I recently negotiated a successful short sale for a Wells Fargo loan in Las Vegas Nevada.   Here is a portion of the approval letter:

The language that I have highlighted above is the most crucial language when looking for at a short sale approval letter.  As I explain with all of my clients, I am not a lawyer and you should seek professional legal and tax advice anytime you are considering a short sale.  Every person's situation is different and each bank has different approval letters that has different language.   Luckily, Wells Fargo has a very clear approval letter on their short sales.

What is a Short Sale and why should I consider it?  A short sale is when a seller is upside down on their home and tries to sell it.  The bank who owes the mortgage has to agree to take a loss on the property and release the lien in order for the sale to go through.   That is the simple explanation of a short sale, however it should be called a Long Tedious Sale.  The average short sale in Las Vegas takes 120 days from the time you submit the offer to the actual response from the bank.   The fastest short sale I have ever worked on took 45 days to get a response and that was like seeing a unicorn prancing down the street.  These types of transactions are not fast, but the benefits of trying to negotiate a short sale far out weigh the pain.   When you let your home go into foreclosure, you loose the opportunity to negotiate the loss with your bank.  The bank has the right to sue you to pay the remaining balance.   In the scenario above, I was able to successfully negotiate a full waiver of deficiency from the bank.  

$326,000 original loan on the home

$190,000 new sales price on the same home 5 years later.

$136,000 of completely forgiven debt by Wells Fargo through a short sale.

Would you want to risk the bank suing you for $136,000? 

It's worth trying to negotiate with the bank and dealing with the laborious process to have such a great result as this.  Recently, banks have been asking the sellers for a cash contribution at the close of the short sale in order to waive the deficiency.  Again let's look at the numbers:

$5,000 cash contribution

$136,000 of forgiven debt. To me, it's worth making that contribution and not having to worry about the risk of the bank pursuing the deficiency. 

If you would like a FREE CONFIDENTIAL short sale guide, please fill out the contact form below and say "Short Sale Guide" in the comment section.  You can also contact me toll free at 1-866-589-1646.   Deciding to do a short sale can be emotional, but you are not alone and I try to make the process as smooth as possible. I'm here to help!

Felipe Crook

Realty One Group

6475 S. Rainbow Blvd Ste 102

Las Vegas, NV 89118

I sat in my sales meeting this morning with my jaw hanging down as a representative from Nevada's Hardest Hit Funds, a non-profit organization, helping troubled home owners either with a short sale, principle reduction, or dealing with a second lien on a property.  Yes, I know what you're thinking, great another "program" to help me but this actually might work.   I grilled the representative with plenty of questions about the program and how it's possible to help so many people. Here is a brief overview of the program:

With one of the highest foreclosure rates in the nation, Nevada was selected to be one of the original beneficiaries of the U.S. Treasurys "Hardest Hit Fund" program. Nevada was awarded over $150 million in funds available to qualified recipients through a series of federal grants to help Nevada homeowners. The U.S. Treasury has approved the Nevada Affordable Housing Assistance Corporation (NAHAC) to oversee the Nevadas Hardest Hit Funds program. The agency was selected to create a business plan compliant with the Emergency Economic Stabilization Act Program. The NAHAC agency has designed and is executing a plan for the distribution of these funds that has been approved by the U.S. Treasury. Through four programs, Nevadas Hardest Hit Funds provide assistance that will help prevent avoidable foreclosures and keep limited income Nevada Homeowners in their homes.
 Primary objectives for Nevadas Hardest Hit Funds programs include:

1. Assist the low and moderate income families to preserve home ownership and avoid foreclosure, if possible, or assist in the short-sale of a home, if necessary.
   
2.  Assist approximately 22,000 income restricted Nevada homeowners who are in need of assistance with a mortgage problem due to either an unemployment situation, second liens and/or large principal to home value mismatches preventing timely payments on loans

NOTE: These programs are only available to homeowners whose mortgage servicing company agrees to the terms and conditions governing the use of these funds. If your servicer is not currently participating in Nevadas Hardest Hit Funds, you may want to call them and encourage them to do so. A homeowner cannot receive assistance if their servicer has not signed an agreement with NAHAC. See a list of participating servicers and which programs they are currently off

• Mortgage Assistance Program (MAP)
  

Mortgage Assistance Program (MAP) MAP is intended to provide temporary financial assistance for underemployed as well as those unemployed homeowners who have experienced involuntary job loss and/or severe reductions in income. The program will pay 1/3 of the principal and interest portion of the homeowners monthly mortgage payment, up to a maximum monthly benefit of $500 per month. Assistance lasts for up to 6 months. For more information about MAP click here.

• Principle Reduction Program

Qualified homeowners can receive a principal reduction of up to $50,000. In order to receive the full benefit, the participating Servicer must provide a dollar for dollar match of the Nevadas Hardest Hit Funds maximum contribution of $25,000. The program will assist income restricted homeowner candidates who want to preserve home ownership. For more information click here.   NOTE: the representative mentioned that this program is being re-written to better accommodate home owners here in Nevada.

• Short Sale Program

 This program is designed to help homeowners who are beginning to or need to initiate a short-sale process. It will help ease the transition from unsustainable home ownership to being a renter. For more information click here.

• Second lien Relief Program

 This program is designed to assist homeowners who have a second mortgage that may be interfering with the refinance, short sale or modification of their first mortgage. It is expected that homeowners will extinguish their 2nd lien as a result of this program through a combination of funds contributed by both Nevadas Hardest Hit Funds and the participating Servicer; the maximum amount that Nevadas Hardest Hit Funds will contribute toward 2nd mortgage lien relief is $16,500 per dwelling. In order to receive the full benefit, the participating Servicer must contribute $0.60 for every $0.40 contributed by Nevadas Hardest Hit Funds. For more information click here.

This is HUGE information in the struggle to stabilize our housing economy.  There are some eligibility requirements:

• Must be owner occupied
• Must be a legal US Resident
• Loan must be originated before 1/1/2009
• Documented Financial Hardship (The program looks back to 2008.  If you were unemployed for since months in 2008 you would qualify)
• Maximum income: 120% of Area Median Income which break down in Clark County like this (number of wage earners per household

1-4 people: $78,120

5 people $84,360

6 people $90,600

7 people $96,840

8 people $103,080

• Facing imminent default
• Currently own only 1 property
• Current maximum loan amount of $427,184 or less
• Required 5 year occupancy after assistance

Service Providers who are participating in these programs?

PARTICIPATING MAP SERVICERS

• 21st Mortgage
•  Acqura/SVP Loan Service
•  American Home Mortgage Servicing
• Bank of America
•  Capital Mortgage Services
• Cenlar Central Mortgage
•  Chase or JP Morgan-Chase
• CitiMortgage
• Everhome Mortgage
•  Fifth Third Bank
•  Flagstar Bank
•  GMAC
•  Greater Nevada Credit Union
• James B. Nutter & Company LoanCare (FNF Servicing)
•  Metlife Midland Mortgage (Midfirst Bank)
• Navy FCU
• Nevada Housing Division
•  Ocwen Mortgage
• PHH Mortgage
• Saxon Mortgage Service
•  Selene Finance Seretus (formely IBM Lender Business Process Services)
•  Specialized Loan Services
• U.S. Bank
• Verticrest Financial WestStar CU
• Wells Fargo

PARTICIPANTING SHORT-SALE SERVICERS

• American Home Mortgage Servicing
• Capital Mortgage Services
• Flagstar Bank JP Morgan Chase
•  Greater Nevada Credit Union
• GMAC
• Midland Mortgage (Midfirst Bank)
• Ocwen Mortgage
• PHH Mortgage Saxon Mortgage Service
• Selene Finance
• Specialized Loan Services

 PARTICIPATING PRINCIPAL REDUCTION SERVICERS

• Bank of America
•  Greater Nevada Credit Union
• GMAC
•  Ocwen Mortgage
• Specialized Loan Services

PARTICIPATING SECOND LIEN RELIEF SERVICERS

• GMAC
•  Greater Nevada Credit Union
•  Ocwen Mortgage
• Saxon Mortgage
• Service Specialized Loan Services

 If your servicer is not currently participating in a Nevadas Hardest Hit Funds program, you may want to call them and encourage them to do so. A homeowner cannot receive assistance if their servicer has not signed an agreement with Nevadas Hardest Hit Funds Programs. SERVICERS INTERESTED IN SUPPORTING NEVADAS  

If you would like help with any of these programs, I would be happy to help get you the information you need.  My toll free number is 1-866-589-1646.

Felipe Crook

Realty One Group

Las Vegas, NV 89117

1-866-589-1646

Short Sale Professional

Good news from the banking sector:Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week. "This is a glimmer of hope that lenders are getting more realistic," Rick Sharga, senior vice president of RealtyTrac, told Bloomberg News. "Its a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers."

During the second quarter, the number of homes nearing foreclosure accounted for 12 percent of total home sales, with banks agreeing to more transactions at prices below the outstanding mortgage balance, RealtyTrac reported in releasing its second quarter data this week. Whats more, pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice--thats down from 256 days in the first quarter, RealtyTrac reports. Sales of homes in the foreclosure process or short sales sold on average for a 21 percent discount--or an average sales price of $192,129--compared to the sales price of non-distressed homes.

More information on Las Vegas Short Sales here.  Bloomberg News just wrote an article about this as well.

   If you would like a free Short Sale Guide, please email me at Felipe@felipecrook.com or call me toll free at 1-866-589-1646.  All information is held strictly confidential.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV

Which Banks Are Pursuing the Most Short Sales?
JPMorgan Chase and Wells Fargo accounted for 60 percent of the some 17,781 short sale and deed-in-lieu agreements loan servicers completed through May under the Home Affordable Foreclosure Alternatives program, reports Inman News in its analysis of the latest figures provided by the Treasury Department.

The two banks emerged as the front-runners in completing short sales and deed-in-lieu of foreclosure agreements when compared up against other loan servicers, all participating in the HAFA program.

On the other hand, Bank of America entered into less than half as many HAFA short sales or deed-in-lieu of foreclosure agreements than either JPMorgan Chase or Wells Fargo.

The government's HAFA program provides incentives for completing short sales. For example, home owners participating in a HAFA short sale receive $3,000 in relocation assistance.

I have recently closed two short sales with Aurora Loan Services and LBPS.  The laws have changed in Nevada for the time period a lender go pursue the amount deficient from the seller. Now a bank only has 6 months to pursue a seller for a foreclosure or a short sale.  If you would like some more information on what to do with your home, please email me at Felipe@felipecrook.com.  All information is kept strictly confidential.

If you are an investor looking to purchase a home with a tenant already in place, many of the short sales have owners who would like to stay and pay rent to a new investor.   50% of our market is made up of short sales, but many economist predict the worse is over:

After Double-Dip, Many Forecasters Predict a 2011 Turning Point for U.S. Housing

 Madison, NJ, June 22, 2011 - Today, MacroMarkets LLC announced the results of the June 2011 Home

Price Expectations Survey, compiled from 108 responses of a diverse group of economists, real estate

experts, investment and market strategists. The survey is based upon the projected path of the

S&P/Case-Shiller U.S. National Home Price Index over the coming five years.

Robert Shiller, MacroMarkets co-founder and chief economist observed, "Although the June survey

reveals that overall, expectations have reached their lowest levels since this panel was assembled over

one year ago, if one looks carefully it is apparent that a significant majority of our panelists believe that

the bottom for home prices arrived in the first quarter or will arrive sometime before year-end. Despite

persistent macroeconomic uncertainty and unprecedented housing market dysfunction, almost two-thirds

of the panelists see the U.S. residential real estate market as at an historic turning point." However, the

group of 69 panelists who are currently forecasting a 2011 turning point predict less than two percent

average annual growth in nominal home prices over the five-year period ending December 2015. Shiller

added, "If it were to materialize, such a scenario might be better described as a forecast of price stability

rather than a rebound. A 2% a year home price increase will not inspire a lot of consumer confidence.

Given prevailing inflation expectations, this forecast implies virtually no change in real home values going

forward."

If you would like more information on Short Sales in Las Vegas, please contact Felipe Crook at 1-866-589-1646.

I recently closed two short sale transactions here in Las Vegas Nevada- both with lenders who don't have the best track record for being easy to work with.   My team has been working on short sales since 2009, and we have closed over 30 short sale transactions with many different banks including, Bank of America, Citibank, Wells Fargo, LBPS, Aurora Loan Services, Chase, EMC, AMC, Specialized Loan Services and a few other smaller banks.

If you are having trouble making payments and you've tried the extremely frustrating process of a loan modification, a short salemight be an option to consider.  What is a short sale?  A Short Sale is when a seller is upside down on their home, and they try to sell it.  The bank who hold the mortgage has to approve the sale by reviewing all of the seller's financial documents, the market value, and the seller's hardship.  If the bank approvals the short sale, the seller and buyer can proceed with the transaction and sell the home.  Now, that is a grossly simplified version of a short sale.  Short sales are not the most fun transaction to deal with. Many times the banks will ask for the same documentation over and over again claiming they never received it, or they'll ask for the same information on a different type of form, or they will ask for completely random things that are odd, weird, or annoying.  That is part of the process.   It's frustrating, a little painful, and tedious.  However, getting a short sale approved and hopefully cancelling thousands of dollars of debt is such a great relief to many sellers that they are willing to deal with the process.   The goal in doing a short sale is to get the bank to release their right to pursue a deficiency judgement (the remaining amount of the loan after the sale).   For example, a home was purchased for $300,000 in 2005, sold as a short sale in 2011 for $150,000.  The deficiency amount is roughly $150,000.  It's important to have the proper verbiage in your approval letters stating that the bank with waive their right to pursue the balance.

Here are actual examples of an Aurora Loan Services Short Sale Approval Letter and an LBPS Short Sale Approval Letter:

LBPS Short Sale Approval Letter:

Aurora Loan Services Short Sale Approval Letter:

Some positive changes in law have taken place in Nevada recently:There are changes to debt collection as to short sales in Nevada.  This bill has many points, from Seconds to Guarantors.  For real estate sales the major change is effective July 1, 2011.  There are certain restrictions on the ability to recover deficiency at all by Junior Lien Holders of a secured note created after June 2011.  But the 5 star change, is that as of July 1, 2011  junior lien holders (and perhaps senior) have only six (6) months to file suit against a home owner after the foreclosure.

A civil action by the junior lien holder against the home owner after a foreclosure sale of the real property or a sale in lieu of a foreclosure sale may only be commenced within 6 months after the date of the foreclosure sale or sale in lieu of a foreclosure.  This six month rule section applies only to an action commenced after a foreclosure sale or sale in lieu of a foreclosure sale that occurs on or after July 1, 2011.  But that is only foreclosures you ask?  Nope.  It is for short sales also.  A "sale in lieu of a foreclosure" is a short sale.  Sale in lieu of a foreclosure means a sale of real property pursuant to an agreement between the seller and lender in which the sales price of the real property is insufficient to pay the full outstanding balance of the obligation and the costs of the sale.  The short sale (close) or foreclosure (trustee sale) must occur after July 1, 2011.  Then, the Second Lien holder has 6 months, NOT SIX YEARS as was previous rule, to file a law suit for debt collection.  Here exactly what the law says,

A civil action not barred by NRS 40.430 or section 3 of this act by a person to whom an obligation secured by a junior mortgage or lien on real property is owed to obtain a money judgment against the debtor after a foreclosure sale of the real property or a sale in lieu of a foreclosure sale may only be commenced within 6 months after the date of the foreclosure sale or sale in lieu of a foreclosure."

This Section 3.3 this act apply only to an action commenced after a foreclosure sale or sale in lieu of a foreclosure sale that occurs on or after July 1, 2011.

The explanation of this Section from the Legislature is here --> Existing law authorizes a creditor under an obligation secured by a junior mortgage or deed of trust to bring an action to obtain a personal judgment against the debtor only if the action is commenced within 6 years after the date of the debtor's default. (NRS 11.190) Under property securing such an obligation is the subject of a foreclosure sale, a trustee's sale or a sale or deed in lieu of such a sale, the creditor may bring an action to obtain a personal judgment against the debtor only if the action is brought within 6 months after the foreclosure sale, the trustee's sale or the sale in lieu of a foreclosure sale or trustee's sale.

Read the entire bill here-------> http://www.leg.state.nv.us/Session/76th2011/Bills/AB/AB273_EN.pdf

If you would like a free consultation regarding short selling your home here in Henderson or Las Vegas, please give me a call toll free at 1-866-589-1646.  All information is strictly confidential.  I ALWAYS recommend my short sale clients speak to an attorney and an accountant to understand the legal and tax ramifications of a short sale.

Felipe Crook

Prudential Americana Group Realtors

7475 W. Sahara Ave Ste 100

Las Vegas, NV 89117

1-866-589-1646