The Cassidy Team: North Shore Realtors » Foreclosure Info

First Quarter Sales Data:

Deborah — Thu, 21 Apr 2011 18:24:02 +0000

YIKES!!!!

Look at the number of Foreclosures & Short Sales for the first Quarter of 2011:

Lake County Detached Single Family Home Sales First Quarter

Short Sale or Foreclosure:

2011 – 395 or 44.7% (883 total sales)

2010 – 438 or 45.4% (964 total sales)

Cook County Detached Single Family Home Sales First Quarter

Short Sale or Foreclosure:

2011 – 2,202 or 50.1% of total sales

2010 – 2,679 or 53.2% of total sales

Lake County Attached Home Sales First Quarter

Short Sale or Foreclosure:

2011 – 145 or 58.5% (883 total Sales)

2010 – 118 or 45.4% (964 total Sales)

Cook County Attached Home Sales First Quarter

2011 – 1,581 or 47.6% of total sales

2010 – 1,257 or 33.6% of total sales

Even though the numbers are staggering, the numbers are slightly lower for detached housing in 2011.

Attached numbers are higher than 2010

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Mortgage Restructure Solution

Deborah — Tue, 31 Aug 2010 16:34:18 +0000

The primary NACA solution is to restructure the existing mortgage by permanently reducing the interest rate to achieve an affordable mortgage payment.

Mortgage Restructure Solution:
The most viable and appropriate solution for most homeowners to save their home and to achieve true homeownership is to restructure their existing mortgage. This can be accomplished by reducing either or both the interest rate and outstanding mortgage amount to achieve an affordable mortgage payment. The mortgage payment would be based on what you can afford as documented on the Affordability Budget as described below. A Restructure changes the terms of the existing mortgage. It is not a refinance (i.e. new loan) and thus not conditioned on the major limitations for refinances or the paying off of a second mortgage. If the homeowner is unemployed NACA provides a forbearance with a minimum payment until that have steady income to have their mortgage restructured.

NACA does not advocate other solutions often pushed by Lender/Servicers and the government. These options include payment plans that increase the already unaffordable mortgage payment or where the payments go up over time. NACA does not consider selling your home or a deed-in-lieu to be viable solutions. If you are determined to keep your home and are willing to work with you in aggressive advocacy there is a good chance that you will not lose it. Servicers and investors are now more willing to restructure a loan given the collapse of the mortgage market and the significant loss they would incur with a foreclosure.

The Affordable Budget determines an affordable mortgage payment based on an analysis of your current financial situation. If completed accurately and completely, it will show the mortgage amount you can afford based on a tight budget consisting of the following:

Affordable Budget:

Net Income:
Net Available Income for a Mortgage Payment (i.e. Principal, Interest, Taxes and Insurance)

NACA does not change or negotiate the terms of your loan. We submit your Affordability Budget with supporting documentation to the Servicer (the Servicer may not be the original lender) and request that they reduce your monthly mortgage payment to the affordable amount documented in your Affordability Budget. The servicer would reduce either your interest rate or outstanding principal or both to achieve the mortgage payment over the remaining term of the loan. The servicer has a lot of discretion in changing your loan terms. They have a contract with the investor(s) who owns your loan that gives them authority to modify or restructure your loan if you are at risk of foreclosure. If the servicer is unable or unwilling to accept the NACA solution, we are often given the opportunity to appeal the decision with investor. NACA has been extremely successful in achieving an affordable solution for thousands of homeowners. If the servicer and investor still refuse the Restructure Solution then NACA could work with you as part of the Homeowner Advocacy campaign.

NACA Process:
NACA has developed a streamlined process to best assist you. To begin the process you need to attend a NACA Workshop and then have a phone counseling session to submit your file to the servicer. If a workshop is not within 100 miles of your home, you can make do a counseling session without attending a workshop. You also need to complete the Web-submission. By doing your Web-submission, you will receive your NACA Member ID and password. This is crucial since it gives you access to your personal Web-File.

The key point of contact for updates and next steps is your personal file on our website (“Web-File”). Your Web-File which you can access on the homepage under Member is your personal page to obtain the status of your file, make appointments and next steps. Access you Web-File on www.NACA.com by selecting web-file/status under NACA Member. Put in your NACA ID and password. Your Web-File is continually updated and is the most effective way to stay informed and on your next steps. Please utilize your web-file for updates and next steps prior to calling a department or a Member Services representative. Remember, any issues need to be addressed by calling a Member Services Representative at 1-888-404-6222 option 5 on the main menu rather than the local NACA office. If you are beginning the process take the first step by attending a workshop now.

Go to www.NACA.com for detailed information

https://www.naca.com/program/homesaveProgram

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Home Affordable Foreclosure Alternative Program (HAFA)

Deborah — Tue, 02 Mar 2010 19:12:33 +0000

The Treasury Department recently released guidelines and forms for its new Home Affordable Foreclosure Alternatives (HAFA), which is part of the Home Affordable Modification Program (HAMP), designed to streamline and create incentives for short sale transactions for lenders and borrowers. This new program is effective April 5, 2010 and goes through December 31, 2012. HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline short sales and deeds-in lieu of foreclosure.

Eligibility: The homeowner must meet the following guidelines to be eligible for HAFA:

1. The property must be the homeowner’s principal residence;

2. The mortgage is a first deed of trust dated prior to January 1, 2009;

3. The loan is delinquent or a default is reasonably foreseeable;

4. The current loan balance is less than $729,750.00; and

5. The borrower’s total monthly mortgage payments exceed 31% of the borrower’s gross income.

Program Benefits: The HAFA program provides for the following:1. Allows borrowers to receive pre-approved short sale terms before listing the property (including the minimum acceptable net proceeds).

2. Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).

3. Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).

4. Uses standard processes, documents, and timeframes/deadlines.

5. Financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).

For a more detailed look at the HAFA program, please visit the U.S. Treasury’s website at

: The HAFA program provides for the following:www.ustreas.gov.

: The HAFA program provides for the following:www.ustreas.gov.

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Foreclosure -vs- Short Sale

Deborah — Mon, 11 Jan 2010 01:45:29 +0000

This chart will show the difference between a Successful Short Sale and a Forelcosure;
and how each one will affect you:

Issue	Foreclosure	Successful Short Sale
Future Fannie Mae Loan – Primary Residence (effective May 21, 2008)	A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.	A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Future Fannie Mae Loan – Non Primary (effective May 21, 2008)	An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.	An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Future Loan with any Mortgage Company	On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this will affect future rates.	There is no similar declaration or question regarding a short sale.
Credit Score	Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.	In some cases only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. In some states default can be reported as a foreclosures however the time a short sale instead of a foreclosure will affect a borrow is much less. A short sale’s affect can be a brief as 12 to 18 months.
Credit History	Foreclosure will remain as a public record on a person’s credit history for 10 years or more.	A Short Sale is not reported on a persons credit history. There is no specific reporting item for ‘short sale’. In most cases a loan is typically reported ‘paid in full, settled’ or ‘paid as negotiated’.
Security Clearances	Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.	A Short Sale on its own does not challenge most security clearances.
Current Employment	Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment	Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Deficiency Judgment	In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.	In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.
Deficiency Judgment (amount)	In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.	In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.

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The Illinois Foreclosure Process

Deborah — Sun, 10 Jan 2010 18:20:05 +0000

Illinois Foreclosure Process
Average time in Illinois is 321 days
THE ILLINOIS FORECLOSURE PROCESS

Illinois is a judicial state requiring court actions to foreclose a mortgage. A typical foreclosure action requires anywhere between 210 to 270 days to completely take away the homeowner’s ownership of the property. An important point to remember is that the only way a bank becomes the actual owner of the property is when the entire foreclosure process takes place and a deed is issued to the bank. Until that happens, the borrower is still the legal owner of the property.
Below is a timeline of what typically happens from the time a borrower defaults on a note to when the bank acquires the property.

Pre-Foreclosure Process

• The borrower defaults on the promissory note. (The term “default” is defined in both the promissory note and the mortgage.)
• After default, either immediately or after a period of trying to work out the default, the lender is required by the terms of the mortgage and note to give a “Notice of Default” and acceleration letter to the borrower calling for the entire loan to become due.
• Before the foreclosure process begins, the lender orders a title search (called Minutes of Foreclosure) to see if any liens are ahead of the lender’s mortgage.

Court Process
• The lender files a Complaint to Foreclose Mortgage.
• The Complaint is served to the borrowers and any other defendants

All junior lien holders must be named as defendants in the Complaint to ensure title is free and clear of all liens at the time of the foreclosure sale. Keep in mind that property taxes and certain municipal liens cannot be extinguished through foreclosure. So lenders will closely monitor tax liens during default because a tax lien can jump ahead of a valid mortgage lien and terminate it when the tax redemption expires.
If a defendant can’t be located—Illinois allows a lender to serve through publication
The plaintiff (lender) records a Lis Pendens (notice of foreclosure) with the county where the property is located.
Upon being served, the defendant has 30 days to file an Answer with the court.
If the defendant fails to file an Answer, the court will enter an Order of Default.
If the borrower or other lien holders file an Answer contesting foreclosure, the parties can take the issue to trial.
If the defendants do not contest, then a Judgment of Foreclosure and Sale is entered. The Judgment includes the following:

The amount due (including principal, interest, attorneys’ fees, costs of filing/service, title expenses, paid taxes)
The redemption period;
Identification of the property;
Service and default against the defendants; and
The statutory foreclosure sale process.

Redemption Period

The borrower’s right to redeem the property ends:

7 months after the date of service of the Complaint if the borrower is living in the home,
6 months after the date of service of the Complaint if the borrower is not living in the home, or
3 months after the Judgment is entered, whichever is later.

To redeem the mortgage, the borrower must pay the entire amount as stated in the Judgment.
If the property is abandoned, the court can shorten the redemption period to 30 days after the Judgment is entered (the plaintiff would sign an affidavit stating an investigation was made to support the conclusion that the property is abandoned).

Sheriff’s Sale

The Sheriff’s Sale must occur after the redemption period.
Notice of the Sheriff’s Sale is published in a local newspaper in the county where the property is located once a week for 3 weeks (Cook County requires publication in two separate papers).
After the final notice of Sale is published, seven days must pass before the Sheriff’s Sale is held.
The highest bidder receives a Certificate of Purchase.
A Motion to Confirm Sale must be filed and the sale must be confirmed by the court.
After the court confirms the Sale, the Sheriff’s Deed is issued.
If the residence is occupied, there is an automatic 30-day stay of possession from the order confirming the sale. After 30 days, the county sheriff can evict anyone still living in the house.

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Obama Administration Announces Financial Incentives and Uniform Process for Short Sales

Deborah — Sat, 16 May 2009 11:28:24 +0000

Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program, the servicer may consider a short sale or, if that is not successful, a deed-in-lieu of foreclosure. Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate. Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders). Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option. Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement. Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement. Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received. No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP. Program Expiration. The program is in effect through 2012. DIL Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics

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Help for America’s Homeowners

Deborah — Thu, 14 May 2009 22:41:12 +0000

This site will give you some very helpful information to find the help that you need

including a self assesment tool to see if you are able to qualify for this program

www.Makinghomeaffordable.gov

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