Wachovia Implements Streamlined 7-10 Approvals On Fast Track Short Sales

Jennifer and I have been trained to process Wachovia Fast Track Short Sales by a manager from Wachovia's Loss Mitigation division, who has been assigned to handle short sales in North Los Angeles County, Santa Clarita Valley and Ventura County.

I'm sure as homeowners you have heard the horror stories or experienced them yourself with regards to the Loan Modification & Short Sales process and are confused about the ramifications associated with doing these types of transactions. Wachovia understands the position this market has created and now offers homeowners, Realtors and buyers the assistance necessary to streamline the short sale process and approve these transactions within traditional time lines.

Wahcovia has implemented their "streamlined" approval process by assigning a local representative (Loss Mitigation Manager) with the authority to approval these transaction within a 7-10 period.

Wachovia Short Sales Manager Marc Souza states, "70% of our loans in California are at least 60 days behind in their payments. Wachovia needed to create a program and leverage realtors that are short sale experts to determine which customers can benefit from short sales quickly."

Any homeowner in Calfironia who has either a Wachovia, Golden West or World Savings loan that is in danger of foreclosure can be a candidate for the Fast Track Short Sale Program. Wachovia wants to lessen their loss by helping homeowners secure a short sale now, verse a costly foreclosure later.



Here are some of the programs highlights:

*Must have financial hardship or emanate default pending.

*One local point of contact for homeowners, Realtors and buyers to submit offers to and close the transaction

*On-site property and seller interviews by a Loss Mitigation Manager if necessary

*Approvals in 7-10 days

*Average closing from start to finish: 48 business days

*$2500 up to $5000 cash for cooperation/moving expenses

*All Deficiency issues Waived

This is a great opportunity for homeowners with Neg Am or interest only loans, who will not qualify for loan modification due to their negative equity position and debt to income ratios. Don't miss out on the opportunity to speak directly with a Loss Mitigation Manager who can explain your options and show you how this program can help your family.

Homeowners struggling with Wachovia, Golden West or World Savings loans who are considering a short sale, this is the time to take advantage of this program, with limited inventory and low interest rates Realtors have nothing to show and sell their buyers. Take full advantage of this seller market and position yourself to minimize your financial loss, limit the damage to your credit history and shorten your recovery period. Homeowner's don't need to be behind on payments to qualify for this program.

Contact Jennifer or I to make an appointment with Wachoiva's Loss Mitigation Manager. 661-290-3837

President Obama's Admistration announces new details about FAP, Foreclosure Alternatives Prevention

Good news comming from Washington , D.C. , today. President Obama's administration announced new details under its Foreclosure Alternatives Program (FAP) enabling servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a Making Home Affordable modification but does not qualify or is unable to successfully complete the three month trial period. The program, effective through 2012, requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

The administration has recognized the need to streamline the short sale and deeds-in-lieu processes, and has provided viable options to homeowners who have fallen behind on their mortgages but owe more than their homes would sell for in today's challenging market. We also appreciate the efforts of our colleagues at NAR for keeping this issue front and center in our nation's capital. Incentives in the FAP program include $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens ($1 from the government for every $2 paid by the investors to the second lien holders). Hopefully these incentives will convince the servicers to work with Realtors on short sales.

The FAP includes streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter to minimize complexity and increase use of the short sale option. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements, based on an appraisal or one or more broker price opinions, issued no more than 120 days before the date of the short sale agreement.
In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. The property also must be listed with a licensed real estate professional with experience in the neighborhood, and no foreclosure may take place during the marketing period, of at least 90 days, as specified in the Short Sale Agreement.

The Short Sale Agreement also must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received. Servicers may not charge fees to borrowers/homeowners for participating in the program. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement, plus any extensions.

Additional details will be forthcoming. Please check C.A.R.'s Market Response Center for updated information as it becomes available.

If your dealing with a financial hardship in the Santa Clarita Valley or San Fernando Valley that has you considering a short sale, please contact Jennifer & Gary Ricco at Keller Williams VIP Properties for a free educational consultation. Our Consultations are to the point, no smoke and mirrors here. We provide verifiable facts & solutions. Go to our about page on our website for Short Sale facts. www.SantaClaritaCertifiedDistressedPropertyExpert.com

Santa Clarita Where's Your Housing Market Stimulus????

For some time know I have been following the national number of mortgages that are in default. The percentage is based on 45,000,000 mortgages which are seasonally adjusted. For those who think we are anywhere near the bottom of this market take a look at this graph. The onset of foreclosures we will face this year is staggering compared to last year.

click here to see what 60 minutes has to say.

http://www.cbsnews.com/video/watch/?id=4668112n&tag=topHome;topStory

These numbers were provided by the Mortgage Bankers Association on November 12, 2008, which they distribute quarterly. They are based on 45,000,000 mortgages and are seasonally adjusted. Here are their numbers for Q1 thru Q3 of 2008.

National numbers on all Mortgages
2.97% in foreclosure
6.99% in default (30+ days late)
9.96% Total in Default 3 out of 100

National numbers on Prime Mortgages
1.58% in foreclosure
4.34% in default (30+ days late)
5.92% Total in default 6 out of 100

National numbers of Subprime Mortgages
12.55% in foreclosure
20.02% in default (30+ days late)
32.57% Total in default 1 out of 3

National numbers of FHA Mortgages
2.32% in foreclosure
12.92% in default (30+ days late)
15.24 Total in default

National numbers of VA Mortgages
1.46% in foreclosure
7.28% in default (30+ days late)
8.74% Total in default approaching 1 out of 10

As you can see the numbers in default are much higher then those in foreclosure, reason being is the government put a moratorium on foreclosures which has slowed the foreclosure process. Also Freddie Mac and Fannie Mae have publically stated they want to move distressed assets through short sales vs acquisition and REO.

Given the market conditions many communities are facing, the need to understand distressed properties is no longer a luxury, this has become a requirement for every Realtor. In some subdivisions as many as 50% or more of the properties active on the MLS are distressed (pre-foreclosure, short sale, bank owned). With 50% of an area's listings being distressed, we have seen as high as 80% or more of an area's closings come from distressed properties. If your struggling to make your mortgage payment or have been unable to make your mortgage payment, time is running out. Don't become a victim of one of the, "Stop Foreclosure Scams" Take this time to talk with a Certified Distressed Property Expert, the consultation is free, educational and confidential.

If your looking for a Realtor who understands this market and has your best interest in mind, please contact your Santa Clarita Short Sale Experts, Jennifer & Gary Ricco at Keller Williams VIP Properties. (Certified Distressed Property Experts) 661.290.3837 or visit us at http://www.riccosellshomes.com/