Boston Short Sale

Boston MA Short Sale Specialists

As the economy continues to go on struggling, a large number of borrowers have acquired a delinquency on their mortgages. Unfortunately, there is a lot of homeowners unaware of loan workout programs, such programs include loan modifications or a short sale. While modifications often prove to be a short term solution to a long term problem, short sales have proven to offer great benefits to struggling borrowers long term.

A Boston MA short sale will begin to take place when a lender allows the borrower to sell the home for an amount that is less than the amount owed. Accepting to short sale the home allows banks to avoid costly foreclosure costs among other negative effects.

How to Qualify for a Short Sale

Short sales are only for borrowers who need them. You must owe more on your home than it’s worth. While many homeowners wish to get away from their homes, short sales are only for borrowers who are suffering from a hardship. A hardships that can qualify a borrower for a short sale includes: job loss, divorce, decreased income, death, job transfer, ext.

Why to Hire a Boston Short Sale Specialist

Perhaps the most important factor to the success of a short sale is when you hire an experienced Boston short sale Realtor. Inexperienced Realtors are not comfortable with the short sale process and it shows in their performances. But when choosing an experienced short sale specialist you will get a Realtor that has worked many short sales and are familiar with all major lenders’ short sale practices. This is very important considering your Realtor will be working closely with your lender.

The services of a short sale are completely free to you. With no out of pocket expenses necessary you may wonder who pays the traditional costs. Your lender will pay all seller closing costs which includes your short sale Realtor‘s commission. Since the entire process costs you nothing, attempting a short sale is generally the best option for homeowners facing foreclosure.

To see if you qualify or if you would like more information call your local short sale specialist today 1-877-737-4903.

Income Tax after a Boston Massachusetts Short Sale

The income tax that occurs after a homeowner goes through a short sale should usually be expected, and can present a new set of problems even when some debts are canceled outright. The good news is that the taxes that go along with a debt cancellation may not always be taxable under some circumstances. Selling your home for a loss may seem like a cruel thing to tax, even by government standards, so the “Mortgage Forgiveness Debt Relief Act” has been put in place. People who take out short sales or foreclosures are the first and foremost beneficiaries of this act, so long as they meet certain criteria.

The Mortgage Forgiveness Debt Relief Act

 Enacted in 2007, the Mortgage Forgiveness Debt Relief Act allows the exclusion of income tax that comes as a result of mortgage or foreclosure modifications to your home. In plain English, this means that there are usually no taxes on any forgiven or lowered debts if you take out a short sale or foreclosure on your home, upon qualification.

 Homeowners must still abide by certain criteria in order to take advantage of this:

●First of all, the debt relief or cancellation needs to have taken place in 2007 or later. If you took out a short sale around this time period, then check again to see if you are eligible.

●If your debt was secured in order to fund your primary home or place of residence, then you may not have to pay income tax after a Boston short sale. “Qualified Principal Residence Indebtedness” is another term for securing a debt by the home.

●Some debts that were taken out to renovate a home may fall under the acceptable threshold of the Mortgage Forgiveness Debt Relief Act.

●The maximum amount of indebtedness covered by this act is $2 million if married or $1 million if you are filing separately from a tax year.

●If you are taking out a short sale on a rented property, vacation home or a second home, then it might be possible might qualify for an exclusion from income, but typically has to be claimed.

Be aware that selling your home at a loss to gain debt forgiveness will constitute as debt cancellation. A lender who cancels a debt on the count of dissatisfaction will place the cancellation of debt income on you. You will also have to report the forgiven debt on your tax return when you file for one. You may need to call up your nearest IRS office in order to get more details about the Mortgage Forgiveness Debt Relief Act; anything involving a short sale can be a little tricky to get around. Some special cases may also apply for some homes and homeowners.

Income Tax on Short Sales and Foreclosures

As a rule of thumb, short sales will be taxed under the same rules and regulations as a foreclosure would be. This is because recourse debt cancellation may not always be satisfied when a property is short sold; proceeds which are turned over to pay off a debt may still end up taxable as “cancellation of debt” income.

Short sales can affect income taxes in a variety of ways:

●The cancellation of debt income taxes may also be possible if the debtor is somehow deemed insolvent. This may not be the same as declaring bankruptcy or going for a strategic default, especially when dealing with real estate and short sales.

●A short sale can still end up taxable by federal law if you used the mortgage of your house to pay off medical bills, credit card debts or to buy other properties. Deficiencies which are similar to these cases may still be taxable, too.

When legally insolvent, the cancellation of debts is not always taxable. According to the IRS, other forms of debt income, whether or not it involves a short sale, are exceptions to income taxation laws:

●Qualified principal residence indebtedness, as outlined in the Mortgage Debt Relief Act of 2007, are exempt from income tax, so long as the criteria are met.

●If you own a farm, and if you took out debts to operate it, then canceled debts are not subject to income taxes. To be eligible for this kind of tax exemption, at least half of your income three years prior should have come from farming operations. The people you gained a debt from should also be actively engaged in legal money lending.

Income tax can sooner make your bid for a short sale a bigger headache than you initially thought. With a little prudence and research on government tax laws and regulations, you may be able to save yourself even more money in the long run. After all, a short sale is intended for families in hardship. Choosing the right short sale Realtor in the beginning of your short sale will typically greatly benefit the outcome of your short sale while also educating you about the short sale process from beginning to end. Always seek legal advise and representation in all legal and tax matters.  The first place to start in the short sale process is to choose an experienced Realtor to guide you through the Massachusetts short sale process.  Contact us to get in touch with a local Short Sale Realtor now to offer no cost assistance!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for an experienced Massachusetts short sale Realtor to assist you with your short sale? Our Network of Short Sale Realtors have extensive training and experience and offer FREE short sale services! Contact us right away to see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Massachusetts short sale questions and answers

• What exactly is a Massachusetts short sale?

A short sale happens when a homeowner is forced to sell their home due to some kind of financial hardship which has caused them to no longer be able to afford their home. The homeowner must then seek permission from their lender in order to sell the home for less than its original value. After missed mortgage payments and with the Housing Market dropping, a home’s worth starts to decrease over time.

• Why would a lender give permission to do a short sale?

A lender will try to find the least costly way out of a financial situation. If a lender opts for a foreclosure, they are typically setting themselves up for a very costly process. However, with a short sale, your lender may not be receiving the total amount originally agreed too, but they will be receiving instead of paying.

• What will a lender require for a short sale?

Lenders want truth and validity. Your lender will ask you to prepare a short sale package. In this package is crucial documentation to validate your hardship. You will also be asked to write a hardship letter. Your hardship letter will be your chance to explain how your hardship occurred and what you have done to try to overcome it. Be honest.

• Do I have to do the short sale alone?

Absolutely not! From the start of your short sale, it is extremely important that you find a short sale specialist Realtor to be alongside you through the process. Your Realtor will be able to help you acquire all documentation for your short sale package, as well as help you to prepare your hardship letter with the right content. It is very important you choose a Boston MA short sale specialist who has extensive experience in short sales.

• What are the qualifications for a Massachusetts short sale?

To be qualified for a short sale, you will usually need to be in some kind of financial hardship. Examples of these hardships might be: Divorce or separation, Active Military, Relocation or job transfer, excessive medical bills, etc. Contacting a Massachusetts short sale Realtor will help you too understand the short sale process and what comes with it.

You will never have to worry about carrying this burden on your own any longer. Our agents are ready and waiting to get you through this in the imperative manner it deserves. Time is fragile and your future is waiting for you! Contact your Massachusetts short sale Realtor now!

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Do you need a Massachusettes Realtor who will offer FREE short sale services? Our Boston MA area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Looking for an experienced Massachusetts short sale Realtor to assist you with your short sale services at no cost? Our Network of Short Sale Realtors have extensive training and experience in successful short sales! let’s see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

Chase Mortgage: Big Cash for Short Sales

Borrowers who have taken out their mortgages with Chase can take out a short sale here, and might even be eligible for a cash incentive, too. Getting faced with a foreclosure should not mean you will lose all your hopes for a roof over your head. A short sale may be that shot at a second chance, allowing you to pay off your debts while getting you relocated at the same time.

JPMorgan Chase remains to be one of the largest and most widespread banking institutions in the world. In addition to typical banking services, Chase also offers short sale services to customers. In this kind of service, a value of a person’s home is sold at a much lower value than his total amount of debts. The proceeds gained from a short sale will fall short of these debts, leaving the lenders to accept less than the total amounts owed for the loans. At Chase, customers can apply for a short sale through a few easy steps:

• Submit a request; you’ll have to download and fill out the appropriate forms from the official Chase website.
• Customers will find two forms to  choose from: The Full Packet, and the Supplemental Only forms. The Full Packet is meant for homeowners who have not submitted a request or application for a loan modification at Chase. The Supplemental Only package is for customers who have been considered for a loan modification, or currently have an application pending.
• Send in the application forms through the mail. There should be instructions on the cover sheet that allow you to avail of free FedEx shipping.

After sending in your application, it may take some time for the people at Chase to get back to you. Once you are considered, you may have to wait a little while to expect a response. Remember a few things when you call a Chase agent, or vice-versa, for a short sale:

• Be sure to remember your loan and transaction numbers. If you can’t commit them to memory, then have the necessary documents      somewhere close.
• Don’t be afraid to discuss the events that have caused you to choose a short sale in the first place. This may also include disclosing any details about missed loan or mortgage payments.
• A familiarity of taxes, interest rates, and other necessary fees may help you negotiate the terms of a Chase short sale better.

Cash Incentives for a Chase Mortgage Short Sale

The Chase short sale has also gained much attention because of its much-touted $30,000 cash incentive. Like many other offers that offer cash incentives, you may have to read the fine print if you want this full amount. Even then, smaller denominations that range within the thousands of dollars may still be given out. Here is some information about availing of cash incentives from a Chase short sale:

• Homeowners will not receive any of the proceeds from the actual property sale.
• The exact amount of the cash incentive will be determined by the lender, or Chase, if you took out a debt there.
• Getting large cash incentive may require you to close a deal on or before an agreed deadline.

While not all banks offer the same amount of cash incentives for homeowners, they have realized that offering rewards for short sales is the best way to lure customers in. A cash incentive may not provide you with all of the money you need to pay back all your debts, but it may be helpful nonetheless.

Other Information about Chase Short Sales

Cash incentives can make a done deal great, but it’s always important to keep your head on a swivel and know how to work a short sale. The following list of tips and other useful information may help you through the entire short sale process.

• Tax liabilities may be subject to certain terms and conditions. If you have a tax advisor, contact him to see if any will come about as a result of a short sale.
• A short sale will affect your credit rating no matter how well it was written in your credit record. However, since you fulfilled the debt to some      extent, it may not look nearly as bad as a foreclosure or declaring bankruptcy.
• Chase will not charge a homeowner any processing or negotiation fees upon the completion of a short sale. They should not pay any to a 3^rd party negotiator either, if one was ever involved to begin with.
• Chase can also perform a short sale on a rental property. A person must disclose bank statements, rental documentation, legal agreements and other related forms.
• Chase also offers cash incentives for borrowers on older Washington Mutual loans. Taking out a short sale with this circumstance may also affect the total amount paid off after a closeout.
• Customers who have submitted their documentation, but haven’t received a reply within 30 days of sending, are encouraged to call the Chase hotline.

A short sale should not seem as foreboding as it sounds, especially since it may outweigh the risks in other alternatives. With Chase, you are also offered a generous cash incentive for taking out a short sale so your mortgage payments and other loans may have a shot at being paid back after all. It is highly improtant to make sure you have a short sale specialist at your side through your short sale, this way you can ensure a smooth short sale process and a well put together short sale package. Your experienced short sale agent will be able to do all negotiations on your behalf, while also making sure you are kept in the loop on your short sale status. Contact one of our ecperienced and knowledgable short sale specialists now!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Looking for an experienced Massachusetts short sale Realtor to help with a short sale? Contact us right away to see if you qualify for a Boston short sale! The Short Sale Specialist Network Offers FREE Short Sale services! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

How to Write a Short Sale Hardship Letter

The importance of learning how to write a short sale hardship letter is highlighted by the fact that it is the piece of document that a bank will look at before an approval of any request for short sale or loan modification can be approved.  This means that an inadequately written hardship letter can result in the outright rejection of the short sale proposal and bring more financial challenges to the homeowner.

It is therefore important to initially understand what it is all about and how to write a short sale hardship letter in a way that it solicits immediate approval from the bank.  Do not feel stressed out about it though since writing the letter is relatively simple as long as you know what to focus on and the things to avoid.  It will also be to your advantage if you have a short sale specialist or competent real estate agent to assist you.  Some of the common concerns to be aware of are:

1. What constitutes hardship?

Undoubtedly, the focus or main topic of the letter should be the hardship that you are currently experiencing.  The important thing to understand is that there is a common misconception that hardship is solely based on financial matters.  That is not completely true because there are many other factors that can be considered and fall under the category of hardship that results in your current financial condition.

The mere fact that anything creates a challenging situation for you to meet your mortgage payments will be classified as hardship.  You have to realize that banks never want to see homeowners ready to walk away just because the worth of their property is already lower than what they paid for.  Keep in mind that being in an upside-down condition is one of the qualifications of a short sale, but does not necessarily mean the bank is obligated to permit the transaction.

2. What are considered as acceptable reasons for hardship?

In providing the reason for your hardship, keep in mind that although it may be valid, it does not automatically mean that it is acceptable to the bank.  This is why when you learn how to write a short sale hardship letter, you need to be aware what the acceptable reasons to cite are.  You have to consider the status of your life when you took out the loan as opposed to your condition now.

You need to evaluate if the status of your life has changed from that point till now.  Because if there are no perceived changes, the bank will opine that you can afford to continue the current payment level for your property.  However, if your condition has changed, the following are acceptable reasons for hardship:

• Unemployment
• Reduced income (cite reason)
• Medical emergency or illness (health problems)
• Voluntary or involuntary transfer of employment
• Marital difficulties like separation or divorce
• Adjustable-rate mortgage loan terms
• Military service duties
• Death in the family or of a loved one
• Incarceration
• Excessive debt and increased expenses
• Unplanned home maintenance and repairs (possibly due to calamities)

3. What are the basics on how to write a short sale hardship letter?

Experienced Boston short sale specialists can automatically identify if the reasons for the hardship is acceptable for the bank.  Initially, during the interview what needs to be established is the reason for the hardship.  If the reason does not fall under any of the acceptable bank standards, then another avenue will be suggested by the real estate agent.  Otherwise, the basic presentation of the hardship letter will be discussed with focus on the reason.

The basic writing of the letter needs to focus on the explanation of how you got into your present condition.  It should be clarified the specific events that have led you to this situation as well as emphasize on how it is beyond your control.  Ample discussion should also be placed on the different solutions you have tried to adopt in order to correct your financial situation.  Most of all, you need to highlight the permanency of the hardship by explaining that only a short sale transaction can resolve it.

4. What else should be placed in the letter?

When writing the hardship letter, virtually everything should go into it except the kitchen sink.  In learning how to write a short sale hardship letter, it is necessary to know how to incorporate numbers and percentages as part of the explanation of the losses you have incurred and how your income has dropped. Banks tend to understand better your negative cash flow when figures are used to express it.

Do not simply state that you borrowed money to cover the mortgage payments, but rather, specify the amount of debt you have incurred as well as the amount of time it has covered when explaining your financial instability.  You need to paint the worst picture that you can possibly can about your condition like how you are starving and you have your house is ready to crumble to ground for example.  However, remember that when you state these problems, make sure that they are true and stick to honesty!

5. What mistakes to avoid?

It is understandable that writing a hardship letter is not the easiest or most pleasant thing to do.  This is because you are forced to dwell in negative thoughts and look at the depressing state of your finances.  In fact, many homeowners are not aware of just how bad their life is until they start writing the hardship letter.  You have to remember that this is not the proper forum to share your positive thoughts on how you believe your life will improve.

Some homeowners make the mistake of stating that they believe that they will be able to recover from their current financial condition.  This is a common mistake that has led to the rejection of many short sale transactions.  The mere fact that you believe you will be able to recover in the future will give banks the necessary motivation to extend your debt because they feel they will be able to recoup their losses in the future when you have the ability to repay.

Another thing to avoid when writing a hardship letter is that you should never indicate that you have some disposable income but it is not enough to cover your debts.  It is important to remember that banks will jump at the chance to get any or all disposable income that you have.  In some instances, the seller may be required to shoulder a contribution before the short sale is approved.

Essentially, the hardship letter is not the place for you to share your hopes, dreams, and plans for the future.  Keep in mind that all the bank is concerned with is how they will protect their investment and getting back as much of their money as possible. As always, it is best to consult with a professional regarding matters that pertain to your future, so contact a Boston short sale agent today and get the help you need so that you and your family can look forward to a promising future.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are behing on mortgage payments and need an experienced Massachusetts short sale Realtor to offer FREE short sale services? Contact us right away to see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Bank of America pays Qualified Boston Homeowners More for Short Sales

Bank of America has introduced a new program in short sales that may pay distressed Boston area homeowners between an estimated $2,500 and $30,000 to assist with relocation expenses. Within the past two years, BofA closed an estimated 200,000 short sales and within the first three months of this year, it completed 30,000.

While new servicing requirements and corrections broaden the foreclosure process over the last two years, short sales have consumed a greater percentage of the market. In some places, short sales have gone beyond REO transactions as a percentage of the market.

The new program Bank of America is offering to borrowers requires the homeowner to assist the bank with obtaining a preapproved sales price before turning in a purchase offer. In order to qualify for the program, an offer in a short sale must be submitted by the closing of 2012 and have completed by September 26, 2013. Bank of America stated that short sales that have already begun may be eligible.

 “This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home,” said Bob Hora, executive of home transition services for BofA. The new program will be offered for mortgages owned and serviced by the large bank. The amount of incentive provided will be based on a case by case basis.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Do you need a Boston Bank of America short sale specialist who knows the Bank of America Equator short sale platform? Then look no further! Our network of highly experienced Massachusetts Equator short sale Realtors are advanced in short sales while also offering no cost assistance for you on your Boston MA home! Contact us today! Our agents are Distressed Property Experts Certified in short sales in the state of Massachusetts!

Copyright First Coast Realty Associates 2012

Loan Modifications Decrease at Freddie Mac

Mortgage servicers made modifications to an estimated 14,000 Freddie Mac guaranteed home loans in the first quarter that is less than half of the 35,000 workouts the year before as a new program starts.

Modifications decreased every quarter since the height in the middle of 2010 at 50,000, stated the GSE earnings release on Thursday. Some of the drop in modifications is because of fewer loans going into delinquency or foreclosure and less homeowners being eligible for HAMP. Freddie Mac reported $72.8 billion majorly delinquent loans in the first quarter, which is down from $82.1 billion in the same quarter just last year.

However, most of the decline is in regards to the take off of the Standard Modification, which is mandatory for servicers since January 1 and has yet to grow long enough to show any results. The program which was announced back in September, will allow servicers to cut monthly principal and interest payments by 10% for homeowners who are ineligible for HAMP.

 “The implementation of the non-HAMP standard modification also negatively impacted the number of completed modifications in the first quarter of 2012, as servicers have had to transition borrowers to the new modification initiative and borrowers now need to complete a trial period before receiving the final modification,” Freddie said in its first quarter financial filing. The Federal Finance Agent will decide if Freddie and Fannie can partake in the principal reduction programs.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Do you need a Boston short sale speialist who knows the Bank of America Equator short sale platform? Then look no further! Our network of highly experienced Massachusetts Equator short sale Realtors are advanced in short sales while also offering no cost assistance for you on your Boston MA home! Contact us today! Our agents are Distressed Property Experts Certified in short sales in the state of Massachusetts!

Copyright First Coast Realty Associates 2012

ResCap Mortgage may Cost Ally $400 million

A bankruptcy filing on behalf of the ResCap mortgage unit may cost Ally Financial between $400 million and 1.25 billion, according to a financial disclosure by the bank on Friday. “If a ResCap bankruptcy were to occur, we could incur significant charges, substantial litigation could result, and repayment of our credit exposure to ResCap could be at risk,” according to the filing.

On April 17, Ally said the troubled mortgage unit missed an interest payment on its debt and would be thought of as in default if it was not made within 30 days. More than $473 million off the debt is outstanding. The unit forged a $191 million profit in the first quarter.

However, according to the filing on Friday, Ally Financial estimates the losses from litigation matters and repurchase obligations may see a record as high as $4 billion over time. Barclays Capital analysts predicted the unit could be placed into bankruptcy within one or two months, and made clear why the servicing rights would be important for investors in ResCap issued mortgage backed securities.

The unit has halted lending to real estate developers and homebuilders in the United States, according to the Ally Financial filing on Friday.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Do you need a Boston short sale speialist who knows the Bank of America Equator short sale platform? Then look no further! Our network of highly experienced Massachusetts Equator short sale Realtors are advanced in short sales while also offering no cost assistance for you on your Boston MA home! Contact us today! Our agents are Distressed Property Experts Certified in short sales in the state of Massachusetts!

Copyright First Coast Realty Associates 2012

Freddie Mac asks Mortgage Servicers Participate in Hardest Hit Fund

Freddie Mac has made it clear that they would like mortgage servicers to use funds from an underutilized federal program to help homeowners through short sales and other foreclosure alternatives.

In a letter written on Monday from the mortgage giant stated they now must participate in Hardest Hit Fund transition assistance programs from eighteen states and the District of Columbia. The demand applies to borrowers for short sales, deed in lieu deals or relocation assistance, but only if they do not interfere with Freddie Mac’s rules.

The letter to a variety of mortgage servicers comes during a time in which Freddie and Fannie Mae put heavier demands on short sales and speeding the process up.

Freddie Mac made it clear to servicers that it would give a new interest rate for standard modifications on June 1 to be used starting July 1. A senior official said just last week that Freddie will lower the rate to 4.625% from 5%.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Do you need a Boston short sale speialist who knows the Bank of America Equator short sale platform? Then look no further! Our network of highly experienced Massachusetts Equator short sale Realtors are advanced in short sales while also offering no cost assistance for you on your Boston MA home! Contact us today! Our agents are Distressed Property Experts Certified in short sales in the state of Massachusetts!

Copyright First Coast Realty Associates 2012

Citigroup loses $370 million in Credit losses

In the fourth quarter, Citigroup took $370 million in credit losses which tied directly to principal reduction under the foreclosure settlement. Citigroup reported a small decrease in earnings on Monday morning, down to $2.93 billion for the first quarter.

 In March, state and federal prosecutors announced a $25 billion settlement with Citi and four of the other largest mortgage servicers in the United States over supposed foreclosure abuses. The bank reported $1.7 billion in credit losses during the quarter and said $370 million of it was previously deferred principal on mortgages that have been already modified before the beginning of the year.

 Servicers will most of the time defer principal during a modification to the back end of the mortgage. The homeowner will still have to pay, but typically the terms will be extended (Under HAMP, it might go out as far as 40 years) and the interest rate is also reduced to lessen the monthly payment. Citi made the choice to forgive the deferred principal and allowed it to be counted to the settlement and took the hit against its balance sheet for the first quarter.

 JPMorgan Chase and Wells Fargo didn’t disclose how much relief each bank gave in relief under the settlement so far.  “What you can expect, as most institutions get into the national mortgage settlement, should be an increase in both net credit losses as well as reserve releases in the mortgage business. And what you see in our results today is basically the first installment of what you can expect to see on our part,” said John Gerspach, Citi CFO, in a statement.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Searching for a Boston short sale speialist who knows the Bank of America Equator short sale platform? Then look no further! Our network of highly experienced Massachusetts Equator short sale Realtors are advanced in short sales while also offering no cost assistance for you on your Boston MA home! Contact us today!

Copyright First Coast Realty Associates 2012

Strategic Default Here to Stay

With reports of around 20% of mortgages underwater, an estimated 46% of bank risk professionals surveyed by FICO expect to see the volume of strategic defaults in 2012 exceed 2011 levels. “After five years of a brutal housing market, many people now view their homes more objectively and with less sentimentality,” said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs.

“Regardless of legal or ethical issues around strategic defaults, lenders must account for this risk when they evaluate mortgage applications in declining markets. Many homeowners who find themselves upside down on mortgages in the future are likely to consider strategic default as an acceptable exit strategy.”

Around 29% of bankers said the current generation of homeowners considers their mortgage to be their most valuable credit obligations, while the other 49% didn’t agree. Even while the data shows discouragement, 53% of survey respondents hope to see the housing market improve by the end of 2012, which was compared to the 24% who said the market would deteriorate. 

 “If job creation continues, banks will be more likely to embrace mortgage lending once again. A healthy job market is essential for improving the quality of mortgage applications and reducing default risk,” said Jennings.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Looking for a Massachusettes Realtor who will offer FREE short sale services? Our Boston MA area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Looking for an experienced Massachusetts short sale Realtor to assist you with your short sale services at no cost? Our Network of Short Sale Realtors have extensive training and experience in successful short sales! let’s see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

Foreclosure Scams at a High; FHA Gives Helpful Tips

Mortgage foreclosure scams have jumped nearly 60% this year following the take off of several funding programs, the Homeownership Preservation Foundation announced. “Regretfully, every new government initiative spawns a slew of foreclosure avoidance scams, often from the same cast of characters doing business under various names to avoid easy detection and identification,” said Colleen Hernandez, CEO of HPF.

Hernandez also said that most of these scams include people purporting to offer foreclosure prevention assistance that trained HPF counselors will provide at zero cost.  “HPF’s trained counselors can provide distressed homeowners with all the assistance they need to understand their options, prepare the necessary paperwork, and negotiate with their mortgage servicers,” she said.

 “Anyone facing foreclosure should never pay upfront fees for these services.”  “The only way distressed homeowners can be certain they are dealing with a trained HPF counselor is by calling 888-995-HOPE,” said Hernandez.

 The $25 billion mortgage settlement; expansions with HAMP and HARP, and the OCC’s Independent Foreclosure Review are all prime examples of what could be relief given through the government. HPE is an independent national nonprofit that will give free assistance to homeowners in distress by assisting them to work through financial challenges and avoid mortgage foreclosure through its HOPE Hotline.

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Looking for a Massachusettes Realtor who will offer FREE short sale services? Our Boston MA area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Looking for an experienced Massachusetts short sale Realtor to assist you with your short sale services at no cost? Our Network of Short Sale Realtors have extensive training and experience in successful short sales! let’s see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

Mortgage Litigation at All Time High

Mortgages are seemingly enough becoming a litigious matter, with the amount of mortgage related cases climbing at an all time high, reported the Mortgage Daily’s 2011 fourth quarter Mortgage Litigation index, which initiated in 2007. At the start of 244 cases, the amount rose from 218 in the 2011 third quarter and from 151 cases during the 2010 first quarter. Related foreclosure cases, which include servicer related litigation, foreclosure lawsuits and cases against foreclosure rescue services, increased to 99 and accounted for 40% of the total.

 “These numbers are a reflection of both a high volume of foreclosures and a high level of awareness among borrowers that foreclosure-related issues can be litigated, sometimes successfully,” said Christopher Willis, author of the white paper on the index and an Atlanta-based partner in Ballard Spahr’s Consumer Financial Services Group.  The figure of criminal caes increased from 34 during the 2011 third quarter to 57 in the next fourth quarter. 

 “While the majority of these cases involved the alleged actions of individuals involved in frauds such as Ponzi schemes and foreclosure rescue scams, there were notable criminal indictments for alleged “robo-signing” beginning at the end of 2011,” said Willis. Fee lawsuits, which include excessive fees collected at the beginning, servicing  fees, loan fees that went beyond state maximums, and fees to country recorders, reported and all time record number, along with title cases, which include issues with property title claims. Fee cases rose to 17 this quarter when compared to two cases during the previous quarter, and six from the second. 

 “In particular, the publicity surrounding the multi-state settlement, together with publicity surrounding other aspects of mortgage litigation, tends to stimulate borrowers and their counsel to assert claims against mortgage servicers,” said Willis. “This publicity, coupled with the continuing high rate of foreclosures, suggests that the current level of mortgage-related litigation can be expected to remain stable, if not continue to increase.”

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Looking for a Massachusettes Realtor who will offer FREE short sale services? Our Boston MA area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Looking for an experienced Massachusetts short sale Realtor to assist you with your short sale services at no cost? Our Network of Short Sale Realtors have extensive training and experience in successful short sales! let’s see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

Boston MA Equator short sale Realtor

Bank of America has been using Equator for some time, as its primary tool for short sales. What is Equator? Well, Equator is a self service portal that begins the short sale process. The purpose of the Equator is to improve the experience of the short sale for both the homeowner and the Realtor. There are many advantages to the Equator short sale process, for example:

Status tracking

24/7 access to the short sale system

Direct communication with the short sale negotiator

Documents are uploaded directly to Equator instead of faxing

Streamlined approval process

Historical view of offers and counter offers

Although other banks are using the Equator short sale process, Bank of America is has its own unique attributes. Bank of America’s Equator short sale processing is most endearing to the buyer. In the beginning of the process, typically the Boston MA Equator short sale specialist will receive a request for the first five digits of the buyer’s social security number as well as other personal information such as birth date, address, phone number, and loan information.The system allows the individual to upload documents from the computer to the bank. There are lists of tasks that will typically needed to be handled, such as a 3^rd party authorization is needed in order for your Realtor to work on your behalf. The next section is called the offer worksheet which is like your HUD 1. These numbers will better help Bank of America see their net on the short sale. Following the HUD 1 will be the task of uploading the MLS sheet, purchase contract, HUD 1, property photo and MLS number. This will typically be done within the first 5 days.

Once those documents have been taken care of, an order for a Broker Price Opinion will be brought about. During this time, it may be advisable to upload documents like pay stubs, bank statements, tax returns, hardship letter and a financial worksheet. The BPO will usually move rather quickly. Bank of America has saved a great amount of time for homeowners and their short sale agents by introducing the Equator short sale process. An offer may typically be approved within 27 days, however, times may vary.

When you hire a Boston Equator Realtor, make sure your short sale specialist has credentials and courtesy. To hire an agent with very little experience in the short sale process could be tragic. It is also important to make sure your Boston Maryland short sale Realtor is familiar with the Bank of America Equator short sale process in order to better assure promising results.  Contact us today!

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Looking for a Massachusettes Realtor who will offer FREE short sale services? Our Boston MA area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Looking for an experienced Massachusetts short sale Realtor to assist you with your short sale services at no cost? Our Network of Short Sale Realtors have extensive training and experience in successful short sales! let’s see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

February Saw a Drop of 20% fewer Private Modifications

According to the Hope Now alliance, mortgage servicers completed 20% fewer modifications through private programs in the month of February, than the month of January. An estimated 44,500 home loans were modified in February, which is down from the 55,700 in January.

Workouts also saw a decrease of 28% from the almost 61,000 private modifications which were completed in February of 2011, according to Hope Now, an alliance of mortgage servicers, investors and housing counselors. Foreclosures are still at a pause while servicers adjust to the new requirements under the national attorney general settlement, but the declines are not as drastic.

The 69,000 foreclosure sales dropped 12.6% from 79,000 sales the month before and 5% from just the year before.  Servicers started 167,000 foreclosures in February which is down 16% from the previous month and an estimated 6% decline from February 2011. However, delinquencies are still continuing its fall. Hope Now reported that 2.66 million home loans behind 60 days or more are down from 2.77 million in January.

“There are many moving parts in the foreclosure prevention process and we anticipate that one month will not define any significant trends,” said Hope Now Executive Director Faith Schwartz. “However, one of our key data points showed that we saw a decline in the total number of serious delinquencies — loans that are 60 or more days past due — for February.”

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of
where your home stands in today’s market, fill out the form below.

Looking for a Massachusettes Realtor who will offer FREE short sale services? Our Boston MA area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Looking for an experienced Massachusetts short sale Realtor to assist you with your short sale services at no cost? Our Network of Short Sale Realtors have extensive training and experience in successful short sales! let’s see if you qualify for a Boston short sale! Our Boston MA area Distressed Property Expert real estate agents are here to help, and are Certified and trained in the Massachusetts Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012