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Chase Deed In Lieu Of Foreclosure All Locations : Nationwide Real Estate Advice

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Showing results for Chase Deed In Lieu Of Foreclosure [Clear search]
Wed Jan 13, 2010
Jeremy S. Hill answered:
Jason,

If your interest rate is high you can possibly get a loan modification. You may rent your property to help cover the expenses. And you can sell the home. Every situation is unique. But it sounds like you are doing the right thing and exploring your options early instead of later. ... more
0 votes 14 answers Share Flag
Thu Feb 25, 2010
Faye Martin answered:
As we are all aware Short Sales are in great supply not only in Olrando but throughout the United States. Chosing a Real Estate professional to guide you through the process is your first step. I would recommend a Coldwell Banker Office nearest your investment property. ... more
0 votes 21 answers Share Flag
Thu Aug 27, 2009
Keith Sorem answered:
Robyn
I have been in exactly the same situation.
I would like you to consider keeping it as a rental
You are going to want to talk with a CPA about the after tax consequences. I was pretty stressed out initially, but in the long term we kept the property 18 years and made more money than we ever thought possible.

Because the property will become a deduction and an investment, you tax situation will change. Also, depending upon your situation, you may end up having to rent a condo or townhome when you move. We rented a small house, so we lost our homeowner deduction for mortgage interest and property taxes, but those deductions became business expenses, so although we couldn't afford to buy for a couple of years, we did have tax benefits from the rental.

In order to have a short sale you need to be able to prove hardship (meaning you need to be broke) and your credit will be affected, preventing you from being able to qualify to buy a home for quite a while. You might be able to talk the lender into accepting a promissory note for the short sale, but due to the expense of selling real estate (title, escrow, selling commission), it think keeping it as a rental would be the best way to go in most situations.

Talk with a Realtor about the pros and cons of income property.

good luck
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0 votes 9 answers Share Flag
Sun Jan 16, 2011
RN answered:
Liz,
Your attorney MAY be able to delay things, but I am in no position to guarantee you anything--- it's likely your attorney cannot guarantee any of those things to happen either. But certainly, I think hiring an attorney is a smart move in this situation. Whatever you do, try to show good faith; return the bank's phone calls and letters, even if it is to say "I can't pay right now" or whatever. Silence on your end will be construed as non-cooperation.
The bank is the one taking the loss here, so they have alot of leeway as to how they handle this.
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0 votes 23 answers Share Flag
Wed Nov 24, 2010
Dallas Texas answered:
If you cant pay your mortgage with late pays will lower your credit scores. If the house goes is SOLD prior to a foreclosure would not lower your scores as much as a foreclosure. Sorry to hear all that has happened, however keep in mind many in the country are in the same spot.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
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0 votes 10 answers Share Flag
Sat May 23, 2009
Jeff and Ginny Mitchell answered:
Homeowners who have a home that may be foreclosed should consider a short sale instead for less damage to their credit. However, if they have already suffered a foreclosure, it may be because they bought a home beyond their means with a adjustable mortgage rate that is now too high for them to afford the payment. On the other hand when they apply to rent a home, their current income may well support the very reduced rental rates in many parts of the country now. In other words, the rent rates are about half the mortgage payment for the same home. Therefore, these previous home owners can qualify to rent at a lower payment rate. Many homeowners are willing to accept these tenants because there are many available homes for sale and rent. ... more
0 votes 10 answers Share Flag
Sat Apr 3, 2010
Lee Forbes answered:
Questions and Answers for Short Sale Buyers
1. Why would a Buyer consider a short sale?
Think of a short sale as a pre-foreclosure sale. You are purchasing from a very motivated seller and negotiating with a motivated lender. The seller want to sell to avoid foreclosure and the lender also wants to avoid foreclosing. Foreclosing on a property is very expensive to a lender. Thus, the Buyer of a short sale is very likely to get a very good deal on the property.
2.
How much can a Buyer save?
The savings can depend upon many factors like condition of the property, location of the property, the
motivation of the lender and seller. In my opinion a buyer normally can purchase the property about
10% below market value.
3.
But I have heard that Buyers can purchase short sales for 50 to 60 percent of value. Isn't that true?
There are rare occasions where such a deal is possible, but it is very rare. These deals are usually
discovered by savvy real estate investors and the properties are rarely exposed to the public. When
purchasing a short sale property that is listed expect a more modest, but very profitable savings.
4.
Are there any disadvantages to purchasing a short sale?
If you do not have a pressing deadline by which you must purchase, a short sale may very well be worth
the effort. There are two main issues of which the buyer should be aware: (1) The process of
accomplishing a short sale involves a lot of time. From beginning to end it can take 3-4 months on
average; (2) Even though the Seller accepts your offer, it must be approved by the Seller's lender, and it
could take 60-90 days to receive an answer on your offer.
5.
Why does a short sale take so long? What is the process?
Here is a brief overview of the process. First, the seller must list the property with a Realtor. This is
required by most lenders. Second, a buyer must be found and a contract executed between the Seller
and the Buyer. Third, the sale and purchase agreement along with the seller's financial information is
sent to the lender for review (this is called the short sale package.) Fourth, the lender orders a Broker's
Price Opinion on the property. Fifth, once conducted, received, and reviewed, the file is assigned to a
Loss Mitigation Specialist. Sixth, the LMS accepts, rejects, or counters the Buyer's offer on the property.
Seventh, the negotiation continues until it either all comes together or else falls apart. Eighth, if all
parties reach agreement the closing date is set, usually for about three weeks away.
6.
How long does the above process take?
Once a purchase and sale agreement is executed between the Seller and the Buyer the whole process
may take anywhere from 3-6 months. In today's market a Buyer can expect a response to their offer
from the lender anywhere from 2-3 months, maybe longer.
7.
How is the listing price of the property determined?
The list price is determined by the listing agent. As a Broker-associate who lists and sells a lot of short
sales I cannot emphasize enough the importance of the list price. Some listing agents will price a home too low, hoping to create a bidding war between buyers. Low offers simply are doomed to be rejected by the lender. Other agents may price the home too high and no offers are received before it is too late to save the owner from foreclosure. The key is to price the home competitively in order to attract excited buyers, and yet not so low as to fail to get the transaction approved. The listing agent must be very skillful in pricing.
8.
Does this mean that I could offer full price and still not get the property?
Exactly right. If the listing agent prices the home too Iowa buyer could easily waste three months
simply waiting for a rejection.
9.
Who exactly is the Seller, is it the owner or the lender?
The Seller is the owner of the property as in any other transaction. The lender is involved in the
transaction because the sale is subject to the lenders approval. The lender must approve the deal
because the lender must accept a "short pay" on the mortgage for the deal to work. Without the
lender's cooperation there is no deal.
10.
So, do I submit my offer to the Seller or the Lender?
Your offer is submitted to the Seller who in turn may accept it, reject it, or counter it. It is then
forwarded to the lender who also may in turn accept it, reject it, or counter it.
11.
Might I be up against other competing offers on the property?
It is possible that other offers could be accepted by the Seller as back-up contracts. Some lenders will
only deal with one offer at a time which is in your best interest. Other lenders will want to know about
all offers and will consider the merits of each offer. Being the first Buyer to have an executed offer with
the Seller does not guarantee that your offer is the one the lender will negotiate.
12.
Must a Buyer be Pre-Approved?
I recommend that Sellers only entertain offers from Buyers who are Pre-A
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0 votes 5 answers Share Flag
Tue Apr 6, 2010
Sandy Traugott answered:
It certainly doesn't hurt to ask! Each bank is different in what they will and will not do. Just ask.
0 votes 1 answer Share Flag
Tue Jul 29, 2014
Franklin Farinas answered:
The question is "Has Wells Fargo 'approved' the short sale with the seller?" The closing date will revolve around the approval date from the lender. Best to have all your ducks in line including completion of your physical inspection and loan approval.

All the best,
... more
0 votes 42 answers Share Flag
Thu Aug 25, 2016
Deanna Lawrence answered:
My company, New Vista Home Services, specializes in short sales. You can reach me, Deanna, at 480.330.3963.
0 votes 71 answers Share Flag
Sat Sep 29, 2012
Dan answered:
This is a bad situation. You will likely be forced to pay the 2nd loan or declare bankruptcy...

I might suggest trying to sell the home. Though I know how tough the market is these days. ... more
0 votes 17 answers Share Flag
Thu Apr 24, 2008
Rob Alley answered:
If you are an irresponsible individual who can but won't make your house payments in a timely manner, lenders have nothing to offer but a ride to the courthouse steps. But if you have been a good paying customer, have a good reason why you fell behind, and look like you'll be able to get back on your feet, lenders can be plenty of help. The key word is forbearance.

Here's the thing: Lenders don't want your house, they want you. According to a report I read recently, the costs of foreclosure are enormous. On average, the total cost, including lost interest during the delinquency, foreclosure costs and disposition of the property, ran nearly $59,000, and the situation took about 18 months to resolve. Worse, these figures were five years old. It is probably more expensive now and takes even longer.

At the same time, keeping people in their homes has been found to be far more productive. Indeed, roughly 90% of the loans that are reworked by lenders are likely to "cure" within 18 months. And those borrowers who seek help from their lenders earlier in the process are far more likely to hang on to their places after
riding out their financial turbulence than those who seek help later.

What's more, research shows that the factors originally used by underwriters in trying to predict the likelihood would-be borrowers will default -- credit, collateral and capital -- are not nearly as useful when deciding whether to "work" with customers who are already on the books but are having a tough time meeting their obligations.

Lenders have several workout options up their sleeves:
· Partial reinstatement. Under this plan, the borrower would agree to begin making regular payments and make up what is owed in, say, 12 monthly installments over the next year.
· Short-term forbearance. Here, the lender will suspend your payments for, say, three months or reduce your payment for six months, and then you'd make up the difference in some kind of repayment plan as described above.
· Long-term forbearance. Payments might be suspended for anywhere from four to 12 months, with a corresponding repay plan to follow.
· Loan modification. This would be a permanent change in one or more of your loan's original terms. The rate might be cut, the payment period extended or both so that the payment once again becomes affordable.

So my advice is to get on the horn right now with your lender. Make sure you talk to the workout department, though, not the collections folks. Though many lenders are training their repo staff to spot people who need a break and hand them off to the right people, most are bill collectors, short and simple. If the person you speak with has no idea what you are talking about, ask to be transferred to the chairman's or the president's office. You can bet they'll know whom to transfer you to.

You don't need anybody to speak for you, either. So stay away from the growing group of charlatans who are preying on financially distressed homeowners by offering -- for a fee, of course -- to act as a go-between between you and your lender. They don't have any more of an inside track than you do.

If you honestly feel you need to have someone holding your hand, contact a local credit or homeownership counseling agency. These nonprofits don't charge a thing. In fact, in some cases, lenders are paying them to go out into their communities to persuade troubled borrowers to contact their lenders.
The Department of Housing and Urban Development has a list of government-sanctioned counselors on its Web site, www.hud.gov. Also try the National Foundation of Credit Counselors, www.nfcc.org, or the Homeownership Preservation Foundation, www.995hope.org (888-995-HOPE).

Even if you and your lender can't see any way to save your home, there are still options available that are less painful than foreclosure -- for both parties. You can list your home with a Realtor. There are plenty of Realtors that are skilled in a short sale, or a quick sale. If selling is too burdensome, you can simply hand over the keys to the lender by voluntarily transferring the title back to it in one of several different ways.

In a deed-in-lieu of foreclosure situation, you would forego continued ownership in exchange for cancellation of the remaining debt. In a short sale, also known as a short payoff or pre-foreclosure sale, the lender would allow you to sell the place at less than what is owed, and you and the lender would agree to an unsecured repayment plan for the difference. Anything is better than doing nothing and ruining your credit. Unless you have a lot of money, credit is the only thing that enables you to chase the American Dream. I learned that a long time ago from my father.

If you want to read more go to the web reference that I have listed. If you have more questions, you can go to www.robsellscharlottesville.com or e-mail me at roballey@roywheeler.com
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0 votes 3 answers Share Flag
Sun Aug 12, 2012
Jennifer Powers answered:
Aqua, You need to speak with your lender. Unless you made arrangements for the "missed" payment to be put on to the end of your loan, your payment history is probably showing that every payment is being made late. Every lender is different so the best advice I could give you would be to talk to your lender. ... more
0 votes 12 answers Share Flag
Fri Dec 5, 2008
Long Island Real Estate answered:
Part 2 of 2 parts: these are the results: out of twelve returned calls from our inquiry one lending consultant stated that the best option available was to sell the house. The other eleven lenders stressed creative refinancing strategies to hold the property. We called one source to financial consultants that do not lend money, fanniemae.com and we received one call from them. FannieMae’s financial consultant’s advice was to sell the house. I’m sorry we made the inquiries to the consultants that lend money, the phone won’t stop ringing. ... more
0 votes 11 answers Share Flag
Wed Aug 19, 2009
Michele Lundgren answered:
First, get online and read everything you can about short sales...there are so many forums, classes, etc. It is a complicated process and your online education is a great place to start. ... more
0 votes 24 answers Share Flag
Wed Oct 30, 2013
Cindy Maves answered:
Are you trying to sell your home in a short sale? I am not clear as you say there is a pending offer. There are many steps that need to be taken first before you can put your home up as a short sale. ... more
0 votes 48 answers Share Flag
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