NO COST processing is provided if ZOOM! is able to be compensated by the lender and or servicing company. However, some lenders or servicing companies are unable to provide compensation due to certain lender guidelines.
All files submitted are subject to a non-refundable $500.00 service fee at the time the initial file is submitted to ZOOM! Loss Mitigation Specialists. An additional $1,497.00 is due and payable upon closing. Any of the above fees can be payable in the form of cash, check, or credit card and can be paid by the client, real estate agent, buyer, investor, or any other party.
In the event ZOOM! Loss Mitigation Specialists is successful in negotiating their professional fees with the lender and/or servicing company and receives a minimum professional service fee of $1,997.00 upon closing, all money received prior to settlement including the initial deposit of $500.00 shall be refunded to the contributing party and/or parties within fourteen (14) calendar days of closing.
In the event of a successful closing, any remaining balance of the total fee of $1,997.00 shall be received directly from the listing agent, in the form of a referral fee. By signing this form the Listing Agent agrees to have his/her Broker pay the agreed upon referral fee within seven (7) calendar days of closing.
Once ZOOM! Loss Mitigation Specialists has received the initial service and submission fee and all required documentation, the file shall be submitted to the lender and/or servicing company within 48 business hours.
The short sale process may take anywhere from 60-90 days once the submission package has been received by the lender and/or servicing company. We ask that the listing agent, client, and buyer agent be as patient as possible—this is not an overnight process. All file updates shall be promptly posted on the ZOOM! Loss Mitigation Information Center.
Please feel free to contact us with any additional questions at 1-800-480-1917 or simply e-mail ZOOMLossMitigation@gmail.com.
http://www.zoomlossmitigation.com/
Saturday, January 31, 2009
Wednesday, January 28, 2009
Foreclosures are at record levels
The red-hot market, according to Steve Murray with REAL Trends, could be gone for several years. Think about that and ask yourself this: Is my business still geared for the sales pace of 2003-06 or have I adjusted to the slower market I have now?
It's a vital question, because the nature of the market has changed significantly. Foreclosures, not a factor in 2003-05, now have a huge impact on price, commissions, marketability and consumer confidence. And though much will be done to curb the problem, it will take time to work these troubled properties through the system, due in part to sheer volume. RealtyTrac reported more than 3 million foreclosure filings on 2.3 million properties in 2008, an increase of 81% from 2007 and 225% from 2006; banks repossessed over 850,000 properties last year, more than double the 2007 total.
Homes in some stage of pre-foreclosure or foreclosure will account for a large portion of sales this year. Our goal at ZOOM! Loss Mitigation Specialists is to help agents recognize that and arm them with the skills and knowledge to best serve them in this sector of the industry.
Please feel free to call us with any questions at 1-800-480-1917 or simply e-mail us at ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Tuesday, January 27, 2009
Benefits To Avoiding Foreclosure
Benefits To Avoiding Foreclosure
Home Owner Benefits to Avoiding Foreclosure with ZOOM! Loss Mitigation Specialists:
1. Help in Avoiding Foreclosure
2. Less Credit Damage than Foreclosure or Bankruptcy
3. Simple and Inexpensive Relief
4. Our unparalleled support includes: Real Estate Professionals, Lenders, Attorneys, Buyers, Consultants and more
5. Access to our top notch network of Real Estate Professionals, Attorneys, Lenders, Mortgage Companies, Buyers, Consultants and more.
6. A Fresh Start
7. You pay nothing to us upon a successful short sale transaction.
8. The lender typically pays the selling and buying agent’s commissions, attorney fees, rehab fees, our costs, past due payments, and more. The lender and/or seller will absorb the closing costs as well.
Real Estate Agent Benefits to working with ZOOM! Loss Mitigation Specialists:
1. FREE yourself to focus on your business and not get bogged down trying to negotiate a short sales on your own
2. Increase your market share and income
3. Training and support
4. Postpone foreclosure sales
5. Organize and process the entire short sale package
6. We do all the negotiation
7. Provide 24 hour access to the ZOOM! Loss Mitigation Information Center
Lenders prefer to work with ZOOM! Loss Mitigation Specialists:
1. It costs lenders a fortune to foreclose a property. A short sale helps absorb additional losses and gives them an immediate pay-off
2. They are lenders, and are not in business to buy and sell real estate
3. A REO (banked-owned property) is a liability, not an asset to the bank
4. Most lenders are REQUIRED to have an amount up to SIX Times the retail value of each REO in reserves, so a short sale gives them an immediate relief
5. Protection of their banking charter
6. ZOOM! Loss Mitigation has a full-time staff of licensed processors and staff members that specialize in short sale processing and negotiation
To find out more call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Home Owner Benefits to Avoiding Foreclosure with ZOOM! Loss Mitigation Specialists:
1. Help in Avoiding Foreclosure
2. Less Credit Damage than Foreclosure or Bankruptcy
3. Simple and Inexpensive Relief
4. Our unparalleled support includes: Real Estate Professionals, Lenders, Attorneys, Buyers, Consultants and more
5. Access to our top notch network of Real Estate Professionals, Attorneys, Lenders, Mortgage Companies, Buyers, Consultants and more.
6. A Fresh Start
7. You pay nothing to us upon a successful short sale transaction.
8. The lender typically pays the selling and buying agent’s commissions, attorney fees, rehab fees, our costs, past due payments, and more. The lender and/or seller will absorb the closing costs as well.
Real Estate Agent Benefits to working with ZOOM! Loss Mitigation Specialists:
1. FREE yourself to focus on your business and not get bogged down trying to negotiate a short sales on your own
2. Increase your market share and income
3. Training and support
4. Postpone foreclosure sales
5. Organize and process the entire short sale package
6. We do all the negotiation
7. Provide 24 hour access to the ZOOM! Loss Mitigation Information Center
Lenders prefer to work with ZOOM! Loss Mitigation Specialists:
1. It costs lenders a fortune to foreclose a property. A short sale helps absorb additional losses and gives them an immediate pay-off
2. They are lenders, and are not in business to buy and sell real estate
3. A REO (banked-owned property) is a liability, not an asset to the bank
4. Most lenders are REQUIRED to have an amount up to SIX Times the retail value of each REO in reserves, so a short sale gives them an immediate relief
5. Protection of their banking charter
6. ZOOM! Loss Mitigation has a full-time staff of licensed processors and staff members that specialize in short sale processing and negotiation
To find out more call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Minimum Charges for Escrow Services - UTAH
Rule R592-13
"Minimum Charges for Escrow Services"
Recently, The Title and Escrow Commission in conjunction with The Utah State Insurance Department invoked a new rule (Rule R592-13) that will effect your future real estate transactions. This new rule requires all title insurance agencies operating in the state of Utah to charge a uniform "minimum charge for escrow services". This minimum escrow fee is determined by the purchase price/ loan amount of the transaction and includes the combination of both the closing/ settlement fee and the document preparation fee. The new minimum charge requirements will be applied as follows:
Purchase Price/Loan Amount - Minumum Escrow Fee
$0 to $180,000.00 - Minimum Escrow Fee $150 per side
$180,000.01 to $250,000.00 - Minimum Escrow Fee $250 per side
$250,000.01 and above - Minimum Escrow Fee $350 per side
It is important to note that this is a minimum charge requirement. Some transactions may require additional fees to cover services rendered or to fulfill requirements made by the parties involved in a transaction.
Although, this rule was put into effective January 22, 2009 it will not be implemented until April 1, 2009.
"Minimum Charges for Escrow Services"
Recently, The Title and Escrow Commission in conjunction with The Utah State Insurance Department invoked a new rule (Rule R592-13) that will effect your future real estate transactions. This new rule requires all title insurance agencies operating in the state of Utah to charge a uniform "minimum charge for escrow services". This minimum escrow fee is determined by the purchase price/ loan amount of the transaction and includes the combination of both the closing/ settlement fee and the document preparation fee. The new minimum charge requirements will be applied as follows:
Purchase Price/Loan Amount - Minumum Escrow Fee
$0 to $180,000.00 - Minimum Escrow Fee $150 per side
$180,000.01 to $250,000.00 - Minimum Escrow Fee $250 per side
$250,000.01 and above - Minimum Escrow Fee $350 per side
It is important to note that this is a minimum charge requirement. Some transactions may require additional fees to cover services rendered or to fulfill requirements made by the parties involved in a transaction.
Although, this rule was put into effective January 22, 2009 it will not be implemented until April 1, 2009.
Monday, January 26, 2009
When should a Loss Mitigation file be submitted to ZOOM!?
Answer:
The day the home is listed. It doesn't matter if you have an offer on the property or not. This allows ZOOM! to go into action. Once the initial file and the $500.00 service and processing fee is received ZOOM! will:
1. Order title on your clients behalf from their preferred service provider and forwarded to the listing agent as soon it becomes available.
2. Order loan pay-off(s) to determine the actual amount(s) encumbered.
3. Order a Forensic loan Audit and legal document review services with the legal department and will be processed while waiting for an offer on the property.
4. The lender and/or servicing companies will be notified immediately that the home is listed for sale and is in a short sale situation. This may include the postponement of a pending sale.
5. Notify the listing agent should the property be deemed a possible imminent foreclosure or toxic listing.
These 5 steps are crucial in expediting your short sale to "Approval". Once you receive and offer, option, or letter of intent to purchase the property, please forward it to ZOOM! processing as promptly as possible.
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
The day the home is listed. It doesn't matter if you have an offer on the property or not. This allows ZOOM! to go into action. Once the initial file and the $500.00 service and processing fee is received ZOOM! will:
1. Order title on your clients behalf from their preferred service provider and forwarded to the listing agent as soon it becomes available.
2. Order loan pay-off(s) to determine the actual amount(s) encumbered.
3. Order a Forensic loan Audit and legal document review services with the legal department and will be processed while waiting for an offer on the property.
4. The lender and/or servicing companies will be notified immediately that the home is listed for sale and is in a short sale situation. This may include the postponement of a pending sale.
5. Notify the listing agent should the property be deemed a possible imminent foreclosure or toxic listing.
These 5 steps are crucial in expediting your short sale to "Approval". Once you receive and offer, option, or letter of intent to purchase the property, please forward it to ZOOM! processing as promptly as possible.
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
Saturday, January 24, 2009
ZOOM! Loss Mitigation Online Document Manager
The document manager is a collection of commonly used or requested files. Click the document title to download the file to your local computer.
Click here for access to the ZOOM! Loss Mitigation Online Document Manager
Can't find what your looking for or have a question? Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Click here for access to the ZOOM! Loss Mitigation Online Document Manager
Can't find what your looking for or have a question? Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Tuesday, January 20, 2009
ZOOM! Loss Mitigation Specialists Privacy Policy
ZOOM! Loss Mitigation Specialists collects information ("nonpublic personal information") about client/home owners from the following sources:
Information we receive from the client/home owner on contact information forms, financial worksheets, tax returns, bank statements, social security numbers, and other forms.
However, we recognize the importance the client/home owner places on their privacy and the confidentiality of their financial information. Therefore, we do not disclose nonpublic information about the client/home owner to nonaffiliated third parties except as permitted by law.
Additionally, we restrict access to nonpublic personal information about the client/home owner to those employees who need to know that information to provide services to the client/home owner. Finally, we maintain physical, electronic, and procedural standards and safeguards to guard the client/home owners nonpublic personal information.
Should the client/home owner have any questions regarding this Privacy Policy, please feel free to call us toll free 1-800-480-1917.
ZOOM! Loss Mitigation Specialists
4525 South Wasatch Blvd, Suite 335
Salt Lake City, Utah 84124
www.ZOOMLossMitigation.com
Information we receive from the client/home owner on contact information forms, financial worksheets, tax returns, bank statements, social security numbers, and other forms.
However, we recognize the importance the client/home owner places on their privacy and the confidentiality of their financial information. Therefore, we do not disclose nonpublic information about the client/home owner to nonaffiliated third parties except as permitted by law.
Additionally, we restrict access to nonpublic personal information about the client/home owner to those employees who need to know that information to provide services to the client/home owner. Finally, we maintain physical, electronic, and procedural standards and safeguards to guard the client/home owners nonpublic personal information.
Should the client/home owner have any questions regarding this Privacy Policy, please feel free to call us toll free 1-800-480-1917.
ZOOM! Loss Mitigation Specialists
4525 South Wasatch Blvd, Suite 335
Salt Lake City, Utah 84124
www.ZOOMLossMitigation.com
Saturday, January 10, 2009
Should The Home Owner Do A Deed In Lieu Of Foreclosure?
Answer: It is not recommended
A home owner can attempt a "deed in lieu of foreclosure" but sometimes the lender won't agree. If there is more than one lien holder, it is very difficult to do a deed in lieu.
If a foreclosure is imminent, this may be the only option. In some cases the home owner can have a deficiency judgment filed against them.
Often times a lender will offer the home owner "cash for keys" and pay them up to $1,500 or more to vacate the property and leave it broom swept clean by a pre-determined date.
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
A home owner can attempt a "deed in lieu of foreclosure" but sometimes the lender won't agree. If there is more than one lien holder, it is very difficult to do a deed in lieu.
If a foreclosure is imminent, this may be the only option. In some cases the home owner can have a deficiency judgment filed against them.
Often times a lender will offer the home owner "cash for keys" and pay them up to $1,500 or more to vacate the property and leave it broom swept clean by a pre-determined date.
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
How Will The Lender Report The Short Sale On The Credit Bureau's?
Answer: Depends on the lender or servicing company
Anything less than "Paid In Full" is considered derogatory, and will reduce a home owners credit scores. Typically, the lender will report the account "Paid Not As Agreed". This is still much better than a foreclosure that will remain on a persons credit for up to 10 years.
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
Anything less than "Paid In Full" is considered derogatory, and will reduce a home owners credit scores. Typically, the lender will report the account "Paid Not As Agreed". This is still much better than a foreclosure that will remain on a persons credit for up to 10 years.
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
Short Sale Tips For Listing Agents
Below are some tips that can improve the odds of your short sale listing being "Approved" by the lender:
1. Sell the property "AS-IS" - lenders and servicing companies don't like to see offers subject to repairs and condition.
2. No seller concessions - lenders and servicing companies are already losing money on their asset, they don't want to lose an additional 3% or buy a home warranty just to sell an asset. Concessions can kill your deal!
3. Sell to an owner occupant - lenders frown on letters of intent, option contracts, and/or assign offers.
4. 1% - 3% in earnest money - the more earnest money the better.
5. Pre-Qualification letter and/or Proof of Funds - the buyer needs to demonstrate the ability to buy.
6. Flexible deadlines - buyers need to be flexible and patient during the short sale process.
7. Educate Buyer Agents and Investors - they need to be "realistic", if a property is already priced at 75% or 80% of market value don't expect a lender to sell the property for much less than that.
8. Listing Agent BPO and summary reports- don't take pictures of the beautiful rooms in the home and don't use the nicest home on the street as your sold comparable. You want to point out the issues that effect the homes value and re-sale(ie. leaking roof, mold, meth, etc.). In addition, use comparables that are other sold short sales and bank owned properties.
9. Get out of the way - don't get in the way of a transaction, nobody has any idea what a lender is willing to do to get their asset sold.
10. Be patient, be patient, be patient.
11. SUBMIT YOUR SHORT SALE TO ZOOM! LOSS MITIGATION - contact us at 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com for a complete list of all items needed for successful short sale transaction on your listing.
www.ZOOMLossMitigation.com
1. Sell the property "AS-IS" - lenders and servicing companies don't like to see offers subject to repairs and condition.
2. No seller concessions - lenders and servicing companies are already losing money on their asset, they don't want to lose an additional 3% or buy a home warranty just to sell an asset. Concessions can kill your deal!
3. Sell to an owner occupant - lenders frown on letters of intent, option contracts, and/or assign offers.
4. 1% - 3% in earnest money - the more earnest money the better.
5. Pre-Qualification letter and/or Proof of Funds - the buyer needs to demonstrate the ability to buy.
6. Flexible deadlines - buyers need to be flexible and patient during the short sale process.
7. Educate Buyer Agents and Investors - they need to be "realistic", if a property is already priced at 75% or 80% of market value don't expect a lender to sell the property for much less than that.
8. Listing Agent BPO and summary reports- don't take pictures of the beautiful rooms in the home and don't use the nicest home on the street as your sold comparable. You want to point out the issues that effect the homes value and re-sale(ie. leaking roof, mold, meth, etc.). In addition, use comparables that are other sold short sales and bank owned properties.
9. Get out of the way - don't get in the way of a transaction, nobody has any idea what a lender is willing to do to get their asset sold.
10. Be patient, be patient, be patient.
11. SUBMIT YOUR SHORT SALE TO ZOOM! LOSS MITIGATION - contact us at 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com for a complete list of all items needed for successful short sale transaction on your listing.
www.ZOOMLossMitigation.com
Are Concessions Allowed On A Short Sale?
Answer: Sometimes
It really depends on the lender or servicing company. A lot depends on how short the lender or servicing company is on their note. Overall, most lenders and servicing companies frown on any type of concession (especially seller paid closing costs).
Have a question? Call 1-800-480-1917 or simply e-mail it to www.ZOOMLossMitigation@gmail.com.
ZOOMLossMitigation.com
It really depends on the lender or servicing company. A lot depends on how short the lender or servicing company is on their note. Overall, most lenders and servicing companies frown on any type of concession (especially seller paid closing costs).
Have a question? Call 1-800-480-1917 or simply e-mail it to www.ZOOMLossMitigation@gmail.com.
ZOOMLossMitigation.com
Can A Trustee Sale Be Stopped?
Answer: Yes
The only way to stop a trustee sale is to have the lender or servicing company stop it.
There are only a few ways to stop or postpone a sale:
1. Reinstate the note - make a payment acceptable to the lender or servicing company
2. A valid offer to purchase - if an offer is too low the lender or serving company will contiune with the sale
3. Bankruptcy - temporary forebearance
4. Home Loan Modification - must be able to prove a hardship with the ability to continue to make payments
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
The only way to stop a trustee sale is to have the lender or servicing company stop it.
There are only a few ways to stop or postpone a sale:
1. Reinstate the note - make a payment acceptable to the lender or servicing company
2. A valid offer to purchase - if an offer is too low the lender or serving company will contiune with the sale
3. Bankruptcy - temporary forebearance
4. Home Loan Modification - must be able to prove a hardship with the ability to continue to make payments
Please call 1-800-480-1917 or e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
Do Non-Owner Occupied or 2nd Homes Qualify For A Short Sale?
Answer: Yes
A short sale is a hardship and needs to be demonstrated to the lender or servicing company as the only alternative to foreclosure. There are many situations where a home owner may own several homes they can no longer afford. The lenders and servicing companies know that a non-owner occupied home or 2nd home may be easier for the owner to walk-away from because they typically have another home to live in. Often times these short sales are approved quicker than an owner occupied home.
Every short sale situation is different. If you or your client is unsure if they may qualify for a short sale please call our office at 1-800-480-1917 or e-mail your clients situation to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
A short sale is a hardship and needs to be demonstrated to the lender or servicing company as the only alternative to foreclosure. There are many situations where a home owner may own several homes they can no longer afford. The lenders and servicing companies know that a non-owner occupied home or 2nd home may be easier for the owner to walk-away from because they typically have another home to live in. Often times these short sales are approved quicker than an owner occupied home.
Every short sale situation is different. If you or your client is unsure if they may qualify for a short sale please call our office at 1-800-480-1917 or e-mail your clients situation to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Does A Home Owner Need To Be Behind On Their Payment To Qualify For A Short Sale?
Answer: NO
A short sale is a hardship, and needs to be demonstrated to the lender or servicing company as the only alternative to foreclosure. There are many situations where a home owner may not be behind on their payments but still may need to sell short. However, delinquent Sellers have much less to lose, as their credit is already damaged by "mortgage lates," and are in "arrears. The odds of getting a short sale approved increase the closer a home gets to foreclosure.
Every short sale situation is different. If you or your client is unsure if they may qualify for a short sale please call our office at 1-800-480-1917 or e-mail your clients situation to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
A short sale is a hardship, and needs to be demonstrated to the lender or servicing company as the only alternative to foreclosure. There are many situations where a home owner may not be behind on their payments but still may need to sell short. However, delinquent Sellers have much less to lose, as their credit is already damaged by "mortgage lates," and are in "arrears. The odds of getting a short sale approved increase the closer a home gets to foreclosure.
Every short sale situation is different. If you or your client is unsure if they may qualify for a short sale please call our office at 1-800-480-1917 or e-mail your clients situation to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
How Long Does A Home Need To Be On The Market Before It Qualifies For A Short Sale?
There is not specific time frame that a home needs to be on the market. However, it does help prove to the lender or the servicing company that every effort has been made to sell the home at the highest market value. It is much easier to ask for a concession if the MLS history demonstrates the home has been on the market for 12 months and has had 17 showings with only 1 offer, as opposed to 7 days on the market and 4 offers.
Please call 1-800-480-1917 or simply e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
Please call 1-800-480-1917 or simply e-mail ZOOMLossMitigation@gmail.com with any additional questions.
www.ZOOMLossMitigation.com
Does It Cost The Home Owner Any Money To Do A Short Sale?
The answer to this question is: "Possibly"
There may be up-front costs incured:
1. If the listing agent collects and up-front marketing fee to cover the marketing costs and additional work necessary to faciliate a short sale. Remember...according the NAR 90% of all short sales end up in foreclosure. There is a very small chance that an agent will recover their marketing expenses on a short sale listing.
2. Some lenders charge a fee to the borrower to process the short sale.
3. Loss Mitigation may charge an upfront loss mitigation fee to the home owner or the agent if the lender or servicing company is a non-compensating company.
4. A law firm may charge between $500.00 and $2,000.00 for a Forensic Loan Audit and Legal Document review.
Please call 1-800-480-1917 or e-mail any additional questions to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
There may be up-front costs incured:
1. If the listing agent collects and up-front marketing fee to cover the marketing costs and additional work necessary to faciliate a short sale. Remember...according the NAR 90% of all short sales end up in foreclosure. There is a very small chance that an agent will recover their marketing expenses on a short sale listing.
2. Some lenders charge a fee to the borrower to process the short sale.
3. Loss Mitigation may charge an upfront loss mitigation fee to the home owner or the agent if the lender or servicing company is a non-compensating company.
4. A law firm may charge between $500.00 and $2,000.00 for a Forensic Loan Audit and Legal Document review.
Please call 1-800-480-1917 or e-mail any additional questions to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Can A Lender Come After A Home Owner For A Deficiency?
The "Anti-Deficiency Law" states that a lender CANNOT go after personal assets if foreclosing on a "purchase money" loan.
There is a big "HOWEVER"...
Foreclosures on "refinanced money", 2nd trust deeds, and mechanics liens are not subject to this law, and can go after personal assets. Lien holders often times use this to threaten and motivate the seller to make payments (Phone calls and letters). Typically, a purchase money lender or a 2nd will propose an unsecured note for less than the amount owed.
Even if it is an original "Purchase Money Loan," 2nd Trust Deeds may still go after personal assets. However, judicial foreclosure to obtain a deficiency judgment is a costly option, takes a long time, and is not often pursued.
The most difficult Short Sale Approval is when the seller voluntarily stops paying without a hardship, the seller walks away, and/or disappears.
Please call 1-800-480-1917 or e-mail any additional questions to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
There is a big "HOWEVER"...
Foreclosures on "refinanced money", 2nd trust deeds, and mechanics liens are not subject to this law, and can go after personal assets. Lien holders often times use this to threaten and motivate the seller to make payments (Phone calls and letters). Typically, a purchase money lender or a 2nd will propose an unsecured note for less than the amount owed.
Even if it is an original "Purchase Money Loan," 2nd Trust Deeds may still go after personal assets. However, judicial foreclosure to obtain a deficiency judgment is a costly option, takes a long time, and is not often pursued.
The most difficult Short Sale Approval is when the seller voluntarily stops paying without a hardship, the seller walks away, and/or disappears.
Please call 1-800-480-1917 or e-mail any additional questions to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
What Do I Do With A Listing That Does Not Have An Offer
An offer is golden key to getting a Short Sale approved by a lender. We will not submit a short sale file to any lender or servicing company without one.
If you don't have an offer do whatever it takes to get one. Even if an offer comes in low we submit it, it is enough to get the short sale process started. The lender and/or servicing company may not accept it, however, it may give us an idea of what they are willing to accept.
Tips on how to get offers on your short sales:
1. List the home on the MLS at 75% - 80% of the "realistic" market value. NEVER "fish" for offers on a short sale property!
2. Continue to reduce the price every 7 days until an offer comes in.
3. Have a handful of investors in your pipeline that will an write offer or letter of intent on any short sale property you list.
4. Take the important informtion off the property flyer (price, sq footage, number of bedrooms and bathrooms, acreage, etc), that way every interested buyer will need to call you directly for information. NEVER put "Short Sale" on your flyers!
5. Take the listing at your normal compensation rate. Don't just assume that the lender and/or servicing company is not going to pay full compensation.
6. Fax or e-mail the property information to Buyers Agents and Investor Agents that like to invest in short sale properties.
7. Although the seller is losing the home or having to sell short, stress to the seller that the home needs to be in showing condition at all times.
8. Access to the property must be easy!
If you have additional questions please call 1-800-480-1917 or simply e-mail it to ZOOMLossMitigation@gmail.com
www.ZOOMLossMitigation.com
If you don't have an offer do whatever it takes to get one. Even if an offer comes in low we submit it, it is enough to get the short sale process started. The lender and/or servicing company may not accept it, however, it may give us an idea of what they are willing to accept.
Tips on how to get offers on your short sales:
1. List the home on the MLS at 75% - 80% of the "realistic" market value. NEVER "fish" for offers on a short sale property!
2. Continue to reduce the price every 7 days until an offer comes in.
3. Have a handful of investors in your pipeline that will an write offer or letter of intent on any short sale property you list.
4. Take the important informtion off the property flyer (price, sq footage, number of bedrooms and bathrooms, acreage, etc), that way every interested buyer will need to call you directly for information. NEVER put "Short Sale" on your flyers!
5. Take the listing at your normal compensation rate. Don't just assume that the lender and/or servicing company is not going to pay full compensation.
6. Fax or e-mail the property information to Buyers Agents and Investor Agents that like to invest in short sale properties.
7. Although the seller is losing the home or having to sell short, stress to the seller that the home needs to be in showing condition at all times.
8. Access to the property must be easy!
If you have additional questions please call 1-800-480-1917 or simply e-mail it to ZOOMLossMitigation@gmail.com
www.ZOOMLossMitigation.com
Will the Client Receive a 1099 from the IRS?
This is a very common question and concern.
The answer currently is: Maybe
A current Federal Law may prohibit a Lender(s) from sending the home owner a "1099" for a deficiency (unpaid principal balance negotiated through a short sale) through the end of 2012.
However, in certain scenarios a client may receive a 1099 and some additional forms and documents may need to be submitted to the IRS. You can reference IRS publication 544 where you will find more information on page 3 on the right hand side under "Cancellation of debt". Based upon this publication most tax advisors would conclude that cancellation of debt on a personal residence is not taxable. Your accountant or tax advisor would file form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the income exclusion. If the property is investment property your accountant or tax advisor would use form 4797.
ZOOM! Loss Mitigation Specialists highly recommends that home owners seek the advise and guidance of a professionally licensed tax advisor.
Please call us at 1-801-527-2011 or simply e-mail us at Questions@ZOOMLossMitigation.com with any additional questions.
www.ZOOMLossMitigation.com
The answer currently is: Maybe
A current Federal Law may prohibit a Lender(s) from sending the home owner a "1099" for a deficiency (unpaid principal balance negotiated through a short sale) through the end of 2012.
However, in certain scenarios a client may receive a 1099 and some additional forms and documents may need to be submitted to the IRS. You can reference IRS publication 544 where you will find more information on page 3 on the right hand side under "Cancellation of debt". Based upon this publication most tax advisors would conclude that cancellation of debt on a personal residence is not taxable. Your accountant or tax advisor would file form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the income exclusion. If the property is investment property your accountant or tax advisor would use form 4797.
ZOOM! Loss Mitigation Specialists highly recommends that home owners seek the advise and guidance of a professionally licensed tax advisor.
Please call us at 1-801-527-2011 or simply e-mail us at Questions@ZOOMLossMitigation.com with any additional questions.
www.ZOOMLossMitigation.com
Should My Client File Bankruptcy?
This is a very common question. Our advise is to always have your client contact a Bankruptcy Attorney for advise.
Many sellers will file chapter 7 Bankruptcy, forcing a "Stay of Foreclosure." Some sellers do this simply to buy time sufficient to close a current escrow, and then dismiss the BK application. This is known as "Stopping the Clock" of the three month process. Once a bankruptcy is accepted, a bank IS NOT ALLOWED to offer a Short Sale to the seller, and will be sold at a BANKRUPTCY SALE.
The bank then hires attorneys to file for a "Relief of Stay" which allows them to continue foreclosing even though the clients are in a Bankruptcy.
However, courts are reluctant to approve this, and prefer a BANKRUPTCY SALE in order to pay off more creditors than a NON-JUDICIAL FORECLOSURE would, provided there is more equity over and above paying off the lien holders. Other "Non-Secured" creditors may be able to be paid off.
Example (does not apply to a short sale): If 250k is owed on the home, and the home can sell for 400k, the courts know the bank will "under price it" to recapture just the loan and costs - but not a penny more, especially in a declining or even a flat market. Banks want to "cut their losses." Courts want to realize the MAXIMUM RETURN, where Banks want only the note value and costs.
The homestead act may apply in this example.
(In a rising market, banks are willing to price REO's along side the competition, going with the upward trend.)
Bankruptcy is very risky and may be the very last resort prior to a foreclosure. A Bankruptcy will stay on a persons credit for 10 years. Selling the home can the BEST choice for the seller depending on their specific situation.
If you have a question please call 1-800-480-1917 or email it to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Many sellers will file chapter 7 Bankruptcy, forcing a "Stay of Foreclosure." Some sellers do this simply to buy time sufficient to close a current escrow, and then dismiss the BK application. This is known as "Stopping the Clock" of the three month process. Once a bankruptcy is accepted, a bank IS NOT ALLOWED to offer a Short Sale to the seller, and will be sold at a BANKRUPTCY SALE.
The bank then hires attorneys to file for a "Relief of Stay" which allows them to continue foreclosing even though the clients are in a Bankruptcy.
However, courts are reluctant to approve this, and prefer a BANKRUPTCY SALE in order to pay off more creditors than a NON-JUDICIAL FORECLOSURE would, provided there is more equity over and above paying off the lien holders. Other "Non-Secured" creditors may be able to be paid off.
Example (does not apply to a short sale): If 250k is owed on the home, and the home can sell for 400k, the courts know the bank will "under price it" to recapture just the loan and costs - but not a penny more, especially in a declining or even a flat market. Banks want to "cut their losses." Courts want to realize the MAXIMUM RETURN, where Banks want only the note value and costs.
The homestead act may apply in this example.
(In a rising market, banks are willing to price REO's along side the competition, going with the upward trend.)
Bankruptcy is very risky and may be the very last resort prior to a foreclosure. A Bankruptcy will stay on a persons credit for 10 years. Selling the home can the BEST choice for the seller depending on their specific situation.
If you have a question please call 1-800-480-1917 or email it to ZOOMLossMitigation@gmail.com.
www.ZOOMLossMitigation.com
Friday, January 9, 2009
New Fannie/Freddie Short Sale Guidelines for 2009
On December 24th, 2008 the Department of Housing and Urban Development (HUD) released "Mortgage Letter 2008-43".
For those of you who somehow managed not to be engrossed by this less than climatic title, here are the major changes coming soon to a FHA/HUD foreclosures:
1. Elimination of the clause calling for 63 percent or greater property appraisal versus debt. Now properties can appraise at any value and still be eligible for the program.
2. Increased Net. Instead of the former 82 percent net based upon appraisal value the new limits will be 88 percent if sold with 30 days, 86 percent if sold within 60 days and 84 percent thereafter.
3. Increased Closing Costs on Short Sales. Although not a lot - FHA will now allow up to 1 percent of closing costs rather than the former zero.
4. Increased Seller Incentives. Again, although not a lot this will at least allow sellers a reasonable down payment toward a rental home by putting up to $1,000 in their pocket at closing.
5. Increased Lien Allocations. Junior liens up to $2,500 are now allowed - just one more tool that helps sweeten the pot for short sale investors interested in pursuing FHA/HUD homes.
6. Removal of Repair Limitations. This is one change that could potentially add up to thousands depending upon the required maintenance on the home. This opens the doors to many homes that would otherwise be ignored due to excessive damage.
7. Exceptions to Non-Owner Occupant Requirements. This is on a case by case basis but opens to the door to rental properties formerly excluded from the program.
Questions? Call 1-800-438-1917 or simply email your question to ZOOMLossMitigation@gmail.com
Call us today or send us an e-mail to receive a FREE copy of the 22 page report Fannie/Freddie report.
www.ZOOMLossMitigation.com
For those of you who somehow managed not to be engrossed by this less than climatic title, here are the major changes coming soon to a FHA/HUD foreclosures:
1. Elimination of the clause calling for 63 percent or greater property appraisal versus debt. Now properties can appraise at any value and still be eligible for the program.
2. Increased Net. Instead of the former 82 percent net based upon appraisal value the new limits will be 88 percent if sold with 30 days, 86 percent if sold within 60 days and 84 percent thereafter.
3. Increased Closing Costs on Short Sales. Although not a lot - FHA will now allow up to 1 percent of closing costs rather than the former zero.
4. Increased Seller Incentives. Again, although not a lot this will at least allow sellers a reasonable down payment toward a rental home by putting up to $1,000 in their pocket at closing.
5. Increased Lien Allocations. Junior liens up to $2,500 are now allowed - just one more tool that helps sweeten the pot for short sale investors interested in pursuing FHA/HUD homes.
6. Removal of Repair Limitations. This is one change that could potentially add up to thousands depending upon the required maintenance on the home. This opens the doors to many homes that would otherwise be ignored due to excessive damage.
7. Exceptions to Non-Owner Occupant Requirements. This is on a case by case basis but opens to the door to rental properties formerly excluded from the program.
Questions? Call 1-800-438-1917 or simply email your question to ZOOMLossMitigation@gmail.com
Call us today or send us an e-mail to receive a FREE copy of the 22 page report Fannie/Freddie report.
www.ZOOMLossMitigation.com
Thursday, January 8, 2009
Common Short Sale Conditions
Below is a list of common short sale conditions received back from the lender and/or servicing company for an offer to purchase:
1. CLOSING DATE MUST BE FIRM
2. SALES PRICE MUST BE FIRM
3. BUYER MUST BE FIRM- NO ASSIGNMENT
4. AMOUNT OF PROCEEDS TO LENDER MUST BE FIRM
5. SALE "AS IS" MUST BE FIRM- NO REPAIRS PAID BY LENDER
6. THERE MAY BE CONTRIBUTION REQUIRED FROM SELLER
7. ZERO PROCEEDS MAY BE PAID TO SELLER
8. ZERO PROCEEDS TO BE PAID TO ANY ENTITY NOT DISCLOSED ON ESTIMATE
9. SELLER CANNOT ASSUME DEBTS OR COSTS OUTSIDE OF ESCROW
10. ONLY WIRE TRANSFER OF FUNDS ACCEPTED AT CLOSING
11. ANY REFUNDS AFTER CLOSING WILL GO TO THE LENDER
12. LENDER TO APPROVE FINAL HUD (NOT ESTIMATE!) PRIOR TO RECORDING
Do you have a question? Call 1-800-480-1917 or e-mail it to ZOOMLossMitigation@gmail.com
www.ZOOMLossMitigation.com
1. CLOSING DATE MUST BE FIRM
2. SALES PRICE MUST BE FIRM
3. BUYER MUST BE FIRM- NO ASSIGNMENT
4. AMOUNT OF PROCEEDS TO LENDER MUST BE FIRM
5. SALE "AS IS" MUST BE FIRM- NO REPAIRS PAID BY LENDER
6. THERE MAY BE CONTRIBUTION REQUIRED FROM SELLER
7. ZERO PROCEEDS MAY BE PAID TO SELLER
8. ZERO PROCEEDS TO BE PAID TO ANY ENTITY NOT DISCLOSED ON ESTIMATE
9. SELLER CANNOT ASSUME DEBTS OR COSTS OUTSIDE OF ESCROW
10. ONLY WIRE TRANSFER OF FUNDS ACCEPTED AT CLOSING
11. ANY REFUNDS AFTER CLOSING WILL GO TO THE LENDER
12. LENDER TO APPROVE FINAL HUD (NOT ESTIMATE!) PRIOR TO RECORDING
Do you have a question? Call 1-800-480-1917 or e-mail it to ZOOMLossMitigation@gmail.com
www.ZOOMLossMitigation.com
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