Documents You Should Expect To Provide Your Lender For A Short-Sale

If you are still unsure about what to do with the home that is strangling you and your family financially, a Short-Sale may be your best option to keep a Foreclosure off your credit reports. Yes, a SS (Short-Sale) will cause a ding and show up as well, but less of a ding, and less time will it be on the infamous FICO scorekeepers books.

If you haven't already figured out what it may take, I will give you just a sneak peak about the kinds of documents you most likely will be required to present to your Realtor who will subsequently present them to your mortgage holder on your behalf. You can go to my website KeepYourWitz.Com, and look for more information at the top with the Robo-Signing Settlement tab (to see if you qualify for that help), or the bottom with a YouTube video which also describes a SS.

This is not what every lender will ask for, but this will give you a sample of what you may need to be prepared to turn over.

1) Two most recent pay-stubs, for each borrower on the note
2) Verification of length of employment for each borrower on the note
3) Most recent bank statements, all accounts. Including 401, etc.
4) Most recent Tax Returns
5) Hardship Letter
6) Proof of medical disability or hardship to support your change in earning capacity
7) If self employed, current income statement, balance sheet and statement of owners equity
8) Documentation of any additional income
9) Completion of Financial Worksheet showing all income and expenses

The better prepared you are before you call your Realtor, the smoother the SS transaction will go. Don't kid yourself though. As a Certified Distressed Property Expert here in the Santa Clarita Valley, I've done my share of SS's.....it's a challenging process to say the least. As long as everyone is working towards the common goal, it is more likely to find completion.

For any information about Real Estate in Valencia, Saugus, Stevenson Ranch, Canyon Country, Newhall, Castaic, or any other areas of the Santa Clarita Valley, feel free to contact me. I will help you and your family in any way I can.

Record High Levels of Home Buyer Affordability Continue

According to Freddie Mac, due to the rates being at an all time 60 year low, the levels of Home Buyer Affordability is continuing to increase.

This is good news. The article I read this morning states that 'The typical family had more than double the income needed to purchase a median price home in January." 

The market is definitely starting to turn. We have great, unbelievable rates, lending is loosening (just a tad), we are working through the Short-Sales, the Robo-Signing Settlement is underway, HARP has expanded, all things that are helping to work through this.

The number of homes here in the Santa Clarita Valley for sale is very low. Multiple offers are happening. Short-Sales are getting approved. Buyers are buying homes. When we start to see a few more homes available for sale, I believe more people will come out to buy as well.

We know that a lot of people were waiting for the infamous bottom to appear....it's here people.....that's what we are hearing...it's here....ya think?

Santa Clarita Valley 30 Day MLS Stats

The amount of Active listings in Santa Clarita Valley has shrunken since I last noted the stats here for you. But, the number of properties under contract has increased. And, yes that is due to the number of Short-Sale listings showing up as 'Back-up' position.

The joke had kind of been that what showed as active really wasn't. I believe more agents are following the MLS rules and noting them as in back-up position vs. leaving them showing as active when they truly were under contract.

At any rate, below are the stats of today:

ACTIVE:
Total ~ 894
of that,
405 are Short-Sales
142 are REO's

PENDING/BACK-UP:
Total ~ 953
of that,
609 are Short-Sales
155 are REO's

And, Closed Sales in the last 30 days:
total ~ 241
of those,
86 were Short-Sales
and
74 were REO's

Still hanging tough with about the same number of closings per month. And, still about 60% distressed properties.

Certified Distressed Property Expert ~ that's what I am. 

Contact me for any of your Distressed Property questions.

What's Going On With The Robo Settlement?

It happened a couple of weeks ago. Settlement for the Robo-Signing debacle. 25 Billion dollars to assist in the housing/finance mess. Well, hmmm, that's a little short for the 750 Billion dollar mess we are in.

Regardless, this post is to help explain it a bit to the people that read my blog. That count on me for some help in understanding what is happening in their Real Estate world of Santa Clarita Valley.

First, it's a 3 year plan. Nothing going to happen overnight. And, if you are backed by Fannie, Freddie, or have and FHA loan, this doesn't apply to you.

5 billion will be paid out in 2k increments to the people that were 'Robo-Signed' into foreclosure. Okay, so, there were several Linda Greens signing. Those people still were in default....just sayin'.

10 billion is to assist people that are delinquent via load modifications and possible principle reductions.

3 billion to help underwater homeowners that are still current on their mortgage.

7 billion to help distressed homeowners via forbearance, relocation assistance (think HAFA), and Short-Sales.

There is a website called National Mortgage Settlement you can find via my website : My Personal Website ~ KeepYourWitz.com Click on Robo-Signing Settlement on the toolbar near the top. It has a lot of information, more than I can provide here. Will help determine if you are a candidate and more options for you.

Wells Fargo has is the first one I have read that has laid out how it is supposed to work. Wells Fargo Explains How It's Going To Work It's a great little piece. And, I'm sure we will see more.

Great, we've got a little bit of money going around. Now, that they have had their hand slapped, there are more guidelines to follow.

I do think that there will be more incentive to expedite short-sales. We know that it costs more to the bank to foreclose than approve a short-sale too. Whatever the banks earn the most credits on, i.e. whatever they lose the least amount of money by doing....is what is going to happen.

As a Certified Distressed Property Expert, it's my job to keep informed about any of the latest developments that involve underwater homeowners. Short-Sale may be your only option to avoid a foreclosure on your financial history. As always, don't wait for someone to come knocking on your door, be proactive. Ask for help....now....instead of when it's too late.

Fannie Mae to Sell About 2500 Homes to Investors in Bulk Offering

Heard some buzz about this already, started last year, but it's really here. Fannie Mae is going to unload about 2500 REO homes to investors that will turn them into rentals.

Yes, they have to be pre-qualified and experienced at doing this type of thing. Not just someone like you or me can get in on this. Well you can try I suppose. Click here to see if it's possible for you: Federal Housing Finance Agency.

What I found most interesting was the fact that only about 400 of them are vacant properties. I did happen to see a listing in the MLS this week for an REO with a tenant in it. I have seen many short-sales like that, but I just saw a tenant occupied REO listing for the first time....

So, Fannie Mae is spinning this as a built-in tenant....I'm thinking quite possibly a built-in squatter! But, I am happy about anything that gets more REO's out of the pipeline and either people renting them or people buying them.....the sooner the better!

Increase Traffic on Housing Websites, Does it Mean New Hope for Housing?

As I sit sipping my Coffee with the Coconut Creme flavor steaming through, I read my daily dose of Realtor news.

Same old stuff, really it is. Just a few things that I felt were worth mentioning.

First, the post title. Zillow reported a huge increase in traffic on their site. I've actually seen it on my personal sight too (www.KeepYourWitz.com). Does that mean anything? Maybe, or maybe just more people curious about the market. Quite possibly they are just cozily searching for fun while bundled in blankets in the morning. I am more of an optimist....so I will take it as people are more interested in buying a home now. Or at least, gaining interest.

The home builders are ramping up their business. More building permits, more preparation to build new homes, and more hammers nailing wood. Well, maybe they are a little premature. But at least they are generating more jobs. Increase in any employment is good!

Now, not to sound, or end with, a negative...but in the beautiful Santa Clarita Valley our inventory is extremely low. Today it sits at just a total of 924 units available for sale. And, that is all of our little valley. Valencia, Acton, Agua Dulce, Castaic, Newhall, Saugus, Stevenson Ranch, and Canyon Country. Only 924 available for sale. I won't even mention that many of those probably aren't truly active. Another post there...

I do think that in the shadows, no pun on the shadow inventory intended, that we are preparing for a rebound. Or recovery, whatever you wish to call it. I believe that the stepping stones are being laid. I believe that it is going to be a very long path still to follow, and a little blurry as to the end point, but, we are walking in the right direction.

Home Affordable Modification Program ~ Updates

As a Santa Clarita Valley Realtor you'd think my only concern was about selling homes. Working with buyers to buy and sellers to sell. Not completely so. Of course, that's my main focus....but as a Certified Distressed Property Expert I've been trained on how to help people avoid foreclosure and have learned that with lots of patience and perseverance a homeowner can sometimes stay in their home.

The HAMP program was introduced a couple of years ago and there hasn't been a huge amount of success. There has been a lot, but it's minuscule compared to the number of homes going to foreclosure.

Recently there have been some changes and a time extension for the program.
1) The deadline has been extended to 12/31/2013
2) Debt Ratio Eligibility has been increased
3) Rental Property may now be eligible
4) Balance Reduction
5) Fannie and Freddie guaranteed loans are now eligible

You can find out more details by going to their website:
 Making Home Affordable Modification.Gov

And, there is a video up on YouTube that talks about the program as well:
 YouTube HAMP Video


Really, the basics that make me write about this again? Don't wait, don't wonder. Contact your lender before you get behind. There are many options, and you must be an advocate for yourself and your family.

Start by calling your lender