The Mulhern Home Team's Blog

Homeowners need help - although it is out there, many homeowners choose to ignore the situation until it is too late.  There are certain critical steps that anyone who is behind on their mortgage need to be aware of. 

Once you miss one payment, you are considered in default.  There are ways to get out of default, so it is not a helpless situation.  But if you are in default because you can not afford the mortgage, than it is time for alternative plans.  One of the things that most homeowners will do is stop answering the phone when the bank calls.  They will not stop, but sometimes the phone call is an offer of help.  If you want to avoid this, make the first call yourself.  Each bank has some form of loss mitigation department that will try to help the situation.  One of the first things the bank will do is make an attempt to qualify you for a loan modification.  Most of these do not happen since statistically most loan mods end up in default again.  By calling them, they may start that process which can buy you more time.

If a loan modification is not going to work, the next thing you will want to do is find out if you qualify for the today's program.  By visiting the Making Homes Affordable website (http://www.makinghomeaffordable.gov) you can find out if your mortgage is eligible for the clearances program.  Although they are slow, this is a good program that has many benefits.

In today's market, homeowners seriously need to consider a short sale vs. foreclosure.  Although neither alternative will avoid the possibility of a deficiency beginning without an agreement, a short sale helps avoid future pitfalls that a foreclosure can cause.  Employers are beginning to check credit records of potential employees, and security clearances can be lost due to a foreclosure.  Foreclosure and bankruptcy follows you around and you may have to put them on future applications for loans and employment.

To summarize what steps you need to take:

•         Be proactive - Contact the bank and ask for help
•         Find out if you qualify for assistance
•         Check your options - create a budget and see what path is right for you
•         Contact legal counsel for advice - know what happens in each scenario
•         Create a budget to see what you can afford - be smart about it

Don't let ego get in the way - you may feel embarrassed about your situation, but a foreclosure is extremely more embarrassing than asking for help.  If you are confused, Realtors like myself have programs in place to do all this work for you and help get you the answers you need - you do not have to do this alone.  If done correctly, there may be no cost to you...

For more information on Short Sales, visit http://www.howtoavoidforeclosureinviginia.com.

Jimmy Mulhern
571-247-1638

Persistance Is The Key When Getting A Short Sale Sold!

Friday closed the book on one of the longest transactions I have ever been involved in.It makes no sense to me why the bank took 16 months to make up it's mind!

This home was a 2 Trust situation, but both trusts were with the same bank...Wells Fargo!  The first contract we received held in there for two months, and when the bank asked them to increase their purchase price, the buyers walked.

The second buyer came in and wrote a contract for the amount that the bank had countered the 1st buyer with - after three months the buyer asked for $15k in closing costs and the bank laughed.

Finally a nice young couple wrote an offer less than what the others came in at.  Of course the bank countered immediatley and the buyers adjusted their sales price.  What happened next was disturbing.

After two months of waiting, we received no response.  So we decided to go above the negotiator we were dealing with and spoke with the regional supervisor.  This proved helpful...to the extent that we received a new negotiator.  This negotiator then countered $65k!!!  There was no justification for this, the seller had no savings, and the buyer was not going to change their purchase price to this amount.

After digging and digging, we discovered that the motivation of this increase was an increased compensation structure for the negotiator at the bank!

After getting them to realize that this was a great buyer and a good contract, we got it through and approved.

What a relief Friday was for the sellers - finally ending this situation and moving on is a huge burden removed.  No matter how dire the situation, you can never give up hope that the approval is right around the corner.

Jimmy Mulhern - 571-247-1638

www.HowToAvoidForeclosureInVirginia.net

Your hardship letter is important - it is the story of why you are where you are and the foundation of your request for a short sale.  It will not get your contract approved, nor will it get you off the hook of any deficiency that you may have.  What it does is put a story behind the numbers.

When you submit your financials, the negotiator will see if you can or cannot afford the mortgage.  In your short sale package we will outline your homes value and why this contract is worth their time.  But your hardship letter is your opportunity to get the emotions of hardline decision makers involved to accept your situation.  There are a couple of key items that each letter should have, and a couple of mistakes that you will want to avoid.

Must Have - Intent
Tell them that you were excited about owning the home, that you were a proud homeowner and that you have taken care of the home.  Let them know that this was not a building but a place where you lived or raised your family.  Give them the understanding that this is not an easy choice.

Avoid - Playing The Blame Game
Don't tell them that you think banks are bad and the cause of all things evil in the world.  Don't blame the shoddy lending practices that caused this problem in the first place.  Now is not the time for sour grapes.

Must Have - Your Hardship
They do not need to hear every detail of why you are in this situation, but let them know what happened.  Tell them that you lost your job of 26 years, or that your marriage is ending...You need to make them understand that your life has changed dramatically and that you are facing a short sale because you owe more than your home is worth.

Avoid - Don't Tell Them You Are Not Going To Pay Them
You attract more bees with honey than you do vinegar - you do not want to be confrontational or even show signs of causing trouble.  All though you want to tell them to stick it, remember that the individual reading this did not cause the problem.  However...

Must Have - Tell Them What You Want
It's simple - accept the contract as full payment for the amount outstanding on the home.  That is the goal, to get them to accept a partial repayment of what they are owed. 

There are a couple more items that you will definitely want to have in your hardship letter.  If you need a copy of some successful hardship letters, feel free to contact me and I will be happy to share them with you.  Remember, you are not alone in this...there are people who can help.

Jimmy Mulhern
www.virginiashortsalehelp.com

Short Sales have become part of the mainstream housing market in most areas surrounding D.C.  What were once thought of as impossible transactions are not that difficult to navigate if you have the resources to put your best foot forward.  There are many common mistakes that inexperienced agents make which can impact your ability to get from facing foreclosure to sold...

3. - Pay your HOA no matter what!

One of the biggest mistakes that homeowners are making is to become delinquent on the HOA dues.  HOA's are struggling to keep their finances in compliance with state regulations and to keep their communities financially strong.  Remember that you still receive services from your HOA such as trash and snow removal - most HOA's will begin assessing late penalties and even attorney fees for delinquent accounts.  The banks do not generally accept this cost at closing, so you may be on the hook for more than just the monthly fees you stopped paying.

2. - Understand What Is Taking Place!

I am a Realtor, I sell Short Sales, I have negotiated my own Short Sales, and I will never do it again!  Why - because my clients facing foreclosure deserve more than what a Realtor can offer.  It is against the code of ethics for me to offer legal advice - once you are in default you face the possibility of legal action.  I know how to market homes for sale, I know how to counsel buyers and sellers through complex real estate transactions - but I rely on the attorneys I partner with to protect my clients through a letter of engagement!  If you have missed a payment, you are in default and the threat of foreclosure is serious.  Having your own attorney as a partner helps handle any legal threats against your family.  It is a no brainer and something that most agents do not offer - my team does because it protects my clients.  A short sale is just like a traditional sale except that there is a 3rd party approval contingency.

1. - Do Not Pay Any Fee's To An Agent Or Anyone Telling You They Can Get It Done...

Recent rulings by the Federal Government have put into place strict standards that agents working Short Sales must disclose.  It also puts into place strict fines for those who do not disclose fees that sellers will have to pay.  Loan Modifications seldom work, and companies out there ask for thousands of dollars up front with the hopes of working out a loan mod.  There is no need for this - there is help out there from teams like mine that do not charge you anything for a Short Sale...call them first.  Remember, you can not receive any proceeds from the sale of your home in a Short Sale - but the bank can ask you to make a monetary contribution for their approval.

Avoid the gimmicks, call someone with experience, and get back to living your life without the shadow of an underwater mortgage looming over you.  Our system protects our clients with no cost to them - it makes a difference!

Jimmy Mulhern

www.howtoavoidforeclosureinvirginia.com

Incentives for First Time Home Buyers are back!  Since the Government removed their special First Time Homebuyer tax incentives, home sales have been on a roller coaster ride.  Starting this year, certain lenders are offering up to $7,500 in grant money that can be used by first time home buyers towards their home purchase - even towards their down payment!!!  Some agents don't even know these exist!

There are income limitations, and there are some requirements related to your down payment - but this money does not need to be repaid and can offer a fantastic opportunity to save money while taking advantage of great prices in this market.


If you are a First Time Home Buyer looking for great deals on your first home, give us a call for more information about today's Real Estate market.  If you would like to learn more about these special programs, give us a call today!

We are here to help you find that perfect place to call home!

Jimmy Mulhern
The Mulhern Home Team
www.HomesInVirginia.net
571-247-1638

Are you aware that you may qualify for a subsidy from the Government for the shortage in your home?  Are you aware that all you need is to fit certain criteria to get this subsidy and it does not involve moving out of the area?

The Military HAP program is designed to help military and civilian homeowners who qualify by reimbursing them 90% of their home purchase price during the recent housing downturn.  This program has been an a savior to many facing the possibility that their home will be foreclosed on.  There are many individuals who qualify using the following criteria:
   
    1. Wounded Servicemen
    2. Spouses of Wounded Soldiers
    3. Personnel '05 Personnel including civilians   
    4. PCS Ordered Personnel.

If you purchased your home from 2004-2009 and have been affected by this, you may qualify for this program.  There are restrictions such as your new orders must be further than 50 miles from your current assignment - but no restrictions on family members staying in the area. 

Do you have questions?  Feel free to contact us - we are actively working clients in the HAP program and understand the process and what is necessary to get final approval.  There are limited funds in the program so time is of the essence.  If you need help, give us a call.  If you are an agent working with military clients and have questions, feel free to contact me and I will help in any way I can. 

There are people out here willing to help - all you have to do is take the first step and ask for it!

Jimmy Mulhern
RE/MAX Premier
The Mulhern Home Team
703-743-2222

Are you aware that you may qualify for a subsidy from the Government for the shortage in your home?  Are you aware that all you need is to fit certain criteria to get this subsidy and it does not involve moving out of the area?

The Military HAP program is designed to help military and civilian homeowners who qualify by reimbursing them 90% of their home purchase price during the recent housing downturn.  This program has been an a savior to many facing the possibility that their home will be foreclosed on.  There are many individuals who qualify using the following criteria:
   
    1. Wounded Servicemen
    2. Spouses of Wounded Soldiers
    3. Personnel '05 Personnel including civilians   
    4. PCS Ordered Personnel.

If you purchased your home from 2004-2009 and have been affected by this, you may qualify for this program.  There are restrictions such as your new orders must be further than 50 miles from your current assignment - but no restrictions on family members staying in the area. 

Do you have questions?  Feel free to contact us - we are actively working clients in the HAP program and understand the process and what is necessary to get final approval.  There are limited funds in the program so time is of the essence.  If you need help, give us a call.  If you are an agent working with military clients and have questions, feel free to contact me and I will help in any way I can. 

There are people out here willing to help - all you have to do is take the first step and ask for it!

Jimmy Mulhern
RE/MAX Premier
The Mulhern Home Team
703-743-2222