How do you find the investor? You can ask the servicer. The Internet also provides an abundance of information. Many servicers will not tell you who the investor is, possibly because they do not want the investor to know how poorly they are processing your short sale request.  However, many servicers have rules that require them to furnish the investor’s information if the borrower/seller requests that information in writing.  Some commentators say that another way you can find the investor is to look them up in MERS, the Mortgage Electronic Registration System. 

Why do you want this information? When the servicer knows that their client, the investor, will be looking into how the short sale is being processed, the servicer wants to make it look better.

After signing a contract you will need a home inspector to go through the property in detail to give you a report on any problems.  You will also hire a termite inspector to determine if the property has termites, or to certify that the property is free of termites.   If the property has a well and septic system, you may need inspectors for those features.  If the property has structural issues, you might need a structural engineer.    There are all sorts of other issues that may come up, so you may have even more professionals that you need to hire. Then there are utility services such as gas, electricity, water, trash, telephone, cable TV, and Internet. If you move from outside the Triangle, you will need to reestablish the network you had to provide all the services you need. 

There’s always the Yellow Pages and the Internet, but you may prefer a personal recommendation from your Realtor who should have learned what you value in someone who provides a service. 

For a more detailed discussion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/first-time-homebuyers-need-service-providers.

Certified energy star home. Custom built w/ extra details & cornice moldings & chair rail. Granite countertops, upgraded stainless appliances, cherry raised panel cabinets creates a gourmet kitchen. Elegant master suite w/ double trey ceiling. Full wainscot in dining room. Bonus room and office upstairs (could be used as 4th bedroom). Screen porch w/vaulted ceiling. Hardwoods!!

 Gourmet kitchen w/ solid surface counters & upgraded cabinets & designer wood floors. Family room open to B. nook open to Kitchen. HUGE master bedroom w/ glamour bath & w.i. closet. Entertain in the formal living room. Loft w/ professional mural for football fans.  Barbecue on the back patio overlooking your large yard.

This home is well maintained. Bright, cheery sunroom in rear of home with private entrance to landscaped back yard. Award winning floor plan with classic trim. Home features a 3rd floor walkup attic. Wood floors, maple cabinets and granite counters complete this kitchen that opens to Family room with fireplace. This home is for those that like to have lots of guest and entertain. Living room and Dining room are formal. Intimate MBR w/corner garden tub w/sep. shower. Great walk in closet. This one will not last!!

At the end of a quiet wooded cul de sac. Extensively remodeled. Gourmet kitchen w/island and granite countertops. Elegant master suite with fireplace making for cozy nights. Master bath features glamour bath, whirlpool tub, separate shower & HUGE walk in closet. Living room opens to family room w/columns, French doors opens to awesome back yard w/ pool & grand deck great for entertaining and grilling. Enormous bonus room with fireplace for a media room or all your toys. Horses allowed! Community barn, swimming, tennis & trails. Unique subdivision…..

The cozy front porch welcomes you. Open floor plan with living room, dining room, & kitchen open to each other, all with soaring cathedral ceiling. Master bedroom with bay window sitting area, glamour bath & huge walk in closet.  Gather the family & friends around the fireplace in the family room with hardwood floors.  Big deck overlooks wooded area & private fenced yard.  Great Schools. Short sale.

Great location, close to downtown Holly Springs this custom built home has a 3 car garage.  Wonderful  bright open floor plan with a sunroom. Full basement with inside and outside entrances. Low maintenance exterior.  Lots of room for a bonus, rec and/or work shop in the basement. Tons of room to grow. Community pool!

Quiet neighborhood, walk to lake, easy access to I-540, Triangle Town Centre. 3 BR 2.5 BA Home offers open plan on 1^st , FR features marble surround gas log fp, dining area and kitchen w/lots of light. Large master and bath w/double vanity. Storage bldg. conveys. Finished 1 car garage. Some TLC needed but has awesome potential. Private wooded rear yard

Federal legislation in 2007 allows a homeowner to pay less than what is owed on their mortgage and not pay income tax on the “short” amount due the bank, under certain situations. 

To get a short sale approved, you have to find every way to negotiate, and do not give up with the first “no.”  Look at the seller’s monthly mortgage statement to see if there is a mortgage insurance premium.  If so, there is a guarantor that will take some of the loss on this loan.  Even if there no mortgage insurance premium on the monthly statement, the lender may have bought mortgage insurance and the premium is being paid by the lender, typically covered by a higher interest rate charged to the borrower in return for a “no pmi” loan.

The loan I was negotiating had a guarantor, i.e. the bank was not going to take the loss, the mortgage insurance company was, and the guarantor would be the company that was “short” so I contacted the guarantor and negotiated with the loss mitigation expert there.  When the guarantor said they would approve the sale, the bank had to go along with it.  If at first you do not succeed, try and try again.  If the bank turns you down, see if there is a guarantor, or at least a supervisor to review the decision.

For a more detailed discussion on this topic, please go to http://shortsalesr.us/featured/short-sale-with-a-guarantor/

When you purchase homeowners insurance, you buy a package that combines several types of insurance into a single policy.  You can purchase additional coverages and riders also.  There are a lot of choices, so you should have an insurance agent explain the policy in detail to ensure it offers adequate protection for all of your needs.

First time homebuyers need to be advised that they should purchase a policy which includes replacement cost coverage.  Replacement cost is the amount it would take to replace or repair your home with materials of similar kind and quality, without deducting for depreciation. 

A first time homebuyer should shop around when purchasing homeowners insurance.  It is possible to get different rates from different agencies.

For a more detailed discussion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/homeowners-insurance-for-first-time-homebuyers.

The way you express that is in the hardship letter.    Some seminars give you a list of hardships, but do not limit your thinking to a simple list.  Anything that causes a change in the financial condition from when the loan was taken out which results in the inability to pay the monthly payments and the impossibility of bringing the rest of the money owed to the closing of the sale is a financial hardship.   

The owner should write it personally, with enough detail that the loss mitigation negotiator can feel the pain.  The letter needs to describe what has happened to create the financial setback.  You need explain why, in vivid detail, so that a hardened loss mitigation negotiator who reads these letters all day long can feel sympathetic to your client. 

Do not stop with the description of the problem.  Explain what you have done to try to eliminate the problem, deal with it, or make it better.   You do not want the negotiator to just see that your client has fallen down, you want to describe the efforts to get back up again.

At the end of the letter, tell the negotiator that the owner wants to sell the house so that they can pay back as much of the debt as possible.  The hardship letter has to be signed by the seller, and preferably by both sellers.

This should be on top of the short sale package, setting the stage for why this owner deserves to be allowed to pay less than what is owed to the bank.   It is probably the most important document in the entire package, so give it the attention it deserves.

For a more detailed discussion on this topic, please go to http://shortsalesr.us/short-sale-dos-and-donts/do-a-compelling-hardship-letter/

Closing can occur anywhere, but it normally happens at the closing attorney’s office.  You will sign multiple copies of the the HUD statement.  You will also sign the loan documents for your mortgage, starting with the note that says you will pay back the loan, how much the loan is and the interest rate.  After the attorney reviews all the paperwork with you and you sign everything, you will give the attorney the certified check that you brought to pay your down payment and closing costs.  The closing attorney will give you copies of all the documents.

When everything is signed and all the lender requirements are satisfied, your lender will wire the money to the attorney for your mortgage.  Most of the time you will receive the keys to your new home, so you walk out of the closing with the keys to your first home. However, the home is not technically yours until the deed has been recorded at the courthouse, so some sellers, such as relocation companies and banks,  will not let you have the keys until after confirmation of the recording.

Once you complete this step, you are now a homeowner.   Congratulations!

For a more detailed discussion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/closing-the-purchase-of-your-first-home.

Some Realtors submit the financial information to the lender early in the process, to see if the seller qualifies for a short sale. The seller’s financial information can be fed into a computerized review system to see if the seller qualifies for a short sale.  In some situations, the loss mitigation department will review the financial situation before you have an offer and determine that the seller qualifies for a short sale. This can shorten the review process once an offer is presented.

The last thing you want to do is to give the home equity lender a financial statement showing that the borrower no longer is able to qualify for the home equity line of credit.  So, if you are going to do the short sale, you have to time it right.

For a more detailed discussion on this topic, please go to http://shortsalesr.us/short-sale-dos-and-donts/dont-take-away-the-owners-lifeline/.

There are two fundamental considerations, for all buyers:

-         Can you afford the home now?

-         Will you stay in it long enough to justify the initial costs?

First time homebuyers have two huge advantages right now:

-         You don’t have to sell another home first!

-          You can get up to $8,000 from the government!  Not a loan, but free money!

So, if you can buy now, should you?

-         Larger than usual inventory of homes for sale means more to choose between

-         Low interest rates mean you can get more home for the same money

-         A Buyers Market means you have more clout than in a Sellers Market

That adds up to making this an unusually good time to buy a home anywhere from Cary to Wake Forest or any other part of the Triangle in North Carolina.

For a more detailed disuccion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/should-first-time-homebuyers-buy-now.

You need to evaluate the alternatives. You can let the bank foreclose. You might consider giving the bank a deed in lieu of foreclosure.  You can try a loan modification.

A short sale is not an easy process. You have to get the buyers to be patient, as the lenders may take a while to review the offer.  One oddity of this process is the real negotiation is done with the bank and lien holders. Normal negotiations in real estate sales are between the buyer and the seller.

For a more detailed discussion on this topic, please go to http://shortsalesr.us/for-sellers/.

Referrals also come from other agents. In this case, a referral fee is paid to the referring agent if the lead results in the sale of a property.

If you are trying to find the right Realtor, ask a friend who has bought a house in Cary, Raleigh, Apex or anywhere else you want to live in the Triangle area of North Carolina.   If you are a first time homebuyer who is new to the area, find a team that specializes in first time homebuyers so they can give you the extra care you deserve.

For a more detailed discussion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/referrals-benefit-first-time-homebuyers.

In North Carolina, the Short Sale Addendum to the Listing Agreement says “If a foreclosure or other judicial proceeding is filed with respect to the Property, although Firm may continue to solicit and negotiate offers to purchase and contact, communicate with, obtain information from and supply information to Lienholders,  Firm may no longer negotiate the terms and conditions of a Short Sale with Lienholders, as such negotation would constitute the practice of law.”  Other states have similar interpretations of the line between what a Realtor can do and the practice of law. 

If you are not licensed as a lawyer in the state where the property is located and where the client lives, you need to know about the rulings that may restrict what you do in negotiations when a foreclosure has been filed.  One other pitfall to avoid is the regulations on debt counseling. If you charge the seller a fee that is not contingent on the closing of the sale, it can be argued that you are doing debt counseling.

How do you stay out of trouble?  Follow the wording in your forms.  How do you find the line?  Talk to your broker in charge.  You may also want to talk to an attorney, particularly if your firm has one on retainer. 

For a more detailed discussion on this topic, pelase go to http://shortsalesr.us/short-sale-dos-and-donts/dont-practice-law-unless-youre-a-lawyer/.

As the buyer, you must stay on top of gaining loan approval, providing required information quickly, paying required bank fees, and keeping in touch with your lender.  Your agent will schedule the inspections called for by the contract and help you draft a repairs request.  You will need a closing attorney, who will review the contract, initiate a title search, order a survey (optional), work with you to schedule the closing meeting, work you’re your lender to properly record all related costs, conduct the closing meeting including explaining lots of documents, record the deed, answer questions, and an abundance of other services.  You will need to select a company to provide home owner’s insurance a couple weeks before closing, in order to allow the attorney and the insurance agent to communicate.  At least a week before closing you will need to contact appropriate utilities and arrange for the electric, water, gas, cable, and other services to be turned on in your name.

Think of moving from the point of signing the contract to a successful closing as a project, and select a Buyers Agent who will act as a good project manager – one with the communication skills, work ethic, and attention to detail to handle all the things that come up. 

For a more detailed discussion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/getting-a-first-time-homebuyer-from-contract-to-closing.

Angie Turner is a paralegal with Clifton and Singer, one of Raleigh’s premier firms in the field of real estate law.  Here is what she has to say about the differences in closing a short sale and a regular sale:

“Short sale transactions are very different from standard closings. They require real estate professionals that understand the process, that can negotiate with the bank, and that can coordinate with multiple parties to complete the transaction.  One of the important parts of the short sale package that is submitted for the lender’s review is a draft HUD statement, in other areas called a closing statement.  The lender will determine whether to accept the short sale based upon the amount of the payment to the lender shown on the draft HUD statement.

The closing attorney’s responsibility is to provide fair and upfront pricing for the seller’s side of the draft HUD statement.  While the pricing for the seller’s side of the draft HUD statement is estimated, the estimates must be as accurate as possible.  Estimating the seller’s fees is often difficult due to the lack of a closing date and other variables.  If the seller or closing attorney is in doubt about the estimated fee, the closing attorney’s office should err on the high side because the bank will be unwilling to accept a higher fee later.  In other words, if the bank settles for a certain amount as a full payoff of their loan, you do not want to go back to them with less money being paid to the bank than what was shown on the draft HUD statement.

The closing attorney’s office is also responsible for making changes to the draft HUD statement and submitting it to the bank and Realtor.  Often the HUD statement will be changed 15-20 times before the bank agrees to the short sale.

Once the negations are completed, the closing documents are signed, and the keys have changed hands, the closing attorney’s job is far from over.  In order for the seller to give good title to the buyer, the deed of trust securing the loan must be canceled of record.  The

loan(s) paid off in a short sale transaction have numerous stipulations and precise instructions that must be followed exactly before the bank is willing to cancel its deed of trust.  Since the bank is taking less that a full payoff, they are even more difficult on the requirements for eliminating the lien on the property that was sold.  Therefore, after closing, the closing attorney is still working with the bank and meeting its requirements to ensure that the deed of trust is successfully cancelled.

Due to the additional requirements in completing a short sale, you will need to choose a closing attorney that is knowledgeable in short sale transactions.  You need a firm that is willing and able to work with you and the bank before you have even scheduled a closing.  For example, even before you have a sale approved, you will need to have a draft HUD statement to estimate the proceeds to the bank.  Also, you need a firm that will follow through with the numerous detailed tasks that occur after closing.”

For a more detailed discussion on this topic, please go to http://shortsalesr.us/short-sale-dos-and-donts/select-the-right-closing-attorney-or-escrow/.