Dec 11
15
Bobbie Coven-Files Shares Short Sales Perspective
A big thank you to Bobbie Coven-Files for providing this feature post on her short sales perspective. I love Bobbie’s passion for helping folks suffering with mortgage distress. This gal is willing to go to battle with the big boys to get the job done!
With the economy doing what it is doing, short sales are increasingly the only way out for many homeowners. Despite efforts by the Government to keep people in their homes by having lenders participate in modifying the mortgage loans, the actual numbers of people successfully obtaining a modification is only 2.5% in MA. However, lenders are usually fairly compliant and agreeable to short sales. Pretty sad statement!
Massachusetts was spared slightly in the economic meltdown. The state is not even in the top 10 of hardest hit states, not that I expect that to be any consolation to those that have been negatively affected by the distress mess. Lenders still need to ramp up their efforts to assist struggling property owners. Yes, I will admit, the lenders have made great strides over the past couple of years, but there is still mileage left to go.
Short sales, for many people, is the last step prior to foreclosure
Short sales, which are far more advantageous to lenders….can still be quite challenging, more so if HAFA is a factor. In recent months lenders have really started fine tooth combing the files. Not that I expect a lender to just close their eyes to things, or let a homeowner who CAN afford the mortgage payments to walk away scot free, but some situations are so blatantly obvious and the hardship is glaringly genuine. When someone holds up their hand and says “Help ME!” lenders need to listen!!! I find that for the vast majority of people it is very difficult and pride jostling to let ANYONE know that they are sinking and need a life raft. When someone does finally reach the point that they really feel there are no other options, I believe it’s my obligation as a Realtor to try and assist with short sales to be as painless as possible.
The Top 5 lenders, you know “the biggies” have really ramped up their efforts to streamline the short sales process and get the homeowners out without liability, especially using HAFA. But the smaller ones are still an incredible challenge. The smaller lenders proclaim to be a proud participant in the HARP, HAMP and HAFA make affordable programs, but really only participate when it “works for them.” Being self serving is not the essence of these programs and proves to be beneficial to no one. Not for profit lenders such as MassHousing, are scouring the files and are making very bold statements and recommendations to homeowners prior to issuing ANY short sales approval. I have one client who is in her late 60’s, this client had to take early retirement due to medical issues, well MassHousing (without even reading the hardship letter that details the medical issues) stated that the homeowner “needs to go back to work, she took retirement knowing that if would not sufficiently cover all her expenses and now wants us to release her from her mortgage. She can get herself back to work!” Repugnant words and repugnant behavior!!!!!
New England Short sales stem from property owners struggling with high heating costs
In the New England region we are now facing winter coming on, granted it is coming in as a “lamb” BUT it is coming. We are being told that heating costs are going to skyrocket with this winter to be the highest on record. The average family in MA spends $3,300 for heat during the winter, this year that average cost is expected to near $4,000!!! This is EXACTLY the situation that leads struggling homeowners into the inability to make their mortgage payment and become victims of short sales. Heat and hot water are mandatory needs, filling the oil tank right now is $900, for most homes in the heart of the winter that lasts about 6 weeks. Some people only get 4 weeks from that fill up. So when your budget is stretched to its ends due to job loss where does that $4,000 oil money come from?????
Short sales require property owner cooperation
What I find the most shocking with the whole short sales process is the homeowners themselves. I understand that being in a situation requiring a short sale is emotionally devastating, I also understand that it isn’t really what is wanted, so I am not unsympathetic to the issues. Some homeowners seriously are their own worst enemies. Every action they take seems to undermine the entire short sale process, not listening to advice directly given which causes a short sales to be declined. It absolutely stumps me that a homeowner facing a foreclosure sale date cancels showings, makes it impossible for buyers to view their home and does not turn in required paperwork in a timely manner despite repeated requests. They attempt to be in control so much that they decide which of the required paperwork that they want to turn in, do not want to close or move out on the closing date indicated in the short sale approval letter etc…….To close a successful short sale, owners need to cooperate and make their home available for showings. It is equally important to provide all of the required paperwork in a timely manner. The process can be repetitive and tedious, but in order to close a successful short sale all of the the steps must be adhered to and the Realtor needs full cooperation.
Bobbie Files, Realtor, C.D.P.E.
http://ShortSales.BerkleyMass.com
bobbiefiles@KW.com 508-521-9480 Direct
Thank you Bobbie for taking the time to share your thoughts, concerns and valuable advice about short sales!
Related posts:
Agi Anderson, CDPE, compiled changes made to Make Affordable HARP refinancing program, October 2011 ~ to see if you qualify, just enter your name and email to request HARP guidelines. (make sure to check spam for email confirmation)
