In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor.
http://turnkeyinvesting.com - This seller-financing/owner-financing presentation was first created in late 2007 during a special 3-hour session of the Investors Roundtable. I also gave an abbreviated version of this presentation in 2009.
The slides were much wordier than I had intended and meant as a reference afterwards.
Dodd frank act impact on seller financing for investorsRichard Roop
In this month’s Ultimate Training Webinar we will be covering “Dodd Frank Acts Impact on Seller Financing for Investors” and when you attend you will learn:
•How the Safe Act and Dodd-Frank will affect seller financing going forward
•Who is the Consumer Financial Protection Bureau (CFPB) and what is the Dodd-Frank Act?
•How to safely grow your business in spite of the new Dodd-Frank Act
•How to properly use the ultimate strategy and be in compliance with the Dodd-Frank Act
•What is the difference between the SAFE Act and the Dodd-Frank Act
•How to Thrive as a Real Estate Investor Under the SAFE Act!
•What you MUST know to use seller carry-back from here on out!
Within the Dodd-Frank Wall Street Reform Act the CFPB was instructed to take the four disclosure forms received by Consumers when financing a home and combine them into one form in order to achieve better understanding and transparency.
The CFPB’s goals were to help Consumers avoid costly surprises at the closing table; allow them to achieve easier comparisons of the estimated and final loan terms and fees; give them more time to consider choices and to put limits on closing cost increases. The CFPB had to take various existing Acts, including RESPA and TILA, then reconcile differing timing requirements in order to create one disclosure form that would replace the
1) Early TILA
2) GFE
3) Late TILA
4) HUD1 Settlement Statement.
One thousand, eight hundred and eighty eight (1,888) pages later we had the final rule on 11/20/2013.
Rob Rosa & Rubicon Crossings - Short Sale listing review for clientRob Rosa
Learn the basics of what is needed and expected for a short sale in CT. Every step of the way is documented and we can help you get the documents together that you will need to share with the banks and get an approval.
http://turnkeyinvesting.com - This seller-financing/owner-financing presentation was first created in late 2007 during a special 3-hour session of the Investors Roundtable. I also gave an abbreviated version of this presentation in 2009.
The slides were much wordier than I had intended and meant as a reference afterwards.
Dodd frank act impact on seller financing for investorsRichard Roop
In this month’s Ultimate Training Webinar we will be covering “Dodd Frank Acts Impact on Seller Financing for Investors” and when you attend you will learn:
•How the Safe Act and Dodd-Frank will affect seller financing going forward
•Who is the Consumer Financial Protection Bureau (CFPB) and what is the Dodd-Frank Act?
•How to safely grow your business in spite of the new Dodd-Frank Act
•How to properly use the ultimate strategy and be in compliance with the Dodd-Frank Act
•What is the difference between the SAFE Act and the Dodd-Frank Act
•How to Thrive as a Real Estate Investor Under the SAFE Act!
•What you MUST know to use seller carry-back from here on out!
Within the Dodd-Frank Wall Street Reform Act the CFPB was instructed to take the four disclosure forms received by Consumers when financing a home and combine them into one form in order to achieve better understanding and transparency.
The CFPB’s goals were to help Consumers avoid costly surprises at the closing table; allow them to achieve easier comparisons of the estimated and final loan terms and fees; give them more time to consider choices and to put limits on closing cost increases. The CFPB had to take various existing Acts, including RESPA and TILA, then reconcile differing timing requirements in order to create one disclosure form that would replace the
1) Early TILA
2) GFE
3) Late TILA
4) HUD1 Settlement Statement.
One thousand, eight hundred and eighty eight (1,888) pages later we had the final rule on 11/20/2013.
Rob Rosa & Rubicon Crossings - Short Sale listing review for clientRob Rosa
Learn the basics of what is needed and expected for a short sale in CT. Every step of the way is documented and we can help you get the documents together that you will need to share with the banks and get an approval.
The basics of the loan purchase and sale process is relatively straight forward, but like any transaction, the devil is in the details. Following are eight steps involved in the purchase and sale of loan assets followed by a discussion of the most common pitfalls to avoid throughout the transaction.
The basics of the loan purchase and sale process is relatively straight forward, but like any transaction, the devil is in the details. Following are eight steps involved in the purchase and sale of loan assets followed by a discussion of the most common pitfalls to avoid throughout the transaction.
The value of outstanding mortgage lending in Poland was up a 6% in 2014, reaching a total 351 billion PLN at year end. This is still a fraction of GDP. A lot room for growth,
A Leading Patient Experience Survey Platform by MedStatix - White Labeled for...MedStatix, LLC
Improving Patient Experience. Improving Practice Performance.
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The patient experience platform pinpoints specific, actionable problems where practices can improve their service through its easy-to-implement, yet sophisticated technology solution for monitoring and measuring patient experience by each provider across an organization.
With over a decade delivering over one million patient surveys for over 25 pharmaceutical brands, as well as customer feedback platforms and analytics for Fortune-class brands, MedStatix enables their resellers to provide their customers with exceptional practice improvement opportunities.
How Resellers Earn More Close More and Gain More Credibility With MyRepMgrJeff Smith
Internet Marketing Agencies earn more, close more sales and enhance their reputation and credibility with their clients and prospects with MyRepMgr. Go to MyRepMgr.com for more details.
This was a presentation to the Jefferson County, Washington Chamber of Commerce in April, 2015. It discusses the state of the real estate and mortgage markets in our county including home prices, foreclosure rates, mortgage interest rates, mortgage credit standards, demographics and housing demands, and climate change.
In The RayChel Realty Group's recent class, What to Know Before Buying Foreclosures in San Mateo County we discussed what to watch out for when buying foreclosures, dispelled some common myths about buying foreclosures and presented a few foreclosure financing programs San Mateo County home buyers can use to buy San Mateo County real estate.
What is a Short Sale?
Have you already defaulted?
What Options are available?
Do you fear defaulting on your Mortgage?
LEARN your options from professionals in the field of lending, real estate, and foreclosure prevention.
UNDERSTAND tax penalties and other consequences of loan default, loan modification, or bankruptcy, the difference between a short sale and a foreclosure, and much more!
Did you know you may be eligible to receive money back from the bank at the close of your Short Sale?
Credit & Debt Issues for Military Familiesmilfamln
For the webinar, Credit & Debt Issues for Military Families, hosted by the Personal Finance Concentration Area of the Military Families Learning Network on September 20, 2016
Foreclosure short sale guide for HomeownersSocially Savvy
forkels4title Team Forkel Divisional Management Team at Cal Counties Title Nation share Foreclosure short sale info for information only and advise anyone exploring such options be sure to consult with Licensed Professionals as Laws do vary from State to State and we have seen many changes this last year alone. We would be happy to refer you to a professional in your area through our network or direct you to resources available to help get answers to your questions.
Reprinted from REALTOR® Magazine(RealtorMag.Realtor.org) with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2008. All rights reserved.
The annual Legal Seminar For Credit Professionals, presented by Kegler Brown in conjunction with NACM – Great Lakes Region and American Subcontractors Association, was combined with an international business and construction legal program. Topics included selling internationally, post-judgment collection, bankruptcy, bids and pay-if-paid clauses.
Green Homes, Islamabad Presentation .pdfticktoktips
Green Homes Islamabad offers beautifully designed 5, 8, and 10 Marla homes near the airport and motorway. Enjoy luxury, convenience, and high rental returns in a prime location.
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
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Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
https://listingturkey.com/property/referans-bahcesehir/
MC Heights-Best Construction Company in jhanglaraibfatim009
MC Heights stands as the epitome of excellence in construction within Jhang. With a commitment to unparalleled quality and innovative design, MC Heights redefines urban living in the heart of Jhang. Offering luxurious residential spaces, cutting-edge commercial complexes, and vibrant community areas, MC Heights caters to the diverse needs of modern lifestyles. Our dedication to superior craftsmanship and customer satisfaction ensures that every aspect of MC Heights exceeds expectations, making it the premier choice for those seeking unparalleled sophistication and comfort in Jhang.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Simpolo Tiles & Bathware
Tile ho,
toh Simpolo.
Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
VISUALIZER
Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
Avrupa Konutlari Yenimahalle - Listing TurkeyListing Turkey
Welcome to Avrupa Konutları Yenimahalle, where luxury living meets unparalleled convenience in the heart of Istanbul. Developed by Artaş Holding, one of Turkey’s leading construction companies, this prestigious residential project offers a contemporary lifestyle experience like no other.
https://listingturkey.com/property/avrupa-konutlari-yenimahalle/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
Build-up area-1253 sq.ft.
Rate- 65lakh16k(approx)
Floor available- Flat available in all floor(G+12)
Balcony- 2
Washroom- 2
Parking - CAR PARKING
Amenities- Joggers track,temple, children's park,gym,banquet hall (5 Lakh)
Possession year (Handover year)- Dec 2025
Outside View from the apartment and flat balcony is very beautiful.
For more information contact AASHIYANA STAR PROPERTIES
7766900371
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
1. This presentation is for information purposes
only and is not legal nor specific advice to any
one person or reader
2. What happens when you default?
• The note involved in a foreclosure or repossession is a
contract. It is an "I Owe You": a promise and an obligation
for you to pay the debt owed to the lender that financed
your property.
• The mortgage on the property, is the security for that debt.
It is a lien.
3. Default Consequences
• Default - Failure to pay a debt when it is due.
• Acceleration - Allows a lender to demand payment of the
total outstanding balance upon default.
• Foreclosure - Lawsuit calling the entire note due and
requesting a court ordered sale of the property to satisfy
the note.
4. Mortgage Foreclosure
Four Step Process
1. Complaint
2. Final Judgment
3. Foreclosure
4. Deficiency Judgment
5. Step 1 Complaint - Lender sues on non-payment of Note.
• Complaint Includes 3 Documents.
1. Summons - directs you to answer the Complaint.
2. Complaint - describes why the bank is entitled to
payment on the Promissory Note.
3. Lis Pendens – (means "pending litigation”) filed in
the public records of county where property is located
to give notice to anyone dealing with the property that
a claim has been made against the property.
6. Step 2
Final Judgment – (not a money judgment)
1. Orders clerk of court to sell to highest bidder within 30
days if borrower does not redeem, (pay the full amount
the bank proved is due).
2. If the highest bidder bids less than the amount due to
the bank, the bank can come back to court and request
a Deficiency Judgment (a money judgment).
7. Step 3
Foreclosure Sale
• May occur "on the courthouse steps", in a courtroom, in a
meeting hall, in a large hallway and more recently, on the
Web.
• Bidding starts at $100 and goes up from there.
• Lender has a credit up to amount owed on mortgage.
• Bank bids for the property to "protect" the collateral up to
the amount (and usually beyond) the bank has
determined the property is worth.
• Usually gets sold to the bank for a mere $100 if no other
bidders at the foreclosure sale.
• Buyer pays DOC stamps based upon sales amount.
8. Step 4
• Deficiency Judgment –
• demands that, if the lender does not receive all
amounts due from foreclosure sale, the remaining
balance be paid by the borrower.
• “appraisal value” - “judgment amount” + (costs, penalties, late
fees) = DJ
• FMV on the date of the sale is LESS than the total
indebtedness of the mortgage = deficiency.
• FMV on the date of the sale is MORE than the total
indebtedness of the mortgage = NO DEFICIENCY.
9. How Acquired (not automatic)
• File motion in foreclosure action for DJ – must
have evidentiary hearing to prove sales
amount was less than judgment amount.
• Must be done within one year from date of
foreclosure sale.
• May also be obtained in separate breach of
contract action on promissory note (5 years to
bring such action).
10. When Does Lender Seek a DJ?
• Is this Primary Residence or Investment property?
• What are the lender’s assets?
• Strategic Default?
• Is there Private Mortgage Insurance?
11. What is PMI
A down payment of less than 20% of the purchase price means
your lender may require you to buy private mortgage insurance
(PMI), which partially protects the lender against the risk of
default.
protects lender for an amount equal to that 20 % difference
between loan amount and value.
Example: Value = $100,000
Financed = $100,000
PMI covers 20 % of amount financed = $20,000
Acts like a $20,000 lien on the property.
12. RESULT OF PMI
Once the Lender approves the Short Sale, it gets sent to PMI for their
approval.
Adds 2-3 weeks to the process.
From buyer’s or seller’s perspective, PMI does nothing to improve the Short
Sale process.
13. HOW IS A DEFICIENCY JUDGMENT TREATED FOR TAX PURPOSES?
If the lender gets a deficiency judgment, the lender is not forgiving the loan.
The homeowner incurs income tax liability for debt forgiveness if:
• the lender does not seek a deficiency judgment or
• the lender pursues the judgment but is unsuccessful
14.
15. What is Cancellation of Debt?
If you borrow money from a commercial lender
that later cancels or forgives the debt, you may
have to treat the cancelled amount as income for
tax purposes.
16. WHY?
loan proceeds are not treated as income because of the obligation to repay.
When obligation is forgiven, the amount discharged is normally reportable
as income because you no longer have an obligation to repay.
The lender is usually required to report the amount of the canceled debt to
you and the IRS on a Form 1099-C, Cancellation of Debt.
17. Very simplified example.
You borrow $10,000 and default on the loan after paying back $2,000.
If the lender is unable to collect the remaining debt from you, there is a
CANCELLATION OF DEBT of $8,000, which generally is taxable income to you.
18.
19. What is Recourse Debt?
1. Recourse debt is debt for which the taxpayer is personally liable. In the event of
default, "the lender can look beyond the collateral pledged for the loan and hold
the borrower accountable for the unpaid balance."
2. When a lender takes over a property as part of a foreclosure, deed in lieu or as
part of a short sale in satisfaction of a recourse note "the deemed sale price will be
the LESSER of the FMV of the property at the time of foreclosure OR the amount of
secured debt."
3. If the taxpayers debt exceeds the FMV, (i.e. Short Sale) the difference is treated
as debt discharge income if it is forgiven.
20. What Is Non-Recourse Debt?
1. Nonrecourse debt is debt where the lender can only look to the loan
collateral (i.e. the property) in the event the taxpayers default's on the loan.
2. In a foreclosure, deed in lieu, the sale proceeds from the deemed sale is equal
to the balance of the non-recourse debt.
There is no debt forgiveness (thus no tax
consequence) when the note is a nonrecourse note.
The importance of understanding the distinction between a non recourse debt and
a recourse debt is that a foreclosure on property involving recourse debt could
result in both a gain or loss from the sale of property, and debt discharge income
21. Is there a second mortgage?
Another name for a second mortgage -- Gift
Second mortgage lenders and private lenders are more likely than first
mortgage holders to go after the borrowers by suing for default on the
underlying promissory note.
22. Remember the Note
• Contract between lender and borrower that gives
lender the right to sue in the event of default.
• Liability under the note does not always get released
upon a short sale.
• In separate action brought under note – 5 years to
acquire DJ
23. What Does the Future Hold?
• As of January 2012 an estimated 368,000 foreclosure
cases are pending in Florida courts.
• The backlog of cases is expected to grow by another
380,000 cases by 2016.
24. Short Sale -Property sold for less than what’s owed
• Seller lists the property with a Realtor.
• Buyer must be found and contract executed.
• Sale and purchase agreement along with the seller's financial
information is sent to the lender for review (this is called the
short sale package.)
• Lender orders a Broker's Price Opinion on the property.
• Once conducted, received, and reviewed, the file is assigned to
a
Loss Mitigation Specialist. (LMS)
• LMS accepts, rejects, or counters the Buyer's offer on the
property.
• Negotiation continues until deal approved or its falls apart.
• Upon agreement, closing date is set for about three weeks
away.
25. BEST CASES FOR SHORT SALE
• Start the process as soon as payments are stopped.
• Nice homes in nice neighborhoods are more likely to stick – Buyers seem
more willing to negotiate
• Homes with only one mortgage easiest to get approved
• 2 loans with only one lender still have a chance of getting approved.
• 2 loans with different lenders very challenging to get approved.
• Easier if pay-off is not too short, less than 70% payoff are hard to get
approved.
26. Documentation to get out of a loan is similar to what’s need for
getting a loan.
• Hardship letter
• Financials -NEVER ENGAGE IN MISSTATING INCOME AND
ASSETS – THIS IS BANK FRAUD – FBI WILL PROSECUTE
27.
28. Home Affordable Foreclosure Alternatives (HAFA) Program
HAFA offers benefits that make the transition as favorable as possible:
• Get free advice from HUD-approved housing counselors and licensed real
estate professionals.
• Unlike conventional short sales, a HAFA short sale completely releases
mortgage debt after selling the property. The deficiency is guaranteed to be
waived by the servicer.
• HAFA has a less negative effect on your credit score than foreclosure or
conventional short sales.
• HAFA provides $3,000 in relocation assistance
29.
30. • MUST BE “ARM’S LENGTH” TRANSACTION - A
transaction in which the buyers and sellers act independently
and have no relationship to each other.
A willing buyer and a willing seller, each acting in his
own self-interest ensures that pricing on transactions
are the basis of fair market valuations.
The buyers and sellers nor their Agents have any
agreements written or implied (spoken or hinted) that
will allow the Seller to remain in the property or regain
ownership of property.
33. Fannie and Freddie DO NOT ALLOW servicers to negotiate commissions
on short sales below the amount negotiated by the listing agent, unless the
commission exceeds 6 percent.
34.
35. AS IS PURCHASE AGREEMENT
• 5 days to inspect
Starts when bank approves sale to buyer at agreed upon price.
• Seller is obligated to provide utilities during the inspection period.
Listing agent needs to ensure owner turns on power.
If power is turned off and buyer chooses not to inspect, get
waiver of that contingency in writing.
AS IS CONTRACT DOES NOT ELIMINATE JOHNSON V. DAVIS
DISCLOSURE REQUIREMENTS.
36. Closing the Transaction
• Track buyer’s loan to ensure timely closing – 30 days very challenging
Buyers need to get pre-approved for loan amount.
• Track all typical inspections, disclosures for timeliness.
• If loan appraisal comes in low – must renegotiate – can cause
problems if there are extension limits.
• Final HUD 1 approval – REQUIRED 24-48 hours prior to close – NO
MAJOR CHANGES ALLOWED.
37. In Short Sales…Need 2 Releases to
Avoid DJs
• What does the Approval Letter say?
• Does it say both the Mortgage AND the Note are being released?
• Does the approval letter say the mortgage is being
SATISFIED or simply released.
• If mortgage is being satisfied, it should contain language
that the underlying obligation under the note is paid in full.
• Look for language in Approval Letter that “mortgage and
note are being satisfied.”
38. Deed-In-Lieu
• “a transaction in which a borrower, after
default, conveys to its lender by absolute
deed, title to real property pledged as
security for the indebtedness.
40. DIL Prerequisites
• Can’t sell the property
• Clean title
• No second mortgages or liens against property
• No judgments against borrower
REMEMBER THE NOTE – Seller wants to be
RELEASED from the note as part of
consideration for the DIL.
41. Title Insurance Issues
• Lenders and title companies share the same concerns
about deeds-in-lieu: They are subject to judicial attack by:
1. re-characterization as an equitable mortgage:
• Deed must be an absolute conveyance
• Grantors cannot remain in possession
2. violation of the “clogging the equity” doctrine (i.e., use
of DIL to prevent borrower from exercising its rights to
redeem the property from a foreclosure sale):
• Deed must be given freely without duress or coercion
3. setting aside of the DIL as a fraudulent conveyance or
preferential transfer under federal bankruptcy or state
fraudulent transfer laws.
42. MERGER
When a mortgage on lands and the equity of redemption in the
same lands become united in the same person, ordinarily the
mortgage is merged,-in other words, ceases to be an incumbrance.
Should it be determined subsequent to the acceptance of a deed in
lieu of foreclosure that inferior lienholders are claiming an interest in
the subject property, a merger of the mortgage estate into the fee
estate could arguably eliminate the lender's ability to foreclose such
claims.
The mortgage released by the DIL may lose its superiority.
43. This Warranty Deed is given as an absolute conveyance of title,
in consideration of the full cancellation by Grantee of Grantor’s
liability for all debts, obligations, costs, and charges secured by
that certain Mortgage encumbering the above described property
recorded on November 7, 2007, in Official Records Book 6156,
pages 2181-2190, of the public records of Volusia County,
Florida, securing $40,000.00, including, without limitation, the
indebtedness secured by said Mortgage; provided however, it is
the intent of the Grantee by acceptance of this Warranty Deed,
that the lien of said Mortgage shall not merge with fee simple title
to the above described property, but rather shall continue in full
force and effect notwithstanding that the Grantee shall be both
the holder of said Mortgage and owner of fee simple title.
44. Tips for Realtors
Things you can do to help minimize this lengthy process time:
• Advise clients to contact their servicer as early as possible.
• Ensure all customer financials are in PDF format.
• Help clients complete all documentation accurately and as soon as possible.
• Make sure the purchase offer is a legitimate offer and fully executed.
• Submit the best possible purchase offer at fair market value.
• Provide listing information and comparables to support the price.
Frequent causes of delay to be aware of:
• A change of buyer or agent at any time may require process to revert to an earlier
step; notify client’s servicer immediately if there is any change.
• Investor/mortgage insurance approval is needed if the servicer is not fully
delegated to approve the short sale.
• Release on a second lien must be received prior to issuing an approval letter.
• If customer has filed bankruptcy, the trustee must provide a court document that
approves the sale of the property.