Archive for 'stress of foreclosure'

Happy Valentine’s Day Everyone  the facts about loan modifications!!

Today is a great day to tell anyone and everyone you see and know Happy Valentine’s Day. Many of the Sellers that are upside down on their home are stressed out and don’t know what to do.  First off, I want all Sellers to know that when they got a loan from the bank their money was given to the bank from an investor.  This investor could be a trust, reit, or maybe the government.  The bank guaranteed the investor or group of investors a set interest rate.  Many Sellers are attempting a loan modification hoping to keep their house.  I always ask my Sellers if could wave my wand what do you want from the bank.  Most of them will answer that they want the bank to reduce their balance on their loan or they want a certain amount for their monthly payment.  Here are some facts I want to share this Valentine’s Day with the Sellers:

1.  During a loan modification the bank is still continuing with the foreclosure.

2.  I have not spoken with a Seller yet that got a reduction in the value of their home on a homesteaded property and I have done over 500 short sales.

3. The monthly payment the Seller wants makes no sense.  They are not considering how much their taxes and insurance is on the property nor are they considering the interest that will be charged for the loan amount.  Example:  Seller owes $300,00,000 on the loan at 4% for 30 years is $1,432.25  – Yearly Taxes are $3,000 per year $250.00 a month – Insurance is $1,500 per year – $125.00 per month –  Total monthly payment NOT INCLUDING HOA (homeowners association dues) would be $1,807.25.  Many Sellers want a lower payment than this amount because they can’t afford it.

4.  I have only seen the bank take the monthly payments that they are behind plus interest, late fees and attorney fees and add it to the end of the mortgage and/or change it to a 40 year mortgage.  Which would make their monthly payment $1,253.82 on the loan plus taxes and insurance would be $1,628.82.

So on Valentine’s Day I just want to let all the Sellers going through this difficult time that your home is where your heart is and may God Bless you during this difficult time.

So should a Seller do a short sale? First you need a good negotiator working on your file.  Benefits of a short sale:

1.  The Forgiveness of Debt Act which expires on December 31, 2013 allows Sellers who own their properties as homestead to waive the tax ramifications should the bank forgive the debt.  Up to 1 Million Dollars for a Single Individual and $2 Million Dollars for a married couple.

2.  The Bank will report the short sale on their credit report as being settled for less.

3.  The Sellers may receive some money to relocate.

4.  The Sellers may not have to pay a cash contribution or a promissory note.  Again this depends on your negotiator/realtor.

5.  The Bank will not go after the Seller for the difference if you get a full satisfaction otherwise they have the right to collect on the Seller for up to 25 years.

6.  The stress is gone and they have relocated into a bigger and better home most of the time.

I would recommend on this Valentine’s Day that a Seller give their family and themselves the gift of decision.  Please read my Special Report on Foreclosure which talks about all your options.  www.FreeFactsAboutForeclosure.com

 

Again your home is where your HEART IS and your family will go wherever you go.

May this Valentine’s Day you find peace.

Kimberlee Frank – Broker

www.SellFastRealty.com

 

 

 

 

 

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Veteran Short Sales his house keeps his VA Eligibility

When I moved my office into Winter Springs Centre, in Winter Springs, Florida rented a unit right next to the Eagles Club.  The Eagles Club also known as The Fraternal Order of Eagles, The Fraternal Order of Eagles is an international non-profit organization uniting fraternally in the spirit of liberty, truth, justice, and equality, to make human life more desirable by lessening its ills and promoting peace, prosperity, gladness and hope.

I joined the Aerie Eagles Club #4449 which has many members including many veterans.  I liked the club because it was a private club, helps so many charities and the fact that it is right next store to my office.  I still can remember one of the first times I was in the club and they had the music playing and was questioning “I wonder who is moving in next store?”  Someone asked to turn up the music and the bartender said “no” out of respect of the new neighbor.   I laughed and said who cares about that new neighbor they won’t care, turn up the music.  However, they wouldn’t turn it up until I said I am the new neighbor and I like music please turn it up.  That was a beginning of a great friendship with the members of the Aerie Eagles Club #4449.

Eagle can Fly Now

The more I went into the club, the more questions members would ask about foreclosure versus short sales and how it would effect a veteran and their eligibility.  Even though I had done well over 500 short sales, I had never done a VA short sale before and didn’t know what would happen when I did.  Now I do know.  Here is the the story:   I recently represented a Veteran, Patrick, who didn’t know what he was going to do with his house.  He had purchased a manufactured home on land for $125,000.  He was in foreclosure and very frustrated about the situation.  His hours were cut from his place of employment and on top of all the craziness his wife and him separated.  The house was in bad shape.  There was a lot of water damage by the front bay window causing interior and exterior damage.  The value of the home with the land was $25,000.

I tried putting Patrick through the HAFA Program and he was denied the $3,000 because he had vacated the home.  However, I did get the bank to agree to the short sale and not go after him for the difference.  So, he received a full satisfaction of the loan on his home.  I was at the club tonight when he told me that he recently received a letter from Veterans saying “That he still has his eligibility to purchase another home however, could not use that eligibility certificate for 6 MONTHS.”  I was so excited for him as 6 months is nothing!  He even told me that his credit increased by 15 points because the loan was now paid off.   He told me that he can now sleep at night thanks to me and in the future, not that he wants another house now, he can use his VA  Eligibility when he wants too.

I told him that if you short saled a FHA loan that the homeowner won’t be able to get another FHA loan for at least 2 to 3 years and that 6 months was great.  So, if there are any Veterans out fighting the stress of foreclosure and  wondering if they should do a short sale versus foreclosure, I am suggesting that a short sale is better.  Why lose your VA Eligibility Certificate when you fought for our country and you deserve to keep it!

Thanks to all the veterans in this world we love you and should you have any questions or need my assistance, call me at 407-888-3433.

God Bless,

Kimberlee Frank

www.SellFastRealty.com

 

 

 

 

 

 

 

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Probate Personal Representative Short Sales House in Lutz, Florida

It’s hard enough when a loved one passes away to deal with their estate but did you know that when there is real estate involved in an probate estate, the probate cannot be closed until the real estate is transferred to the heirs.  What happens when the house is in foreclosure and the heirs don’t want it?  Well, you need to do a short sale and sell the house.  If you don’t, it could take the bank years before they complete the foreclosure action stopping the family from having closure.

Sell Fast Realty recently helped a Probate Personal Representative short sale a property.  It was simple and easy to process the short sale as the original short sale package wasn’t needed.  All we needed was the death certificate of the individual along with the letter of authority from the personal representative.  This personal representative tried for a long time to sell the house but no one wanted to buy it.

Sell Fast Realty, Kimberlee Frank and Linda Trimpey, was able to sell the property after a couple of buyers and a few hiccups with delays from the bank.  The first buyer couldn’t wait until we received the approval letter and backed out of the purchase.  The following day we received the approval letter from the bank.  The buyer didn’t care and had moved on.  We found another buyer with the exact terms (price and closing costs).  The bank then decided to other another value on the property.  The negotiator countered  the buyer’s offer.  However, I provided the new negotiator with the approval letter.  He said that it didn’t matter and he wasn’t going to send it to the investor for review.  I informed him that the bank was receiving $4,000 more but he said it didn’t meet the investor’s guidelines.  He also added that the bank wasn’t going to pay the homeowners association dues and pay the personal representative fee.  I said this is ridiculous.  I called two different supervisors and after I called for 7 days straight and emailed every contact I had at the bank, I finally got to speak with a supervisor who said “it is approved as is – with the same terms from the first buyer.”  The Probate estate did not have to pay any money for a deficiency judgment nor did they have to pay for Sell Fast Realty’s commission.  The Personal Representative received $500.00 in order to process the sale.  The probate can now be closed and the family can have closure.

If you know anyone who has a Probate estate and needs to sell their property in Central Florida, call Sell Fast Realty at 407-888-3433 and we will be happy to help.  Or, if you are a Realtor and need help with your short sales, go to www.ShortSaleNegotiating.com

God Bless,

Kimberlee Frank

www.SellFastRealty.com

www.ShortSaleNegotiating.com

407-888-3433

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