How the Cooperative Short Sale is different:

- The process starts before an offer is recieved.

- The process starts even before the property is listed.

- BofA will review the homeowner documentation to see if you qualify for the program, and the listing agent (where we come in) submits everything via their online system.

- Bank of America will have the property appraised to determine its market value.

- Approval for the short sale (again all before listing) can be had in as little as 10 days.

- A hardship letter is no longer required - however you really should have had some change in your situation since you got the loan.  Furthermore, if you do not have a good documented hardship, bank of america will ask for a promissory note or cash contribution.  Ask me for more info if you dont think you have a hardship with BofA.

Henderson Modification Office- local number is 702-473-6645

2285 Corporate Circle (off Green Valley Pkwy)

Henderson, NV 89045

Las Vegas Modification Office- local number is 702-515-8789

6900 Westcliff Drive (off Rainbow)

Las Vegas, NV 89145

Or visit this website: http://homeloanhelp.bankofamerica.com/en/index.html

If modification does not work for you and you'd like to see if you might qualify for a short sale, please visit my website at www.vegasvalleyshortsale.com to find out more!

See below illustration:

• Up front mortgage insurance will decrease to 1.0% for all amortization terms
• Annual premiums will increase on amortization terms >15 years to:
  • .85% on LTV’s <95%
  • .90% on LTV’s >95%

Old MIP vs. New MIP illustration

Based upon a loan amount of $200,000 @ 4.5% rate @ 30-year @ 96.5% LTV:

(*The Borrower Pays $45 more per month which translates into a negative $7,500 in buying power.)

However, if home is sold at year 7:

[*FHA gets $2,102 MORE in MIP but principal balance is $2,175 less, so at year 7, it's basically a "wash". (the same calculation for 5 years, same deal.)]

Bottom line, FHA gets MORE, but the buyer builds up more equity.

As of right now, the MI is still deductible on income taxes (sunset on December 31, 2010).

Just a reminder, that the MI drops off after it reaches 78%, or approximately 10 years!

Please contact me with any questions!

John Longstreet, Loan Officer

20 Years Experience in the Mortgage Industry!

It also applies to those in residency who will begin their new employment within 60 days. Let me know if you or anyone you know might need this loan type.

Las Vegas distressed homeowners whose loans are backed by mortgage giant Fannie Mae now have a new place to start their search for answers.  “Know Your Options.com” a website specifically designed for upside down homeowners, describing the workout options refinancing, forebearance, loan modifications.  

Fannie Mae also offers the unique Deed for Lease program where you can remain in the property after handing it back to them up to 12 months.  To qualify…

• The loan involved is a first loan on a primary residence. It cannot be on a second home or investment property. You can not have a second loan of any kind. 
• You have had to have made at least three payments since getting the loan or  a loan modification.
• At the time of referral to Fannie Mae for consideration under this program, you  cannot have missed 12 or more payments on the loan.
• You cannot have filed for bankruptcy.
• You have to be employed with income which can be verified

IF you aren’t sure if your loan is a Fannie Mae loan – click here: http://loanlookup.fanniemae.com/loanlookup/.  Call me with questions on this!

If your loan is not Fannie Mae, you do not want to keep your home or may not qualify above, call me at 702-530-5002 or visit www.vegasvalleyshortsale.com to discuss other options including a negotiated sale with the bank (my specialty) where we negotiate a much smaller payoff in order to sell the home at today’s market value.

Can a borrower pay a fee charged by a third party negotiating a short sale on the seller’s behalf?

Per FHA, a borrower can pay a fee charged by a third party negotiating a short sale on the seller’s behalf under the following conditions:

·         The dollar amount of the fee, and that the borrower agrees to pay such fee, is disclosed in the sales contract.

·         The fee charged is not based on any percentage but rather a set dollar amount.

·         The fee charged is considered standard and customary for the area when compared to other third parties negotiating similar short sales contracts. (Determined by the underwriter at time of underwriting)

·         The lender has verified that the third party has no identity of interest with any other party to the loan transaction.  (Signed certification by all parties of the transaction stating such)

·         The lender has independently verified the legitimacy of the company/person charging the fee. (Copy of services with fee schedules of company/person, verification of website, directory assistance verification of phone number etc.)

John Longstreet, Loan Officer

300 Jobs Coming to NLV!

The term euphamism is a fascinating one.  According to Merriam Webster, it's defined as the substitution of an agreeable or inoffensive expression for one that may offend or suggest something unpleasant.  The question I've had lately is what's the opposite?  What's the word used to make something sound worse or more sensationally bad than it is?  Let's consider some words we see everyday and what they mean..

• -- "The Media": The "big bad" these days that everyone blames for everything they don't like.  Media is a word that represents the ever-growing number of newspapers, tv stations, networks and websites that report news that are now owned by mega-corporations like News Corp. (Fox Empire, MySpace, Wall Street Journal), Disney (ABC, ESPN), Time Warner (CNN, Time Magazine) and Viacom/CBS.  I have always found it interesting how we all (me included) complain about the media.  The media only wants to make money.  Non-profit news is usually government sponsored and has an agenda, the media only has one agenda - what will sell.  Bad news sells.  End of story, thank you capitalism.
• -- "Credit Crunch": I crunch every time I hear this annoying term.  Because so many homes have gone into foreclosure, thus devaluing mortgage-backed securities and big mortgage banks, lenders have been forced to restrict who they lend to.  But let's be clear on this - restrictions are things like: a) you need to have a down payment to buy a house (unheard of!) b) you need to have good credit and c) if you're at the stage of life where you are investing in real estate, you need some money!  These three axioms, had they been observed by lenders for the last 5 years would have thousands of people in California and Nevada sleeping much better at night because they would not have gotten in over their heads.  *** As an aside, credit crunch has also spread to non-residential as commercial loans and construction loans are far harder to get.  Though again, perhaps these lenders were too loose with their lending as well.
• -- "Mortgage Meltdown": This is a special term for the fact that due to so many people getting ARMs and sub-prime loans, the mortgage industry has gone kaput.  For sure, free market forces are taking out a lot of lenders and there could be some biggies yet to fall.  However some of the lenders (i.e. B of A) are not as bad off for the simple reason that they never allowed option ARMS (neg. amortization loans) and other flimsy loans that in retrospect were lunacy.  As a realtor, I never allowed a client to agree to an option ARM loan, and I am amazed at how so many lenders thought that was a good idea.   Plus, to repeat what I said in an earlier post, no one should be going into foreclosure due to their ARM adjusting upwards.  As among realtors, the changes and challenges are shaking out mortgage companies and you can be assured that in no time in the near future will such mistakes be made again.
• -- "Housing Crisis": The mother of them all.  Not to use a euphamism, but it's a market correction.  It is hurting a lot of people and many owners (including myself) have seen equity fall dramatically.  The price drops are forcing many into foreclosure.  On the flip side, buyers (including some of the affected sellers), are enjoying tremendous advantages of a strong buyer's market.  In fact, buyers nationwide who were priced out of real estate several years ago can now buy.  Four years ago if a buyer told me they could only afford an $1100 a month payment, I would have said it was not possible.  However, today, it is easily possible as homes are priced well under $200,000 in some areas and buyers have more options than ever.

Could it be 'cacophemism?  That is replacing a polite word with a harsh one?  I don't know, but when you see these words in the newspaper or even here on this blog, remember what they mean.  I don't begrudge the seriousness of any of this but let's keep it in perspective.