Obama Proposes Mortgage Refinancing Plan to Aid Millions of Homeowners
The Obama administration announced its latest plan to help troubled homeowners, enabling an estimated 3.5 million underwater mortgage holders to refinance at today’s historically-low interest rates.
However, experts speculate the proposal—which is expected to cost up to $10 billion and would be paid for by imposing a fee on major banks—could have a difficult time getting Congressional approval.
This proposal follows a string of government-initiated programs that have had mixed success, including the Making Homes Affordable Program. The difference is, Obama’s latest plan would assist borrowers with private (non-government backed) loans.
Under the current proposal, to be eligible borrowers must:
Have not missed a mortgage payment in the past six months, and have no more than one late payment in the six months prior;
Have a credit score of 580 or higher;
Have a current mortgage balance within loan limits for FHA-insured loans in their communities; and
The property must be your primary residence
It’s important to understand the details and restrictions of the program so you can effectively understand your options. This proposal is already getting a lot of attention by the media, and distressed homeowners may view this as a viable solution to their problems.
However, it’s important to remember that this program would require Congressional approval, which may never happen. If you have clients who are on the edge, if they are facing foreclosure and desperate for help, don’t let the media talk of this proposal distract them from finding a real solution.
Feel free to check with your local GoodBuy Homes NJ Realty Agent for the latest news and events surrounding everything that is Real Estate
Do I have to start all over After the Approved Short Sale deal dies?
The short answer….YES, WITH A TOUCH OF NO
KEEPING IN MIND THAT A SHORT SALE APPROVAL IS GENERALLY BASED ON A BUYER WITH A SPECIFIC NUMBER FOR A PERIOD OF TIME; SO IF THE DEAL DIES THEN PREPARE YOURSELF FOR ANOTHER JOURNEY AHEAD. AT OUR OFFICE WE PRACTICE THE 3 R’S WHICH IS TO REDUCE TILL YOU RECEIVE A NEW OFFER, RE-SUBMIT FOR A NEW APPROVAL AND REMEMBER BANKS ARE NOT THE SHARPEST KNIVES IN THE DRAWER. WHICH BRINGS ME TO THE HIDDEN 4TH R WHICH STANDS FOR RELAX! BECAUSE GETTING THEM TO UNDERSTAND WILL TAKE SOME PATIENCE
Now lets back track a little…
This question was asked by a new agent who has been working a file for about 5 months and still has no offer despite having the property approved by the lender a few months back.
Often times it is difficult for home owners to actually make the tough decision that they are in over their heads when it comes to their mortgages. A home is the biggest investment that most of us have and to see it all drift away can sometimes be very hard to accept.
Once home owners have come to terms with the situation; they usually reach out to a reputable Realtor who hopefully has knowledge on Short Sales and lists the property for sale on the MLS. Depending on how well it is priced it could take days, weeks or even months to secure an offer. Once received the Agent will forward the Short Sale packet to the lender for review and hopefully approval. The lender then does some preliminary things which includes a full review of the Sellers financial records, income documentation (if any), hardship letter etc…and they also order a BPO (Broker Price Opinion) to determine the properties true market value so they can gage the offer that has been presented. If the numbers make sense you should receive an approval notice from the lender which will give the Green light for the everyone involved that it is a solid deal that has the ability to actually close. But in many cases the buyer backs out before the actual approval arrives or the buyers decides that they are no longer interested in the property; no matter what happened, no matter the reason…the reality is the deal is dead
So now the Realtor/Sellers are stuck with an approved price and no buyer. The Sellers Agent then places the home back on the market as an approved short sale in hopes of securing a new purchaser…but what happens if no one comes right away?
I see homes on the market almost daily that are being marketed as an Approved Short Sale with a quick closing possible; now is that is really accurate information? if you received an approval from the lender in March can you safely say that the number still stands in September? I am sure it may with the bank, but how about potential buyers? How about the Market value today? I also see homes that were approved at one number and the list price is substantially less; for example: short sale approved for 150k, list price 99k…Wouldn’t this lead to attracting buyers that are looking for homes under 100k calling you only to be surprised later on? do you call this lead generating or misleading; what do you think?
In my business, I market homes until an offer is received and if that deals dies, my notation in the MLS reads “Short Sale was approved at list (or specific number) but further review will be needed upon securing a new offer” Lets be honest value in some towns change almost daily, so doesn’t that make it hard to determine the amount that the lender would accept? especially if time has lapsed and that approval date is long behind you? The way I see it no matter how you look at it; its back to the drawing board for this house.
So prepare yourself and your clients as well as cooperating agents that this short sale has made it to the promise land but has since returned and hopefully will be back there again reeal soon.
To all of my short sale agents…Keep up the GOOD fight!
House Flip…More like House Flop! how an Investor becomes a distressed property owner!
As a Maplewood NJ Real Estate Broker I work with all kind of buyers in my day to day activities. I work with move up buyers who are looking for a little more space
, downsizing buyers who just sent the kids off to college and now need less space
and let’s not forget the first timers who are soooo excited to purchase their first home, those couples add a little something extra to our lives don’t they
But recently, I have met with investors who are looking to climb that property ladder and invest in rehab and resale properties in our area.
In our area we have homes that range from 250k-1 million+ so its not your typical 50k purchase, 50k rehab and resale for 250k, its a much higher risk involved.
I met one investor in particular who purchased a home in Jan. 2011 with what I found out to be “hard money” later on. If your unfamiliar with hard money; here is a quick explanation. A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution.
So this investor purchased the home for 285k with hopes to renovate the property for around 50k and thought that he would be able to resale for around 450k, so if you were keeping up with the numbers that’s a potential profit of 115k (now that’s a great incentive to take the risk) but here’s the problem; The housing market continues to be on a slight decline and he has been on the market for 160+ days and to make matters worse, now the real investor (the one supplying the actual money) is calling and looking to collect. Not to mention the monthly carrying cost, taxes, insurance and budget overages which has not only sunk his bottom line but has caused the investor to go into his own pocket to make due. He got in over his head and with no more money left…he has went from an investor to a distressed property owner.
This investor now has an unfinished property that sits vacant and now has requested our firm (GoodBuy Homes NJ Realty) to list and short sale the home, but here is the problem; a short sale is always subject to the lenders approval and in this case the lender is a private hedge fun investor and does not seem interested in any reduced payoff of the amount due. This story is to be continued…
Here’s some tips for Agents/Home owners dealing with Investors:
- Make sure you double check the proof of funds letter (we prefer bank statements so we know that it is the investors money and not someone Else’s)
- Be weary of Transactional funding investors; they are usually looking to buy, hold for one day (sometimes a few hours) and resale a day or two later. (not saying that I disagree with this practice but you must be careful) Some states shy away from this practice all together, so check with your local board and State laws. One more thing about transactional funding; do not participate in the back to back closings, some investors will offer you 3 sides of the transaction (dual agency on A to B closing and listing side on closing B to C side) bad idea…really bad idea
- Be careful with Investors who want you to write offers on multiple properties at one time. We feel that this “throw mud at the wall and hope it sticks” approach is not healthy for business because if they all get approved, will they be able to perform and close on them all. My suggestion, try one first and then another, this way you build confidence and see how it goes.
- Lastly Do not make promises on resale values; some investors will ask you what could I resale this for? be careful because some investors take your words as law and we all know values change almost daily. So what I am saying is practice the age old rule of
I work with a lot of investors as well as regular buyers and I have been victim of a lot of things in my time. So if I could help another Agent avoid some of these pitfalls then I have done something. In this market we are all working longer hours and it takes much more effort to get a deal closed so be weary and make sure your working both harder and smarter! and stay away from the
In Newark, NJ if you leave your property Abandoned, be prepared to pay!
The city of Newark has finally figured out a way to slow down the amount of abandoned properties within the city; charge home owners a fine for those actions.
Take a look at these pictures,
Abandoned houses now sit on almost every block of what is New Jersey’s largest City and officials have simply had enough. Overgrown weeds, debris and in some cases active signs of drug and alcohol abuse can be found on a daily basis. These Abandoned and neglected properties have the potential to become public safety and health hazards and are bringing property values down across the city. And now, Newark officials are going after their owners with a $500 registration fee and fines as much as $1,000 for each violation if they don’t comply. These fines may force home owners to maintain some order on their properties and hopefully have a positive outcome on the community.
Newark’s Director of Housing and Real Estate says the city has almost 1,500 vacant residential properties. Michael Meyer says the foreclosure crisis hit the city hard.
“We have seen that the number of properties owned by banks themselves has increased substantially, 40 to 50 percent over the last two to three years. Currently, there’s estimated to be about 800 to 900 bank-owned properties across the city.”
As a New Jersey Broker who is working with many city officials & home owners to tackle this problem head on; I feel this is a positive step in the right direction of what needs to happen for Newark to become one of NJ’s most desired places to live. The question remains will they be able to actually find the home owners and create a way to enforce the fines, because if they can’t it will just be a waste of man hours handing out fines and wasting paperwork because no one will pay and the problem will continue to grow.
Another way to fight this head on is to take preventative measures and stop home owners from Foreclosing on their homes and help them find alternative options to what has become a growing problem nationwide. If you or someone you know is in need of help, please contact us today!
To be continued…
Maplewood/South Orange Home Owners Facing Foreclosure, we can help!
As an active member in the Maplewood/South Orange community; I have to admit that I love these towns, I live here, enjoy its parks and restaurants and I also have my Real Estate Office in town (GoodBuy Homes NJ Realty), so of course as a Broker in the area I often check market trends & sales as a way to stay on top of my market. Over the past 6 months have seen an alarming trend of more foreclosure & pre-foreclosure properties entering the market and the site is quite scary. Many homeowners just don’t know where to turn.
I just reviewed the pending Auction Sales for the Towns of Maplewood/South Orange and we have approx. 40+ homes pending sheriff sale as of today and that number continues to grow. These numbers are alarming to us because we pride ourselves on helping the residents of our area by providing home buyers/sellers seminars, blogging, not to mention our informational websites and of course face to face consultations with home owners in need; but these numbers makes me feel like we are not doing enough.
For anyone out there in cyber space that are unsure about how a Short Sale can help them avoid foreclosure; here’s a quick recap of what it is and how it works.
Short Sale
If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship in order to qualify. Hardship can be simply be defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, just to name a few.
· Benefit: A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment (repayment of the balance of approved sales price and balance owed). The Borrower may qualify for another mortgage in as little as 24-36 months (as opposed to five-seven years for a foreclosure) and also avoid the 10 years that the Foreclosure will be on the credit profile of the borrower.
· Drawback: Short sales can be a trying process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way. Trying to attempt a short sale without proper guidance can be a daunting task and much help is needed in order to get through the red tape that most lenders have set in place.
This represents only a summary of a short sale; keep in mind there are other solutions available to homeowners facing foreclosure. What is sad about most foreclosures is that on average 60% of home owners foreclose because they did not have enough information regarding their options. We want to change that, one home owner at a time. No one can guarantee a 100% success rate when attempting a short sale, but if you simply avoid the issue you are a 100% guaranteed that the bank will eventually foreclose.
The State of New Jersey has some of the toughest Foreclosure proceedings in the United States so you may still have time left on the clock 
Don’t waste it listen to friends and co workers, contact us for a free consultation to discuss your options so that we can formulate a game plan to help you avoid Foreclosure.
The towns of Maplewood/South Orange & surrounding towns are great places to live;
they features good schools, tons of entertainment, outdoor excitement and most of all great people. Unfortunately these town are not immune to the decline of the Real Estate market and home owners in these areas as well as surrounding towns need to know that help is available in the event a Foreclosure is looming. contact us today. We understand how hard it is to come to the realization that you cannot make your monthly mortgage payments, but it’s not the end of the world, we want you to know that you are not alone and we are here to help!
You sure can tell a lot about a buyer by their Pre-Approval Letter
For House Hunters who are looking for a home on their own and Agents that are working with Buyers, I cannot stress enough the importance of being pre-approved for aa mortgage before starting the process. In our office we stress the ” Power of the Pre-Approval” 
I make it a necessity to explain to buyers the importance of a pre-approval letter and how it helps tell the story to the seller of who they are and what they are capable of doing. The days of presenting offers directly to the seller are just about completely behind us; so besides the contract and its contents the pre approval is very important.
Now when we are representing sellers and are reviewing potential offers the thought process remains the same; after reviewing the contract and its fine print, we check out the pre-approval letter and (who it is from) because it may warrant some investigation.
In most cases we contact the loan officer directly that issued the pre-approval and discuss briefly “The Deal” some call it a bit much, but we call it being extra thorough.
Now some buyers come with Pre-qualification letters and we stop them before starting the house hunt and explain the difference to them. Because we feel that before a buyer can understand the importance; they must first understand the difference between a pre-qualification letter and a pre approval letter. Now without getting all technical; here is the nuts and bolts 
of it all.
A Prequalification is an unofficial estimate of how much house you can afford. A loan officer will make an educated guess about your ability to buy a home based on your verbal or written submissions of income, finances, and credit history. This is not the route to go if you are serious about buying, especially if its the home of your dream.
On the other hand, a Pre-Approval is a review of your financial documents (tax returns. W’2’s, pay stubs, banks statements etc…) and determine the likelihood of a buyer being able to successfully purchase a particular property.
I often find that buyers come with pre-quals or pre-approvals from loan officers that we just are not familiar with and it actually creates a situation where we request a 2nd opinion because the worst thing to do is to place a house under contract, pay for inspections, appraisals, order title only to find out that the loan officer cannot close the deal. Been that road too many times before, so we ask that buyers as well as our agents be very informed about the value of being pre-approved so that they can house hunt with confidence. For us its not an option, but a policy.
Here is some quick advice for all:
Buyers: whether working with an Agent or not get a pre-approval from a reputable Lending institution so that your home buying dreams do not become a nightmare later on down the line
Sellers: Even if your Agent does not emphasize on it, review the pre-approval and make sure some due diligence is done to hopefully put out a fire before it starts
Buyers Agents: DO NOT put anyone in your car unless they have been pre-screened, its not only dangerous but can be a huge waste of time if you come across a window shopper
Sellers Agents: Review that pre-approval and consider calling the source to make sure it’s official, last thing is you want to take a house off the MLS because you think it’s sold only to find out that the buyer was never qualified to begin with.
Remember everyone gets hurt when deals die…we all know that many factors can kill a deal 
but when its something that could of been prevented; if only someone exercised a little more due diligence then we must do a better job of bullet proofing our transactions.
FORECLOSED?? I didn’t even know the house was for sale!!!
I just got a new listing in a Maplewood, NJ and I was talking to the home owner about my plans and how quick I was going to sell her home (yadda…yaddda…yaddda) and we got to the discussion of the list price and we ran into a little issue.
I followed my normal routine and we went over the CMA and I explained to her what I thought the list price should be and the number I gave her was somewhat of a shock to her…(not the normal shock that we all are used to seeing), I mean utter horror movie shock…
you see the house next door was just listed as a REO and is currently listed at about 20+% less than what it would normally be for this style of home. She said “Foreclosed? I didn’t even know the house was for sale“, I explained that a lot of people are struggling to hold onto their homes and sometimes they allow emotions and pride to affect their better judgement and never seek help. She said that the previous owner moved out in the middle of the night.
I also had to be the bearer of bad news and explain that her neighbor that lives a few doors down is also listed as a distressed property (a short sale) and that will also affect her homes value. Some Agents do not subscribe to the idea that these properties affect overall values but they do. The sad part about it is my client is motivated as she wants to move further south and if we do not get close to asking she will either have to withdraw the listing or come out of pocket just to sell.
The story on this house is to be continued…
As a Broker that deals with the high end homes down to the boarded and distressed properties; I find it extremely important to educated my current clients to discuss buying and selling with not only them but there friends/co workers and family because its not just for the sake of a referral but there are some occassions where people are in need of help and are simply afraid to ask; so when its coming from a friend or family member; at times it can make all the difference in the world to get them to open up.
I hope my fellow AR members are talking with their clients and requested not just referrals but information on people who may be in need of your help, besides that’s really why we are here, right?
WHAT IS A DEED IN LIEU (DIL) OF FORECLOSURE?
Many New Jersey Home owners are facing Foreclosure and are unsure about their options. Many are at the point of no return and have been in their homes in excess of 18-24 months without making a mortgage payment and are feeling afraid that the end is near. In most cases the lender will reach out to the borrowers and discuss a few options; one option is a (DIL) or Deed In Lieu of Foreclosure; also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. It is a voluntary process and Lender approval is required for this option. The homeowner must also vacate the property in most cases 60 days after the paperwork is completed.
Advantages Of A Deed In Lieu Of Foreclosure:
- A deed in lieu of foreclosure will benefit the lender by saving costs of a formal foreclosure proceeding and allowing them to resell the property and avoid further expenses and financial hardship.
- Eliminate or reduce your remaining mortgage debt, in most cases the lender will not pursue the balance owed on the mortgage and allow the home owner to simply walk away. In some cases cash incentives are offered to help home owners get a fresh start in moving on from the situation.
- Avoid the negative impact of a foreclosure, the Foreclosure can be the most devastating event to happen to a person, its important to avoid the embarrassment of a public auction, the destruction of the home owners credit and the stress that is created when you have to go through such a life changing event.
Drawbacks to a Deed in Lieu of Foreclosure:
- What is the Effect on credit? A deed in lieu will affect your credit report. Some sources say the affect on credit is identical to that of a full-blown foreclosure, but cannot be determined, until after it is all said and done. Remember each individuals situation is different, so Don’t believe everything you read online.
- In most cases it is almost impossible to obtain a deed in lieu if you have a second or third mortgage, home equity
loans, or tax liens against your property.
- Ability to buy another home. There is no such thing as giving a deed in lieu and turning around to immediately buy another home for at least 4 years . That is based on there guidelines regarding any applicant that has had a deed in lieu on file within that time period. There are exceptions (but I would not count on those) generally its 4 years without extenuating circumstances, 2 years with extenuating circumstances. They continually make changes to guidelines.
- Make sure you obtain a Release of liability; the deed in lieu should specifically state that you are being released from liability to repay the loan or the balance post sale.
If you or someone you know are facing financial difficulties for any reason and need help…contact us today! Remember
you are not alone…
you can visit us on the web at http://www.njshortsalehelp.info/ email us at: info@goodbuyhomesnj.com or call us anytime at 973.849.6907.
NEW info on short sales with CITI MORTGAGE
If you have a deliquent Mortgage with CitiMortgage, this news may be GOOD news for you! In an attempt to streamline the process and help more home owners avoid foreclosure by means of a short sale; Citimortgage is giving its borrowers an average of $12,000 to short sale, according to Justin Rand, Senior VP of loss mitigation at the bank. Not only are the timelines shrinking to complete these deals, but the incentives paid to qualifying borrowers – again only on loans owned by Citi – increased in recent years as well. If you have a Mortgage with another Bank and need help, please contact us today!
Things have changed for the better as In early 2009, Citi offered an average $1,500 to qualifying borrowers. That went up to between $3,000 and $5,000 in 2010 and finally up to an average $12,000 so far in 2011, Rand was quoted as saying in the interview.
As it is the case with all banks, the key to a successful short sale, just like modifications, is the timely collection of financial documents. Regulators helped move the process along with guideline changes to programs like the Home Affordable Foreclosure Alternatives initiative, which lessened the amount of documents required in order to see quicker results.
Do NOT work with unqualified “promise makers” or a “get out of foreclosure quick” company as it is such an important time right now! Remember a qualified REALTOR and/or Attorney can be the difference in a smooth transaction or a bumby road ahead
This News from CITI is big because now more than ever home owners in need of help need information and support and this is a step in the right direction.
Justin Rand, the senior vice president of loss mitigation at the bank, said servicers are putting more of an emphasis on streamlining the process and pursuing a short sale ahead of foreclosure. The short sale process in 2009 took an average 120 days from listing to close. But by reaching out to borrowers instead of waiting for them to ask the bank, short sales now take an average 83 days to complete, Rand said at a panel for the REO Expo Conference in Fort Worth, Texas, earlier this week
We have worked with a lot of home owners in Essex & Union Counties and enjoy helping people throughout New Jersey avoid foreclosure and find some relief from the stress of such a tough situation. HOW CAN WE HELP YOU??
Malik Crichlow
BROKER/OWNER , CDPE, SFR
GoodBuy Homes NJ Realty
1811 Springfield Avenue Suite 2Maplewood, NJ 07040
Office: 973.849.6907
Direct: 347.538.6864
Fax: 973.843.0277
Info@Goodbuyhomesnj.com
GO TEAM GREEN!!!
The gift and the curse of the “Approved Short Sale”
As a Realtor that engages in a lot of Short Sale business, I find that there are so many things that are needed just to get to the finish line of a deal.
- You have to Meet with the client
- Go through the process
- Collect what will eventually become the Short Sale package
- List the property
- Market the property
- Secure a Buyer
- Contact the Lender
- Pray the buyer holds on
- Negotiate the deal
- Pray the buyer holds on
- Get it sold
Now if you are an agent that list Short Sales; you know I left out about 10,000 other things that are needed and done by any qualified Agent but come on y’all (this is a blog, not a book report)
. Anyways, It’s truly a passion that you must have because sometimes the pay just doesn’t match up to the amount of work that is needed in order to get it done. But for me, I find small successes in all that we accomplish and I find that there is no better feeling than knowing you helped someone avoid a FORECLOSURE.
A problem that I have and have seen; is that after months of fighting with the lenders, Agents lose the interested buyer and now have “The gift and the curse of the Approved Short Sale”. You are fresh off of a victory when you got it Approved but now the question is how “ Approved” is it? If you can secure a buyer quickly after losing the initial one and before the commitment expires you have a legitimate chance, but what if you don’t?
Is there a Doctor in the house!!!
I think I need a Medic after pondering the idea of having to start all over again….
I’ve seen listing active 60-120 days after a deal had died and it is being marketed as an approved short sale, so I ask again…how approved is it?? The bank will likely want to order a new BPO, and want updated financials from the seller, so in reality aren’t you starting the short sale process over again (in a weird, twisted, sorry I have to say this) kind of way. The fact remains that values change all the time so if you have a short sale and you lost the buyer and you have an approved number, you better hurry!! because time may be running out on you…
Just so you know; I am not saying that I disagree with the practice; in fact I have a listing right now that was approved about 40 days ago, and I am marketing the property with the title of Approved Short Sale, but as I question myself, I might as well discuss it with the masses….what do you think?
After a certain period of time, can a short sale still be considered APPROVED?
Need HELP?…Reach out to us
And we Will reach back
SHORT SALE DENIED…YOUR HARDSHIP ISN’T HARSH ENOUGH!
Being a Short Sale Specialist in my area I come across many distressed home owners that are looking for a route to avoid foreclosure. I generally conduct a phone consultation; if that goes well, it is followed up by an email with a list of items that I will need in order to sit and meet with a home owner. Usually they have everything in order when I arrive, we discuss the past, present and future as well as the Short Sale process and what to expect. Then I take the listing!
During the consultation I constantly try to tap into how the situation got into its current state and look to determine how valid the hardship is before agreeing to take that journey…
What I have found is that people have a hard time determining what a “HARDSHIP” truly is; so I want to go over that as well as what’s NOT a hardship…SHALL WE ?
The following does not constitute a Hardship:
- The neighbor sold for 50k less and has brought value down in the area.
- Your tired of paying your mortgage (Secretly aren’t we all tired)
- That guy that works at your job and has no Real Estate experience told you that all you have to do is be late a few times and the bank will work it out for you.
- You bought at the height of the market and you feel you got taking advantage of; so the bank better do something
- You got a raise at work and a 25k bonus but they wont find out, so you claim insolvency
- You hired an idiot Agent who convinced you if you miss a couple payments you qualify for a loan mod or short sale (know your job)
- An investor knocked on your door and told you to take all your money out of the bank and let him negotiate a short sale and he will pay you when its done (can you say jail?)
- Bad purchase decisions. Over the last 2 years you had fun Blowing your paycheck on a home theater system, brand new Mercedes and maxxed out all your credit cards, so now your broke.
- You hate the nosey neighbor next door and one of you has to go!
- You want to sell the house to your cousin because they can buy it back for 50 cents on the dollar.
(I don’t see or hear anything your talking about right now)
OK, enough jokes, but seriously, distressed owners need a real hardship and its the Agents job to qualify them for a short sale, so be diligent and ask the right questions and I hope it all goes well.
The following describes exactly what is a Hardship:
- Unemployment, loss of income is a huge reason for most hardships
- Divorce, if you are coming out of a two income relationship and now you are left with one, it may be difficult to carry the load
- Medical emergency / sudden illness, this can be tragic and cause problems with going to work and making money to pay bills
- Bankruptcy, if you have become financially strapped and go the bankruptcy route a lot of changes can and will take place with your home.
- Death, in the event the primary or even secondary mortgagors demise, paying for burial services and or losing a partner may make paying the mortgage impossible.
- Severe Damage to the property may make the property uninhabitable thus making it difficult to pay for two residences.
- Payment increase or mortgage adjustment, a lot of home owners realized an increase in their interest rate or Tax payment and now they just cannot afford to maintain the home
A Distressed home owner experiences many different emotions and its up to us help guide them to the foreclosure avoidance options that are available and not leave them feeling alone.
Of course there is no straight answer when you are dealing with a short sale; each one is different regardless of the lender and you have to have a knowledgeable agent that has your best interest at heart. Do not play the game of making up a hardship as it could get very ugly if your deceit is discovered. That warning also goes for agents, do not involve yourself or your brokerage in any transaction that is not 100% authentic. When people lie and manipulate the system it affects your REAL clients adversely and that is unacceptable as they are the ones that truly need the help. Contact us at 973.849.6907or by email at info@goodbuyhomesnj.com if you or someone you know is in need of our help.
Malik Crichlow
BROKER/OWNER , CDPE, SFR
GoodBuy Homes NJ Realty
1811 Springfield Avenue Suite 2 Maplewood, NJ 07040
Office: 973.849.6907 Direct: 347.538.6864
Fax: 973.843.0277
Info@Goodbuyhomesnj.com
GO TEAM GREEN!!!
SO YOU ONLY WANT TO BUY IF YOU CAN NEGOTIATE THE SALE HUH? (let me think about that one)
As a New Jersey Short Sale Specialist I encounter so many home owners that are trying to hold on but
the rope is starting to break…
There is an abundance of information out there and home owners are uncertain on which way they should turn
If you list and sell a lot of Short Sale Listings like I do; then you may have been approached by these New Age investors who want to purchase your listings but ONLY if they can negotiate with the bank directly. I personally have mixed feelings about this practice; they promise a full 6% commission to the broker with a pledge
to do whats best for the home owner, but I am not sure if I am buying that. First off in almost every transaction that involves Real Estate; you have two constants…
Number 1: The Buyer wants to pay as little as possible for the house 
Number 2: The Seller wants to make the most money possible on the sale.
So the question remains; if the buyer is negotiating on behalf of the seller; is there a middle ground??
I have been contacted by several vendors promoting their services and I question how could this be done where it favors all parties? For starters if a home owner is facing foreclosure; whatever can be done…should be done to avoid that devastating event. So if this is an option available to you or your clients then you may want to considered it. But I also know that for every one GOOD agent there are 5 Bad ones and I am sure the same odds carry for people that look to engage in this sort of practice and ultimately; it is a roll of the dice 
My concerns are how do you gain clarity and decide as an agent if this is something you can use in your everyday business or a home owner; who is trying to decide if this is the right option for you?
Here’s an example on how it generally works, it is considered an A B C transaction.
-
Seller does a deed transfer with Investor; this allows the investor to discuss options with the bank and negotiate the sales price.
-
The investor buys the property via an option contract (usually all cash or transactional funding)
-
The investor then sells the house to a final end buyer for profit who will be the new owner at the end of the day
***** Understand that they are investor and will be trying to negotiate for the lowest amount possible and looking to resale for a profit. Also keep in mind, that in a short sale the seller will net zero at the end of the day *****
Again I am no advocate for this practice nor am I a critic; I think in this market it will take some creativity to get these distressed properties out of the market place and get us all back to a sense of normalcy. So as long as you are working with a company that is truthful and provides full disclosure then it may all be fine. Some of these companies will have you sign over your deed,(thus your rights) only to have been accused of holding homes and their owners hostage
. Home Owners remember; it is advised to always have a lawyer involved when doing anything that involves Real Estate, because one wrong stroke of the pen and you can be out on the street before the ink drys. I have heard horror stories of people doing some really misleading things to people and home owners ending up out in the cold because they did not know what they were signing. Again always have full disclosure along with understanding when it comes to Real estate transactions.
As a Short Sale specialist; I know first hand how much of a hassle it is to deal and fight with these banks, some of these deals are like pulling teeth…
but don’t choose this option or put your Sellers at risk unless you know the facts. I have met some people that seem to be real honorable in their approach and if ever needed those would be the people I reccommend any of my clients too.
REMEMBER IT’S HARDER TO DO WRONG, THEN TO LIVE RIGHT!
The internet provides so much info, sometimes too much but do your research before working with these types of companies. One good source is the 
Trust me if their there, then you may want to move on to a more credible company.
If you or someone you know is in trouble and in need of help please feel free to contact us anytime, we are always here to help!
Malik Crichlow
REALTOR® , CDPE, SFR
GBH NJ
Direct: 973.849.6907
Fax: 973.843.0277
The Never Ending Story…The short sale that finally closed!!
I recently closed a short sale that I had in my pipeline for almost 2 years…and I feel grrrrrrreat
I first listed this property in July of 2009 and we have been under contract 5 times over that span and it finally closed. In my office this deal was labeled as the Never ending story…
OK, it wasn’t as fun but worth it for my clients at the end of the day…
Here’s a recap on how this deal went down
Listed on July 13, 2009
1st offer, 09/2009 @$150k, buyer canceled after almost 5 months,
2nd Offer 02/2010, $90K, buyer canceled after 7 months,
3rd Offer at $90K, with no feedback, buyer walked away.
4th Offer 90k buyer canceled after 6 months
5th Offer for 85k after 5 months… SUCCESS!!!
This loan was sold mid way through offer 1 to B of A then once it landed in
of that house!!
A true Short Sale Specialist, works not just for the commission but for the opportunity to help home owners avoid foreclosure and financial devastation. If you or someone you know is in need of some help and want to work with one of the best…Contact us today!
Malik Crichlow
REALTOR® , CDPE, SFR
GBH NJ
Direct: 973.849.6907
eFax: 973.843.0277
A quick recap: New Jersey Foreclosure Information for home owners
With home values unsteady and unemployment rates at all time highs; so many home owners are under water and in desperate need of help and answers.
many are facing the possibility of Foreclosure and with so much information available its hard to sort through the maze. I am sure most of you have read about the damage that foreclosure does to credit and life in general, but here’s some information that may be useful if you or someone you know is in this situation.
New Jersey Home Owners that find themselves in distressed situations need to understand how New Jersey deals with Foreclosures. Here is a Quick Overview of New Jersey Foreclosure Information for Home owners.
Is NJ a judical or non judicial state? 
- NJ is a Judicial Foreclosure State judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens. The complaint will state what the debt is, and why the default should allow the lender to foreclose and take the property given as security for the loan. The homeowner will be served notice of the complaint, either by mailing, direct service, or publication of the notice, and will have the opportunity to be heard before the court. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff’s sale.
How long does it take before you’re in Foreclosure?
- Processing Period – Depending on the court schedule, it usually takes around 270 days or more to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy. New Jersey has one of the longest wait times for foreclosures. A defendant has 35 days in which to file an answer to a foreclosure complaint otherwise default will be entered. Once default is entered the plaintiff must wait another 45 days before entering final judgment and thereafter a writ of execution is issued and delivered to the Sheriff to effectuate the foreclosure sale process. The defaulting borrower must be given at least 10 days notice before the foreclosure sale can take place.
Is there a redemption period? .jpg)
- Redemption Period – Redemption is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process. New Jersey has a statutory right of redemption, which allows a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs. There is a time limit of only ten (10) days to undertake such redemption after the foreclosure sale.
Is NJ a deficiency judgment State? 
- A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full. The availability of a deficiency judgment depends on whether the lender has a recourse or nonrecourse loan, which is largely a matter of state law. In some jurisdictions, first mortgages are non-recourse loans, but second and subsequent ones are recourse loans. In New Jersey The bank can seek a deficiency judgment for the shortage on the actual amount received versus the amount that was due.
What Options do NJ Home Owners Have to Avoid Foreclosure?
Reinstatement
A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.
Forbearance or Repayment Plan
A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.
Mortgage Modification
A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage
Deed in Lieu of Foreclosure
Also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property
Sell the Property
Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.
Short Sale
If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.
Foreclosure is a horrible event and should be avoided at all cost. Home owners have to seek advice and counseling from qualified Attorneys, accountants and Real Estate Professionals when faced with this type of dilemma. The information in this post should not be interpreted as legal or tax advice. Home owners are advised to speak with licensed Accountants & Real Estate Attorneys for expert advice.
If you or someone you know are in a distressed situation and need answers to some very difficult questions; feel free to contact us anytime. For more information or to speak to one of our Short Sale/Pre-Foreclosure specialist please Contact Us immediately.
Malik Crichlow
REALTOR® , CDPE, SFR
GBHNJ Direct: 973.849.6907
Fax: 973.843.0277
Malikcrichlow@gmail.com
New Jersey Short Sales; is your agent qualified?
As a New Jersey Short Sale Specialist I work with a lot of home owners who find themselves in distressed situations and in need of an educated Realtor to assist them to understanding the options they have available. 
Now I am sure Agents everywhere find themselves in an environment where Short Sales and REO are the only things moving; usually because they usually are below market value. But just like buyers looking for deals a lot of agents are looking for business and are willing to take on business any and everywhere they can, even if its not their area of expertise. Now I’ve found a trend that is sweeping the nation (well maybe not sweeping, but its more common than it should be)and it is agents that have no training or experience in these types of sales accepting business (listings) which is not in the best interest of the Client (seller), cooperating Realtors (us) and the entire Industry (All of us) as it gives the profession a bad name when any agent accepts business outside of their area of expertise or in a situation where they can’t obtain the necessary info to do their job properly.
Let me say this I’m no judge
, I for one am guilty of the same exact thing. I remember I took on a commercial listing a few years ago out of a need to generate business even though I did not have a clue on how to handle it, in this iinstance had mentors to help me and the listing eventually sold. Since then I have lived and learned and I want everyone to understand the importance of doing what you know to make sure you don’t make the same mistakes that I and so many others have made.
Case #1: I met a guy (actually he installed Vonage in my house) and as always I make conversation with him because; just maybe he knows someone that needs to buy or sell and this is what I do! So anyways I said to the guy, how are you? He says oh not so good! I ask why? He says I’m losing my home, its going into foreclosure, I ask well have you explored all options to keep it or at least some foreclosure prevention options? He said well its listed with an agent, I replied; great!, do you have equity in your home? He says NO, not at all in fact I owe more than its listed for…my response; so your doing a short sale on your home then right? He responds, what’s that? I was shocked 
, I said you have your home listed with an Agent and you owe more than its current list price and you don’t know what a short sale is??, so I decide to pull it up on the MLS and guess what I discovered, the listing has NO reference to it being a short sale, not to mention by that point the house has been on the market for 284 days…I explained to him the importance of talking to his Agent, Attorney and Lender as time may be running out. He finished the job and left, he asked if I could stay in touch; I agreed.
After he left I called the agent (out of curiosity) and of course she did not respond after 3 phone calls, 2 text and a call on her cell phone. Finally we got a chance to chat and I inquired about the home and she starts trying to sell me… You know great house, nice size rooms, blah, blah, blah 
but no reference of the fact that its a short sale, I even asked her out right is this is a short sale? She says oh no quick closing available! Unfortunately the house eventually Foreclosed…
The question remains; is the agent at fault? what do you think?
If you don’t know how to handle a situation you can always:
- Ask someone for Help (Mentor, Broker, Agents)
- Get training! (Real Estate boards every where offer Short Sale training)
- Refer the Business (At least you still get something)
- Decline the work (how many will actually do this)
The moral of the story is this; I wasn’t there when the listing was signed and I’m sure the agent is a great person but her lack of knowledge or inability to get the info needed to facilitate such a sale is apart of the problem.
When a home owner finds themselves struggling with their mortgage and look to one of us for help, its important that we refer if we are not qualified or get qualified so we can truly be the Real Estate Professionals/Experts that we are paid to be.
Thank you, Make it a GOOD day!
Malik Crichlow
REALTOR® , CDPE, SFR
GBHNJ
Direct: 973.849.6907
Fax: 973.843.0277
Malikcrichlow@gmail.com
If your requesting a Short Sale, Why did they just buy a Mercedes?
As a New Jersey short sale specialist in my market area I see a lot of unique situations when it pertains to how someone got into such a distressed situation. I will start by saying, it is solely someones prerogative if they want to buy something or not and I am not the judge, nor juror, but come on now!
I met a home owner that came to me over a year ago because she was in a financially tough place and needed help selling a property, of course I agreed and we listing the home.
So I priced it properly and we started getting offers 30 days later. Now here is how those offers went:
- 1st offer, @$250k, buyer canceled after almost 5 months
- 2nd Offer $190K, buyer canceled after 7 months
- 3rd Offer at $190K, is running almost 4 months, with no feedback from bank . The Property was vandalized and the buyer walked
- 4th Offer at $175K, is now on the table. Which I have submitted.
At this point I am just dying waiting for the phone to ring…
So I finally got someone to talk to me and now we are getting some where. So I get a call from the negotiator who says ok, based on your offer we have a deal but in addition to the offer we want 10k in seller contribution in order to accept. I argue that if they do not have money to pay the mortgage, where would they get 10k from in the next 30 days? and the negotiator says well if they can’t pay the investor “Why did they just buy a Mercedes?” 
Mercedes? when? “2 months ago” she replied, and guess how much the payment is….drum roll please
I sat speechless after hearing that so I reached out to the seller and said now its time to get some money together so you can do your part in getting this closed. They said they will see what they can do. I asked about the car and she stated well we needed a new car, I said ever heard of Honda? how about Nissan? lol (I didn’t really say that, but I was thinking it)
So now we finally get to the table and the seller could only get 5k together and the buyer had to come with the other 5k, now is that fair? Anyways, It took this to serve as a reminder that clients should be advised that during this type of process they are being watched and they have to think before swiping that card 
I am not saying that the Bank only wanted the 10k because the seller bought a car or anything else for that matter; but it is important to educate sellers AND buyers so that they do NOT make any unneeded purchases during the home buying or selling process. In this market Banks are taking an even closer look at credit (especially New credit) right before closing, so thread carefully people. The serious consequence is that is your deal could be denied and in the end of the day that new car, vacation, or piece of jewelry could cost you more than your willing to pay.
BUYER AND SELLER BEWARE!
Malik Crichlow
REALTOR® , CDPE, SFR
GBHNJ/Sell State Property Solutions Realty
650 Bloomfield Avenue Suite 106
Bloomfield, NJ 07003
Office: 973.429.0990 ext.271
Direct: 973.849.6907
Fax: 973.843.0277
Info@goodbuyhomesnj.com
Maplewood and South Oranges dark side…Short sales, pre-foreclosures and REO’s
It is never my intention to be the bearer of bad news…
in fact if you ever met me you would know that I am upbeat, energetic and a very positive person 
but there is an increasing amount of activity in Maplewood & South Orange NJ that most agents and even home owners do not want the world to know about…and that is the F WORD (FORECLOSURE)….If you are a follower of my blog you would be familiar with my previous post in regards to short sale and foreclosure activity in Maplewood and South Orange, CLICK HERE to check it out.
As of today there are 37 homes that are in pre-auction status and a whole lot more that are currently listed as short sales in our area 
. Now I am optimistic that we as an economy, state and cities will rebound from the struggles of the housing market but I also want to point out the fact that these home owners need help and information so that they can truly understand that foreclosure is NOT their only option.
I spoke with a women from Maplewood 
the other day who recently foreclosed on her home and I had a conversation with her in an attempt to find out why?
I asked how did you get the point of foreclosure? She said; “I lost my job in Dec of 2008, right before Christmas, I was so embarrassed and did not know where to turn. I did not want to disappoint the kids so I still celebrated Christmas and made sure everyone still got their gifts, big mistake…By mid Jan I was already tapping into savings and funds were running low, I pulled my daughter out of Karate, and my son out of Tennis. I looked for a job for the entire year, I did get a few odd jobs here and there but nothing concrete…at this point I am borrowing money from friends and family while dealing with the bank calls, emails & mail…it became too much, I had a hard time keeping the lights & water on most months…I needed help…I didn’t know agents like you existed in our area“.
Why would you say that? there are many professionals that are here to help. Well I didn’t want to seem like the poorest person on the block, it’s quite embarrassing to go from a Mercedes and a comfortable living to having my home marketed as a pre-foreclosure home; I just couldn’t get over it!
What happened next? “I was stressed out, not eating & losing weight, I had enough at that point, I was a year + in and lost hope…I just wanted it all to be over. The bank really got aggressive and the calls and letters were overwhelming, one night I cried and decided that its time to move…the house did not feel like a home anymore… it eventually foreclosed.
Unfortunately she eventually foreclosed and I met with her shortly after that as she recently found a job and was looking for an apartment for her and her 2 kids. The moral of the story is this; financial problems or hardships can hit anyone at any time and is not just an isolated event for lower class neighborhoods, it can happen anywhere. Home owners who are in a distressed situation need to seek help from qualified Real Estate Professionals to help guide them through foreclosure avoidance options.
If you or someone you know are facing some financial hardships or find yourself in need of foreclosure avoidance help, Contact Us anytime, we are always here to help.
Real Estate…Why do I even bother??? Hers’s why!
Just before 2010 came to an end 
I was working a Short Sale for a home owner that was very, very, very difficult; and after all that hard work we actually closed the deal successfully. Now when I say it was difficult, I’m NOT talking about the difficulties that come along with most Real Estate transactions…I’m talking about tough…
Like Ford tough…
Like Brock Lesner tough…
…ok I guess y’all get the idea…in any event I listed this property in August of 2009 and it was what I would call a Battle of Epic Proportions (Good vs Evil) with the lender (B of A) to get it closed. After 15 months of fighting, It actually closed….It was truly a Christmas present for me and most importantly the seller!!!
I even laughed when I saw the commission check 
because I took the $1500 check and divided it by the amount of days it took to close and came up with the grand total of $3.00 Per day.. Now was it worth it? a question that an agent in the office asked me; my response….Absolutely!!! and here’s why
- Another home owner avoids foreclosure
- Another home owner avoids foreclosure (I know I said it twice, but it’s that important)
- The referrals are endless…This deal closed in December and I already got my 1st referral, when someone is happy with your service they will tell everyone they know about you!
- The smile on my clients face was priceless!
- Lastly I just got this in the mail today…
Too be honest check or no check this made it all worth while. It touches my heart when a satisifed client shows their gratitude in whatever way they choose. its deeply appreciated on so many levels and it was enough to make me blog about it!
I’ll be honest when a home owner is in a distressed situation its one of the most saddest things to see. To see someones American dream become a nightmare and watch how their spirits are broken as they look to you for answers is a very emotional moment to say the least…But being able to provide hope and a resolution to one of the toughest moments in a person’s life is worth the time, effort and energy.
To the client that sent me this Thank You!!!
If you or someone you know is in need of Real Estate Services feel free to contact us anytime!!
New Rules for Wells Fargo Short Sales
Do you have a Wells Fargo Home Loan? Well recent changes to the way Wells Fargo is handling their short sales may affect your liklihood of a successful outcome.
With much speculation on this subject in recent weeks, DSNews reported new rules regarding Wells Fargo short sales when foreclosure is within 30 days. The bank’s new policy will allow for only one foreclosure postponement given the following criteria:
- Wells Fargo has an approved short sale sales contract in hand (if necessary, approvals from junior lien holders and mortgage insurers as well);
- buyer has proof of funds or is preapproved for financing; and
- the short sale can close within 30 days of the scheduled foreclosure sale
Beyond these restrictions, Wells Fargo did note that investors may vary in what they allow, and some states require the courts to approve any delay.
If you find yourself against the clock with a Wells Fargo short sale, there is still hope. The bank expressed its willingness to address situations outside these qualifications on a case-by-case basis. Contact us today for help! remember you are not alone…
The Robo-Signing Saga Continues…
Freddie Mac and Fannie Mae have recently ended their temporary ban on selling foreclosed homes in the latest installment of the “Robo-Signing Scandal.” After cutting ties with the law firm that allegedly forged signatures and hid flawed files from auditors, the two government-sponsored entities (GSEs) have given brokers the green light on marketing foreclosures or completing the sales of those already under contract.
Freddie and Fannie own or guarantee about half of all U.S. home mortgages. With 31 million loans worth about $5 trillion, the two GSEs are significant players in the distressed property market. Around 1 percent (250,000) of Freddie’s and Fannie’s mortgages are foreclosures, while another 8 percent (2.48 million) are currently delinquent.
Source: Calculated Risk Blog
Home oweners; it is imperative that you understand what is taking place and gain an understanding of your options so that you can make the most educated decision on what you should do. As a NJ Short Sale Specialist I am always here to help home owners who need assistance during what is the most difficult time you will probably ever have regarding your home. Contact us today if you need help!
Today’s Topic:Robo-Signing; Lenders Appear Before Congress
Some of the nation’s largest banks will appear before Congress today to explain their actions regarding the “robo-signing” scandal in which lenders allegedly filed thousands of inaccurate documents in foreclosure cases. This scandal initially led to the recent foreclosure freezes by major lenders.
A 125-page report just released by the Congressional Oversight Panel may influence the conversation on Capitol Hill. Alluding to the size, scope and potential large-scale consequences of this scandal, the report said: “If documentation problems prove to be pervasive and, more importantly, throw into doubt the ownership of not only foreclosed properties but also pooled mortgages, the consequences could be severe.”
CNNMoney.com reported the overall concern is that the “banks will be forced to buy back mortgages that had been bundled and sold in the $7.6 trillion market for Residential Mortgage Backed Securities, or RMBS. That could result in severe losses for the banks and destabilize the still-fragile financial system.”
Today’s appearances will include Bank of America and JPMorgan Chase, and sessions will continue on Thursday. I’ll do my best to keep you all posted on any developments, what’s said, and the repercussions for all of us.
If you or anyone you know are faced with some tough decisions contact us today, we are always here to help. Remember you are NOT alone…
Mortgage Modifications Aren’t Stopping Foreclosures…
I was reading an interesting article the other day and felt the need to share it with my followers. A lot of distressed home owners often ask me about Loan Modifications and the overall success rate that I have seen. 
I will be honest in theory a Loan Modification is a great option but the problem lies with the lenders and their in-abilities to put it together and have it actually lead to a home owner avoiding foreclosure. Most recent one of my clients were in the trial period of a loan modification and the bank screwed up in sending out a particular form to the home owner and this caused the bank to terminate the agreement and place them right back where they started. Of course, this is an isolated incident; but with the frustration and all the back and forth that occurred with their many attempts to modify; they have just decided to attempt a short sale and sell the property. I encourage people to try whatever they can to avoid losing their homes to foreclosure; but I also strongly advise that home owners get the facts and work with individuals that are knowledgable on Foreclosure avoidance options.
Check out the article!
Mortgage Modifications Aren’t Stopping Foreclosures…
Jill Gray of Mesquite, Tex., says her 3-year-old son, Anthony, often tells her before he goes to bed: “I wanna go to the other house.” Last month Gray, Anthony, and Tiffy, their black Labrador mix, moved about 12 miles to a rental after their one-story brick house in Garland was auctioned in a foreclosure. Gray, 38, tried for almost a year to get her mortgage modified. Bank of America (BAC) initially agreed, only to rescind approval, telling Gray that documents were missing—documents that Gray says she sent.
Gray’s experience of being evicted while participating in a program designed to avert foreclosures is being repeated thousands of times at the biggest mortgage firms, according to groups that aid borrowers. The government’s Home Affordable Modification Program (HAMP) came under fire at hearings late last month for granting homeowners “trial modifications” during which late fees and debts can stack up and documents can disappear, triggering foreclosures.
“Many homeowners end up facing foreclosure solely on the basis of the arrears accumulated during a trial modification,” said Julia Gordon, senior policy counsel at the Center for Responsible Lending, in congressional testimony on Oct. 27. “One incomplete payment or one accounting mistake can land you on an apparently unstoppable conveyor belt to
Dubious Results
With as many as 7 million homes facing foreclosure or already taken, according to real estate website Zillow, both the government and companies such as Bank of America and JPMorgan Chase (JPM), the two biggest U.S. lenders, offered programs to forestall seizures by easing mortgage terms. Changes include cutting interest rates for as long as five years and extending repayment to 40 years. About half the 1.4 million temporary or trial modifications granted since the program’s March 2009 inception have been canceled, according to Treasury Dept. data. Only 466,708 borrowers have received permanent modifications. About one in five of the canceled modifications is either in foreclosure or bankruptcy, according to a Treasury survey of the nation’s eight largest mortgage servicers, which handle billing, collections, and foreclosures.
Even borrowers who do win approval and never miss a payment can wind up in foreclosure, the Office of the Special Inspector General for the Troubled Asset Relief Program said in an Oct. 26 report to Congress. “They may face back payments, penalties, and even late fees that suddenly become due on their ‘modified’ mortgages and that they are unable to pay, thus resulting in the very loss of their homes that HAMP is meant to prevent,” according to the report.
Mortgage firms make the problem worse by losing paperwork, according to testimony from Richard H. Neiman, the New York State superintendent of banks. In a May and June survey of 40 counselors representing as many as 14,000 borrowers, the California Reinvestment Coalition found that all of them said servicers had lost or ignored documents, according to Associate Director Kevin Stein, whose San Francisco organization works with low-income communities. “It’s more common to hear that banks have lost paperwork than to hear that they received it and properly handled it,” says Joseph Ridout, a spokesman for Consumer Action, a San Francisco education and advocacy group with a network of 9,000 community organizations nationwide. That leaves HAMP participants vulnerable to foreclosure, a process that has been tainted by allegations of “robo-signing,” in which mortgage firms sign and submit court documents to justify home seizures without verifying they were accurate. Attorneys general in all 50 states are investigating.
HAMP Modifications 
Under HAMP, homeowners have their mortgage payments reduced to 31 percent of their monthly gross income. The process often results in them owing more money because accrued interest and other charges are tacked onto the mortgage balance. Some HAMP modifications add so-called balloon payments to the loan that are due when a house is sold or the loan paid off. “The program continues to perform well,” says Andrea Risotto, a Treasury spokeswoman. “The target of affordability that HAMP put in place—this idea of 31 percent debt to income, which was far more aggressive than what was done historically—is helping homeowners sustain the modification.”
Spokesman Tom Kelly says JPMorgan is able to track paperwork because it scans every document as soon as it’s received. At Ally Financial, spokeswoman Gina Proia says the lender requires homeowners to submit paperwork at the start of the modification process, leading to a “higher likelihood” of permanent modifications and lower re-default rates. Jumana Bauwens, a Bank of America spokeswoman, declined to comment on matters tied to lost paperwork.
Gray, the former homeowner in Texas, says she fell behind on her mortgage bills last year after paying for medical treatments for her son that weren’t covered by insurance. She says she received the modification offer from Bank of America in December and immediately signed and returned the contract, using the supplied FedEx (FDX) envelope. Bauwens said the bank didn’t receive it by the due date. Gray kept a record of her calls to the bank and printed confirmations of documents she faxed. The log reads, in part: “Sept. 9: Called, was disconnected. Called again. Spoke to Christina. While transferred to supervisor I was disconnected.” When her home was auctioned in September, there were no bidders, so it reverted to the mortgage holder, Freddie Mac (FMCC), which was taken over by the government in 2008. The house is now listed for sale at $55,000.
Gray is again being considered for a modification, and the foreclosure sale may be rescinded, Bank of America’s Bauwens says. Gray, who works in the building-permit department in a city called Fate and is a part-time Avon Products (AVP) saleswoman, says she doesn’t expect to be approved. She’s paying $775 a month in rent, boosting her monthly outlays beyond the program’s guidelines on income and expenses.
By Kathleen M. Howley, Dakin Campbell and Danielle Kucera
The bottom line: Programs meant to prevent foreclosures don’t work for many homeowners who participate, in part because of paperwork errors along with Scam Artist who prey on unsuspecting home owners who are in need of help. When in a distressed situation it is imperative for home owners to align themselves with knowledgable Real Estate agents, Attorneys and Accountants to ensure that they are handling their situation properly. We are always here to help, if you or someone you know are upside down in their mortgage or behind on payments, feel free to contact us anytime.
Malik Crichlow * GBHNJ * CDPE, SFR, Foreclosure Avoidance Specialist * Malikcrichlow@gmail.com * 973.849.6907
Be patient it may be a while before we hit the bottom…
According to the Federal Reserve Bank of New York, 2.7% of current mortgage balances transitioned to delinquency, up from 2.6 percent last quarter. Additionally, industry research firm Foresight Analytics predicts residential mortgage delinquencies at 13.3% for the third quarter. 
New threads are popping up every day on ActiveRain, RealTown and other sites posing the question: Has the real estate market hit bottom? Unfortunately, the answer is no … not yet. I actually think we’re a few years away from a recovery.
However, these numbers show an overwhelming need for homeowners to seek the advice and representation of an educated real estate agent. We pride ourselves on learning and staying up to date with everything that is going on in the housing market while educating our clients and anyone that would listen about options for distressed homeowners.
Help is a few clicks away simply visit www.njshortsalehelp.info today!
Statistics show 1 out of 6 homeowners are currently upside down in their mortgage; remember you are not alone. If you or someone you know has questions; we can help…Contact us Today and let’s begin the process of helping, healing and rebuilding. 
Helping homeowners avoid foreclosure is a daunting task; one that we do not shy away from. I enjoy the looks on my clients faces when I help save them from a financial tragedy. With my knowledge of Foreclosure avoidance options; especially through short sales, this has allowed me to help so many people and also given me the privilege to assist in community stabilization in the areas that I service. And most of all we have helped many families find greater financial stability. That’s the best feeling of them all. Together we will lead the housing industry out of the current crisis. And we’re seeing it happen, one homeowner at a time.
How can we help you?
New Jersey Foreclosure Breakdown….the anatomy of a foreclosure
Many distressed home owners are full of questions and ask me things all the time such as; Malik, Can They Come after me if I let it go into Foreclosure or short sale? how long does the process take? and although technically these question should be answered by an attorney here is some info about how the foreclosure process works here in NJ.
Before you understand how the foreclosure works you must first know a little about our states policies.
How are mortgage liens treated in New Jersey?
New Jersey is known as a lien theory state where the property acts as security for the underlying loan. The document that places the lien on the property is called a mortgage.
How do I know when I am in Foreclosure status?
At least 30 days before starting the foreclosure process, the lender mails a letter to the borrower warning of the impending foreclosure. During this pre-foreclosure period, the borrower can prevent the foreclosure by paying off the amount in default.
The lender initiates the foreclosure through the courts and records a lis pendens (notice of pending lawsuit) with the county clerk. The lender can sue for either the default payments or the entire unpaid principal balance on the loan. The borrower is notified of the foreclosure action in person or by publication if necessary. After being notified, the borrower has at least 35 days to respond or the court will make a ruling. If the court rules against the borrower, a sale date will be scheduled.
There are many legitimate reasons why borrowers may find themselves in default (loss of employment, sickness, death of a co-borrower, etc.). It is the borrower’s best interest to contact the institution servicing their mortgage and explain what the issue is before they are more than thirty days default on a payment. It is strongly recommended that you notify the institution by sending it a certified letter to the appropriate area and then following it up with a telephone call. Most companies have specific units that handle these types of matters.
As a borrower you can request that the institution consider modifying the mortgage loan terms. An example would be the company allowing the borrower to refinance at no or low cost to obtain a lower interest in order to be able to continue making their monthly payments. If you can not make any payment and believe that this can be rectified within a reasonable amount of time, you can request that the institution provide you with a period of forbearance. This would give you the opportunity to address the financial hardship and then begin making your regularly scheduled payments. The institution would then apply the missed payments to either the end of the loan or to be due in full at a later date.
If you and the institution can not agree on a specific type of loan modification or if your request for forbearance is denied you should immediately contact legal counsel for assistance along with an experienced Realtor in the event you decide to sell. When selecting an attorney, be sure to obtain the services of someone who has experience dealing with foreclosure cases and understands your rights pursuant to the
How long does it take to foreclose on a property in New Jersey?
Depending on the court schedule, it usually takes approximately 250 days or more to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy. New Jersey has one of the longest wait times for foreclosures. A defendant has 35 days in which to file an answer to a foreclosure complaint otherwise default will be entered. Once default is entered the plaintiff must wait another 45 days before entering final judgment and thereafter a writ of execution is issued and delivered to the Sheriff to effectuate the foreclosure sale process. The defaulting borrower must be given at least 10 days notice before the foreclosure sale can take place. I have found that it takes months before an actual sale takes place but the above mentions the actual timeline in which they have to execute.
Once there is a Foreclosure sale; can I get the property back at any point?
New Jersey has a statutory right of redemption, which allows a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs. There is a time limit of only ten (10) days to undertake such redemption after the foreclosure sale.
Does New Jersey Allow deficiency Judgements?
Yes. A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan. New Jersey however has a “Fair Market Credit” doctrine set forth under N.J.S.A 2A:50-3 which is a safeguard against low or minimal bids which may give rise to a windfall in the event of a deficiency proceeding. Under this doctrine the defaulting borrower is given credit for the fair market value of the property regardless of what the bid at the foreclosure sale was. This is however an affirmative defense which must be raised in a deficiency proceeding. Deficiency actions must be brought within three (3) months of the foreclosure sale.
How does NJ foreclosure laws stack up against other states?
| State | Judicial | Non- Judicial |
Comments | Process Period (Days) |
Sale Publication (Days) |
Redemption Period (Days) |
Sale/NTS |
| Alabama | • | • |  |
49-74 | 21 | 365 | Trustee |
| Alaska | • | • | |
105 | 65 | 365* | Trustee |
| Arizona | • | • | |
90+ | 41 | 30-180* | Trustee |
| Arkansas | • | • | |
70 | 30 | 365* | Trustee |
| California | • | • | |
117 | 21 | 365* | Trustee |
| Colorado | • | • | |
145 | 60 | None | Trustee |
| Connecticut | • | • | |
62 | NA | Court Decides | Court |
| Delaware | • | • | |
170-210 | 60-90 | None | Sheriff |
| District of Columbia | • | • | |
47 | 18 | None | Trustee |
| Florida | • | • | |
135 | NA | None | Court |
| Georgia | • | • | |
37 | 32 | None | Trustee |
| Hawaii | • | • | |
220 | 60 | None | Trustee |
| Idaho | • | • | |
150 | 45 | 365 | Trustee |
| Illinois | • | • | |
300 | NA | 90 | Court |
| Indiana | • | • | |
261 | 120 | None | Sheriff |
| Iowa | • | • | |
160 | 30 | 20 | Sheriff |
| Kansas | • | • | |
130 | 21 | 365 | Sheriff |
| Kentucky | • | • | |
147 | NA | 365 | Court |
| Louisiana | • | • | |
180 | NA | None | Sheriff |
| Maine | • | • | |
240 | 30 | 90 | Court |
| Maryland | • | • | |
46 | 30 | Court Decides | Court |
| Massachusetts | • | • | |
75 | 41 | None | Court |
| Michigan | • | • | |
60 | 30 | 30-365 | Sheriff |
| Minnesota | • | • | |
90-100 | 7 | 1825 | Sheriff |
| Mississippi | • | • | |
90 | 30 | None | Trustee |
| Missouri | • | • | |
60 | 10 | 365 | Trustee |
| Montana | • | • | |
150 | 50 | None | Trustee |
| Nebraska | • | • | |
142 | NA | None | Sheriff |
| Nevada | • | • | |
116 | 80 | None | Trustee |
| New Hampshire | • | • | |
59 | 24 | None | Trustee |
| New Jersey | • | • | |
270 | NA | 10 | Sheriff |
| New Mexico | • | • | |
180 | NA | 30-270 | Court |
| New York | • | • | |
445 | NA | None | Court |
| North Carolina | • | • | |
110 | 25 | None | Sheriff |
| North Dakota | • | • | |
150 | NA | 180-365 | Sheriff |
| Ohio | • | • | |
217 | NA | None | Sheriff |
| Oklahoma | • | • | |
186 | NA | None | Sheriff |
| Oregon | • | • | |
150 | 30 | 180 | Trustee |
| Pennsylvania | • | • | |
270 | NA | None | Sheriff |
| Rhode Island | • | • | |
62 | 21 | None | Trustee |
| South Carolina | • | • | |
150 | NA | None | Court |
| South Dakota | • | • | |
150 | 23 | 30-365 | Sheriff |
| Tennessee | • | • | |
40-45 | 20-25 | 730 | Trustee |
| Texas | • | • | |
27 | NA | None | Trustee |
| Utah | • | • | |
142 | NA | Court Decides | Trustee |
| Vermont | • | • | |
95 | NA | 180-365 | Court |
| Virginia | • | • | |
45 | 14-28 | None | Trustee |
| Washington | • | • | |
135 | 90 | None | Trustee |
| West Virginia | • | • | |
60-90 | 30-60 | None | Trustee |
| Wisconsin | • | • | |
290 | NA | 365 | Sheriff |
| Wyoming | • | • | |
60 | 25 | 90-365 | Sheriff |
Where can I get help?
There are many places to get help, Contact us anytime at 973.996.8626 email us anytime at njcdpe@gmail.com or visit us on the web at http://www.NJSHORTSALEHELP.INFO . Together we can help home owners one household at a time.
*this is no way legal or tax advice, please consult a licensed Attorney and Accountant with any questions.
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