Attn: NJ Buyers and Sellers Learn the importance of a Pre-Approval
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.
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
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.
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The investor buys the property via an option contract (usually all cash or transactional funding)
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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
INVESTING WITH NO CASH…HOW IS THIS POSSIBLE?
There is a trend that I am finding all too common in my area when it comes to Investors…Many investors in today’s market do not have any money and are using transitional funding to purchase homes. Now lets be clear this practice has been going on for years, but now more than ever; even novice investors are trying to strike it rich.
So its important to know what’s going on out there!
If you are unfamiliar with transitional funding, here is a quick description of how it works. With this method of investing, investors use investor funds to buy homes from banks or Short Sales and then flip them to end buyers. This is not a loan or hard money program. You never have to qualify for use of the funds. You are provided with a Proof of Funds Letter which allows you to do a double close and earn instant cash profits on closings.
Here’s how it works: Line up a short sale, REO or any double close purchase then use our investor’s funds to buy the home and flip it to your ready buyer. No credit needed on your part since the buyer’s loan at closing pays off our private investor. This is a No Cash / No Credit transaction on your part.
As Brokers we have to be aware of the various options buyers/investors are utilizing and be aware of the pros and cons of it.
Another option for a lot of investors are utilizing other investor funds as they serve as a “middle man” in the transaction. They come in like a cocky investor talking all this mess 
but in the end they are relying on another individuals involvement in order to secure the deal and get it closed.
Case point: I just lost a deal…it was for 50k and the investor (as we will call them for the sake of this passage) came in with all this talk about buying up the whole area for this big takeover project, so I insisted we start with one… They took care of deposit, town inspections, title, building registration etc…but when it came time to close…They started stuttering…and became non responsive to phone calls, emails and text. When I did connect with them; they said ” my investor is giving us a hard time” wait a minute I said; I thought you were the investor? Guess not; so to make a long story short; they dragged this out for a week (meanwhile there being charged a $100 Per Diem) this took place until the bank killed the deal and they lost their deposit $2,000, I also lost my time, but I regained my sanity.
*SIDE NOTE: Agents MUST be very careful when buyers discuss double closing opportunities, I advise agents not to get involved and stick to their current deal with no knowledge of what the buyer will do with the house once it closes, as that could open up a can of worms.
LET ME JUST SAY THAT I AM NOT AGAINST THIS FORM OF INVESTING, IN MY OPINION WHATEVER IT TAKES (THAT IS LEGAL) TO MOVE INVENTORY IS A GOOD THING. SO I AM IN KNOW WAY TRYING TO DISCOURAGE ANYONE FROM THIS PRACTICE OR WORKING WITH ANY INVESTORS WHO EMPLOY THESE METHODS. ITS JUST SOME FOOD FOR THOUGHT.
AGENTS BEWARE OF THIS TYPES OF INVESTORS
Here’s what to look out for:
- Proof of funds that look suspect
- Investors who say they want to write offers on 20 properties
- Investors who claim they are experienced but unfamiliar with the buying process
- Slow on providing the deposit monies (usually because it isn’t there money)
I know there are probably much more things to worry about in the world but its important to share info with each other as practitioners of Real Estate. This market can bevery tricky, get informed, be aware and always keep in mind; in the words of the great G.I. Joe
Malik Crichlow
REALTOR® , CDPE, SFR
GBH NJ
Direct: 973.849.6907 973.849.6907 Fax: 973.843.0277
Newark cop, Bergen County loan officer charged in alleged real estate fraud
NEWARK — A Newark police officer and a loan officer at a Bergen County savings bank were charged today in a real estate fraud that cost the bank more than $400,000.
The two were charged with conspiring to commit bank fraud. Federal officials said they fraudulently took out a $1.9 million commercial loan that went into default.
Victor Patela, a 13-year veteran of Newark’s police force, and Jose Dominguez, 44, a former employee at Spencer Savings Bank in Elmwood Park, were arrested today by FBI agents. Both men reside in Newark, officials said.
The city’s police department suspended Patela from his duties in the 3rd Precinct today and is cooperating with the investigation, officials said.
According to a complaint filed in federal court, Patela owned JVI Realty, LLC in 2003 when it applied for a $1.9 million mortgage to buy apartment buildings in Elizabeth from Santander Realty Group.
Because the $1.9 million loan covered about 80 percent of the $2.4 million buildings’ cost on East New Jersey Avenue, Spencer Savings required Patela to verify his source for the remaining $480,000. Dominguez, the bank loan officer on the application, recommended approving the loan despite getting a fraudulent loan document from JVI, the complaint stated.
The document, a real estate contract used to show the source of the $480,000, said Patela owned a property in October 2004 that he had sold a year earlier, the complaint stated.
Patela and Dominguez also conspired to disregard a Spencer requirement that JVI not take out another mortgage on the buildings without its consent, the complaint stated.
In taking out a $300,000 second mortgage from Santander. both Patela and Dominguez signed the papers as corporate officers of JVI, although Dominguez never disclosed his relationship to JVI and Patela to Spencer, the complaint stated.
JVI eventually defaulted on Spencer’s loan and in February 2010, Patela turned over the deed to the bank to avoid foreclosure.
Published: Thursday, February 24, 2011, 9:55 PM By Jason Grant/The Star-Ledger
The Devil is a Liar and so is the BPO Agent!
If you are selling Real Estate in this market I am sure you have a short sale listing with an eager buyer ready to buy it or a your working with a qualified buyer that has an offer on one of these listings and their waiting in the balance for “the decision“. If you fall into one of these categories then you understand the title of my post “The Devil is a Liar and so is the BPO Agent!” I say that because BPO agents have been known to be “deal killers” and many agents are understandably nervous when its time for the BPO to be done.
I know the devil wears prada 
Case in point: I have a short sale Listing that I have been working on a few months and when we finally received an offer you know we were overly excited. After attorney review we understandably had to wait for a while before we got through to the bank and the buyer held on for 12 whole weeks 
while we fought with the lender for an approval. Low and behold we get word from the lender that they are ordering a BPO and that they will use this report as a major part of there decision making regarding the potential sale. So we agree (like we had a choice) and the BPO was scheduled for a week later.
I met with the agent who got lost and got to the property 30 minutes late…this tells me that he is not from the area and this was going to be longgggggg day.
So he conducts his report and I hand him some comps (knowing he had no clue about the area) I wait approx. 2 weeks and hear from the bank…guess what I hear? we got denied. Why you ask? offer is too low, property value is much higher than list price. I go into a long song and a dance backed by fact (sold listings) but of course, it falls on deaf ears.
The message and moral of the story is this; if you want to be a BPO agent, that’s great!! just don’t accept every assignment you get or choose to work in areas that you know and can accurately assess so that you achieve the best results for all involved. Understand that when a BPO is done incorrectly you hurt home owners (sellers) home buyers and agents. Just so you all know, I am not bashing BPO agents, I happen to be one but I feel its very important to work areas you know and understand and be truthful with not only the client but yourself, its really not worth the money if someones whole life might be riding on your opinion.
Follow up to the story…I had to wait 90 more days for another BPO to be ordered, which was done correctly. Luckily the buyer held on and we closed yesterday…
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!
October: Home Sales Down, Investors Up
NAR reported a 2.2 percent decline in its existing-home sales estimate for 2010 to 4.43 million, down from 4.53 million in September. This represents a 26 percent decrease from 2009, which was one of the worst years in U.S. real estate history. However, total housing inventory at the end of October fell slightly to 3.86 million existing homes, or a 10.5-month supply.
Another interesting point from this report was that investors made up 19 percent of October transactions, which is up 36 percent over 2009. In addition, all-cash buyers were 29 percent of the market, up 20 percent from 2009.
In today’s market buyers are coming in all types of varieties; so it is important to understand who the buyers are and how to service them properly. When dealing with distressed properties like short sales or Bank Owned properties, agents must keep in mind that investor buyers are very particular and must be shown the value of what they are considering purchasing so that they do not submit offers that are 40 cents to the dollar on properties that are clearly worth more. Investor buyers are very active in NJ sales and you must know how to negotiate offers and educate them on what the fair market value of a property is to avoid really low ball offers. As an agent that works with just as many investors as I do regular buyers it is important to know the market and help sellers and buyers achieve their Real Estate goals by means of educating and advising. 
how can we help you???
SIDE NOTE:
People tend to comment that I am a little negative in my blog post; but I totally disagree. I speak for those who don’t have voices; in the towns that I do most of business; you will find that sales are leveling out and there is a steady stream of buyers in the market; but I also see the dark side which is the 100’s of lis pendins and foreclosure filings and I know that those individuals need someone that recongnizing that they are out there. So as much as I would like to just blog about the good, it is just as important to report the not so good so everyone is accounted for.
Thank you for reading!!!
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?
Helping or Hurting? THE CNBC DEBATE ON SHORT SALES…
In todays real estate market many home owners are simply confused about options when faced with a potential foreclosure. Not to mention the tons of Realtors that are not skilled in handling these types of clients but continue to list these properties for selfish reasons makes for a disaster when it comes to fixing the problem. I am no genius but I know home owners are confused, scared and in most cases angry and I cannot blame them. Many of my recent listings have been on houses where agents failed or were not educated on the process thus putting the home owner in more risk. I can’t say that the market will recover anytime soon; in fact I do not see any relief until 2012, but the bottom line if you are a home owner and you need help….give us a call or email us today!!! we are always here to help.
Concluded with a consensus that homeowners having difficulty paying their mortgages should contact an educated real estate agent. However, CEO Alex Charfen had to combat another guest’s misinformation on short sales and hopelessness about the market to get there. Following is a response from Alex, as well as a recording of the segment on CNBC:
Reflecting on my appearance this morning on CNBC alongside the supposedly informed and aware Howard Glaser, former counselor to HUD Secretary Andrew Cuomo, I believe the debate exposed an unfortunate and ongoing problem of misinformation. Too often we see overreaction by talking heads lacking information about the real estate market, trends, statistics and most importantly, solutions.
There is a prevailing defeatist’s view of the market amongst outside pundits. To cite an article in The New York Times as a representation of the entire housing market is, as I mentioned in the interview, anecdotal evidence. The reality is that short sales have increased 1500% in under three years. For Glaser to say that short sales will not be a part of leading our economy out of the housing crisis is to ignore the fact that educated agents are closing short sales regularly.
Short sales are a part of the solution and will continue to be, and dedicated agents who are closing these deals deserve to be commended, not ignored.
If Howard Glaser can’t find an agent who can get a short sale closed, perhaps he should simply visit www.GBHNJ.com.
Malik Crichlow
GBH NJ
REALTOR® , CDPE, SFR
Direct: 973.849.6907
Fax: 973.748.5433
Malikcrichlow@gmail.com
www.NJSHORTSALEHELP.INFO
Back to business…GMAC (Ally) Joins Bank of America, Lifts Foreclosure Freeze
Over the past few weeks many people have been wondering what is going with banks, home foreclosures and most importantly home owners when it comes to the real estate market. Ally Financial (GMAC’s mortgage unit) has lifted their temporary foreclosure freeze, joining Bank of America in proceeding with the foreclosure processes in the 23 states requiring judicial review. While Bank of America maintains their moratorium in the non-judicial states, Ally is now continuing the foreclosure process for its entire non-performing portfolio, and expects that individual reviews will be complete by the end of the year.
JPMorgan Chase is the last of the remaining major lenders with a suspension in place. While their freeze is currently restricted to the 23 judicial states, the bank continues to review foreclosures in 41 states for any errors or anomalies in procedure.
In all actuality Banks, servicers, investors & home owners have all made many mistakes over the course of this crisis and it will not be fixed in 2 weeks; as a Short Sale specialist I feel it is my job to know how to help home owners weather this storm and get their lives back. Banks will not help struggling home owners so I make it my duty to stay armed with the latest information available to help home owners avoid foreclosure. We are here to lend a helping hand…
The bottom line is this; this country is undergoing some serious changes and people are confused about their options. If this sounds like you or somebody you know please contact us today and we will set up a confidential consultation to discuss your specific situation and formulate a game plan to get you through these troubling times.
What Does This Foreclosure Freeze Mean for Distressed Homeowners?
As a Short Specialist I get questions everyday from concerned & confused home owners and buyers about what is going on in the world of Real Estate? Trust me the answer is not easy to explain but here’s a brief synopsis.
I know it’s just about impossible to have missed all the news about real estate in the past 2 weeks: major lenders are investigating issues in their foreclosure processes. To date, GMAC (now Ally Financial), JPMorgan Chase and Bank of America have announced foreclosure freezes to review how their companies are handling the process. While most lenders have stalled foreclosure procedures in roughly half the nation, Bank of America recently extended their freezes to all 50 states.
However, few are talking about what this means for distressed homeowners and the agents who can help them. While these major lenders evaluate their foreclosure processes, delinquent and seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure. It is important that home owners now more than ever arm themselves with a knowledgable real estate professional who can help them navigate through the process of avoiding foreclosure.
If I had to explain what is going on in a nutshell; I’d say that most of the banks are guilty of poor judgement and mis-management when it comes to how they are handling the foreclosures and they need to be held accountable for it; on the other hand an investigation this large at this point in time could really affect the entire economy so Banks, the Government and it’s citizens really need to make sure that our next move is our best move.
Not every distressed homeowner may qualify for a short sale. But in this economy, I feel that as a real estate agent I must take the opportunity – and as I see it, the responsibility – to find solutions for homeowners in need, even if it does not result in a sale. This will help to stabilize community values and salvage financial futures for those facing true hardships.
If you or someone you know need answers to some tough questions; contact us today, we would love the opportunity to help you see the light at the end of the tunnel.
Malik Crichlow
REALTOR® , CDPE, SFR
Short Sale Specialist /Foreclosure Avoidance Specialist
Direct: 973.849.6907
Fax: 732.377.8748
Malikcrichlow@gmail.com
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