Questions? Make the Call.

Whenever I'm notified that a homeowner is in default on their mortgage, I simply send them a note card telling them I can help them save their home from foreclosure by selling their home as a short sale.  I understand some homeowners may toss it in the trash and that's the end of that.  But for many homeowners, they do call and ask questions about how I can help them.  Some call when their husband's are at work because they haven't told their spouse yet they are behind in payments, some call before they head to work so that none of their coworkers will over hear them, but I applaud all of these people that make the call. 

If you have my business card in your hand right now and you are avoiding calling because you don't want to explain why you are in default, you've decided to just let the home go to foreclosure, you already have a loan modification company working on your loan, or you  just feel embarrassed for being in this position, I urge  you to just call so we can have a brief, 5-10 minute conversation about ALL of your options.  I'm not going to badger you into listing your home to sale and tell you all hope is gone.  What I will do is make sure if you want to stay in your home that you've exhausted all options to do just that and I can guide you on what to do to try to save your home.  I understand sometimes you've already been denied a loan modification but you still want to stay in your home and many times, that just isn't possible.  If you can't pay, you can't stay unfortunately.

However, I do find many homeowners pay a loan modification company or started a loan modification on their own and they have no idea where they are at in the process or if the company they hired really did everything they get to get a modification approved.  I can help you with finding those answers.

And for those that know that staying in their home is just not an option, then I can help.  Not all Realtor's are the same and the one you don't want to hire is someone who doesn't truly care about the difficult time you're going through, tells you  your house isn't worth much and they don't know if it will even sell, tells you that ALL Realtor's hate doing short sales and that most don't close, or the one that sticks a sign in your yard, puts it in the MLS and then seems to disappear.  I actually like selling short sales and I'm good at it.  I love when the papers are signed at closing and the sellers finally feel some relief from all the burden they've felt in the past year trying to figure out how to keep their home knowing that they simply can't afford it anymore.

So please call.  Let's have a conversation about the right option for you and your family!

Successfully Closed Another Short Sale!

I just closed on a short sale in East Anchorage with Chase Bank being the mortgage company.   From the time the buyer wrote the offer to the time we closed was 2 1/2 months!  Here's a few examples of what happened to make this successful:
-The sellers were not behind in mortgage payments but they qualified for a short sale because of imminent default meaning that very soon, they would struggle to make each monthly payment.
-The day the seller signed the offer, they had also updated all their items on the short sale document checklist for sellers which made it possible for me to fax the complete short sale package including the signed offer the very next business day.
-6 weeks after we submitted the short sale package, Chase had already received back a VA appraisal they ordered (seller had refinanced his home with a VA loan so VA requires that an appraisal be done before they negotiate the sales price and terms) and made their first counter offer back to the buyer which was much higher than he had offered.  At the same time the negotiator at Chase made the counter offer, she followed it up by saying that VA required her to counter back at the appraised value however, they approve short sales usually as long as they net 92% of that appraised value.  The net includes the cost for Realtor's commissions, title insurance, HOA fees, escrow closing fee, etc. so it's not necessarily the new sales price being 92% of the appraised value.  Usually closing costs run about 7-8% for the transaction. Read more about the myths of buying a short sale that has a VA mortgage on it here!
-The buyer decided to go ahead and have a home inspection performed right away after the initial offer was made so they were not waiting for Chase to negotiate the numbers, only to find out the house may have had problems.  I think this is a smart move for buyers if they do not mind spending the $300-400 and possibly in the end not being able to buy the short sale.
-The sellers worked very hard keeping the home very clean and cleared of clutter which is so hard to find when viewing short sales.  I am so thankful they did not just throw their arms up in the air and give up but really tried to do what they could to make sure this home sold quickly!

Short Sale Package List of Needed Documents

For my clients that will be listing their home with the Croom Team as a short sale, we will need the following items before the home is listed on the MLS.  Print a copy of our Short Sale Document Checklist for Sellers here.
1) Hardship letter- Please type an explanation of what has brought you to your current financial situation and your desire to sell the home.  This must be signed and dated by all borrowers and state that you want to do a short sale.
2) Copy of your most recent tax return.
3) Form 4506 T- This allows the bank to request copies of your past tax returns and can be printed by clicking on the following FORM 4506T .
4) If you are currently living in the property, a copy of the most recent utility bill that is in your name.  If you are renting the property, a copy of the current lease.
5) 3 months bank statements from all checking and savings accounts.  Do not hit print on your browser of just the webview, print the actual statement, or go into your bank and ask for copies of your statements.
6) Last 30 days of pay stubs.  Or your current profit and loss statement if you are self employed (MUST be signed and dated).
7) Financial worksheet.  Please make sure this is completely filled out and detailed.  This is how the bank will calculate your debt to income. Wells Fargo Financial Worksheet , Bank of America Financial Worksheet , Chase Financial Worksheet and Short Sale Package Information, and USAA Financial Worksheet and Short Sale Package.  If your mortgage company is not listed here, please contact me by email at brandi@thecroomteam.com or call me at 907-317-1992 and I will get you the worksheet specifically for your mortgage company.
Most banks will not even begin to consider a short sale without every document on this list being included.  It will take some work on your part as a seller to round all the information up in a timely manner but it is absolutely necessary!

I’m Facing Foreclosure. How Do I Keep My Home?

Today I received a call from a gentleman that I sent a postcard to last week asking if I could help him by listing his home as a short sale.  When I asked if he wanted to stay in his home or if he’d like to sell it he said he really wanted to stay in the home but due to medical problems this past year, he was unable to work during that time and fell behind on payments but that he’s back on track and able to work, however he would not be able to pay the back payments he defaulted on.
I do want to make it clear to those facing foreclosure, I am not able to help you modify your loan, I’m here to list and sell your home as a short sale if that is the best option for you.  However, I understand the loan modification process and the key words that the mortgage companies want to hear before they agree to modify your loan so I’m more than happy to guide you to the right places and people to get started on the process of a loan modification.
Foreclosure is not a great time for anyone and everyone has a unique situation that got them to this point and and so if you can stay in your home and that means I do not list it, I’m happy with that.  I’m here to help those that cannot stay in their home and afford it and would like the opportunity to sell it before it is given back to the bank and they are kicked out of the house.  I can say that mortgage companies will not let you stay in your home if you simply cannot afford it even if they lower your payments and if you fall behind on the lower payments, they will foreclose.  You will have to prove to them that based on your current situation, you will be able to make payments and still be able to pay your other bills.
Here’s what I highly recommend to do if you want to stay in your home:
1) Visit the website http://www.makinghomeaffordable.gov/ and read how to request a modification (http://www.makinghomeaffordable.gov/requestmod.shtml) .
2) Call your mortgage company (look up their contact information here http://www.makinghomeaffordable.gov/contact_servicer.html ) and tell them you’d like to talk to someone about a loan modification and if you’ve been notified when your foreclosure date is, make sure you mention that at the same time so they know just how urgent the situation is.
3) They will ask you a series of questions and decide if you can proceed with the loan modification process.  They will then Fed Ex your packet of forms you must fill out and return.  You want to do this promptly and thoroughly.  Double check everything is filled out correctly, signed by all parties, and dated.  Keep a copy for yourself because it’s not uncommon that they misplace your paperwork and request it again.
4) Call at least once, if not twice a week to ask about the status of your request.  If they say it will be 4-6 weeks before they have a decision, that’s fine, keep calling once or twice a week.  Take detailed notes of who you talked to, when, what was said and be kind to the people on the other end of the line.  They are just working under strict guidelines and yelling or using bad language will probably only result in them accidentally losing your paperwork!  If you have a customer service representative with a bad attitude and seems rude, call the number back again and talk to someone else.  Please keep reminding them of your foreclosure date if it’s coming up in the next 30 days or so.
5) Do not promise to make payments you know you will not be able to make.  If they ask if they can spread out your missed payments over the next year on top of your original payment and you know that will most likely cause another financial hardship on your family, simply say you cannot make those payments, and that you would like to proceed with the loan modification process.
6) How long does the short sale process take in Alaska?  It can take 3-4 months and the mortgage company may tell you to not make payments until you get an answer about your loan modification and I strongly urge you to call a consumer credit counselor or certified financial planner for advise on this matter.  It is probably scary thinking you are just letting months go by and not making a payment if you are able to pay something, but they will figure that out for you in your loan modification terms.
7) If you are not approved for the loan modification and foreclosure is in your near future, please call Brandi Croom at 317-1992 and let’s talk about listing your home as a short sale.  At the time I list the property, I will ask the bank for an extension on your foreclosure date if possible so they we can complete the sale of your home. 

Short Sales, Step 1: Is a Short Sale the Right Option for You?

• Are you behind on your mortgage payments and are confident you will not be able to catch up soon?
• Do you have a loss of income or has a job loss forced you to not be able to make your payments?
• Is your mortgage payment more than 30% of your income?
• Are you a military service member who is PCSing to another base and your home does not have enough equity to allow you to sale your home?
• Do you need to move and your home is worth less than what you owe after paying Realtor commissions and closing costs?
• Does your home need major repairs that you cannot afford?

If you answered yes to any of these questions, it may be worth your time to call Brandi Croom with the Croom Team at Keller Williams Realty at 317-1992 or email us at brandi@thecroomteam.com  and schedule an informational meeting to go over your circumstances as well as get a current market analysis to see if a short sale is the right option for you.
If you are wanting to stay in your home and would like to try to work with your mortgage company to modify your loan, work out a different payment plan or explore your options then please call your mortgage company RIGHT NOW and tell them you are interested in the Making Home Affordable Program and loan modification.  Please read more on my post "I'm Facing Foreclosure.  How Do I Keep My Home?" which includes contact information for your mortgage company and what to expect.
If you have already received a forelcosure notice, it's not too late to attempt a short sale!  Almost every short sale we have sold was either in the foreclosure process prior to us listing the home or fell into the foreclosure process after the home was listed.  In both of these situations we are able to work very closely with your mortgage company to request delays in foreclosure to allow us to complete a short sale on your home if possible!
There are some downfalls to short selling your home such as you may have to wait several years before buying another home.  We used to read the waiting period was 2 years as long as you maintained good credit after the short sale but we've recently heard you will wait at least 3 years and then it depends on the lender and what their new guidelines are.  I mention this because if there is a way to either keep your home and keep current on the mortgage or to sell by bringing money to the table, you need to really weigh your options.  If you can't afford to keep the home or absolutely have to sell, then we can help you do a short sale if possible.