Fannie Mae is Choking our economy.
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Not Quite David Letterman, But Melissa’s Top Five for 2010
December 29, 2010 By
I’ve just been looking over Google Analytics to see what was popular on my blog in 2010. It’s surprising to me because some of the posts that I expected to rank got very few hits. But, you asked for it and you got it! Here are my top five for 2010. Can you guess what they are about? Bingo! Short Sales 
5. Bank of America, Equator, and the Short Sale Counter Offer This post explains some facts about the Equator process à la everyone’s favorite major lending institution.
4. Postponing a Trustee’s Sale: Is it Possible? This post follows my antics as I attempt to postpone a handful of foreclosure auctions. Was I 100% successful? You’ll have to read the post to find out.
3. California Short Sale Sellers Will Love these Two Bills—if they Pass This post reviews both Senate Bills 1178 and 931. Since August (when the post was written), Senate Bill 931 passed and is effective on January 3, 2011.
2. Postponement of a Wells Fargo Foreclosure – New Policies Short sale listing agents were thrilled to hear that there is actually a policy for foreclosure postponement at Wells Fargo. But, can the short sale negotiator (or listing agent) successfully jump through all those hoops? Read and find out.
The number one most popular blog post written in 2010 by Melissa Zavala is…
1. Deficiency Judgments and Short Sales This post was prompted by a comment from a fellow short sale aficionado and real estate Broker, Bryant Tutas of Poinciana, Florida, who mentioned (in a blog post comment) that the most common question that he is asked by short sale sellers is with regard to the potential for deficiency judgment.
While I do not claim to have as exciting a Top Ten List (or even a Top Five) as David Letterman, these posts receiving high accolades and lots of traffic in 2010.
Hope you enjoy them. I wish you nothing but success and good health in 2011!
Photo: flickr creative commons by klynslis
Happy Holidays from Short Sale Expeditor!
December 20, 2010 By
If you have ever tried negotiating a short sale on your own, then you have no doubt learned that it is not as easy as it sounds. A simple call to the mortgage lender for a quick answer may result in 16 calls and lots of frustration.
The crew at Short Sale Expeditor® has the experience necessary to get your short sale approved as quickly and efficiently as possible. But, did you know that the entire team has other talents as well?
All of the gang at Short Sale Expeditor® would like to wish you and your family a very happy holiday season and a healthy and prosperous new year.
Check out the video and see the many talents of our fabulous team!
Feliz Navidad. Joyeux Noel, Shalom, and the like
What’ll be more popular next year? Short Sale or Foreclosure
December 19, 2010 By
Fitch Ratings recently reported that the loss severities on residential mortgage-backed securities are expected to increase by up to ten percent in 2011. This is due to the fact that loss mitigation and foreclosure expenses are increasing. And, as a result, Fitch Ratings reports that servicers may be looking again to short sales as the best solution to the loss mitigation problem.
According to an article on HousingWire, the percentage of principal lost when a prime loan is foreclosed is currently at 44%. Fitch believes that this may increase to 54% in the coming year. Interestingly, the loss severity for subprime loans is currently at 75% and may increase to 85% in 2011.
The Fitch Managing Director, Diane Pendley stated, “Servicers are increasingly turning to less costly alternatives to foreclosure such as short-sales.” The reason that servicers opt for short sales is because the recovery rate on a short sale is generally 10% higher than in a foreclosure.
What does this mean for Realtors®? For Realtors®, this just means another few years of short sales. But, don’t dismay. Remember when you took your first real estate classes. You were told, “If you don’t list, you don’t last.” Well, despite the rocky economy, now is a great time to take more listings than ever before and help your clients out of a tough spot. If you need short sale support, contact Short Sale Expeditor®.
Facts courtesy of HousingWire article by Job Prior
Opinions courtesy of Melissa Zavala
Postponement of a Wells Fargo Foreclosure – New Policies
December 11, 2010 By
O-ho the Wells Fargo Wagon is a-comin’ down the street,
Oh please let it be for me!
O-ho the Wells Fargo Wagon is a-comin’ down the street,
I wish, I wish I knew what it could be!
Is there anyone out there that may possibly remember this song? They say that back in the early 1900s (no, I was not born quite yet), the Wells Fargo Wagon used to deliver goods to towns across the nation. Now, apparently, Wells Fargo taketh away. You can read about the latest on the Wells Fargo Short Sale Policies and foreclosure postponements here.
Wells Fargo Will Allow Foreclosure Postponements for Short Sales on a Case-by-Case Basis
Last month, Wells Fargo employees that processed short sales advised agents via email that there were changes made to the existing policy with regard to the postponement of Trustee’s Sales (foreclosures).
As reported by the National Association of Realtors®, Wells Fargo will permit the postponement of a scheduled foreclosure in connection with a short sale but only in specific situations. If the loan is owned by Wells Fargo (or Wachovia) or if the loan is serviced by Wells Fargo but owned by an investor, the Wells Fargo policy will allow for one foreclosure postponement if (and only if):
- Wells Fargo has a short sale sales contract in hand that has been approved (including approvals from junior lien holders and mortgage insurers, if applicable)
- the buyer has proof of funds or financing approved
- the short sale can close within 30 days of the scheduled foreclosure sale.
Wells Fargo and the National Association of Realtors® also report that not all investors allow for such postponements. Additionally, in jurisdictions where the courts will not approve the delay, the postponement policy will not apply.
According to the report, Wells Fargo is willing to address situations that do not qualify under these guidelines on a case-by-case basis.
I’ve had a few Wells Fargo foreclosures come up in the last two weeks, and we were able to postpone one of the sales for sixty days. While we were thrilled to be able to help the client and process the short sale, working with Wells Fargo to postpone the sale was a time-consuming pursuit.
My best advice for short sale sellers with a Wells Fargo mortgage who are facing foreclosure is to be very pro-active, so that they are not faced with an unfortunate situation.
Photo: flickr creative commons by ashleigh290
