Tag: foreclosure

What is a Wells Fargo Short Sale? – Redding CA – Short Sale

What is a Wells Fargo Short Sale?

In a short sale the homeowners have the option to sell your home for less than the amount owed on your mortgage.

By doing a short sale, the struggling homeowner be released from the obligation to pay back the primary mortgage under its original terms. And as the mortgage servicer, Wells Fargo Home Mortgage may accept the proceeds of the sale as payment in full.

This option can help homeowners avoid a foreclosure sale. A short sale may be considered even if the foreclosure process has started, but time is of the essence.
Contact us directly at (530) 921-1063 -Laura Reilly- to start a short sale today.

Depending on your situation, you may be eligible for a short sale through the federal governments Home Affordable Foreclosure Alternatives (HAFA) program, or through many different programs.

If the homeowners is looking for options to avoid a foreclosure sale a short sale should be considered. In some cases the foreclosure sale may be postponed once a written, signed offer is received and approved by Wells Fargo Home Mortgage.

The current homeowner can live in the home until the new owner closes, giving you time to make other relocation plans.

And you as the homeowner can be released from your obligation to repay your mortgage balance.

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What is a Wells Fargo Short Sale?


Underwater Homeowners Get Much Needed Short Sale Relief – Redding CA

Underwater Homeowners Get Much Needed Short Sale Relief – Redding CA

In an effort to conform  California state law to a federal law at the end of Dec. 2012 which extended mortgage debt forgiveness, the CALIFORNIA ASSOCIATION OF REALTORS  is sponsoring Senate Bill 30, so that struggling California homeowners on the brink of foreclosure can get much needed mortgage debt relief.
This bill will for one more year exempt the taxation of mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification and that is including any principal reduction.

What does this mean?

Homeowners who want to or need to sell their home have 6 more months to do so.  The average time a short sale takes is four to six months.

If you are thinking about selling or need to sell your home, time is of the essence. Contact us for a free consultation to see if you qualify for a short sale.

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Short Sale Mortgage Debt Relief Act Extended – Redding CA

Underwater Homeowners Get Much Needed Short Sale Relief – Redding CA


Short Sale Mortgage Debt Relief Act Extended – Redding CA

Short Sale Mortgage Debt Relief Act Extended – Redding CA

Mortgage Forgiveness Debt Relief extended through 2013

For huge numbers of financially distressed  property owners of homes with underwater mortgages, this was the biggest issue in the entire fiscal cliff debate. The mortgage debt relief act provisions in the IRS tax code, first enacted in 2007, expired at midnight Dec. 31 on 2012.

Had Congress not acted, the IRS tax code would have reverted to its pre-2007 treatment of mortgage principal reductions or cancellations by lenders and banks, whether through loan modifications, short sales, deeds-in-lieu or foreclosures: All principal balances written off would be treated as ordinary income to the homeowners who received them.

For illustration, if a lender wrote off $80,000 of debt to facilitate a short sale, the seller would be taxed on that $80,000 at regular marginal rates, just as if they had earned it as income salary.

A return to taxation of principal reductions would have disrupted short sales , a growing segment of the home real estate market in 2013, and almost certainly would have encouraged more struggling home owners to take foreclosure and or bankruptcy.

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Short Sale Mortgage Debt Relief Act Extended – Redding CA

 


Wells Fargo Short Sale Facts – Redding CA

Wells Fargo Short Sale Facts – Redding CA

Wells Fargo bank owns 18% of their loans. They do not “own” most of the loans so what this means is when we are dealing with Wells Fargo home loans, we really are dealing with someone else.

69% of the loans Wells Fargo services are Fannie Mae, Freddie Mac or Ginnie Mae. 13% are private investors.

These are the people making the decisions about your Wells Fargo short sale transaction.

Fact – Wells Fargo has traditional been more flexible with HOA fees if the offer is for full market value or close to the Wells Fargo based asking price.

The Redding Short Sale Team will coordinate the existing homeowners, escrow and HOA if involved, Wells Fargo and the new buyers in the real estate transaction.

If an offer to purchase your home is received 30 days before a foreclosure sale date, Wells Fargo may postpone the foreclosure sale.

Time is of the essence in order to get a valuation (45-60 days) and a buyer along with being assigned a Wells Fargo negotiator.

We can help, find out what the process is.

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Wells Fargo Short Sale Facts – Redding CA


How to Short Sale to Avoid Foreclosure – Redding CA.

How to Short Sale to Avoid Foreclosure – Redding CA.

Banks and other lending institutions are continuing to make strides in helping homeowners who want to sale their home inorder to avoid the sting of foreclosure.

For many years now homeowners have been turning to this foreclosure solution.

What is a short sale?

A short sale is when the lender on the property i.e. Bank of America, Chase, Wells Fargo, etc. agree to accept a purchase price from a new buyer that is smaller than the amount the current homeowner owes on the mortgage.

Another reason why short sales may become even more popular…

If the mortgage interest deduction is eliminated by the the US Congress because of the fiscal cliff issues, it would give many more underwater homeowners and other distressed property owners one more reason NOT to hang on to their homes.

Short Sales are a common and much needed real estate transaction in this US economy.

Want to learn about your options?

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How to Short Sale to Avoid Foreclosure – Redding CA.


Short Sales take over Foreclosures-Redding CA

Short Sales take over Foreclosures -Redding CA

A short sale in a real estate transaction is when the mortgage lender on the property agrees to accept the mortgage payoff for less the the amount owed on the home.  

Why would banks agree to this?

Banks and mortgage lenders are becoming easier to work with on short sales vs. the other alternative which maybe foreclosure.

A foreclosure to a bank will mean a larger loss to the bank due to legal fees, taxes, insurance and property maintenance.

Large banks such as Bank of America, Chase and Wells Fargo are offer homeowners incentives to cooperate in a short sale vs. the bank having to contend with a foreclosure.

The short sale process use to take six month to a year, banks are now working to streamline the process and the process is taking about three months now to get a short sale approved

Do you want to know if a short sale can benefit you?

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Short Sales take over Foreclosures-Redding CA


Tax Relief for Distressed Property Owners-Short Sale-Redding CA

Tax Relief for Distressed Property Owners-Short Sale-Redding CA

The pressure is on for 2012 US congress to extend  the mortgage tax relief for homeonwers who may have mortgage debt canceled or forgiven through a short sale.

Did you know the Department of Justice made a settlement with big banks such as GMAC, Ally Bank, CitiMortgage, Chase, Wells Fargo and the biggie Bank of America.

This settlement to the big banks included approx. $25 Billion a Billion with a “B” to help struggling homeowners with loan modifications and other solutions to avoid foreclosure or short sale their home.

The fight is one for the extension of the mortgage debt relief act, extending the tax exemption.

It is anybodys guess if the tax exemptions will be extended.

Learn your options.

Any tax extension may ease the pressure on some distressed homeowners. But it would not eliminate it. All extensions ultimately will have another expiration date, possibly just one more year away.

Short sale real estate transactions can take several months, and the timelines are likely to stretch as homeowners, escrow officers and real estate agents rush to beat the deadlines.

Is a short sale right for you? What happens to the tax extension?

Ask us. Direct (530) 921-1063

The Redding Short Sale Team has experience dealing with banks and property owners, ask questions.

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Tax Relief for Distressed Property Owners-Short Sale-Redding CA


Short Sales and Housing Shortage In Redding CA

Short Sales and Housing Shortage In Redding CA

A short sale is the sale of property where a seller homeowner agrees to sell the home for less than they owe on the mortgage.

This process is helpful to banks and homeowners alike, this process HAS been far too long for all but the most tenacious of home buyers and can take several months to a year to complete.

But alot of that is about to change.

Starting Nov. 1, Fannie Mae and Freddie Mac the housing giants; gave nine private mortgage insurers the ability to approve short sales and deeds in lieu of foreclosure for distressed homeowners without requiring a separate review.

The amazing move is expected to reduce delays, costs and uncertainty involved in processing short sales and deed in lieu, according to mortgage giant Freddie Mac.

The Redding Short Sale Team applauds the nation’s mortgage insurers for committing to work with homeowners and buyer and the servicers to help more borrowers obtain short sales and other foreclosure alternative.

Short sales and deeds in lieu of foreclosure are important tools to prevent foreclosures and help struggling homeowners.

Are you interested in learning about the short sale process and if it can help you?

Contact us…

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Short Sales and Housing Shortage In Redding CA


FHA Home Loans Available 3 Years After a Short Sale-Homeowners recover more quickly-Redding CA

FHA Home Loans Available 3 Years After a Short Sale-Homeowners recover more quickly-Redding CA

The ability to get an FHA loan so quickly after a short sale could be welcome news to thousands of homeowners, who are thinking about a short sale, but want to buy another home in the future.

The Federal Government mortgage giants Fannie Mae and Freddie Mac make people wait seven years after a foreclosure, while the FHA will approve home loans after three years, providing the potential buyer has established good credit and the ability to pay back the mortgage.

There is a


Why do Banks take short sales?-Redding CA

Why do Banks take short sales?-Redding CA

A short sale is how a homeowner can sell the property for less than what is owed on the mortgage. This requires approval from the bank that has the mortgage on the property.

Once the short sale is approved, the lender may either ask for the difference in what is owed, token payments that are a fraction of what is owed or nothing at all.

One of the goals of the Redding Short Sale Team in handling the short sale is to negotiate complete forgiveness of the deficiency.

Most Banks (Bank of America, Wells Fargo and Chase) prefer that underwater homeowners do a short sale rather than give up their property to foreclosure.

How a short sale is better for both the homeowner and the banks.

Not only can the struggling homeowner buy another home years earlier and easier than if they went through a foreclosure, the banks make more money. Which you know the bank will like.

Be careful, if an offer to purchase comes in too low, the banks will opt for a foreclosure instead. Your bank will do what is best for the bank. If they can make more money on the short sale they will take it.

Foreclosures are tremendously expensive for a bank and they really don’t want your property.

Ways to Contact Us Direct (530) 921-1063 Laura Reilly

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Short Sale Certified by the National Association of Realtors License #01760446

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Why do Banks take short sales?-Redding CA


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