Homeowner Receives $13,000 to Short Sale House

I recently closed a short sale where my Seller client received $13,000 at closing as a Short Sale Relocation/Seller Incentive and was also released from any further liability for the deficiency. It is possible. See the approval letter below.

Does this happen all the time? No.

When Sellers do receive compensation at closing it is generally between $750-$3,000. The situation where the clients received the $13,000 was from a Servicer (Bank) that does offer substantial compensation on some of the loans they service for completion of a short sale. Depending on the specific situation and the specifics of your loan(s) you too may be able to be paid to complete a short sale. Not all short sale sellers and loans will qualify for cash compensation at closing but it happens often enough that you want to have an agent that knows how to get that compensation for you if it is available. Read my next post to see that some “expert” short sale agents with “fancy designations” think that a seller can’t be paid at closing (I will include examples of their published forms that reflect this).

Drop me a line if you are considering selling your house. 208.830.6185

One of my Clients made $13,000 short selling their house!!!

One of my Clients made $13,000 short selling their house!!!


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$25 Billion Foreclosure Settlement – Will it help me???



As stories regarding the $25 Billion Foreclosure Settlement are being released my Boise Short Sale Website and Boise Short Sale Blog traffic has increased as have the phone calls and emails from hopeful homeowners with under water properties. The question is how will this help me?

Emily Knapp in her article “Who are the Biggest Beneficiaries of the $25 Billion Nationwide Mortgage Settlement” answers this question most succinctly, “…despite the obvious benefits for individual homeowners, the settlement’s effect on the housing market as a whole may be rather limited. Only customers of the five servicers involved in the settlement are eligible for principal reductions, and only if their loan is not owned or backed by government-controlled mortgage financing firms Fannie Mae and Freddie Mac. Those and other limitations mean fewer than 5 percent of the nation’s 11.1 million underwater homeowners will be eligible.”

5% is an awfully low number of individuals helped. If you need to sell your house and are underwater please drop me a line, lets talk…

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Foreclosures Fall to Lowest Level in 3 Years

Sounds like good news right? The numbers are down in line with some of the seasonal trends we have seen in the last few years. While some folks may be saying this is the sign we have hit or are nearing bottom; folks are still getting going into default, banks are still foreclosing, there is shadow inventory that needs dealt with so we have still have plenty of snow available to keep that snowball growing or at least maintaining its size.Click here for the CNBC article.

In working with clients sometimes they are trying to decide if they should borrow money, go into debt, etc to hang onto the house. You may be considering the same in light of some of the less negative news in the press.

It isn’t unheard of for my clients to be 40-60% underwater on their properties. It makes sense to consider the big picture. I have found it beneficial to walk through the scneario with my clients to see what makes sense.

Lets say we have the following that is a typical scenario:

Value at peak 4 years ago (loan amount) – $250k

Current Value – $150k

Depreciation over 4 years – $100k

Average appreciation in a healthy market (for our area) @3%

The question is how many years in a healthy market will it take to recover the 40% loss?

A long time.

I am not suggesting that home owners should choose to default on their loan because they are under water. I won’t ever tell a home owner to stop paying their mortgage. But borrowing from credit cards, family, personal loans, etc. at some point seems to be throwing good money after bad.



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Last Minute Short Sale Surprises – Working with the right agent can help you avoid a train wreck…

As I reflect back on a week that we have closed a couple more properties and helped a few more home owners avoid foreclosure I continue thinking about a number of  discussions with another listing agent and a short sale seller that are not working with me but have kept in contact with me for a few months with occasional short sale related questions, etc. The recent conversations included questions along the lines of “What would you do if this happened?” “Have you ever seen this happen?” “How do I fix this?” – in general what do I do about this short sale that has turned into a train wreck?” In discussions it became apparent that either the Seller was not provided the Short Sale Approval Letter prior to closing or they did not read through it until the day of closing. In each situation it nearly blew the short sale up which likely would have landed the properties in foreclosure.

The letters in question included terms allowing the lender to seek a deficiency judgment (which is a pretty big deal). Trying to sort things out to determine where the train jumped the tracks wasn’t something that could be determined but I did emphasize to the agent that should they do another short sale in the future it is probably a good idea to read through the letter to know what it is saying and to also provide the approval letter to the client well in advance of putting all parties in motion to closing and give the Seller the opportunity to review and approve of the terms of the letter.

In working with our Short Sale Sellers we provide to them a copy of the approval letter prior to releasing it to the buyers agent. Our Seller’s have the opportunity to review the letters and seek legal and/or financial advice (neither which we can provide) should that be important to them prior to approving of the short sale approval letter. If all looks good to our Sellers we have them sign the approval letter itself and a few documents as well that instruct us to put all parties in motion to closing – again – before releasing the approval letter to the buyer agent.

As a short sale seller client of ours you can be assured  that you  will have the opportunity to review your short sale approval letter(s) as we receive them so that you are on board with the terms. Our goal is to make the process as transparent as we possibly can while helping your reach the most beneficial outcome. We’re not into train wrecks…

We received a nice note of thank this past week from a client that we helped short sell a house, get the bank to release deficiency rights, and avoid foreclosure in July that I thought I would share with you. My goal is to help every one of my clients have such a positive outcome and avoid a train wreck that short sales can become with the wrong agent at the wheel.

Dear John,

I don’t think I every thanked you for doing such a great job with the Short Sale of my property. The entire process was smooth, painless and most of all transparent. I wish to tell all potential clients that I would most certainly do business again with you if the opportunity presented itself.
Thank  you!!

Dr. Rebecca
San Francisco, California

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The Mythical Loan Modification

Below is a video created by and featuring Lee Honish, former Head Loss Mitigatior for IndyMac, now OneWest Bank on the reality of trial loan modifications. This is the scoop on loan modifications. Weekly I work with clients who attempted a loan modification but mysteriously after the trial period ended were denied the loan modification and helped down the road to foreclosure by the very bank that said they were “helping” them.

Are you facing foreclosure? Lets talk soon…

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