Monkey Sold

It’s time to take another look at short sales

2011-10-10T13:59:00.000-04:00

Just a few months ago, if you would have told a real estate agent who specialized in short sales that in the future a lender’s would give stellar service and rapid approval times—and on top of that significant cash incentives for financially strapped homeowners for pursuing a short sale—you’d have gotten some strange looks.

That’s all changed. And it’s changed faster and to a greater extent than most homeowners and real estate professionals ever could have imagined.

With a glut of bank-owned properties dragging down the recovery of the real estate market, as well as the national economy, major lenders are more eager than ever before to avoid foreclosure. So they’ve sharpened their focus on short sales. Big time.

The biggest lenders in the country have staffed up to ensure rapid processing of short sale applications. They’ve ponied up with cash incentives of up to $35,000 at closing for homeowners who pursue a short sale. And they’re proactively reaching out to agents with short sale experience and putting them in touch with delinquent borrowers.

This is big news and the media has not really caught onto it yet. What’s important for you to know is that whatever you’ve read or heard in the past about long lag times and frustrations with short sales is probably no longer the case.

As a I have been specializing in short sales for almost 5 years and as a member of the CDPEAdvanced community, I’m tapped into major lenders and on top of major developments affecting short sales and bank-owned properties. I invite you to visit my website www.MonkeySold.com to learn more and feel free to contact me any time at 321-443-4448 or email me at help@MonkeySold.com if you or anyone you know is struggling with an unmanageable mortgage.

How to cope with the Stress of an Unaffordable Mortgage Payment

2011-08-20T12:20:00.000-04:00

Whenever I look at the latest foreclosure and distressed housing statistics, the sheer number of Floridians facing the stress of losing their homes amazes me.

It really is my goal to help as many homeowners I can to either stay in their homes or relieve the burden of their mortgages. Knowing that there are so many that need my help is a driving force for me to continue doing what I do.

In fact, I just released another report that I’ve made available on my website today. As I became recently CDPE certified, It explains the CDPE designation and lists 10 options that homeowners can take advantage of to relieve the stress that comes with owing more money on their home than they can afford to pay.

The report also draws a contrast between short sales and foreclosures.

Note that, there’s a growing trend of “strategic defaulters” who think it’s smart to let their home go into foreclosure. Strategic default is not letting it go into foreclosure, but negotiating a shortsale with your lender to create a win/win. As any one who follows this blog knows, there is nothing strategic about foreclosure; it’s one of the most long-lasting, negative financial challenges you can go through.

I’m excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners who may need my help, have them contact me immediately! Together, we can put them back on the path to financial stability.

Existing Home Sales Plunge

2011-03-21T20:11:00.000-04:00

HAMP: On the Chopping Block

2011-03-09T10:44:00.000-05:00

Last week a House Financial Services Subcommittee voted to eliminate two programs designed to mitigate the impact of the housing meltdown.

Republicans on the Committee voted unanimously to shut down the Emergency Homeowner's Loan Program (EHLP) and FHA's Short-Refinance Option. EHLP is not scheduled to go into operation until next month and the Short-Refi program got off to a slow start and has, as yet assisted only a few homeowners but also has cost $0 in federal monies.

The next two housing recovery efforts on the chopping block: HAMP and the Neighborhood Stabilization Program. With the Committee scheduled to vote Wednesday on the fate of both programs, supporters are beginning to fight back.

Last week representatives of the Administration testified to the Committee as to the importance of the Home Affordable Modification Program (HAMP), a joint program operated by Departments of Treasury and Housing and Urban Development. While HAMP has been plagued with problems, at last count it had moved 600,000 borrowers into permanent loan modifications while another 126,000 are in the required three month trial modification period. The so-called "HAMP Termination Act of 2011" (H.R. 839) would prohibit the Secretary of the Treasury from providing any further assistance to the program but would allow assistance to continue where a homeowner was in process with an offer to participate in the program.

Timothy G. Massad, acting assistant secretary of the Treasury, Office of Financial Stability sent a letter to the Chairperson of the Committee Judy Biggert, (R-IL) before last week's vote saying that terminating HAMP before the end of 2012 would be a mistake. "HAMP continues to help tens of thousands of additional families every month with mortgage modifications that provide the typical borrower with a $500 reduction in monthly mortgage payments. Put simply, ending HAMP now, without a meaningful alternative in place, would mean that struggling homeowners would have far fewer ways of coping with the worst housing crisis in generations. Instead, their fate would be left solely in the hands of the same mortgage servicers whose standards are widely recognized to be in need of reform"

Massad said that the value of HAMP has reached beyond the number of permanent modifications. The program has set affordability standards and developed a framework for how mortgage servicers should assist those homeowners and set critical protections for homeowners. It is also important to understand, he said, the taxpayer funds are used only for homeowners in permanent modifications and only when those homeowners continue to make their payments.

On March 3 the New York Times Editorial Board chimed in. "The ongoing crash," it said in an editorial, "is further evidence that the government's antiforeclosure efforts have fallen short and America's struggling homeowners need more help. So what are House Republicans proposing? They want the government to get out of the antiforeclosure business altogether and leave homeowners to fend for themselves. The result would be hundreds of thousands of additional foreclosures and steeper price declines." They have, The Times said "introduced bills to eliminate four federal antiforeclosure programs and replace them with - nothing."

The newspaper went through each of the threatened initiatives and their accomplishments and laid out a brief primer on how each could be improved; HAMP for example, by seeking legislation and regulation and stiffer penalties for banks, with which "much of the problem lies," for "improper delay and denial of modifications, excessive fees, and violations of borrowers' legal protections."

The Neighborhood Stabilization Program (NSP) is the second program the Committee will vote to end on Wednesday (H.B. 861). NSP, begun under the Bush Administration, provides money to local governments and non-profits to buy and rehabilitate abandoned and foreclosed properties and return them to the tax rolls or to a non-profit use. The Times said the $6 billion Congress appropriated for the program over the last two fiscal years was simply not enough, it has all been obligated and "House Republicans want to eliminate a third round of financing - $1 billion - promised in the financial reform law." The paper said that a Republican claim that the program may provide a perverse incentive for banks to foreclose "is absurd. Banks foreclose when they deem it in their interest, not because a small federal program entices them."

The editorial also defended the two programs that were voted down last week, refuting critics claims the that EHLP encouraged indebtedness and stating that ending the FHA Short-Refi program, which has resolved its early technical problem would squander an important chance to prevent foreclosures. "All of the targeted programs address serious unmet needs," The Times said. "If House Republicans get their way and shut these programs down, all Americans will pay the price."

A third defense was published by Steve Adamske, Deputy Assistant Secretary for Public Affairs at the U.S. Treasury Department on the Department's on-line blog. Adamske said HAMP was not designed to prevent every single foreclosure, but terminating the program would mean that more Americans would lose their homes, more families would have to endure the painful process of foreclosure, there would be more vacant homes in communities that are already suffering, and it would mean that the still-fragile housing market and the nation's broader economic recovery would be put at greater risk.

If the Committee votes tomorrow to terminate the second set of programs, the bills must still pass a vote by the entire House, the democratically controlled Senate, and then a Presidential veto. The latter two sound unlikely based on rhetoric from the Administration

Homeowners Walking Away

2010-10-07T16:09:00.000-04:00

Recession Continues to Batter State Budgets; State Responses Could Slow Recovery — Center on Budget and Policy Priorities

2010-08-17T00:10:00.000-04:00

Recession Continues to Batter State Budgets; State Responses Could Slow Recovery — Center on Budget and Policy Priorities

Laurie Santos: A monkey economy as irrational as ours | Video on TED.com

2010-08-03T22:17:00.001-04:00

Finally, thanks to this talk, I now understand why people tend to hang on to their home when the value is dropping and decide not to go for the "rational' option of not letting it go in a short sale.
This is a very interesting talk. A MUST WATCH!

Cameron Herold: Let's raise kids to be entrepreneurs | Video on TED.com

2010-08-02T22:16:00.000-04:00

Cameron Herold: Let's raise kids to be entrepreneurs | Video on TED.com

Indymac Boys Get Sweetheart Deal

2010-07-20T10:47:00.000-04:00

Home Buyer Tax Credit extended

2010-07-02T09:53:00.000-04:00

Late Wednesday night the Senate finally followed the lead of the House of Representatives and voted to extend the closing deadline for the $8,000 homebuyer tax credit that was scheduled to die yesterday at midnight.
President Obama signs the Homebuyer Assistance and Improvement Act of 2010, which he will to do next week, homebuyers will have until September 30 to close on their home purchase and still qualify for the tax credit (as long as they signed their sales contract by April 30, 2010).

The federal tax credit was part of the American Recovery and Reinvestment Act signed in to law in February 2009. The $8,000 credit was obtainable to first time buyers who bought a house after January 1, 2009 and was originally scheduled to die on November 30, 2009. The credit was seen to have stimulated home sales, in the lower cost ranges, and in November Congress extended it through April 30 and added a $6,500 tax credit for non-first-time buyers.

The National Association of Realtors® (NAR) had pushed hard for the extension claiming that 180,000 potential buyers who were holding signed contracts would be denied the credit under existing rules. Other estimates put the number of eligible pending sales as high as 200,000. Mortgage requirements are slowing some traditional closings, but buyers who are purchasing bank owned actual estate or short sales often find themselves involved in an very lengthy method. One mortgage originator said that even the slightest change in paperwork such as a repair necessary after an inspection or appraisal can take weeks for approval because of the number of signatures needed from the bank or mortgage servicer.

The extension was originally defeated in the Senate last week because it was attached, as an amendment, to a bill which contained an extension of unemployment insurance. The extension however managed to pass both the House and the Senate last night as a free standing bill.

HR 5623 also contains additional provisions to tighten the rules to prevent tax credit fraud. The Inspector General for Tax Administration in the Treasury Department said earlier this month that his office had found substantial fraud in the program. This included claims that were paid on houses bought before the program started and for houses actually owned by someone else. The Inspector General also found that some 1,300 jail inmates, some serving life terms, had claimed and received over $9 million in credits. The new legislation will permit the IRS to disclose tax return information to jail administrators.

Your Graceful Exit

2010-06-03T10:18:00.001-04:00

This is a message from the government talking about the advantages of short sale and deed in lieu of foreclosure.
Of course my preference is still a Short Sale as you are more in control of your time-line and there are more incentives to do so.
Note, that a deed in lieu is only possible when there is no second mortgage or other liens attached.
Hopefully this movie will talk some sense into homeowners who are trying to hang on when they shouldn't.

What to expect when buying a Short Sale

2010-05-13T14:52:00.004-04:00

Okay, I am a Short Sale specialist. People come to me, asking what will happen once they decide on selling their home in a short sale and I advise. My website MonkeySold.com is full of information on the subject.

But what about Short Sale Buyers?

Short Sale Buyers, hear these horror stories about short sales not being "short", so here's a little summary of what to expect and what is needed to buy a Short Sale Property.

First you need to find yourself a Realtor that has Short Sale experience, interview your Realtor and ask him what Short Sales he has worked on and don't be afraid to check on his referrals.
Most Realtors don't like to sell short sales and will try to steer you away from them, if that is the case and you are really interested in the house, then I suggest that you thank your existing Realtor for his help, cancel your agreement with him and contact the listing agent directly.

Ask if the seller is motivated, if the seller is not motivated or hard to reach then the Shortsale can become a real pain. In most cases the sellers' lender will need updated financials during the process and it is not the first time that a shortsale is upheld because the seller cannot be reached or is not motivated to send in extra paperwork.

Ask if the listing agent has any experience in short sales, if the listing agent only has one or two short sales in his portfolio then he is likely to have no clue on how to follow up with the sellers lender.

Upon signing a short sale contract, always add a clause stating that the deposit money will be put in escrow upon receipt of the approval letter. An approval letter is given by the sellers lender once the short sale has been approved.

Call and email your agent at least once a week and ask for an update, keep record of the updates and make them aware that you do.

A normal, well followed up short sale, should take no more than 45 to 60 days, add to that another 30 to 45 days for you to get your funding and you are in the house as quick as any other home that you would purchase.

Call me at 407-566-9495 if you have any questions,
Good Luck!

MonkeySold Discovers Belize

2010-05-10T09:43:00.000-04:00

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Why do people file bankruptcy when they are in foreclosure?

2010-03-28T18:59:00.001-04:00

The first and main reason why people file bankruptcy is because they went to a bankruptcy attorney and asked him for advice.
What advice do you get from a bankruptcy attorney?
Well, he'll tell you to file bankruptcy of course... why?
Because that's where he makes his money!

I really hope that this will open your eyes if you ever consider filing bankruptcy.

People facing foreclosure are simply desperate and need help. Bankruptcy is not always a solution. I strongly advise people to go to look at the different options available to them and there are many.

Options such as deed in lieu, forbearance, loan modification or short sale need to be considered and all avenues need to be looked at.

One thing is certain and that is that once people stop paying their mortgage they have time to look into all these solutions, even when served with a foreclosure notice there's plenty of time.

My dad used to say " the soup is never eaten as hot as when it is served"

So don't panic, face the situation and start actively searching for solutions, don't stick your head in the ground and hope that this will go over... it won't!

I am still a big advocate of "the short sale solution".

The short sale, a transaction in which the lender accepts less than the balance owed on the mortgage.

A short sale will give you debt forgiveness, it will also give you plenty of time to enjoy your home for free whilst negotiating the short sale and it will be reported to the credit bureaus as a "settled debt".

Beginning April 5, under new Treasury Department rules, short sales will be presented as the potential next step for homeowners who are rejected by or fail to make the grade for the federal Home Affordable Modification Program (HAMP).

The new directives are a "push" to get lenders to accept Short Sales, there's even an additional government aid to cover moving expenses for the selling homeowner in the form of an up to $1,500 cash back at closing.

MonkeySold has been negotiating short sales for over 3 years now and has seen millions of dollars forgiven for it's clients. By using a unique combination of investors, lawyers and expert real estate agents, MonkeySold has been assisting homeowners who are facing foreclosure either stay for a longer period in their homes or sell the home fast.

The MonkeySold solution is unique and although it might be advisable to get it all over quickly it might be necessary to hang on to the home a bit longer. Depending on the hardship being temporary or permanent MonkeySold works out a "tailor-made" solution focused on the homeowners needs.

2010-03-28T16:23:00.001-04:00

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Announcing the Winner of the Health Reform Video Challenge

2009-11-18T11:17:00.001-05:00

I'm a republican at hart. Coming from Belgium I have seen the abuse of free health care and unemployment benefits. But living here and seeing the abuse of hospitals and surgeons charging outrageous sums of money for help and medicine. I think your president has a point

CIT Collapse

2009-07-16T02:13:00.004-04:00

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The Eight Irresistible Principles of Fun

2009-07-05T02:40:00.001-04:00

The Eight Irresistible Principles of Fun

Shared via AddThis

The Simpsons _ Foreclosure

2009-06-06T17:04:00.001-04:00

The Simpsons _ Foreclosure
Video sent by hulu

The Simpsons series page at Hulu.com
Homer and Marge foreclose on their house.

President Obama has signed the "Protecting Tenants at Foreclosure Act."

2009-06-03T16:52:00.002-04:00

If you have invested in a property and have tenants, and your rentals are in foreclosure, or if you regularly purchase properties at foreclosure sale, or if you are a lender who forecloses on residential dwellings, there is a new federal law that will have a direct impact on your business.

On May 20, President Obama has signed the "Protecting Tenants at Foreclosure Act." Under the new law, if a federally-related mortgage loan (as defined in 12 U.S.C. 2602) is foreclosed or if the property being foreclosed is a dwelling or residential property, then the purchaser at the foreclosure sale takes the property subject to the pre-existing tenancy of a bona fide tenant. A "bona fide tenant" is one who is not related by blood or marriage to the foreclosed borrower and is a tenant under a lease negotiated in an arms-length transaction and the rent is not "substantially less than fair market value."

If the bona fide tenant is there, then the purchaser at the foreclosure sale must provide at least 90 days' notice to vacate to the tenant, and (if the tenant's lease pre-dates the notice of lis pendens) the tenant is permitted to remain in the property for the remaining term of the lease or for 90 days, whichever is later.

The tenant does not get the balance of the term of the lease (i.e. tenant only gets 90 days) if the purchaser at the foreclosure sale sells the property to someone who intends to live in the property as their primary residence. In that event, the lease terminates immediately upon closing to the new buyer (so long as the tenant has received 90 days' notice to vacate).

This should comfort tenants that are living in houses that are being foreclosed on. Hopefully it will help to convince them to keep paying rent while the investor-owner is trying to work things out with the bank. So far when tenants got served with the lis pendis, they decided to leave or worse, not to pay the owner. In doing so the tenant brought the homeowner/investor even more into trouble.

This new law "sunsets" and is no longer effective after December 31, 2012.

Below is a questionnaire that gives you a better view to interpret the new law:

Is this a foreclosure of a federally-related mortgage?
If yes, law applies;
If no, then:
Is this a foreclosure of a residential property or dwelling unit?
If no, then law does not apply;
If yes, then:
Is there a tenant in the property?
If no, then law does not apply.
If yes, then:
Is this a "bona fide" tenant (non-related to borrower, arm-length, fair market rent)?
If no, then law does not apply.
If yes, then:
Is this a month-to-month rental?
If yes, then provide 90-day notice to vacate.
If no, then:
Was the current lease dated effective prior to the date of the lis pendens?
If no, then provide 90-day notice to vacate.
If yes, then:
Does the lease expire in less than 90 days?
If yes, then provide 90-day notice to vacate
If no, then wait out term of lease and provide notice of non-renewal/termination at least 90 days prior to lease expiration date (if desired).
If lease expires in over 90 days:
Has the property been sold to a new purchaser who will occupy it as a primary residence?
If yes, then lease terminates at sale, but still must give 90-day notice to vacate;
If no, then new owner takes subject to current lease and must give 90 day notice prior to lease expiration date.

I hope this helps those who will face this scenario. I would not be surprised if the larger lenders and servicers attempt to attack the new law on constitutional grounds, but the arguments likely would not be heard by the U.S. Supreme Court until after the law sunsets anyway.

That's it, for the time being, we will have to learn our investors to work within these boundaries.

www.monkeysold.com

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Hitler Needed A Short Sale

2009-05-31T17:53:00.002-04:00

Hitler also had his problems and a short sale might have been a solution to problem. He might have created his own personal bail out. Unfortunately he is facing foreclosure and might not be able to avoid foreclosure. Being a non US citizen he has few options but short sale might have saved his house from foreclosure. That's what happened when you are upside down on your mortgage. Of course it explains in a nutshell how almost every American has reacted during the boom. Using liar loans and spending the money from the HELOC Home Equity Line Of Credit. A real Funny but real look at the mortgage foreclosure crisis.
Enjoy!

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An Inside Look At How We Work Together

2009-02-10T17:58:00.002-05:00

I just stumbled upon this video and it really is typical for us. Timothy and myself we can be so busy with what we are doing, that sometimes when one talks to the other it goes like this.
Enjoy!

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An In Debt View On Florida Mortgage Debt

2009-01-12T17:51:00.001-05:00

When will housing prices rebound? It's the billion-dollar question. With the economy weakening day by day, probably not next year.

After reading the article written by Scott Cendrowski under the title "The 2009 Housing outlook" and published in Fortune Magazine; December 22, 2008 (Special Issue: Investor's Guide 2009, Why It's Time to Buy) I came to the following conclusion:

Today the Orlando-Kissimmee market here in Florida has dropped significantly. Certain areas have dropped 40 to 50% compared to 2007. In the subject article Scott Cendrowski predicts that that same area is going to have another price change of -19.8% in 2009 and another one of -7.1% in 2010.

What does that mean in reality to Joe The Plumber who bought his house at $300,000 in 2006?

Well, Joe's house is now worth $150,000 and next year, according to Fortune Magazine, his house will be worth $120,000 and in 2010 that same house will be worth $110,000.

Any idea how long it will take to get that house back at $300,000 with an annual price increase of 5%?

Well, I've calculated that and it is going to take 20 years.

A lot of homeowners in Florida think that there home is still worth more than market value and most of them say that they will ride out the storm. This is not a storm we're facing, but a hurricane. And one thing Floridians should know about hurricanes is not to stay around and trying to ride it out.

These are historic times we are living in, I am sure that the credit agencies will develop different rating formula's for people facing delays in payment in 2008 and 2009, because almost every American is affected. And buy the way why do we all worry about that credit score? Why do we need a good credit score? To get more debt? It is debt that got us in this mess in the first place.

Now is a good time to clean up your slate. Just negotiate a short sale with your bank, agree on debt forgiveness and let them waive deficiency judgment. And whilst you at, why not negotiate a settlement on your credit cards? A lot of information on Foreclosure avoidance, deed in lieu and loan modification can be found on my monkeysold blog

Makes sense? doesn't it?

by Monkeysold, Celebration, FL

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Is There Money In Short Sales?

2008-12-14T01:19:00.000-05:00

We have been swamped lately, so I haven't had time to work on either our blog or our new website. But it is all coming together now and you will all be pleasantly surprised by the new stuff. In the meantime you'll have to watch a video of my blunt opinion on 'Short Sale Investors'
Enjoy,
http://www.youtube.com/?v=p8EA5YT5AKw

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The Market Glut

2008-10-28T18:59:00.000-04:00

A quarterly Wall Street Journal survey of housing data in 28 major metro areas shows that the glut of unsold homes listed for sale is shrinking in most of them. In many cases, sales have been stimulated by investors who are grabbing what they see as bargains on homes that can be turned into rentals. Metro areas with the biggest drops in for-sale signs include Sacramento and Orange County in California and the Virginia suburbs of Washington, D.C.

The recent headlines give a mixed picture. On Monday, the Census Bureau reported that new home sales in September were at a seasonally adjusted annual rate of 464,000 units, down 33% from September 2007. The median sales price for new homes in September was $218,400, down 9% from a year earlier. Last week, the National Association of Realtors said sales of previously occupied homes in September edged up 1.4% from the depressed year-earlier level, the first such rise since November 2005, largely reflecting sales of foreclosed homes.

Housing analysts caution that many homes that aren't currently listed for sale may hit the market in the next year or two. This looming supply includes pending foreclosures and homes temporarily taken off the market while their owners await stronger demand. With banks chopping prices on foreclosed homes, other sellers are giving up and taking their homes off of the market.

Meanwhile, credit remains tight, consumer confidence is crumbling, and job losses are removing some potential buyers from the market while pushing others toward foreclosure.

Mortgage rates jumped Monday amid continued turmoil in the credit markets. Some mortgage firms quoted rates of 6.5% or more for standard 30-year fixed-rate loans. That was up from an average of 6.2% last week.

Despite all the gloom and doom, some people believe it isn't too early to pick up bargains. One key, they say, is a deep understanding of the local demand for rental housing.

You can't go wrong if you use the basic math. As yourself, or better do some research on how much you can you the property for. If the yearly rent = 10% of what you pay for the property, then it is worth looking into.

Now is the time to pick up rentals and invest, every 3/2 that you pick up below $145.000 and that you can rent at $1,300 a month is worth considering. Even if you don't count on making 12 months rent but just 11 months that is still an income of $14,300.
Now deduct insurance and taxes, say $4,300 then you're left with $10,000 0r 6.9% return on investment. Not bad in today's market add to this the fact that you have picked this home up at a bargain price. You can't go wrong.

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