you run into a recalcitrant second mortgage holder, suggest a  short pay.which means you agree to repay some of what you owe as an unsecured personal loan.

Another option is to ask whether the second mortgage holder will accept a few thousand dollars from the primary lender in exchange for lifting the lien. (An agreement you'll have to take back to the primary lender for approval, of course.)

Step 6. Pick a good buyer.

If you've priced the home right, you may get several bids.

If that's the case, you want to pick the best possible buyer. That means someone with a substantial down payment, preapproved mortgage and few contingencies (such as having to sell their current home before buying yours).

The stronger the buyer, the more likely you are to win approval from your lender.

Step 7. Submit the deal for approval.

Loss mitigation departments are overwhelmed by foreclosure proceedings, loan modification requests and, of course, proposed short sales.

It's critical that you submit all of the documents your lender requires and follow its guidelines to the letter.

If you don't, your deal can be delayed, sometimes for months. And don't expect the lender to tell you that something is missing. You have to follow up to make sure you've provided everything the lender needs.

If all goes well, your lender will approve your short sale six to eight weeks and your deal could close after all parties accept the terms .

There are  many companies which appear to offer foreclosure relief  that will require consumers to sign contracts which involve turning ownership of a home over to the foreclosure  company and leasing the home back to the consumer with a buy back option at some future date. Many companies prey on consumers fears of losing their homes. Many of these scams  are designed to fail .

An example of one scam known to be operating in Nevada: The perpetrator solicits victims directly through the mail with promises to help a homeowner from foreclosure by saving their credit and negotiating directly with their lender. The perpetrator will offer to buy the house for the total amount owing on the house, plus some small amount of cash.

The scamers  will require the homeowner to sign a deed, a transfer tax form, and a contract of sale. The deed provides that the seller (the victim) is selling the house to a corporation. The perpetrator pays the cash to the victim and assures him he will take care of paying off any mortgages on the home. After the seller moves out of the house, the perpetrator rents the house, does not pay the mortgages, and the house goes into foreclosure. The scamer  can continue to collect rent until the foreclosure process is completed. The homeowner collects none of the rent, and, once foreclosure is completed, the renters are evicted.


Assistance is available from licensed debt credit counselors, government agencies, and legal services. Seek advice from qualified professionals who do not have a personal interest in your decision.

Consumers may contact the Attorney General's Bureau of Consumer Protection about home foreclosure "rescue" scams at (775) 684-1180. A complaint form, as
well as other valuable information on consumer protection, is also available on the Attorney General*s website at www.ag.state.nv.us.

Beware of Foreclosure scams.

Due to the weak housing market, the number of foreclosures is skyrocketing.

There are many individuals and companies who prey on homeowners facing foreclosure.

One common scam is to offer to buy your house and then rent it back to you. If you sell your house with a "QUIT CLAIM" deed, the mortgage is not satisfied, and the lender may continue with foreclosure.

Dont be fooled by a quick fix.

Helene M Moore Windermere Prestige Properties
www.MooreVegasHouses.com

Greetings everyone hope you all are staying positive . I started a blog about life after foreclosure  I want to share one of the questions I am always asked when someone is going through a foreclosure.

Will I be able to find a place to live who will rent to me , my credit score has gone down and I'm late on my credit cards? Well folks there are property managers who take a closer look at those of you who have had fair credit in the past and have a good history of paying on time prior to this economic crisis we all are facing. My advice would be to seek out a property manager who can guide you through the process of renting a condo or a home. I know of one manager who not only looks at the credit history but looks at the number of years your employed on your job and they even come out to visit your current residence to make sure you are taking care of the property you do have. So yes even though you are going through a foreclosure you can still rent a property. I suggest you find a good property management company and ask good questions and be very honest about your current situation.

Hope this helps if anyone needs a referal for a great property manager and staff for finding rentals I would be happy to send you a referal.

Helene M Moore
Windermere Prestige Properties
2200 Paseo Verde Parkway suite 160
Henderson Nevada 89052
702-432-4600