Renaissance Realty Group’s Blog

Short Sale -- A simple definition

Eric Reid (Renaissance Realty Group ) — Wed, 29 Oct 2008 18:59:19 -0700

For all the homeowners who are upside down and can no longer make their mortgage payment (because of either a job loss, divorce, or an option ARM that's resetting higher), up to now the only option was, well, letting the bank foreclose. That's not a good option since a foreclosure sticks on your credit record for at least 10 years. But some experts are now advocating a "short sale." This is a case of a distinction with a difference: If your bank agrees to a short sale, you then hire an agent to find a buyer for the house, you sell the house for a loss, and with the bank's blessing, they agree to eat the loss. (although they could still demand the homeowner make some kind of payment or share the loss).

To make the whole thing work you'll probably need to find a real estate agent willing to work 3 times as hard for the same or sometimes smaller commission (which makes the bank a little more willing to absorb the loss). You will also need to be willing to do some of the paper work required for final short sale approval, including provide finical statements and tax records. and you'll also need to scale back your own spending.

The best option is to find some way to stay in the house-by first, seeing if the lender is willing to restructure the loan, or forgo a couple of monthly payments to help you get back on your feet. More and more lenders are willing to make accommodations to avoid taking the property back. Banks hate to take over homes, especially in a declining market, so you shouldn't underestimate the willingness of a bank to make concessions

If you need help to work your way through the the confusion give me a call.

Short Sale -- A simple definition

Time to move - your just found your next home

Eric Reid (Renaissance Realty Group ) — Tue, 06 Mar 2012 08:35:45 -0800

Renaissance Realty Group, Inc. | Renaissance Realty Group | (770) 277-6652

291 Amberwood Dr, Lawrenceville, GA

Recently remodeled w/ New Kitchen Appliances. JUST REDUCED! Call Broker for New Pricing information

3BR/2BA Single Family House

offered at $79,000

Year Built 1978 Sq Footage 1,716 Bedrooms 3 Bathrooms 2 full, 0 partial Floors Unspecified Parking 2 Car garage Lot Size 12,632 sqft HOA/Maint $0 per month

DESCRIPTION

Recently remodeled with new kitchen appliances, new interior and exterior paint. New laminate and carpet throughout. Very bright kitchen has new glass tile backsplash, white cabinets, quality rane/oven, dishwasher, and refrigerator. Priced extremely competitively and Move-In Ready!

see additional photos below

PROPERTY FEATURES

- Central A/C - Central heat - Fireplace - High/Vaulted ceiling - Family room - Bonus/Rec room - Breakfast nook - Dishwasher - Stove/Oven - Laundry area - inside - Balcony, Deck, or Patio

COMMUNITY FEATURES

- Tennis court(s)

ADDITIONAL PHOTOS

Photo 1

Photo 2

Photo 3

Photo 4

Contact info:

Renaissance Realty Group, Inc.

Renaissance Realty Group

(770) 277-6652

For sale by agent/broker

Equal Opportunity Housing

Posted: Mar 6, 2012, 6:34am PST

What is HAFA and How to start ?

Eric Reid (Renaissance Realty Group ) — Tue, 09 Aug 2011 13:44:13 -0700

To start the Home Affordable Foreclosure Alternatives (HAFA) program you need to call us to request to sell your home in a short sale.

If you haven’t applied for a Home Affordable Modification prior to requesting a short sale, we’ll check to see if you meet that program’s eligibility requirements first. To do this you’ll need to update your lender on your financial information.

I have requested a HAFA short sale.

Once you’ve requested a short sale, you’ll have to update us on your current financial situation. As part of the Home Affordable Foreclosure Alternatives program, we’ll review your information and check your eligibility for a Home Affordable Modification or other home retention programs that would reduce your monthly payments to enable you to stay in your home.

If you do not qualify for a modification or no longer wish to stay in your home, then we begin to work with you on a short sale.

Which lenders are participating in the GEORGIA HARDEST HIT FUND ?

Eric Reid (Renaissance Realty Group ) — Tue, 12 Jul 2011 13:10:52 -0700

Which lenders are participating in the GEORGIA HARDEST HIT FUND ?

ASC (America’s Servicing Company)

Bancorp South Bank

Bank of America

Bank of Dooley

Branch Bank and Trust (BB&T)

Brand Banking Company

Cenlar Mortgage

Chase Mortgage

Citi Mortgage

Delta Community Credit Union

EMC Mortgage

EverHome Bank and Mortgage

Fifth Third Bank

Flagstar Bank

GMAC Mortgage

Habitat for Humanity, Camden County GA

Habitat for Humanity, Coastal Empire

Habitat for Humanity, DeKalb County GA

Habitat for Humanity, Gwinnet County GA

Habitat for Humanity, Sumter County GA

Habitat for Humanity, North Central GA

Habitat for Humanity, Macon GA

Habitat for Humanity, Valdosta-Lowndes

James B. Nutter & Company

JPMorgan Chase Bank

Monroe County Bank

Midland Mortgage

Navy Federal Credit Union

Ocwen Loan Servicing

PNC Bank

RBC Bank Regions Mortgage

Real Estate Mortgage Network

Residential Credit Solutions

Saxon Mortgage

State Home Mortgage

SunTrust Mortgage

United Bank, Griffin GA

USAA

Vericrest Financial

Wachovia

Wells Fargo

Call us today if you hold a loan with any of the above servicers - we can help

Good Job BOA

Eric Reid (Renaissance Realty Group ) — Wed, 15 Jun 2011 11:02:28 -0700

Bank of America completed more short sales than it unloaded previously foreclosed homes every month for the last year and a half.

In May, BofA completed roughly 9,000 short sales compared to 7,000 REO, said David Sunlin, the bank's real estate management executive. With the introduction of the Home Affordable Foreclosure Alternatives program in April 2010, lenders received the first guidelines for these transactions.

Since then, banks find it easier to collect necessary documentation and reduce the time it takes to close these transactions. Recent guideline changes to HAFA could push numbers higher in 2011.

BofA completed more than 95,000 short sales in 2010, more than double the prior year, Sunlin said.

"HAFA is dead on. It's a lot easier to qualify now for HAFA than it was in 2010. All I need is a hardship affidavit and one water bill. We're trying to make it as easy as possible," Sunlin said.

Justin Rand, Citigroup (C: 38.40 -0.98%) senior vice president of loss mitigation, said his bank used to take an average 120 days from when the property was listed to when it closed. That since dropped to 83 days.

There remain some setbacks, however. Real estate agents in the audience at HousingWire's REO Expo in Fort Worth, Texas, complained of having an offer from a buyer at what the property listed at, only to lose the deal when the bank's appraisal came in afterward. Sunlin suggested these buyer-side agents send in their own information with the servicer for a better chance of reconciling the appraisal.

"Valuation is an inexact science. The offer may be a full to list, but not to the appraisal. When you submit your own short sale deal, send your own BPO," Sunlin said."If you put your facts out there, you can at least make your case."

Other agents said those working on the other side of the deal do not send in offers or document packages correctly, regardless of any certification. Both Sunlin at BofA and Rand at Citi said their banks are considering recommending agents to the homeowner.

"We would love to get into a system where we're recommending agents for a short sale," Sunlin said. "But (the) homeowner has their rights, they're going to select who they want to select, and that's going to be the biggest constriction."

Foreclosure New Just the numbers PLEASE...

Eric Reid (Renaissance Realty Group ) — Thu, 02 Jun 2011 09:15:24 -0700

Seems that each time I turn on the TV or read some real estate blog I hear the numbers are up the numbers are down. The shadow inventory is here no its gone .. well I found the following report at Inman News and they give just the numbers no opinion - Thank you Final I can see the forest through the trees

By Inman News, Wednesday, June 1, 2011.

Inman News™

Foreclosure starts dipped below the 200,000 mark during April for the first time in years, but the foreclosure pipeline remained bloated by more than 4 million homes whose owners are in foreclosure or delinquent by 90 days or more.

That’s according to the latest numbers from loan data aggregator Lender Processing Services, which show foreclosure starts fell nearly 31 percent from March to April, totaling 187,423 — a 14.7 percent decline from a year ago.

LPS estimated that 2.18 million mortgages were in foreclosure, down nearly 2 percent from a record 2.22 million in March but up 9.5 percent from a year ago.

Another 1.96 million mortgages were delinquent by 90 days or more in April, down about 1.5 percent from the previous month and 29 percent from a year ago.

LPS estimated that 2.18 million mortgages were in foreclosure, down nearly 2 percent from a record 2.22 million in March but up 9.5 percent from a year ago.

Another 1.96 million mortgages were delinquent by 90 days or more in April, down about 1.5 percent from the previous month and 29 percent from a year ago.

All told, LPS tallied 4.14 million loans in foreclosure or delinquent by 90 days or more at the end of April.

Right-click to enlarge chart

Those numbers are in line with the Mortgage Bankers Association’s most recent National Delinquency Survey, which suggested about 4 million residential mortgages were in foreclosure (2.24 million) or delinquent by more than 90 days (1.78 million) at the end of the first quarter.

LPS data showed a 7.5 percent month-over-month bump in the number of homeowners behind on their mortgages by just one payment, to 1.63 million, to roughly the same level seen a year ago.

While LPS estimates 60-day delinquencies grew by 1.2 percent from March, to 615,608, that’s down 14 percent from a year ago.

The total number of noncurrent loans stood at 6.39 million loans, up less than 1 percent from March and down nearly 11 percent from a year ago.

LPS estimates that the number of noncurrent loans has fallen 21.2 percent from a peak of 8.12 million in January 2010, when the number of homes in foreclosure or delinquent by 90 days or more totaled 5.17 million.

Home loan applications down 35% - what does it mean for sellers ?

Eric Reid (Renaissance Realty Group ) — Wed, 01 Jun 2011 10:56:37 -0700

Home loan applications down 35% - what does it mean for sellers ?

If Cash is King then a fully Qualified Buyer must rule the universe in today's market. Today's Resale Seller need to do anything and everything possible to get and keep that buyers attention.

One simple rule: Sellers don't hedge pricing in hopes of " leaving room to negotiate " - think about it the same buyer who will drive 3 miles out of the way to save 2 cents on a gallon of gas is not going to spend a day shopping homes outside their loan limits when the market is flooded with quality homes within their comfort zone. Also Buyers are not going to pull cash out of a savings safety net to make repairs in a tight economy - so make repairs before listing if possible -new carpet new paint updated or fully serviced HVAC need to be done before the first buyer walks in the door.

Buyers want to Buy - and Sellers want to Sell and an experienced agent will show you how to find the sweet spot where it is a Win - Win.

Fannie Mae and Freddie Mac Update

Eric Reid (Renaissance Realty Group ) — Wed, 01 Jun 2011 09:11:12 -0700

Fannie Mae and Freddie Mac Update

In September 2008, Fannie Mae and Freddie Mac — two government-sponsored enterprises (GSEs) that facilitate residential lending in the U.S. — were financially rescued by the U.S. government and placed into conservatorship with the Federal Housing Finance Agency (FHFA).

This crisis swayed Congress to gradually reduce the role of Fannie and Freddie in the U.S. housing market. The House of Representatives' Capital Markets and Government Sponsored Enterprises Subcommittee recently approved a series of bills toward this end.

The legislation seeks to hold Fannie and Freddie to the same standards as any other mortgage market participant with regard to risk retention rules. Cumulatively, the legislation will suspend the compensation packages for executives and place all other employees on a government pay scale; reduce the size of their loan portfolios; gradually increase the fee requirements; and end the companies' mandates to back mortgages for lower-income people. These bills will now be sent to the House Financial Services Committee in the House of Representatives.

The Treasury Department has also issued a list of recommendations for Fannie and Freddie. These include three options:

Limit tax payer exposure to risks in the mortgage market and relegate the government to more narrowly targeted loan programs, such as the FHA and VA.
Develop a "backstop mechanism" to ensure homeowners had access to credit during a crises.
Have a group of private companies provide guarantees on mortgage securities with the Treasury providing reinsurance on these securities.

Analysts believe comprehensive reform of the two GSEs will be years in the making. Treasury Secretary Tim Geithner said whatever plan Congress chooses, it would take between five and seven years to implement.

Click here to visit my website and apply on line:
http://www.myprospectmortgage.com/cwalden

What Happen to April Home Sale

Eric Reid (Renaissance Realty Group ) — Tue, 31 May 2011 11:39:24 -0700

The National Association of Realtors Pending Home Sales Index dropped 11.6 percent to 81.9 in April, the lowest since September. Pending home sales lead existing home sales by a month or two.

"There may some temporary factors like bad weather in the South," said Gus Faucher, director of macroeconomics at Moody's Analytics in West Chester, Pennsylvania.

"Higher gasoline may be making potential home buyers a bit cautious. It is signaling further weakness in housing, but we do expect housing to turn around later this year. It just hasn't happened yet."

Pending home sales in the South, which was ravaged by tornadoes, dropped 17.2 percent. Sales were also down in the Midwest and the West.

The weak housing market is one the headwinds facing the economy as it make a slow recovery from the worst recession since the 1930s. The economy grew at a 1.8 percent annual rate in the first quarter after expanding at a 3.1 pace in the last three months of 2010.

(Reporting by Lucia Mutikani, Editing by Chizu Nomiyama)

FHA REFORM PROPOSED

Eric Reid (Renaissance Realty Group ) — Thu, 26 May 2011 14:48:22 -0700

Last week the House Financial Services Committee put forth a "discussion draft" on FHA reform. The draft has a number of good provisions (providing increased lender enforcement, other risk avoidance tools, etc). However, there are several provisions that I STRONGLY oppose.

The first would raise the FHA downpayment for all borrowers to 5%, and prohibit the financing of all closing costs and the Upfront MIP.

The second would change the whole calculation of the loan limits by making it 125% of median home price by county. It would eliminate the MSA rule - which raises all counties within an MSA (metropolitan statistical area) to the highest limit in that area, and it would eliminate the FHA floor of $271,050 (which means low cost counties would go to 125% of median - under $100k in many areas). It would make the high cost limit $625,500.

It is very important to note that this is a "discussion draft" - not legislation yet.

The bill also includes the issue of moving Rural Housing to HUD.

Mortgage Defaults Boost Credit Card Payments - Go Figure

Eric Reid (Renaissance Realty Group ) — Tue, 24 May 2011 12:36:22 -0700

Mortgage Defaults Boost Credit Card Payments - Go Figure When people stop paying their mortgages, they have a lot more money to spend on everything else, Cramer told viewers Monday. And the beneficiaries appear to be retailers. Seems barrows are more concered about on time payments for Credit Cards over Mortgages Payments Borrowers are living in houses they are not paying for, and they are staying until they are thrown out. But it can take a year before the eviction process really takes hold.

17,000,000 Homes

Eric Reid (Renaissance Realty Group ) — Tue, 24 May 2011 12:27:30 -0700

Current numbers show that 17,000,000 homes expected enter the foreclosure list

A break down by the numbers

3,000,000 Homes currently owned by the bank via Foreclosure

4,000,000 Homes currently owned by Fannie Mae Freddie Mac

an additional 10,000,000 homes purchased between 2005-2007 underwater - preparing for strategic default .

= 17,000,000. Grand Total of Homes are headed for foreclosure (or already in foreclosure)

Now Granted Short Sales and Loan Modifications can and will prevent some homes from entering the foreclosure process but remember there are roughly 5,000,000 TOTAL homes sold per year. and current REO inventory suggest a 3 year supply of inventory and that does not include 'traditional" resale and Short sale inventory

If your looking to buy a home now is the best time ever .

Ready set Go No No No Wait No Go -?

Eric Reid (Renaissance Realty Group ) — Tue, 17 May 2011 09:35:54 -0700

Has the ready set Go no Wait Game of self imposed foreclosure moratorium cost the lenders more than can be recovered in the sale With the increase in aging, non listed, non sold, shadow inventory on the raise and total debt now exceeds the original loan how will banks clear the inventory offer the books ? Will banks offer greater incentives to buyers in the form or repair allowance and upgrades or simply reduce the market price hoping for a quick sale to stop the bleeding?

It is surprising is just how old some of the foreclosures are.

In Contra Costa alone there are 123 homes now scheduled for trustee sale, with loans originated by Countrywide, where the foreclosure process began in 2008. That is 3 years of missed payments, interest and fees. In just this one county that totals $71.5 Million in original loans with balances now nearly $19 Million higher. Although all of these 123 properties have active sale dates many are still being postponed. In fact the largest loan, where the total debt now exceeds the original loan amount by more than 1 Million dollars, has been postponing since January, and was just postponed again until June.

Shadow Foreclosure Inventory

If you're buying or selling a home in Gwinnett County we need to be talking .

Can you Get A Mortgage After Short Sale (Or Foreclosure)?

Eric Reid (Renaissance Realty Group ) — Mon, 16 May 2011 11:56:09 -0700

Given today’s guidelines what are the absolute bare-minimums to obtain a mortgage?

….and perhaps more interesting…how to obtain a mortgage immediately after a Short Sale..read on…

By far the easiest mortgage to obtain is a FHA loan:

1) 3.5 percent down payment, based on the purchase price of the home (e.g., $7,000 on a $200,000 home), or a gift of that same amount;

2) 3 percent to 6 percent of the purchase price, on top of the down payment, for closing costs, or a credit from the seller of the same amount; and

3) 640 FICO credit score — the middle score of those generated by the three credit bureaus (some banks will lend to borrowers with middle scores lower than 640, but will require more than the minimum down payment).

Lenders will want you to document income, asset and job history documentation, current paycheck stubs, two months’ bank statements and two years of W-2 forms or tax returns, and:

a minimum of two years have passed since the discharge of a bankruptcy;
a minimum of three years have passed since a foreclosure;
anywhere from zero to three years have passed since a short sale, depending on the circumstances surrounding the short sale.

So yes you can buy again - and maybe sooner then you think - one key is learly starting a short sale early ( fewer defaults on the credit report) will help.

Call today if your facing foreclosure or are upside down and need to sell.

Can you really buy a home for as little as $100 Down ?

Eric Reid (Renaissance Realty Group ) — Wed, 04 May 2011 11:07:01 -0700

Yep - HUD offers a $100 down home purchase program .

Here is a quick break down of the advantages of their $100 down program:

The allowance of only $100 for the down payment is a sales incentive placed on certain HUD REO listings

If the buyer bids more than the list price, in an effort to secure the purchase, the amount bid above the list price must be paid in addition to the $100

Example: List price is $100,000 and buyer bids $101,500, the buyer would have $1,600 for their down payment

The buyer must not bid less than the list price to obtain this incentive

If this incentive is available, the sales contract package will contain information about the availability

The buyer must request the $100 down payment at the time the sales contract and bid are submitted

The $100 down incentive, if available, can be added to the sales contract at any time during the process by the M&M contractor

The calculation for the mortgage is:

sales price - $100 = basis (add MIP for final loan amount)

If there is a repair escrow in addition to the incentive the calculation is:

sales price - $100 + repair escrow = basis (add MIP for final loan amount)

If the buyer is going to use 203K renovation loan the calculation is:sales price + rehab costs - $100 = basis (add MIP for final loan amount)

Please let me know if you have any questions! Thanks, and I look forward to working with you!