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!
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!
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!!!
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!
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.
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
Bank of America Tests New Short Sale Program
Bank of America Tests New Short Sale Program Posted: 18 Aug 2010 08:47 AM PDT Bank of America is continuing its commitment to help more homeowners and work with agents through the short sale process. Due to our close working relationship with Bank of America, we received the following message about a new program they’re testing to streamline and incentivize short sales – similar to the HAFA program. This small initial push will make way for assessments of a larger-scale rollout. Bank of America knows the value of working with agents, especially CDPEs, in providing solutions to distressed homeowners. We will post updates, statistics and news about the program as they provide us with more information — you’ll see it here first!
Bank of America is committed to helping homeowners avoid foreclosure. As most of our partners are aware we have been diligently working to develop alternative short sale programs to solve some of the fundamental issues inherent in the traditional short sale process. Prior to rolling out the government’s Home Affordable Foreclosure Alternatives (HAFA) Short Sale program in April we’d begun a pilot program we refer to as a Cooperative Short Sale. It is structured similarly to HAFA in that we work with the homeowner and agent prior to marketing the property to gain agreement on the terms of the short sale so that once an offer is received the approval is streamlined. The objective is to utilize this program for customers that do not qualify or fallout of the HAFA program. HAFA is always considered first and no HAFA eligible loans will be included in the program.
The Cooperative Short Sale program is still being developed and tested. Under the current pilot we are proactively reaching out to homeowners who have been pre-screened to meet specific eligibility requirements. Examples of the eligibility requirements include asset reviews, no second liens or MI on the loan, and participating investors. Based on our pre-review, these customers may have limited documentation required for the program. We have other versions of the program for customers who fall into segments that may require more documentation. This very limited population of customers is notified via letter if they have been selected for inclusion in any test programs. Additionally, various execution methods have been used during testing including 3rd party organizations and internal teams handling all communications. Note that although these methods are useful to quickly rollout a small pilot they are not always feasible for full scale rollout.
Other similarities of the pilot program to HAFA include:
- We will work with the customer prior to listing the home to help establish the listing price using a valuation to determine fair market value.
- We will ask that the property be actively marketed for 120 days. If it does not sell in that time, we will consider a deed-in-lieu of foreclosure to satisfy the mortgage.
- Since the appraisal and qualifications are completed upfront, short sale approval will take less than two weeks to complete.
Results from the pilots will be used to design the upcoming expansion of the program. Announcements will be made when we expand this program beyond the pilot and will outline details of the program.
Thank you for your continued support of distressed homeowners as we all work together to help make short sales a more positive experience for homeowners, homebuyers, and the agents that support them.
THIS POST IS RATED R….AS IN “REFINANCE”
I was speaking with a home owner a few weeks ago who was upside down in their mortgage and I had to ask the question ” How did you get here?” their response was not shocking but a little hurtful to be honest because its the American dream turned nightmare.
They explained to me how they purchased their home in 2007 for 589K and at that time was told the house was worth about 650-675k, about a year after the purchase their loan officer called and was promoting a Refinance program that they could utilize to pull some cash out and do some needed renovations around the house. All they needed to do was refinance, pull some cash out and take care of the work, he explained to them that they were refinancing their entire loan into a new product which happened to be a 5/1 Interest Only ARM. He promised that they could Refinance out of this product once they were done with renovations and get back into a fixed rate program. But for the time being they could save a little by having interest only payments while taking care of the renovations. To my sellers this was what they were waiting for; a chance to fix the house in one shot without having to work 80 hours a week for the next year to do so. So they agreed; this move when looking back was the beginning of the end.
The started renovations and realized that to complete the various projects it was going to cost an additional 10-15k in labor and material; 
they called their loan officer and explained the situation, he said that there home has gone up in value since the initial refinance and why not go back in and take out another 25-30k just to be sure this was the last time. So after careful consideration they pulled the trigger again.
At this point they had mortgaged their home all the way up to 694k between actual cash out and closing cost. The sellers explained that even though they were paying more than 100k more than their original purchase it was OK; because their dream home was complete. The only problem is that the economy is starting to shift in a different direction and values are dropping very quickly. My sellers whom both worked in the financial industry were given severance packages and laid off as a result of the unsteady market. Now they had some cash, a house priced about 100k + over market value and no where to turn, so they asked their loan officer; “what should we do?” he stated that without equity there wasn’t much he could do. My sellers realized that the hit to the market was now very close to home so they I attempted to liquidate their assets in hopes of keeping the wheels turning but that was short lived as they realized that the severance package money was not going to be enough to hold off the bill collectors for long. It was in that December of 2009 that they went through their first late mortgage payment. It was a blow to my sellers ego’s as they both had 750 + FICO scores and was not accustom to paying bills late, they attempted to send partial payments but those were returned by the lender…. after 3 more months of late payments and non payments, they decided that it was time to sell. This was a very sad and embarrasing time for my sellers. 
They struggled for the 3 months as FSBO trying to eliminate the Realtor fees in hopes of just selling the house. But that didn’t work, now they are well over 6 months behind on their mortgage; they contacted me as a Short Sale specialist in the area and they expressed interest in attempting a short sale on the property. Although at this point they owe roughly 726k between past due amount, lawyer fees and bank fees. We listed at fair Market value for just under 560k, it took about 2 weeks and we just received an offer for 549k…
In the loan officers defense, my sellers don’t blame him, he did what was being done everywhere which was lend money off of inflated values and put home owners in some sticky situations. It was basically 3 blind mice 
the blind leading the blind… Many of past judgement on folks in this situation, but Who do you blame? the home owner, the loan officer, the economy, the appraisal…who? you be the judge…or not
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