Gay Potter

Broker Associate ABR, CRS, GRI

Gay@GayPotter.com

480.694.1172   direct                  866.830.8585    fax

7975 N. Hayden Rd.Ste. A-101,  Scottsdale, AZ 85258

 

     

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Chandler, Az is a gracious host to the WordPress extravaganza happening this weekend, click on the photo to start the slideshow of facility.  Stunning high tech facilities.

Gay Potter of RE/MAX Diamond joined many others in various occupations to soak up all the WordPress knowledge these volunteers shared today.

Tomorrow, we are looking forward to MORE WordCamp information! 

A big thank you to our instructor of the beginning WordPress,

April  Holle of Made Better Studio

When I started my blog I decide it  would contain only positive comments.  I read this poem today and am reminded to be careful with each word I speak, each expression or gesture that I give, for they all have a life far beyond my small existence.   I choose to be positive!  Enjoy this poem.

Drop a pebble in the water: just a splash, and it is gone;
But there’s half-a-hundred ripples circling on and on and on,
Spreading, spreading from the center, flowing on out to the sea.
And there is no way of telling where the end is going to be.

Drop a pebble in the water: in a minute you forget,
But there’s little waves a-flowing, and there’s ripples circling yet,
And those little waves a-flowing to a great big wave have grown;
You’ve disturbed a mighty river just by dropping in a stone.

Drop an unkind word, or careless: in a minute it is gone;
But there’s half-a-hundred ripples circling on and on and on.
They keep spreading, spreading, spreading from the center as they go,
And there is no way to stop them, once you’ve started them to flow.

Drop an unkind word, or careless: in a minute you forget;
But there’s little waves a-flowing, and there’s ripples circling yet,
And perhaps in some sad heart a mighty wave of tears you’ve stirred,
And disturbed a life was happy ere you dropped that unkind word.

Drop a word of cheer and kindness: just a flash and it is gone;
But there’s half-a-hundred ripples circling on and on and on,
Bearing hope and joy and comfort on each splashing, dashing wave
Till you wouldn’t believe the volume of the one kind word you gave.

Drop a word of cheer and kindness: in a minute you forget;
But there’s gladness still a-swelling, and there’s joy a circling yet,
And you’ve rolled a wave of comfort whose sweet music can be heard
Over miles and miles of water just by dropping one kind word.

– written by James W. Foley

BEAUTIFUL REMODELED CHANDLER HOME

NOT AN REO OR SHORT SALE

 

To view the property web site, click on the property above.  To find out where this property is and your property could be posted for Internet advertising, check out my advertising site by clicking on the picture below.

Great American Title and I will take good care of you!

We just got back from a trip to our neighboring Mexico destination, Rocky Point, a quick four hour drive.  Many for sale signs – just like Phoenix, AZ,  lots of people – just like Phoenix, AZ,  high rise buildings with halted production and bargain basement deals being offered – just like the Phoenix, AZ, shop keepers needing a sale to help keep doors open – just like Phoenix, AZ!  Despite swine flu warnings and noticeable, heightened military presence (due to increase drug activity in the area), it was not much different than our usual Mexico trips.    Although the last two listed items kept some of the regular Mexico travelers away, we were not deterred.   It was the wild ride we took on our Hobie Cat 18 from Sandy Beach to the estuary, that made us question our Mexico trip!  It was approximate 20 or so miles, one way.  A “Monday walk in the park”, as described by my friend, Susan, who is more experienced sailor and crews for her husband, as I do.   Chris Jernigan of the Cat House and his crew Karen were on this trip too which lulled me into a comfort zone since I knew Karen had not been feeling well, surely Chris would not take her on anything difficult! WRONG!   My friend Barb grabbed a ride on a 16 with Rex – she was not worried, she is way more experienced than we are!   The walk of course was a sail, but in reality…………..strictly, lots of WORK!  Before our departure from the beach, as I was putting the cat wheels under the boat as Dave lifted it, I ran smack into the dolphin striker!  Quickly I put my hand on my head hoping no blood would be found..nope…blood, inch and half gash and a pounding headache.  I could see the disappointment on Dave’s face as he realized we might be beach bound.  We cleaned it up a bit and realized it was closing by itself, so I said, give me some Advil and a baseball cap and lets go!  Off we went back to the beach! We have very little experience with beach departures with LARGE WAVES.  We were told once we got out a ways the waters would smooth out (not true).  My instructions from the beach sailors (who I asked if they felt like fathers sending their kindergarten kids off to school) was to stay on the front beam after I set the jib and set the daggers on each side, (but not all the way they yelled after I had already completed the task) I quickly scrambled to pull them back up half way and return to my place on the front beam.  I felt like Ariel perched on her look out rock as of the boat bucked vertically in the air four to six times. Pretty sure that one was an attempt for a back flip but she (boats are she’s) decided not to go for it – THANK GOD! On we went to meet our friends and the small fleet that were waiting for us.  With quick instructions to Dave about how to kick it up a notch from Denny (Susan’s husband, let’s just call him Crazy Denny!), we traveled down through rough seas, a couple of times questioning whether we could actually hang with the more experienced sailors in front of us.  The 18 with wings went over on the way down and it amazed me how quickly all responded to help right the boat.  By the time Dave was ready to dive in and I at the helm, they got it righted. Good job skipper and crew! With The shore and its recognizable housing passed at a quick pace as we made it to the opening to the estuary!  Sailing the serene waters of the estuary made the rough trip down worth it. (sorta) Dave enjoyed his cold beers and fresh oysters on the half shell and I had a ceviche tostada (another mistake)  at our destination, a shack with a dirt floor. Since the tide was quickly going out we did not stay long – then the really bad news………the waters were going to be rougher going back!  Thank goodness the water was warm, the winds were not that strong and we did not have to tack (change direction).  Our trip back is best described as 90+ minutes in the agitate cycle of a washing machine – I keep praying for the spin cycle…..anything………a break just to rest a bit but nope – just the agitate cycle.   At one point I turned to Dave and said, okay let’s think of the positive things about the moment…..we are spending quality time together…TRYING TO SURVIVE!!!!!!!!!  Later I was hit by a huge rogue wave that nearly took my breath away – NOW THAT IS GOING TO COST YOU SOME JEWERLY!, I exclaimed!   Sandy Beach never looked better to me as we sailed right up on it – Denny and Susan were there to greet us and Denny exclaimed – “no more sailing lessons for you two – you have just graduated!”   I told him he was not off the hook that easy as we were just stupid and durable – we still needed his expertise! As I leaned against our boat I thought we needed to thank her for all her hard work.  I then realized she did not have a name, when Dave got back to the beach, I introduced his girlfriend (I have always called her that) BABS, short for Bad Ass Betty, she earned that name!  We all enjoyed end of the day with  quick dip in the hot tub, a great sunset and a great meal at La Curva.  I have to ask myself, would I do it again……….yep!  Might question my friend Sue a bit more, but yes, life is an adventure!

Here is the 411 on Short Sales – the short version – if there is such a thing!

What is a short sale?
A short sale, also known as a short pay or short payoff, allows a homeowner to sell their property for less than the amount owned to the bank.  When the market value of the property is less than the amount owed, the owner is considered up-side-down. The proceeds from the sale are used to pay-off the outstanding amount of the mortgage. Although the proceeds will be “short” amount actually owed on the mortgage, it allows a homeowner the opportunity to avoid foreclosure. Ultimately it may put their credit standing in a better position than if an actual foreclosure were to take place. The entire process hinges on the approval of the lender to accept less than the amount due.

What are the credit implications to a short sale?

The hit homeowners take on their credit score is much less on a short sale than on a foreclosure. A homeowner involved in a short sale will see an 80 to 100 point drop on his or her credit score. A foreclosure is a 250 to 280 point hit. This is only an estimate, each individual case may vary.

What information will the bank need to decide whether to accept a short sale?
The sellers’ submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker’s price opinion showing your estimate of value.   In addition, the sellers should submit a “hardship letter,” explaining the circumstances that make it impossible for them to pay the full amount of the loan. The seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered.

How should the property be priced in a short sale?
In general, most short sale experts say to price the property at or near fair market value. The current market value in the Vally of Sun varies greatly depending on the location.

 

How long does it take to complete a short sale?
Although response times vary from lender to lender, it can take two weeks or as long as 180 days to receive an approval of a short sale from a lender. That’s why it’s critical that buyers and their representative understand and accept that time frame before they make an offer.   

See my previous post of short sale time frames! 

What can the seller and I do to make a short sale more attractive to a lender?
Getting a lender to approve a short sale is primarily a question of economics. You have to provide hard numbers to show that the amount of money a bank will realize on the short sale is better than the amount it may recoup from foreclosing on the property and selling the property.

A 2002 study by Craig Focardi of the Tower Group estimated that the entire cost of a foreclosure was $58,759 and took 18 months. Other factors that can influence a bank’s decision include the liability risk it assumes by owning the property after foreclosures, the money tied up during the holding period for a foreclosure and REO resale, additional costs associated with an REO such as attorneys’ fees, and the additional reserves it will need if REO’s rise in the bank’s portfolio.

What are the seller’s options if a short sale is rejected by the lender?
There are a variety of reasons a bank will reject a short sale — from too low a price to too many files on the loss mitigation’s desk. You can look for another buyer or even try resubmitting the same contract. Banks don’t want to take properties back in foreclosure, so they are going to do everything they can to make it work. Keep in mind that throughout the process there’s the possibility of foreclosure.

What tax liabilities will a seller have as a result of a short sale?
One often overlooked aspect of short sales is that a seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency (either in bankruptcy or with debts exceeding assets w/o bankruptcy) will not have to pay taxes on the forgiven amount. See IRS Form 982 for this exclusion. Each individual tax situation may vary. Ask your CPA for all details.

Note: Investors – please review your specific circumstance with a CPA or real estate attorney.

What is Mortgage Forgiveness Debt Relief Act of 2007? (Signed by the President on 12/19/07)

It states the following: H.R. 3648 would exclude from the gross income of a taxpayer any income by reason of discharge, either in whole or in part, of debt on the taxpayers’ principal residence. Such debt may include the initial loans to acquire, construct, or substantially improve the residence as well as any refinancing of debt to the extent the refinancing does not exceed the amount of the refinanced indebtedness. The exclusion from gross income would apply to discharges of indebtedness on or after January 1, 2007. Simply put, the 1099C would be a forgiven amount and should be professionally handled by a CPA.

What are the options besides a short sale?
Many lenders are more willing to offer loan modification options. Lender’s can extend the term of the loan, add on delinquent payments to the loan principal, and/or reduce the interest rate to make the loan more manageable for the home owner. Another option is a repayment plan that requires home owners to increase their monthly payments until the loan is current. 

Loan Resolution (Loss Mitigation) Options for You:

Repayment Plan:

Distributes the owner’s delinquent payments over a period of time, usually no more than 10 months. The monthly amount is added to the usual mortgage payment. Brings the account up-to-date within a specified time-frame. With a goal in sight, the owner can move forward knowing that the home is secure.

Forbearance Plan:

An agreement to temporarily allow a homeowner to pay less that the actual amount due on their mortgage or it will suspend payments entirely the forbearance period. More commonly associated with Fannie Mae, Freddie Mac, FHA, and VA. Each has various requirements a homeowner must meet, it is very situation specific so the homeowner should contact the lender directly to see if forbearance is an option. The goal is to put the homeowner back on track to resume full regular payments.

Loan Modification:

Applies any past-due interest and escrow amounts to the unpaid principal balance, which is then re-amortized over a new term. Changes over a new term. Changes to mortgage note itself, giving the owner a fresh start on managing their loan. Brings the account up-to-date immediately. There are many requirements; the homeowner must contact the servicing lender for details of their individual circumstances.

Loan Modifications Exposed is a great “Do it Yourself” book for modifying your loan.

Loan Mod Achiever is a the perfect qualifier to determine whether you and your property qualifies for a modification.

 

Partial Claim (only for FHA loans):

The Department of Housing and Urban Development (HUD) advances a loan to repay the past-due interest and escrow amounts. HUD loan is interest-free. Brings the account up-to-date immediately.

Short Sale:

Allows the owner to sell the home and use the proceeds to pay off the mortgage if they are unable to maintain payments, even if the home’s market value is less than the total amount owed. Avoids the lengthy legal process involved in foreclosure. Generally less damaging to the credit rating than foreclosure. 

* Please ask me how I negotiate: If the short sale “offer” is accepted, the lender must report to the credit bureaus, “Paid in Full.”

                                      Short Sale Specialist                                           Please contact me to discuss your short sales needs.                                 480-694-1172 or email gay@gaypotter.com

FHA Pre-Foreclosure/Short Sale Requirements:

The property is owner-occupied or reasonable circumstances exist if it is not. The loan is at least 2 months delinquent. The house can sell within 3 to 5 months. A new appraisal (obtained by your lender) shows that the value of your home meets HUD program guidelines. It has been reported that FHA does not allow for short sales, which is inaccurate, FHA does allow them.

Deed In Lieu of Foreclosure:

Allows the owner to transfer the property voluntarily to the servicing bank if the seller is unable to maintain payments and cannot sell the home at market value. Avoids the lengthy legal process involved in foreclosure. May be less damaging to the credit rating than foreclosure (this option is a foreclosure and will be reported as such).

Final comments on your credit;

It would be a good idea to ask for the lenders policy on reporting short sales to the credit bureaus. Many lenders consider 90 day past due to be a foreclosure whether or not the property was formally sold by the bank. The loan will show on the credit report as “Paid,” however, in most cases it will also note, “Settled for less than amount owed.” Depending on how far behind on payments a borrower gets, it may also reflect as “Pre-foreclosure” on the credit report. *

Be Aware of Predatory “Rescue” Scams:

Such as, loans with high interest rates affordable repayment terms, loan assumptions where you are not released from liability on the loan or offers to repay the loan or sell the property if you sign over the legal deed. Remember, if it sounds too good to be true, it probably is.

As a REALTOR®, I am not licensed as a lawyer or a CPA and cannot advise on all matters of the short sale process.  Please obtain advice from a competent real estate lawyer on legal issues and discuss with your accountant on the tax ramifications that may be unique to your specific situation.

The foregoing is for informational purposes only and is not intended as definitive legal advice.  You should not act upon this information without seeking independent legal and tax council.

Someone says “short sale” and then the headache begins! 

Good experience, bad experience,  never completed and the headache begins for the stressed out homeowner.  

Below I have tried to outline some time frame of some banks so my sellers expectations can be realistic.

Short Sale Time Frames
A Short Sale is a very unique real estate transaction.  There will never be two identical
short sales with regard to time frames, outcomes and terms.

The following are general time frames associated with a short sale transaction for the most common lenders;  all time frames may be subject to change depending on additional factors such as:

(A) Does the loan(s) have mortgage insurance?
(B) Who is the insurer?
(C) Who is the investor on the loan(s)?
(D) Is the servicer the Master Servicer or Sub-Servicer?
(E) What is the delegated authority of the Servicer?
(F) What is the validity of the offer?

Here are some estimated times based on recent company data.

1.) ASC (America Servicing Company) – 30 to 45 days.
2.) Wells Fargo – 30 to 45 days.
3.) Countrywide – 45 to 90 days.
4.) Litton – 0 to 30 days.
5.) SPS (Select Portfolio Servicing) – 0 to 30 days.
6.) GMAC – 30 to 60 days.
7.) HSBC – 60 to 120 days.
8.) Saxon – 60 to 75 days.
9.) EMC – 28 to 42 days.
10.) Homecomings – 30 to 60 days.
11.) Ditech – 30 to 60 days.
12.) Washington Mutual – 60 to 90 days.
13.) Indymac – 60 to 120 days.
14.) Aurora – 60 to 90 days.
15.) Ocwen – 45 to 90 days.
16.) US Bank – 45 to 90 days.
17.) Bank of America – 60 to 150 days.
18.) Chase – 60 to 90 days.
19.) First Horizon – 90 to 120 days.

If a short sale is in your future please give me a call to discuss how to relieve YOUR headache,  I can help! 

If a loan modification is something you are considering, please check out what I call “loan modification for dummies” or Do It Your Self Loan Modification” – FreeLoanModQualifier.com

Having trouble making ends meet? 

Want to see if a loan modification makes sense for you and your property, investment property included! 

This simple qualifier is available for free.  

If your mortgage payment falls with in the guidelines given, then a loan modification makes sense for you.  

A book is available that could be called “Loan Modifications for Dummies”.  Review it or subscribe to the loan modification program that will help you outline your personal scenario to present to the bank for modification review.   Money back guarantee  

 

 

 

 

 

If a loan modification will not work for you.  Please contact me to discuss the short sale of your property.  My 20 years of real estate experience will help expedite the process of moving forward with the banks and all their requirements for a short sale.

Gay Potter wants to share one of her passions that she shares with 40 other women of the Arizona Cowgirls.
June 2009, Arizona Cowgirls end of the season ride! Pinetop, Arizona
Great ride, wonderful friends and of course….great food!