I can not believe we are even having to think about writing a post in today's market for Virginia agents and the Central Virginia real estate agents to explain that a short sale is NOT a bank owned property!! But we are!
I was asked to write this because this really just happened and we hope to educate agents as to what happens when you make an offer on one of our short sale listings.
After we receive your buyers' offer we contact our seller who is the homeowner of the property and present the offer to him/her/them.
It is then up to the seller what he wants to do with the offer. He can reject the offer, he can accept the offer, he can counter the offer or he can choose to do nothing with the offer. Your offer expires if he does not sign the offer before the time for acceptance lapses.
On one of our listings we received 3 offers in one day. Most all of our short sale listings get multiple offers. When this happens; our sellers choose one offer that they feel is the best and often ask for our input based on our experience. Then the seller will choose a back up offer also.
If none of the offers meet with the sellers' approval and with our experience of what a short sale lender is going to approve then the seller may send back to the buyers a counter offer. He may choose just one offer to counter or all.
So there is one agent who had sent in one of the offers for her buyers. The offer was $20,000 below asking price, the financing clause stated that the buyer was approved for his loan, yet there was NO approval letter. There was a pre approval letter that said his financials, income, etc were NOT reviewed. All they did was pull his credit. The financing spaces were not filled in correctly. When I did the math, the offer showed that the buyer was getting 100% financing. Then the addendum stated that the buyer was also asking for 6% back from the seller.
Ok, so here's the deal: The other two offers are over list price and ALL CASH offers. It does not take a rocket scientist to figure out which one the seller is going to want to go with!
Let's see: let's weigh ALL CASH versus 100% financing!!!!
I told the agent that we sent the seller all the offers. He was out of the country and would not work the offers until he returned. We alerted all the agents about this.
Then Keller Williams gets THE CALL!
The agent with this 100% financing clause in the offer starts yelling at Keller Williams- "You are supposed to send our offer to the bank!"
"What do you mean?, This is a short sale."
To which the agent continues to yell, "I looked up the tax rolls and it says that the mortgage is held by XYZ bank. You have to send our offer to the bank. The seller does not have any say in our offer."
Our broker tries to explain again that this is a short sale. The mortgage information on the tax rolls is to show who the mortgage company is. He tries to explain to her that the tax rolls clearly state that the seller is the homeowner and NOT the bank!
Then she tells him she has been doing short sales for a year now and she never sends the offers to the sellers. She just sends them right into the bank. WHAT!?
Then Keller Williams tells her that her buyer's financing does not look as strong as the cash offers but that is for the seller to decide. She then tells Nestor-
"Oh no, they are putting 3% down! They don't need the 6% back. They do have an approval letter." and on and on.
Well, if that was the case, ( and I just came back from an all day Contracts Class with an Attorney) then her buyer's offer needed to be written that way and not the way that it was.
So sometimes the buyers want to see how low they can go, how much they can negotiate and many times in our town, that will lose them the deal. ALOT of our closings are with ALL CASH transactions.
Another example of misinformation on how a short sale transaction works and even who the principles are.
Foreclosure Is NOT An Option! Call Nestor and Katerina Gasset today at 561-753-0135 for a confidential interview regarding your options.
Don't Delay! Don't Wait Until The Sheriff Is Knocking On Your Door! Pick up your phone and call us to see if you can avoid foreclosure.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Showing posts with label charlottesville short sale. Show all posts
Showing posts with label charlottesville short sale. Show all posts
Monday, March 22, 2010
Short Sales are NOT Bank Owned Properties
I can not believe we are even having to think about writing a post in today's market for Virginia agents and the Central Virginia real estate agents to explain that a short sale is NOT a bank owned property!! But we are!
I was asked to write this because this really just happened and we hope to educate agents as to what happens when you make an offer on one of our short sale listings.
After we receive your buyers' offer we contact our seller who is the homeowner of the property and present the offer to him/her/them.
It is then up to the seller what he wants to do with the offer. He can reject the offer, he can accept the offer, he can counter the offer or he can choose to do nothing with the offer. Your offer expires if he does not sign the offer before the time for acceptance lapses.
On one of our listings we received 3 offers in one day. Most all of our short sale listings get multiple offers. When this happens; our sellers choose one offer that they feel is the best and often ask for our input based on our experience. Then the seller will choose a back up offer also.
If none of the offers meet with the sellers' approval and with our experience of what a short sale lender is going to approve then the seller may send back to the buyers a counter offer. He may choose just one offer to counter or all.
So there is one agent who had sent in one of the offers for her buyers. The offer was $20,000 below asking price, the financing clause stated that the buyer was approved for his loan, yet there was NO approval letter. There was a pre approval letter that said his financials, income, etc were NOT reviewed. All they did was pull his credit. The financing spaces were not filled in correctly. When I did the math, the offer showed that the buyer was getting 100% financing. Then the addendum stated that the buyer was also asking for 6% back from the seller.
Ok, so here's the deal: The other two offers are over list price and ALL CASH offers. It does not take a rocket scientist to figure out which one the seller is going to want to go with!
Let's see: let's weigh ALL CASH versus 100% financing!!!!
I told the agent that we sent the seller all the offers. He was out of the country and would not work the offers until he returned. We alerted all the agents about this.
Then Keller Williams gets THE CALL!
The agent with this 100% financing clause in the offer starts yelling at Keller Williams- "You are supposed to send our offer to the bank!"
"What do you mean?, This is a short sale."
To which the agent continues to yell, "I looked up the tax rolls and it says that the mortgage is held by XYZ bank. You have to send our offer to the bank. The seller does not have any say in our offer."
Our broker tries to explain again that this is a short sale. The mortgage information on the tax rolls is to show who the mortgage company is. He tries to explain to her that the tax rolls clearly state that the seller is the homeowner and NOT the bank!
Then she tells him she has been doing short sales for a year now and she never sends the offers to the sellers. She just sends them right into the bank. WHAT!?
Then Keller Williams tells her that her buyer's financing does not look as strong as the cash offers but that is for the seller to decide. She then tells Nestor-
"Oh no, they are putting 3% down! They don't need the 6% back. They do have an approval letter." and on and on.
Well, if that was the case, ( and I just came back from an all day Contracts Class with an Attorney) then her buyer's offer needed to be written that way and not the way that it was.
So sometimes the buyers want to see how low they can go, how much they can negotiate and many times in our town, that will lose them the deal. ALOT of our closings are with ALL CASH transactions.
Another example of misinformation on how a short sale transaction works and even who the principles are.
Foreclosure Is NOT An Option! Call Nestor and Katerina Gasset today at 561-753-0135 for a confidential interview regarding your options.
Don't Delay! Don't Wait Until The Sheriff Is Knocking On Your Door! Pick up your phone and call us to see if you can avoid foreclosure.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
I was asked to write this because this really just happened and we hope to educate agents as to what happens when you make an offer on one of our short sale listings.
After we receive your buyers' offer we contact our seller who is the homeowner of the property and present the offer to him/her/them.
It is then up to the seller what he wants to do with the offer. He can reject the offer, he can accept the offer, he can counter the offer or he can choose to do nothing with the offer. Your offer expires if he does not sign the offer before the time for acceptance lapses.
On one of our listings we received 3 offers in one day. Most all of our short sale listings get multiple offers. When this happens; our sellers choose one offer that they feel is the best and often ask for our input based on our experience. Then the seller will choose a back up offer also.
If none of the offers meet with the sellers' approval and with our experience of what a short sale lender is going to approve then the seller may send back to the buyers a counter offer. He may choose just one offer to counter or all.
So there is one agent who had sent in one of the offers for her buyers. The offer was $20,000 below asking price, the financing clause stated that the buyer was approved for his loan, yet there was NO approval letter. There was a pre approval letter that said his financials, income, etc were NOT reviewed. All they did was pull his credit. The financing spaces were not filled in correctly. When I did the math, the offer showed that the buyer was getting 100% financing. Then the addendum stated that the buyer was also asking for 6% back from the seller.
Ok, so here's the deal: The other two offers are over list price and ALL CASH offers. It does not take a rocket scientist to figure out which one the seller is going to want to go with!
Let's see: let's weigh ALL CASH versus 100% financing!!!!
I told the agent that we sent the seller all the offers. He was out of the country and would not work the offers until he returned. We alerted all the agents about this.
Then Keller Williams gets THE CALL!
The agent with this 100% financing clause in the offer starts yelling at Keller Williams- "You are supposed to send our offer to the bank!"
"What do you mean?, This is a short sale."
To which the agent continues to yell, "I looked up the tax rolls and it says that the mortgage is held by XYZ bank. You have to send our offer to the bank. The seller does not have any say in our offer."
Our broker tries to explain again that this is a short sale. The mortgage information on the tax rolls is to show who the mortgage company is. He tries to explain to her that the tax rolls clearly state that the seller is the homeowner and NOT the bank!
Then she tells him she has been doing short sales for a year now and she never sends the offers to the sellers. She just sends them right into the bank. WHAT!?
Then Keller Williams tells her that her buyer's financing does not look as strong as the cash offers but that is for the seller to decide. She then tells Nestor-
"Oh no, they are putting 3% down! They don't need the 6% back. They do have an approval letter." and on and on.
Well, if that was the case, ( and I just came back from an all day Contracts Class with an Attorney) then her buyer's offer needed to be written that way and not the way that it was.
So sometimes the buyers want to see how low they can go, how much they can negotiate and many times in our town, that will lose them the deal. ALOT of our closings are with ALL CASH transactions.
Another example of misinformation on how a short sale transaction works and even who the principles are.
Foreclosure Is NOT An Option! Call Nestor and Katerina Gasset today at 561-753-0135 for a confidential interview regarding your options.
Don't Delay! Don't Wait Until The Sheriff Is Knocking On Your Door! Pick up your phone and call us to see if you can avoid foreclosure.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Thursday, March 11, 2010
Lose the House, but Not Your Credit
Lose the House, but Not Your Credit
According to sources in the mortgage industry, people who agree to a short sale with the lender do far less damage to their credit rating than those who go through foreclosure.
While in both cases, short sale and foreclosure, the delinquent mortgage will negatively affect their credit rating, at least short sellers avoid having a "debt discharged due to foreclosure" on their credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to three years to qualify for a mortgage at a reasonable rate.
Short sales show up on a credit report as a "pre-foreclosure in redemption" status and can result in a credit score reduction of 100 points or less. After the sale, the mortgage may show up as "discharged." People who successfully complete a short sale may also qualify for a mortgage at a reasonable interest rate in as little as 18 months. So, if buying a home is a future goal, then a short sale is the better option for many.
Homeowners cannot simply decide that they want to unload a home with a short sale; the lender must agree to it. The key to getting a lender to go along is to demonstrate two things: that you have no other financial resources to pay the mortgage, and that the sale price the buyer is willing to pay is the fair price the market will bear. If a lender believes it can get more for the house by taking possession of it and selling it themselves, then they will not go along with a short sale.
To begin the process of a short sale, you first need to call the lender and speak directly with the person in the loan workout or short sale department. At GMAC ResCap, a large residential mortgage lender, there is a "foreclosure prevention department" with people trained to work with homeowners in exactly this situation. Their motivation is summed up by Steve Nelson at that company: "We pretty much know what our loss is going to be if we foreclose. If a short-seller results in a payoff that's better than that number, we're talking all day long with people who want to put a short sale together." Some lenders report a three- to four-times rise in the number of short sales over the past year.
People who want to go this route should contact a local real estate firm and ask to work with a real estate agent who has actual experience with short sales. These specially trained agents will know the process and deliver the documentation that the lender requires to authorize the short sale. The agent can also find a buyer that is qualified to complete the transaction.
If all goes as planned, the lender will receive all of the proceeds, typically not enough to pay off the loan. The remaining balance of the loan is discharged. But a homeowner agreeing to a short sale should also get legal advice to protect his or herself from future claims of the lender. In some states, only purchase mortgages are fully discharged. For all other types of debt (equity loans, refinancing, etc), the homeowner can be held personally liable for repayment in the future. For this reason, a lawyer's advice will include getting the lender to agree to fully discharge all mortgage debt involved in the short sale.
For Help with a Short Sale, Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
According to sources in the mortgage industry, people who agree to a short sale with the lender do far less damage to their credit rating than those who go through foreclosure.
While in both cases, short sale and foreclosure, the delinquent mortgage will negatively affect their credit rating, at least short sellers avoid having a "debt discharged due to foreclosure" on their credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to three years to qualify for a mortgage at a reasonable rate.
Short sales show up on a credit report as a "pre-foreclosure in redemption" status and can result in a credit score reduction of 100 points or less. After the sale, the mortgage may show up as "discharged." People who successfully complete a short sale may also qualify for a mortgage at a reasonable interest rate in as little as 18 months. So, if buying a home is a future goal, then a short sale is the better option for many.
Homeowners cannot simply decide that they want to unload a home with a short sale; the lender must agree to it. The key to getting a lender to go along is to demonstrate two things: that you have no other financial resources to pay the mortgage, and that the sale price the buyer is willing to pay is the fair price the market will bear. If a lender believes it can get more for the house by taking possession of it and selling it themselves, then they will not go along with a short sale.
To begin the process of a short sale, you first need to call the lender and speak directly with the person in the loan workout or short sale department. At GMAC ResCap, a large residential mortgage lender, there is a "foreclosure prevention department" with people trained to work with homeowners in exactly this situation. Their motivation is summed up by Steve Nelson at that company: "We pretty much know what our loss is going to be if we foreclose. If a short-seller results in a payoff that's better than that number, we're talking all day long with people who want to put a short sale together." Some lenders report a three- to four-times rise in the number of short sales over the past year.
People who want to go this route should contact a local real estate firm and ask to work with a real estate agent who has actual experience with short sales. These specially trained agents will know the process and deliver the documentation that the lender requires to authorize the short sale. The agent can also find a buyer that is qualified to complete the transaction.
If all goes as planned, the lender will receive all of the proceeds, typically not enough to pay off the loan. The remaining balance of the loan is discharged. But a homeowner agreeing to a short sale should also get legal advice to protect his or herself from future claims of the lender. In some states, only purchase mortgages are fully discharged. For all other types of debt (equity loans, refinancing, etc), the homeowner can be held personally liable for repayment in the future. For this reason, a lawyer's advice will include getting the lender to agree to fully discharge all mortgage debt involved in the short sale.
For Help with a Short Sale, Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Lose the House, but Not Your Credit
Lose the House, but Not Your Credit
According to sources in the mortgage industry, people who agree to a short sale with the lender do far less damage to their credit rating than those who go through foreclosure.
While in both cases, short sale and foreclosure, the delinquent mortgage will negatively affect their credit rating, at least short sellers avoid having a "debt discharged due to foreclosure" on their credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to three years to qualify for a mortgage at a reasonable rate.
Short sales show up on a credit report as a "pre-foreclosure in redemption" status and can result in a credit score reduction of 100 points or less. After the sale, the mortgage may show up as "discharged." People who successfully complete a short sale may also qualify for a mortgage at a reasonable interest rate in as little as 18 months. So, if buying a home is a future goal, then a short sale is the better option for many.
Homeowners cannot simply decide that they want to unload a home with a short sale; the lender must agree to it. The key to getting a lender to go along is to demonstrate two things: that you have no other financial resources to pay the mortgage, and that the sale price the buyer is willing to pay is the fair price the market will bear. If a lender believes it can get more for the house by taking possession of it and selling it themselves, then they will not go along with a short sale.
To begin the process of a short sale, you first need to call the lender and speak directly with the person in the loan workout or short sale department. At GMAC ResCap, a large residential mortgage lender, there is a "foreclosure prevention department" with people trained to work with homeowners in exactly this situation. Their motivation is summed up by Steve Nelson at that company: "We pretty much know what our loss is going to be if we foreclose. If a short-seller results in a payoff that's better than that number, we're talking all day long with people who want to put a short sale together." Some lenders report a three- to four-times rise in the number of short sales over the past year.
People who want to go this route should contact a local real estate firm and ask to work with a real estate agent who has actual experience with short sales. These specially trained agents will know the process and deliver the documentation that the lender requires to authorize the short sale. The agent can also find a buyer that is qualified to complete the transaction.
If all goes as planned, the lender will receive all of the proceeds, typically not enough to pay off the loan. The remaining balance of the loan is discharged. But a homeowner agreeing to a short sale should also get legal advice to protect his or herself from future claims of the lender. In some states, only purchase mortgages are fully discharged. For all other types of debt (equity loans, refinancing, etc), the homeowner can be held personally liable for repayment in the future. For this reason, a lawyer's advice will include getting the lender to agree to fully discharge all mortgage debt involved in the short sale.
For Help with a Short Sale, Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
According to sources in the mortgage industry, people who agree to a short sale with the lender do far less damage to their credit rating than those who go through foreclosure.
While in both cases, short sale and foreclosure, the delinquent mortgage will negatively affect their credit rating, at least short sellers avoid having a "debt discharged due to foreclosure" on their credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to three years to qualify for a mortgage at a reasonable rate.
Short sales show up on a credit report as a "pre-foreclosure in redemption" status and can result in a credit score reduction of 100 points or less. After the sale, the mortgage may show up as "discharged." People who successfully complete a short sale may also qualify for a mortgage at a reasonable interest rate in as little as 18 months. So, if buying a home is a future goal, then a short sale is the better option for many.
Homeowners cannot simply decide that they want to unload a home with a short sale; the lender must agree to it. The key to getting a lender to go along is to demonstrate two things: that you have no other financial resources to pay the mortgage, and that the sale price the buyer is willing to pay is the fair price the market will bear. If a lender believes it can get more for the house by taking possession of it and selling it themselves, then they will not go along with a short sale.
To begin the process of a short sale, you first need to call the lender and speak directly with the person in the loan workout or short sale department. At GMAC ResCap, a large residential mortgage lender, there is a "foreclosure prevention department" with people trained to work with homeowners in exactly this situation. Their motivation is summed up by Steve Nelson at that company: "We pretty much know what our loss is going to be if we foreclose. If a short-seller results in a payoff that's better than that number, we're talking all day long with people who want to put a short sale together." Some lenders report a three- to four-times rise in the number of short sales over the past year.
People who want to go this route should contact a local real estate firm and ask to work with a real estate agent who has actual experience with short sales. These specially trained agents will know the process and deliver the documentation that the lender requires to authorize the short sale. The agent can also find a buyer that is qualified to complete the transaction.
If all goes as planned, the lender will receive all of the proceeds, typically not enough to pay off the loan. The remaining balance of the loan is discharged. But a homeowner agreeing to a short sale should also get legal advice to protect his or herself from future claims of the lender. In some states, only purchase mortgages are fully discharged. For all other types of debt (equity loans, refinancing, etc), the homeowner can be held personally liable for repayment in the future. For this reason, a lawyer's advice will include getting the lender to agree to fully discharge all mortgage debt involved in the short sale.
For Help with a Short Sale, Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Buying a Short Sale Home
Buying a Short Sale Home
Buyers who can find a short-sale can get a good deal. The advantages of buying a property through a short sale include buying at a discounted price and buying a house where the sellers are still motivated to sell the home and may take care of it until it is sold.
Some buyers think they can get a better deal by waiting to buy a house when it goes into foreclosure, but buying a house through foreclosure is risky business and not for first-time buyers or inexperienced real estate investors. You should get advice from an experienced professional. Hire a lawyer to help you with the eviction process if the home is occupied. Sometimes, tenants who are sued for eviction can retaliate. When sellers realize they will lose their home to foreclosure, they often stop caring for it. Many states require buyers to make certain disclosures to the owners, and failure to do so on the proper forms and in the required timeframes can result in fines, lawsuits, and even cancellation of the sale and loss of your money.
It's typically advised to work with a realtor with experience in short sales, because they can help you research the market to find the properties where foreclosure notices have been filed as well as how much is owed by the lender. Typically, this can be done at the county registrar of deeds. They can also approach these homeowners for you to let them know that they are aware that the foreclosure notice has been filed and that, if the owner is interested, there is a buyer who could work with them to complete a short sale.
Even if you find a home where the owner is willing to work out a short sale, don't assume the lender will go along with it. Once the seller agrees to your offer, your agent will need to send it to the lender for approval, and you will not have a deal until the lender OKs it.
Expect a lender to negotiate a higher price; they will want to know they are getting paid the most they can get for the house. Since the lender is paying the realtor's commission, it will likely ask your agent to lower his commission, or you to pay some of it. Typically, the lender will not bear the cost of items that are typically paid for by sellers, such as inspections, and the lender will agree only to sell the property if the buyer agrees to buy it in "as is" condition. This makes it all the more important for a buyer of a property through a short sale to make an offer contingent upon approving a through home inspection.
To Get a FREE List of Short Sale Properties Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.charlottesvilleshortsale.com/
Buyers who can find a short-sale can get a good deal. The advantages of buying a property through a short sale include buying at a discounted price and buying a house where the sellers are still motivated to sell the home and may take care of it until it is sold.
Some buyers think they can get a better deal by waiting to buy a house when it goes into foreclosure, but buying a house through foreclosure is risky business and not for first-time buyers or inexperienced real estate investors. You should get advice from an experienced professional. Hire a lawyer to help you with the eviction process if the home is occupied. Sometimes, tenants who are sued for eviction can retaliate. When sellers realize they will lose their home to foreclosure, they often stop caring for it. Many states require buyers to make certain disclosures to the owners, and failure to do so on the proper forms and in the required timeframes can result in fines, lawsuits, and even cancellation of the sale and loss of your money.
It's typically advised to work with a realtor with experience in short sales, because they can help you research the market to find the properties where foreclosure notices have been filed as well as how much is owed by the lender. Typically, this can be done at the county registrar of deeds. They can also approach these homeowners for you to let them know that they are aware that the foreclosure notice has been filed and that, if the owner is interested, there is a buyer who could work with them to complete a short sale.
Even if you find a home where the owner is willing to work out a short sale, don't assume the lender will go along with it. Once the seller agrees to your offer, your agent will need to send it to the lender for approval, and you will not have a deal until the lender OKs it.
Expect a lender to negotiate a higher price; they will want to know they are getting paid the most they can get for the house. Since the lender is paying the realtor's commission, it will likely ask your agent to lower his commission, or you to pay some of it. Typically, the lender will not bear the cost of items that are typically paid for by sellers, such as inspections, and the lender will agree only to sell the property if the buyer agrees to buy it in "as is" condition. This makes it all the more important for a buyer of a property through a short sale to make an offer contingent upon approving a through home inspection.
To Get a FREE List of Short Sale Properties Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.charlottesvilleshortsale.com/
Buying a Short Sale Home
Buying a Short Sale Home
Buyers who can find a short-sale can get a good deal. The advantages of buying a property through a short sale include buying at a discounted price and buying a house where the sellers are still motivated to sell the home and may take care of it until it is sold.
Some buyers think they can get a better deal by waiting to buy a house when it goes into foreclosure, but buying a house through foreclosure is risky business and not for first-time buyers or inexperienced real estate investors. You should get advice from an experienced professional. Hire a lawyer to help you with the eviction process if the home is occupied. Sometimes, tenants who are sued for eviction can retaliate. When sellers realize they will lose their home to foreclosure, they often stop caring for it. Many states require buyers to make certain disclosures to the owners, and failure to do so on the proper forms and in the required timeframes can result in fines, lawsuits, and even cancellation of the sale and loss of your money.
It's typically advised to work with a realtor with experience in short sales, because they can help you research the market to find the properties where foreclosure notices have been filed as well as how much is owed by the lender. Typically, this can be done at the county registrar of deeds. They can also approach these homeowners for you to let them know that they are aware that the foreclosure notice has been filed and that, if the owner is interested, there is a buyer who could work with them to complete a short sale.
Even if you find a home where the owner is willing to work out a short sale, don't assume the lender will go along with it. Once the seller agrees to your offer, your agent will need to send it to the lender for approval, and you will not have a deal until the lender OKs it.
Expect a lender to negotiate a higher price; they will want to know they are getting paid the most they can get for the house. Since the lender is paying the realtor's commission, it will likely ask your agent to lower his commission, or you to pay some of it. Typically, the lender will not bear the cost of items that are typically paid for by sellers, such as inspections, and the lender will agree only to sell the property if the buyer agrees to buy it in "as is" condition. This makes it all the more important for a buyer of a property through a short sale to make an offer contingent upon approving a through home inspection.
To Get a FREE List of Short Sale Properties Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.charlottesvilleshortsale.com/
Buyers who can find a short-sale can get a good deal. The advantages of buying a property through a short sale include buying at a discounted price and buying a house where the sellers are still motivated to sell the home and may take care of it until it is sold.
Some buyers think they can get a better deal by waiting to buy a house when it goes into foreclosure, but buying a house through foreclosure is risky business and not for first-time buyers or inexperienced real estate investors. You should get advice from an experienced professional. Hire a lawyer to help you with the eviction process if the home is occupied. Sometimes, tenants who are sued for eviction can retaliate. When sellers realize they will lose their home to foreclosure, they often stop caring for it. Many states require buyers to make certain disclosures to the owners, and failure to do so on the proper forms and in the required timeframes can result in fines, lawsuits, and even cancellation of the sale and loss of your money.
It's typically advised to work with a realtor with experience in short sales, because they can help you research the market to find the properties where foreclosure notices have been filed as well as how much is owed by the lender. Typically, this can be done at the county registrar of deeds. They can also approach these homeowners for you to let them know that they are aware that the foreclosure notice has been filed and that, if the owner is interested, there is a buyer who could work with them to complete a short sale.
Even if you find a home where the owner is willing to work out a short sale, don't assume the lender will go along with it. Once the seller agrees to your offer, your agent will need to send it to the lender for approval, and you will not have a deal until the lender OKs it.
Expect a lender to negotiate a higher price; they will want to know they are getting paid the most they can get for the house. Since the lender is paying the realtor's commission, it will likely ask your agent to lower his commission, or you to pay some of it. Typically, the lender will not bear the cost of items that are typically paid for by sellers, such as inspections, and the lender will agree only to sell the property if the buyer agrees to buy it in "as is" condition. This makes it all the more important for a buyer of a property through a short sale to make an offer contingent upon approving a through home inspection.
To Get a FREE List of Short Sale Properties Click Here
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.charlottesvilleshortsale.com/
Virginia Foreclosure Timeline
Charlottesville Real Estate, Short Sales and Foreclosures Explained
Virginia Foreclosure Laws
Virginia Foreclosure is Non-Judicial.
Virginia Foreclosure Timeline :
Virginia Foreclosure Day 1
Review of file, acknowledgment of receipt of referral and preparation and forwarding of Substitution of Trustee to lender for execution. With Absolute Wireless the referral acknowledgment the client will be advised of any missing documentation. Virginia foreclosure law requires that the Trustee receive a written request from the lender to proceed with foreclosure. The Trustee needs (1) the original note and copy of the deed of trust, (2) copy of default/breach letter and (3) the tide insurance policy. Note: If the original note has been lost a copy with a lost note affidavit will suffice, but the lender, prior to the institution of the foreclosure, must give the obligor(s), including the property owner, written notice that the original note is unavailable and that a request for sale by the Trustee will be made upon expiration of 14 days from the date of the notice. This notice must be sent certified mail, return receipt requested, to the last known address of the obligor(s) and must include the name and address of the Trustee and must further advise the obligor(s) that if he believes that he may be subject to a claim by a person other than the lender to enforce it he may petition the circuit court of the city or county wherein the property lies for an order requiring the lender to provide adequate protection against any such claim. The Trustee cannot proceed to sale without either the original note or the lost note notice (with the return receipt or returned envelope).
Virginia Foreclosure Days 2-14
Examination and review of title. The lender and title insurer are advised of any title defects and appropriate steps are undertaken to clear any title defects.
Virginia Foreclosure Days 15-20
Preparation of foreclosure notices to owners of record title and any others liable on the note. The minimum notice is 14 days prior to the date of the sale. Additionally, if there are IRS liens, homeowners' or condominium association liens or junior deed of trust, lien notice must be given to these lien holders as well. Simultaneously, with the foreclosure notice, the newspaper advertisement of sale is prepared and forwarded to the appropriate newspaper for publication. The language of the deed of trust usually controls the advertising required. The minimum advertisement required for a Virginia foreclosure is, if weekly, once a week for 2 successive weeks, or if daily, once a day for 3 successive days. If the deed of trust is silent on the number of publications then it must be advertised once a week for 4 successive weeks. However, if the property lies within a city or in a county contiguous to a city, daily publication for 5 days, which may be consecutive, is deemed adequate.
Virginia Foreclosure Day 50
The Virginia foreclosure sale is held. The Trustee conducts the sale. Virginia foreclosure law allows the lender to submit to the Trustee a written one-price bid in advance of the sale. The Trustee cannot bid actively on behalf of the lender but can open the bidding at the one-price bid of the lender. A bidder's deposit of 10% of the successful bid is required at the time of sale. If the lender is the successful bidder this is waived. The lender is advised of the sale results immediately following the sale.
Virginia Foreclosure Days 51-65
Assuming the lender is the successful bidder, the proposed foreclosure deed, a copy of the proposed accounting, a "receipt" for the net sale proceeds and an invoice for the expenses of sale, including the cost of recording the foreclosure deed, is submitted to the lender. Upon receipt of the requested funds and the "receipt" the deed is recorded and costs are paid. At this point, except for the accounting, the foreclosure is complete. Except for the IRS lien situations, there is no right of redemption in Virginia. If a third party is the successful bidder the Trustee coordinates the settlement with the bidder's attorney and proceeds to closing. If the successful bidder defaults, the bidder's deposit is used to pay the expenses of the Virginia foreclosure with the excess funds forwarded to the lender and the process begins again.
Virginia Foreclosure Days 90-100
The Trustee is required to file an accounting of the sale with the Commissioner of Accounts within 6 months of the date of the Virginia foreclosure sale. Included in this report is the accounting, copies of the canceled checks for all sale expenses, the original note (or lost note affidavit and lost note notice with receipts) and a copy of the recorded foreclosure deed.
Insurer/Guarantor Requirements
FHA and VA regulations set forth specific time requirements for the institution and completion of the foreclosure process which must be met by the servicer in order to maintain the loan guaranty. The typical "time-line" previously set forth well exceeds these requirements. Daily monitoring of all pending foreclosures allows the firm to be ever cognizant of its time and reporting responsibilities.
How Virginia Foreclosure Deed of Trust Construed
Every deed of trust to secure debts or indemnify sureties is in the nature of a contract and shall be construed according to its terms to the extent not in conflict with the requirements of Virginia's foreclosure law. Unless otherwise provided therein, it shall be construed to impose and confer upon the parties thereto, and the beneficiaries thereunder, the following duties, rights and obligations in like manner as if the same were expressly provided for by such deed of trust:
1. The deed shall be construed as given to secure the performance of each of the covenants entered into by the grantor as well as the payment of the primary obligation.
2. The grantor shall be deemed to covenant that he will pay all taxes, levies, assessments and charges upon the property, including the fees and charges of such agents or attorneys as the trustee may deem advisable to employ at any time for the purpose of the trust, so long as any obligation upon the grantor under the deed of trust remains undischarged.
3. The grantor shall be deemed to covenant that he will keep the improvements on the property in tenantable condition, whether such improvements were on the property when the deed of trust was given or were thereafter placed thereon.
4. The grantor shall be deemed to covenant that no waste shall be committed or suffered upon the property.
5. The grantor shall be deemed to covenant that in the event of his failure to meet any obligations imposed upon him then the trustee or any beneficiary may, at his option, satisfy the same. The money so advanced, with interest thereon as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be otherwise recoverable from the grantor as a debt. In addition, to the extent not otherwise covered, the grantor shall be deemed to covenant that amount advanced or incurred by the trustee or any beneficiary under a deed of trust (i) with respect to an obligation secured by a lien or encumbrance prior to the lien of the deed of trust or (ii) for the protection of the lien secured by the deed of trust, together with interest as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, to be paid next after expenses of executing the trust.
6. A covenant to pay interest shall be deemed a covenant to pay interest on the principal balance as such rate may vary or be modified from time to time by the parties under the original instruments or agreements or a written agreement of modification whether or not recorded, and all the interest on the principal secured by the deed of trust shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust.
Any covenant, otherwise authorized by law, that the lender shall be entitled to share in the gross income or the net income, or the gross rent or revenues, or net rents or revenues of the property, or in any portion of the proceeds or appreciation upon sale or appraisal or similar event, shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be specified in the recorded deed of trust or other recorded document in order to be notice of record as against subsequent parties.
7. In the event of default in the payment of the debt secured, or any part thereof; at maturity, or in the payment of interest when due, or of the breach of any of the covenants entered into or imposed upon the grantor, then at the request of any beneficiary the trustee shall forthwith declare all the debts and obligations secured by the deed of trust at once due and payable and may take possession of the property and proceed to sell the same at auction at the premises or in the front of the circuit court building or at such other place in the city or county in which the property or the greater part thereof lies, or in the corporate limits of any city surrounded by or contiguous to such county, or in the case of annexed land, in the county of which the land was formerly a part, as the trustee may select upon such terms and conditions as the trustee may deem best.
8. If the Virginia foreclosure sale is upon credit terms, the deferred purchase money shall bear interest from the day of sale and shall be secured by a deed of trust upon the property contemporaneous with the trustee's deed to the purchaser.
9. The party secured by the deed of trust, or the holders of greater than fifty percent of the monetary obligations secured thereby, shall have the right and power to appoint a substitute trustee or trustees for any reason and, regardless of whether such right and power is expressly granted in such deed of trust, by executing and acknowledging an instrument designating and appointing a substitute. When the instrument of appointment has been executed, the substitute trustee or trustees named therein shall be vested with all the powers, rights, authority and duties vested in the trustee or trustees in the original deed of trust. The instrument of appointment shall be recorded in the office of the clerk wherein the original deed of trust is recorded prior to or at the time of recordation of any instrument in which a power, right, authority or duty conferred by the original deed of trust is exercised.
Notices Required before Sale by Trustee to Owners
A. In addition to the advertisement, the trustee or the party secured shall give written notice of the time, date and place of any proposed sale in execution of a deed of trust by personal delivery or by mail to (i) the present owner of the property to be sold at his last known address as such owner and address appear in the records of the party secured, (ii) any subordinate lien holder who holds a note against the property secured by a deed of trust recorded at least thirty days prior to the proposed sale and whose address is recorded with the deed of trust, (iii) any assignee of such a note secured by a deed of trust provided the assignment and address of assignee are likewise recorded at least thirty days prior to the proposed sale, (iv) any condominium unit owners association which has filed a lien, (v) any property owners' association which has filed a lien, and (vi) any proprietary lessees association which has filed a lien. Written notice shall be given pursuant to clauses (iv), (v) and (vi), only if the lien is recorded at least thirty days prior to the proposed sale. Mailing of a copy of the advertisement or a notice containing the same information to the owner by certified or registered mail no less than fourteen days prior to such sale and to lien holders, the property owners association or proprietary lessees' association, their assigns and the condominium unit owners' association, at the address noted in the memorandum of lien, by ordinary mail no less than fourteen days prior to such sale shall be a sufficient compliance with the requirement of notice. The written notice of proposed sale when given as provided herein shall be deemed an effective exercise of any right of acceleration contained in such deed of trust or otherwise possessed by the party secured relative to the indebtedness secured. The inadvertent failure to give notice as required by this subsection shall not impose liability on either the trustee or the secured party.
If a note or other evidence of indebtedness secured by a deed of trust is lost or for any reason cannot be produced and the beneficiary submits to the trustee an affidavit to that effect, the trustee may nonetheless proceed to sale, provided the beneficiary has given written notice to the person required to pay the instrument that the instrument is unavailable and a request for sale will be made of the trustee upon expiration of fourteen days from the date of mailing of the notice. The notice shall be sent by certified mail, return receipt requested, to the last known address of the person required to pay the instrument as reflected in the records of the beneficiary and shall include the name and mailing address of the trustee. The notice shall further advise the person required to pay the instrument that if he believes he may be subject to a claim by a person other than the beneficiary to enforce the instrument he may petition the circuit court of the county or city where the property or some part thereof lies for an order requiring the beneficiary to provide adequate protection against any such claim. If deemed appropriate by the court, the court may condition the sale on a finding that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means. If the trustee proceeds to sale, the fact that the instrument is lost or cannot be produced shall not affect the authority of the trustee to sell or the validity of the Virginia foreclosure sale.
Failure to comply with the requirements of notice contained in this section shall not affect the validity of the sale, and a purchaser for value at such sale shall be under no duty to ascertain whether such notice was validly given.
In the event of postponement of sale, which may be done in the discretion of the trustee, no new or additional notice need be given pursuant to this section.
Advertisement Required before Sale by Trustee
A. Advertisement of sale by a trustee or trustees in execution of a deed of trust shall be in a newspaper having a general circulation in the city or county wherein the property to be sold, or any portion thereof; lies pursuant to the following provisions:
1. If the deed of trust itself provides for the number of publications of such newspaper advertisement, which may be done by using the words "advertisement required" or words of like purport followed by the number agreed upon, then no other or different advertisement shall be necessary, provided that, if such advertisement be inserted on a weekly basis it shall be published not less than once a week for two weeks and if such advertisement be inserted on a daily basis it shall be published not less than once a day for three days, which may be consecutive days, in the same manner as if the method were set forth in the deed of trust. Should the deed of trust provide for advertising on other than a weekly or daily basis either of the foregoing provisions shall be complied with in addition to those provided in such deed of trust. Notwithstanding the provisions of the deed of trust, the Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
2. If the deed of trust does not provide for the number of publications of such newspaper advertisement, the trustee shall advertise once a week for four successive weeks; provided, however, that if the property or some portion thereof is located in a city or in a county immediately contiguous to a city, publication of the advertisement five different days, which may be consecutive days, shall be deemed adequate. The Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
B. Such advertisement shall be placed in that section of the newspaper where legal notices appear or where the type of property being sold is generally advertised for sale.
C. In addition to the advertisement required by subsection A above, the trustee shall give such other further and different advertisement as the deed of trust may require and in addition may give such additional advertisement as he may deem appropriate.
D. In the event of postponement of sale, which postponement shall be at the discretion of the trustee, advertisement of such postponed sale shall be in the same manner as the original advertisement of sale.
E. Failure to comply with the requirements for advertisement contained in this section shall, upon petition, render a sale of the property voidable by the court.
Contents of Advertisements of Virginia Foreclosure Sale
The advertisement of sale under any deed of trust, in addition to such other matters as may be required by such deed of trust or by the trustee, in his discretion, shall set forth a description of the property to be sold, which description need not be as extensive as that contained in the deed of trust, and shall identify the property by street address, if any, or if none, shall give the general location of the property with reference to streets, routes, or known landmarks. Where available, tax map identification may be used but is not required. The advertisement shall also include the time, place and terms of sale and shall give the name or names of the trustee or trustees. It shall set forth the name, address and telephone number of such person (either a trustee or the party secured or his agent or attorney) as may be able to respond to inquiries concerning the sale.
Powers and Duties of trustee in event of sale under a deed of trust
A. In the event of sale under a deed of trust, the trustee shall have the following powers and duties in addition to all others:
1. Written one-price bids may be made and shall be received by the trustee from the beneficiary or any other person for entity by announcement of the trustee at the sale. Any person other than the trustee may bid at the Virginia foreclosure sale, including a person who has submitted a written one-price bid. Upon request to the trustee or trustees, any other bidder in attendance at a foreclosure sale shall be permitted to inspect written bids. Whenever the written bid of the beneficiary is the highest bid submitted at the sale, such document shall be filed by the trustee with his account of sale. The written bid submitted pursuant to this subsection may be prepared by the beneficiary, its agent or attorney.
2. The trustee may require of any bidder at any sale a cash deposit of as much as ten per centum of the sale price (unless the deed of trust specifies a higher or lower maximum, which may be done by the words "bidder's deposit of not more than... dollars may be required," or words of like purport) before his bid is received, which shall be returned to the bidder unless the property is sold to him, otherwise to be applied to his credit in settlement or, should he fail to complete his purchase promptly, to be applied to pay the costs and expense of sale and the balance, if any, to be retained by the trustee as his compensation in connection with that foreclosure sale.
3. The trustee shall receive and receipt for the proceeds of sale, no purchaser being required to see to the application of the proceeds, account for the same to the commissioner of accounts and apply the same, first, to discharge the expenses of executing the trust, including a reasonable commission to the trustee; secondly, to discharge all taxes, levies, and assessment, with costs and interest if they have priority over the lien of the deed of trust, including the due pro rata thereof for the current year; thirdly, to discharge in the order of their priority, if any, the remaining debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which sale is made, with lawful interest; and, fourthly, the residue of the proceeds shall be paid to the grantor or his assigns; provided, however, that the trustee as to such residue shall not be bound by any inheritance, devise, conveyance, assignment or lien of or upon the grantor's equity, without actual notice thereof prior to distribution; provided further that such order of priorities shall not be changed or varied by the deed of trust.
B. Upon discharge (other than by sale by the trustee) of all debts, duties and obligations imposed by the deed upon the grantor, including any expenses incurred preparatory to sale, then upon the grantor's request the trustee shall execute and deliver a good and sufficient deed of release at the grantor's own proper costs and charges.
Rob Alley, Realtor
Virginia Real Estate Solutions
Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvilleshortsale.com
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Virginia Foreclosure Laws
Virginia Foreclosure is Non-Judicial.
Virginia Foreclosure Timeline :
Virginia Foreclosure Day 1
Review of file, acknowledgment of receipt of referral and preparation and forwarding of Substitution of Trustee to lender for execution. With Absolute Wireless the referral acknowledgment the client will be advised of any missing documentation. Virginia foreclosure law requires that the Trustee receive a written request from the lender to proceed with foreclosure. The Trustee needs (1) the original note and copy of the deed of trust, (2) copy of default/breach letter and (3) the tide insurance policy. Note: If the original note has been lost a copy with a lost note affidavit will suffice, but the lender, prior to the institution of the foreclosure, must give the obligor(s), including the property owner, written notice that the original note is unavailable and that a request for sale by the Trustee will be made upon expiration of 14 days from the date of the notice. This notice must be sent certified mail, return receipt requested, to the last known address of the obligor(s) and must include the name and address of the Trustee and must further advise the obligor(s) that if he believes that he may be subject to a claim by a person other than the lender to enforce it he may petition the circuit court of the city or county wherein the property lies for an order requiring the lender to provide adequate protection against any such claim. The Trustee cannot proceed to sale without either the original note or the lost note notice (with the return receipt or returned envelope).
Virginia Foreclosure Days 2-14
Examination and review of title. The lender and title insurer are advised of any title defects and appropriate steps are undertaken to clear any title defects.
Virginia Foreclosure Days 15-20
Preparation of foreclosure notices to owners of record title and any others liable on the note. The minimum notice is 14 days prior to the date of the sale. Additionally, if there are IRS liens, homeowners' or condominium association liens or junior deed of trust, lien notice must be given to these lien holders as well. Simultaneously, with the foreclosure notice, the newspaper advertisement of sale is prepared and forwarded to the appropriate newspaper for publication. The language of the deed of trust usually controls the advertising required. The minimum advertisement required for a Virginia foreclosure is, if weekly, once a week for 2 successive weeks, or if daily, once a day for 3 successive days. If the deed of trust is silent on the number of publications then it must be advertised once a week for 4 successive weeks. However, if the property lies within a city or in a county contiguous to a city, daily publication for 5 days, which may be consecutive, is deemed adequate.
Virginia Foreclosure Day 50
The Virginia foreclosure sale is held. The Trustee conducts the sale. Virginia foreclosure law allows the lender to submit to the Trustee a written one-price bid in advance of the sale. The Trustee cannot bid actively on behalf of the lender but can open the bidding at the one-price bid of the lender. A bidder's deposit of 10% of the successful bid is required at the time of sale. If the lender is the successful bidder this is waived. The lender is advised of the sale results immediately following the sale.
Virginia Foreclosure Days 51-65
Assuming the lender is the successful bidder, the proposed foreclosure deed, a copy of the proposed accounting, a "receipt" for the net sale proceeds and an invoice for the expenses of sale, including the cost of recording the foreclosure deed, is submitted to the lender. Upon receipt of the requested funds and the "receipt" the deed is recorded and costs are paid. At this point, except for the accounting, the foreclosure is complete. Except for the IRS lien situations, there is no right of redemption in Virginia. If a third party is the successful bidder the Trustee coordinates the settlement with the bidder's attorney and proceeds to closing. If the successful bidder defaults, the bidder's deposit is used to pay the expenses of the Virginia foreclosure with the excess funds forwarded to the lender and the process begins again.
Virginia Foreclosure Days 90-100
The Trustee is required to file an accounting of the sale with the Commissioner of Accounts within 6 months of the date of the Virginia foreclosure sale. Included in this report is the accounting, copies of the canceled checks for all sale expenses, the original note (or lost note affidavit and lost note notice with receipts) and a copy of the recorded foreclosure deed.
Insurer/Guarantor Requirements
FHA and VA regulations set forth specific time requirements for the institution and completion of the foreclosure process which must be met by the servicer in order to maintain the loan guaranty. The typical "time-line" previously set forth well exceeds these requirements. Daily monitoring of all pending foreclosures allows the firm to be ever cognizant of its time and reporting responsibilities.
How Virginia Foreclosure Deed of Trust Construed
Every deed of trust to secure debts or indemnify sureties is in the nature of a contract and shall be construed according to its terms to the extent not in conflict with the requirements of Virginia's foreclosure law. Unless otherwise provided therein, it shall be construed to impose and confer upon the parties thereto, and the beneficiaries thereunder, the following duties, rights and obligations in like manner as if the same were expressly provided for by such deed of trust:
1. The deed shall be construed as given to secure the performance of each of the covenants entered into by the grantor as well as the payment of the primary obligation.
2. The grantor shall be deemed to covenant that he will pay all taxes, levies, assessments and charges upon the property, including the fees and charges of such agents or attorneys as the trustee may deem advisable to employ at any time for the purpose of the trust, so long as any obligation upon the grantor under the deed of trust remains undischarged.
3. The grantor shall be deemed to covenant that he will keep the improvements on the property in tenantable condition, whether such improvements were on the property when the deed of trust was given or were thereafter placed thereon.
4. The grantor shall be deemed to covenant that no waste shall be committed or suffered upon the property.
5. The grantor shall be deemed to covenant that in the event of his failure to meet any obligations imposed upon him then the trustee or any beneficiary may, at his option, satisfy the same. The money so advanced, with interest thereon as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be otherwise recoverable from the grantor as a debt. In addition, to the extent not otherwise covered, the grantor shall be deemed to covenant that amount advanced or incurred by the trustee or any beneficiary under a deed of trust (i) with respect to an obligation secured by a lien or encumbrance prior to the lien of the deed of trust or (ii) for the protection of the lien secured by the deed of trust, together with interest as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, to be paid next after expenses of executing the trust.
6. A covenant to pay interest shall be deemed a covenant to pay interest on the principal balance as such rate may vary or be modified from time to time by the parties under the original instruments or agreements or a written agreement of modification whether or not recorded, and all the interest on the principal secured by the deed of trust shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust.
Any covenant, otherwise authorized by law, that the lender shall be entitled to share in the gross income or the net income, or the gross rent or revenues, or net rents or revenues of the property, or in any portion of the proceeds or appreciation upon sale or appraisal or similar event, shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be specified in the recorded deed of trust or other recorded document in order to be notice of record as against subsequent parties.
7. In the event of default in the payment of the debt secured, or any part thereof; at maturity, or in the payment of interest when due, or of the breach of any of the covenants entered into or imposed upon the grantor, then at the request of any beneficiary the trustee shall forthwith declare all the debts and obligations secured by the deed of trust at once due and payable and may take possession of the property and proceed to sell the same at auction at the premises or in the front of the circuit court building or at such other place in the city or county in which the property or the greater part thereof lies, or in the corporate limits of any city surrounded by or contiguous to such county, or in the case of annexed land, in the county of which the land was formerly a part, as the trustee may select upon such terms and conditions as the trustee may deem best.
8. If the Virginia foreclosure sale is upon credit terms, the deferred purchase money shall bear interest from the day of sale and shall be secured by a deed of trust upon the property contemporaneous with the trustee's deed to the purchaser.
9. The party secured by the deed of trust, or the holders of greater than fifty percent of the monetary obligations secured thereby, shall have the right and power to appoint a substitute trustee or trustees for any reason and, regardless of whether such right and power is expressly granted in such deed of trust, by executing and acknowledging an instrument designating and appointing a substitute. When the instrument of appointment has been executed, the substitute trustee or trustees named therein shall be vested with all the powers, rights, authority and duties vested in the trustee or trustees in the original deed of trust. The instrument of appointment shall be recorded in the office of the clerk wherein the original deed of trust is recorded prior to or at the time of recordation of any instrument in which a power, right, authority or duty conferred by the original deed of trust is exercised.
Notices Required before Sale by Trustee to Owners
A. In addition to the advertisement, the trustee or the party secured shall give written notice of the time, date and place of any proposed sale in execution of a deed of trust by personal delivery or by mail to (i) the present owner of the property to be sold at his last known address as such owner and address appear in the records of the party secured, (ii) any subordinate lien holder who holds a note against the property secured by a deed of trust recorded at least thirty days prior to the proposed sale and whose address is recorded with the deed of trust, (iii) any assignee of such a note secured by a deed of trust provided the assignment and address of assignee are likewise recorded at least thirty days prior to the proposed sale, (iv) any condominium unit owners association which has filed a lien, (v) any property owners' association which has filed a lien, and (vi) any proprietary lessees association which has filed a lien. Written notice shall be given pursuant to clauses (iv), (v) and (vi), only if the lien is recorded at least thirty days prior to the proposed sale. Mailing of a copy of the advertisement or a notice containing the same information to the owner by certified or registered mail no less than fourteen days prior to such sale and to lien holders, the property owners association or proprietary lessees' association, their assigns and the condominium unit owners' association, at the address noted in the memorandum of lien, by ordinary mail no less than fourteen days prior to such sale shall be a sufficient compliance with the requirement of notice. The written notice of proposed sale when given as provided herein shall be deemed an effective exercise of any right of acceleration contained in such deed of trust or otherwise possessed by the party secured relative to the indebtedness secured. The inadvertent failure to give notice as required by this subsection shall not impose liability on either the trustee or the secured party.
If a note or other evidence of indebtedness secured by a deed of trust is lost or for any reason cannot be produced and the beneficiary submits to the trustee an affidavit to that effect, the trustee may nonetheless proceed to sale, provided the beneficiary has given written notice to the person required to pay the instrument that the instrument is unavailable and a request for sale will be made of the trustee upon expiration of fourteen days from the date of mailing of the notice. The notice shall be sent by certified mail, return receipt requested, to the last known address of the person required to pay the instrument as reflected in the records of the beneficiary and shall include the name and mailing address of the trustee. The notice shall further advise the person required to pay the instrument that if he believes he may be subject to a claim by a person other than the beneficiary to enforce the instrument he may petition the circuit court of the county or city where the property or some part thereof lies for an order requiring the beneficiary to provide adequate protection against any such claim. If deemed appropriate by the court, the court may condition the sale on a finding that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means. If the trustee proceeds to sale, the fact that the instrument is lost or cannot be produced shall not affect the authority of the trustee to sell or the validity of the Virginia foreclosure sale.
Failure to comply with the requirements of notice contained in this section shall not affect the validity of the sale, and a purchaser for value at such sale shall be under no duty to ascertain whether such notice was validly given.
In the event of postponement of sale, which may be done in the discretion of the trustee, no new or additional notice need be given pursuant to this section.
Advertisement Required before Sale by Trustee
A. Advertisement of sale by a trustee or trustees in execution of a deed of trust shall be in a newspaper having a general circulation in the city or county wherein the property to be sold, or any portion thereof; lies pursuant to the following provisions:
1. If the deed of trust itself provides for the number of publications of such newspaper advertisement, which may be done by using the words "advertisement required" or words of like purport followed by the number agreed upon, then no other or different advertisement shall be necessary, provided that, if such advertisement be inserted on a weekly basis it shall be published not less than once a week for two weeks and if such advertisement be inserted on a daily basis it shall be published not less than once a day for three days, which may be consecutive days, in the same manner as if the method were set forth in the deed of trust. Should the deed of trust provide for advertising on other than a weekly or daily basis either of the foregoing provisions shall be complied with in addition to those provided in such deed of trust. Notwithstanding the provisions of the deed of trust, the Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
2. If the deed of trust does not provide for the number of publications of such newspaper advertisement, the trustee shall advertise once a week for four successive weeks; provided, however, that if the property or some portion thereof is located in a city or in a county immediately contiguous to a city, publication of the advertisement five different days, which may be consecutive days, shall be deemed adequate. The Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
B. Such advertisement shall be placed in that section of the newspaper where legal notices appear or where the type of property being sold is generally advertised for sale.
C. In addition to the advertisement required by subsection A above, the trustee shall give such other further and different advertisement as the deed of trust may require and in addition may give such additional advertisement as he may deem appropriate.
D. In the event of postponement of sale, which postponement shall be at the discretion of the trustee, advertisement of such postponed sale shall be in the same manner as the original advertisement of sale.
E. Failure to comply with the requirements for advertisement contained in this section shall, upon petition, render a sale of the property voidable by the court.
Contents of Advertisements of Virginia Foreclosure Sale
The advertisement of sale under any deed of trust, in addition to such other matters as may be required by such deed of trust or by the trustee, in his discretion, shall set forth a description of the property to be sold, which description need not be as extensive as that contained in the deed of trust, and shall identify the property by street address, if any, or if none, shall give the general location of the property with reference to streets, routes, or known landmarks. Where available, tax map identification may be used but is not required. The advertisement shall also include the time, place and terms of sale and shall give the name or names of the trustee or trustees. It shall set forth the name, address and telephone number of such person (either a trustee or the party secured or his agent or attorney) as may be able to respond to inquiries concerning the sale.
Powers and Duties of trustee in event of sale under a deed of trust
A. In the event of sale under a deed of trust, the trustee shall have the following powers and duties in addition to all others:
1. Written one-price bids may be made and shall be received by the trustee from the beneficiary or any other person for entity by announcement of the trustee at the sale. Any person other than the trustee may bid at the Virginia foreclosure sale, including a person who has submitted a written one-price bid. Upon request to the trustee or trustees, any other bidder in attendance at a foreclosure sale shall be permitted to inspect written bids. Whenever the written bid of the beneficiary is the highest bid submitted at the sale, such document shall be filed by the trustee with his account of sale. The written bid submitted pursuant to this subsection may be prepared by the beneficiary, its agent or attorney.
2. The trustee may require of any bidder at any sale a cash deposit of as much as ten per centum of the sale price (unless the deed of trust specifies a higher or lower maximum, which may be done by the words "bidder's deposit of not more than... dollars may be required," or words of like purport) before his bid is received, which shall be returned to the bidder unless the property is sold to him, otherwise to be applied to his credit in settlement or, should he fail to complete his purchase promptly, to be applied to pay the costs and expense of sale and the balance, if any, to be retained by the trustee as his compensation in connection with that foreclosure sale.
3. The trustee shall receive and receipt for the proceeds of sale, no purchaser being required to see to the application of the proceeds, account for the same to the commissioner of accounts and apply the same, first, to discharge the expenses of executing the trust, including a reasonable commission to the trustee; secondly, to discharge all taxes, levies, and assessment, with costs and interest if they have priority over the lien of the deed of trust, including the due pro rata thereof for the current year; thirdly, to discharge in the order of their priority, if any, the remaining debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which sale is made, with lawful interest; and, fourthly, the residue of the proceeds shall be paid to the grantor or his assigns; provided, however, that the trustee as to such residue shall not be bound by any inheritance, devise, conveyance, assignment or lien of or upon the grantor's equity, without actual notice thereof prior to distribution; provided further that such order of priorities shall not be changed or varied by the deed of trust.
B. Upon discharge (other than by sale by the trustee) of all debts, duties and obligations imposed by the deed upon the grantor, including any expenses incurred preparatory to sale, then upon the grantor's request the trustee shall execute and deliver a good and sufficient deed of release at the grantor's own proper costs and charges.
Rob Alley, Realtor
Virginia Real Estate Solutions
Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvilleshortsale.com
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Virginia Foreclosure Timeline
Charlottesville Real Estate, Short Sales and Foreclosures Explained
Virginia Foreclosure Laws
Virginia Foreclosure is Non-Judicial.
Virginia Foreclosure Timeline :
Virginia Foreclosure Day 1
Review of file, acknowledgment of receipt of referral and preparation and forwarding of Substitution of Trustee to lender for execution. With Absolute Wireless the referral acknowledgment the client will be advised of any missing documentation. Virginia foreclosure law requires that the Trustee receive a written request from the lender to proceed with foreclosure. The Trustee needs (1) the original note and copy of the deed of trust, (2) copy of default/breach letter and (3) the tide insurance policy. Note: If the original note has been lost a copy with a lost note affidavit will suffice, but the lender, prior to the institution of the foreclosure, must give the obligor(s), including the property owner, written notice that the original note is unavailable and that a request for sale by the Trustee will be made upon expiration of 14 days from the date of the notice. This notice must be sent certified mail, return receipt requested, to the last known address of the obligor(s) and must include the name and address of the Trustee and must further advise the obligor(s) that if he believes that he may be subject to a claim by a person other than the lender to enforce it he may petition the circuit court of the city or county wherein the property lies for an order requiring the lender to provide adequate protection against any such claim. The Trustee cannot proceed to sale without either the original note or the lost note notice (with the return receipt or returned envelope).
Virginia Foreclosure Days 2-14
Examination and review of title. The lender and title insurer are advised of any title defects and appropriate steps are undertaken to clear any title defects.
Virginia Foreclosure Days 15-20
Preparation of foreclosure notices to owners of record title and any others liable on the note. The minimum notice is 14 days prior to the date of the sale. Additionally, if there are IRS liens, homeowners' or condominium association liens or junior deed of trust, lien notice must be given to these lien holders as well. Simultaneously, with the foreclosure notice, the newspaper advertisement of sale is prepared and forwarded to the appropriate newspaper for publication. The language of the deed of trust usually controls the advertising required. The minimum advertisement required for a Virginia foreclosure is, if weekly, once a week for 2 successive weeks, or if daily, once a day for 3 successive days. If the deed of trust is silent on the number of publications then it must be advertised once a week for 4 successive weeks. However, if the property lies within a city or in a county contiguous to a city, daily publication for 5 days, which may be consecutive, is deemed adequate.
Virginia Foreclosure Day 50
The Virginia foreclosure sale is held. The Trustee conducts the sale. Virginia foreclosure law allows the lender to submit to the Trustee a written one-price bid in advance of the sale. The Trustee cannot bid actively on behalf of the lender but can open the bidding at the one-price bid of the lender. A bidder's deposit of 10% of the successful bid is required at the time of sale. If the lender is the successful bidder this is waived. The lender is advised of the sale results immediately following the sale.
Virginia Foreclosure Days 51-65
Assuming the lender is the successful bidder, the proposed foreclosure deed, a copy of the proposed accounting, a "receipt" for the net sale proceeds and an invoice for the expenses of sale, including the cost of recording the foreclosure deed, is submitted to the lender. Upon receipt of the requested funds and the "receipt" the deed is recorded and costs are paid. At this point, except for the accounting, the foreclosure is complete. Except for the IRS lien situations, there is no right of redemption in Virginia. If a third party is the successful bidder the Trustee coordinates the settlement with the bidder's attorney and proceeds to closing. If the successful bidder defaults, the bidder's deposit is used to pay the expenses of the Virginia foreclosure with the excess funds forwarded to the lender and the process begins again.
Virginia Foreclosure Days 90-100
The Trustee is required to file an accounting of the sale with the Commissioner of Accounts within 6 months of the date of the Virginia foreclosure sale. Included in this report is the accounting, copies of the canceled checks for all sale expenses, the original note (or lost note affidavit and lost note notice with receipts) and a copy of the recorded foreclosure deed.
Insurer/Guarantor Requirements
FHA and VA regulations set forth specific time requirements for the institution and completion of the foreclosure process which must be met by the servicer in order to maintain the loan guaranty. The typical "time-line" previously set forth well exceeds these requirements. Daily monitoring of all pending foreclosures allows the firm to be ever cognizant of its time and reporting responsibilities.
How Virginia Foreclosure Deed of Trust Construed
Every deed of trust to secure debts or indemnify sureties is in the nature of a contract and shall be construed according to its terms to the extent not in conflict with the requirements of Virginia's foreclosure law. Unless otherwise provided therein, it shall be construed to impose and confer upon the parties thereto, and the beneficiaries thereunder, the following duties, rights and obligations in like manner as if the same were expressly provided for by such deed of trust:
1. The deed shall be construed as given to secure the performance of each of the covenants entered into by the grantor as well as the payment of the primary obligation.
2. The grantor shall be deemed to covenant that he will pay all taxes, levies, assessments and charges upon the property, including the fees and charges of such agents or attorneys as the trustee may deem advisable to employ at any time for the purpose of the trust, so long as any obligation upon the grantor under the deed of trust remains undischarged.
3. The grantor shall be deemed to covenant that he will keep the improvements on the property in tenantable condition, whether such improvements were on the property when the deed of trust was given or were thereafter placed thereon.
4. The grantor shall be deemed to covenant that no waste shall be committed or suffered upon the property.
5. The grantor shall be deemed to covenant that in the event of his failure to meet any obligations imposed upon him then the trustee or any beneficiary may, at his option, satisfy the same. The money so advanced, with interest thereon as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be otherwise recoverable from the grantor as a debt. In addition, to the extent not otherwise covered, the grantor shall be deemed to covenant that amount advanced or incurred by the trustee or any beneficiary under a deed of trust (i) with respect to an obligation secured by a lien or encumbrance prior to the lien of the deed of trust or (ii) for the protection of the lien secured by the deed of trust, together with interest as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, to be paid next after expenses of executing the trust.
6. A covenant to pay interest shall be deemed a covenant to pay interest on the principal balance as such rate may vary or be modified from time to time by the parties under the original instruments or agreements or a written agreement of modification whether or not recorded, and all the interest on the principal secured by the deed of trust shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust.
Any covenant, otherwise authorized by law, that the lender shall be entitled to share in the gross income or the net income, or the gross rent or revenues, or net rents or revenues of the property, or in any portion of the proceeds or appreciation upon sale or appraisal or similar event, shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be specified in the recorded deed of trust or other recorded document in order to be notice of record as against subsequent parties.
7. In the event of default in the payment of the debt secured, or any part thereof; at maturity, or in the payment of interest when due, or of the breach of any of the covenants entered into or imposed upon the grantor, then at the request of any beneficiary the trustee shall forthwith declare all the debts and obligations secured by the deed of trust at once due and payable and may take possession of the property and proceed to sell the same at auction at the premises or in the front of the circuit court building or at such other place in the city or county in which the property or the greater part thereof lies, or in the corporate limits of any city surrounded by or contiguous to such county, or in the case of annexed land, in the county of which the land was formerly a part, as the trustee may select upon such terms and conditions as the trustee may deem best.
8. If the Virginia foreclosure sale is upon credit terms, the deferred purchase money shall bear interest from the day of sale and shall be secured by a deed of trust upon the property contemporaneous with the trustee's deed to the purchaser.
9. The party secured by the deed of trust, or the holders of greater than fifty percent of the monetary obligations secured thereby, shall have the right and power to appoint a substitute trustee or trustees for any reason and, regardless of whether such right and power is expressly granted in such deed of trust, by executing and acknowledging an instrument designating and appointing a substitute. When the instrument of appointment has been executed, the substitute trustee or trustees named therein shall be vested with all the powers, rights, authority and duties vested in the trustee or trustees in the original deed of trust. The instrument of appointment shall be recorded in the office of the clerk wherein the original deed of trust is recorded prior to or at the time of recordation of any instrument in which a power, right, authority or duty conferred by the original deed of trust is exercised.
Notices Required before Sale by Trustee to Owners
A. In addition to the advertisement, the trustee or the party secured shall give written notice of the time, date and place of any proposed sale in execution of a deed of trust by personal delivery or by mail to (i) the present owner of the property to be sold at his last known address as such owner and address appear in the records of the party secured, (ii) any subordinate lien holder who holds a note against the property secured by a deed of trust recorded at least thirty days prior to the proposed sale and whose address is recorded with the deed of trust, (iii) any assignee of such a note secured by a deed of trust provided the assignment and address of assignee are likewise recorded at least thirty days prior to the proposed sale, (iv) any condominium unit owners association which has filed a lien, (v) any property owners' association which has filed a lien, and (vi) any proprietary lessees association which has filed a lien. Written notice shall be given pursuant to clauses (iv), (v) and (vi), only if the lien is recorded at least thirty days prior to the proposed sale. Mailing of a copy of the advertisement or a notice containing the same information to the owner by certified or registered mail no less than fourteen days prior to such sale and to lien holders, the property owners association or proprietary lessees' association, their assigns and the condominium unit owners' association, at the address noted in the memorandum of lien, by ordinary mail no less than fourteen days prior to such sale shall be a sufficient compliance with the requirement of notice. The written notice of proposed sale when given as provided herein shall be deemed an effective exercise of any right of acceleration contained in such deed of trust or otherwise possessed by the party secured relative to the indebtedness secured. The inadvertent failure to give notice as required by this subsection shall not impose liability on either the trustee or the secured party.
If a note or other evidence of indebtedness secured by a deed of trust is lost or for any reason cannot be produced and the beneficiary submits to the trustee an affidavit to that effect, the trustee may nonetheless proceed to sale, provided the beneficiary has given written notice to the person required to pay the instrument that the instrument is unavailable and a request for sale will be made of the trustee upon expiration of fourteen days from the date of mailing of the notice. The notice shall be sent by certified mail, return receipt requested, to the last known address of the person required to pay the instrument as reflected in the records of the beneficiary and shall include the name and mailing address of the trustee. The notice shall further advise the person required to pay the instrument that if he believes he may be subject to a claim by a person other than the beneficiary to enforce the instrument he may petition the circuit court of the county or city where the property or some part thereof lies for an order requiring the beneficiary to provide adequate protection against any such claim. If deemed appropriate by the court, the court may condition the sale on a finding that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means. If the trustee proceeds to sale, the fact that the instrument is lost or cannot be produced shall not affect the authority of the trustee to sell or the validity of the Virginia foreclosure sale.
Failure to comply with the requirements of notice contained in this section shall not affect the validity of the sale, and a purchaser for value at such sale shall be under no duty to ascertain whether such notice was validly given.
In the event of postponement of sale, which may be done in the discretion of the trustee, no new or additional notice need be given pursuant to this section.
Advertisement Required before Sale by Trustee
A. Advertisement of sale by a trustee or trustees in execution of a deed of trust shall be in a newspaper having a general circulation in the city or county wherein the property to be sold, or any portion thereof; lies pursuant to the following provisions:
1. If the deed of trust itself provides for the number of publications of such newspaper advertisement, which may be done by using the words "advertisement required" or words of like purport followed by the number agreed upon, then no other or different advertisement shall be necessary, provided that, if such advertisement be inserted on a weekly basis it shall be published not less than once a week for two weeks and if such advertisement be inserted on a daily basis it shall be published not less than once a day for three days, which may be consecutive days, in the same manner as if the method were set forth in the deed of trust. Should the deed of trust provide for advertising on other than a weekly or daily basis either of the foregoing provisions shall be complied with in addition to those provided in such deed of trust. Notwithstanding the provisions of the deed of trust, the Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
2. If the deed of trust does not provide for the number of publications of such newspaper advertisement, the trustee shall advertise once a week for four successive weeks; provided, however, that if the property or some portion thereof is located in a city or in a county immediately contiguous to a city, publication of the advertisement five different days, which may be consecutive days, shall be deemed adequate. The Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
B. Such advertisement shall be placed in that section of the newspaper where legal notices appear or where the type of property being sold is generally advertised for sale.
C. In addition to the advertisement required by subsection A above, the trustee shall give such other further and different advertisement as the deed of trust may require and in addition may give such additional advertisement as he may deem appropriate.
D. In the event of postponement of sale, which postponement shall be at the discretion of the trustee, advertisement of such postponed sale shall be in the same manner as the original advertisement of sale.
E. Failure to comply with the requirements for advertisement contained in this section shall, upon petition, render a sale of the property voidable by the court.
Contents of Advertisements of Virginia Foreclosure Sale
The advertisement of sale under any deed of trust, in addition to such other matters as may be required by such deed of trust or by the trustee, in his discretion, shall set forth a description of the property to be sold, which description need not be as extensive as that contained in the deed of trust, and shall identify the property by street address, if any, or if none, shall give the general location of the property with reference to streets, routes, or known landmarks. Where available, tax map identification may be used but is not required. The advertisement shall also include the time, place and terms of sale and shall give the name or names of the trustee or trustees. It shall set forth the name, address and telephone number of such person (either a trustee or the party secured or his agent or attorney) as may be able to respond to inquiries concerning the sale.
Powers and Duties of trustee in event of sale under a deed of trust
A. In the event of sale under a deed of trust, the trustee shall have the following powers and duties in addition to all others:
1. Written one-price bids may be made and shall be received by the trustee from the beneficiary or any other person for entity by announcement of the trustee at the sale. Any person other than the trustee may bid at the Virginia foreclosure sale, including a person who has submitted a written one-price bid. Upon request to the trustee or trustees, any other bidder in attendance at a foreclosure sale shall be permitted to inspect written bids. Whenever the written bid of the beneficiary is the highest bid submitted at the sale, such document shall be filed by the trustee with his account of sale. The written bid submitted pursuant to this subsection may be prepared by the beneficiary, its agent or attorney.
2. The trustee may require of any bidder at any sale a cash deposit of as much as ten per centum of the sale price (unless the deed of trust specifies a higher or lower maximum, which may be done by the words "bidder's deposit of not more than... dollars may be required," or words of like purport) before his bid is received, which shall be returned to the bidder unless the property is sold to him, otherwise to be applied to his credit in settlement or, should he fail to complete his purchase promptly, to be applied to pay the costs and expense of sale and the balance, if any, to be retained by the trustee as his compensation in connection with that foreclosure sale.
3. The trustee shall receive and receipt for the proceeds of sale, no purchaser being required to see to the application of the proceeds, account for the same to the commissioner of accounts and apply the same, first, to discharge the expenses of executing the trust, including a reasonable commission to the trustee; secondly, to discharge all taxes, levies, and assessment, with costs and interest if they have priority over the lien of the deed of trust, including the due pro rata thereof for the current year; thirdly, to discharge in the order of their priority, if any, the remaining debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which sale is made, with lawful interest; and, fourthly, the residue of the proceeds shall be paid to the grantor or his assigns; provided, however, that the trustee as to such residue shall not be bound by any inheritance, devise, conveyance, assignment or lien of or upon the grantor's equity, without actual notice thereof prior to distribution; provided further that such order of priorities shall not be changed or varied by the deed of trust.
B. Upon discharge (other than by sale by the trustee) of all debts, duties and obligations imposed by the deed upon the grantor, including any expenses incurred preparatory to sale, then upon the grantor's request the trustee shall execute and deliver a good and sufficient deed of release at the grantor's own proper costs and charges.
Rob Alley, Realtor
Virginia Real Estate Solutions
Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvilleshortsale.com
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Virginia Foreclosure Laws
Virginia Foreclosure is Non-Judicial.
Virginia Foreclosure Timeline :
Virginia Foreclosure Day 1
Review of file, acknowledgment of receipt of referral and preparation and forwarding of Substitution of Trustee to lender for execution. With Absolute Wireless the referral acknowledgment the client will be advised of any missing documentation. Virginia foreclosure law requires that the Trustee receive a written request from the lender to proceed with foreclosure. The Trustee needs (1) the original note and copy of the deed of trust, (2) copy of default/breach letter and (3) the tide insurance policy. Note: If the original note has been lost a copy with a lost note affidavit will suffice, but the lender, prior to the institution of the foreclosure, must give the obligor(s), including the property owner, written notice that the original note is unavailable and that a request for sale by the Trustee will be made upon expiration of 14 days from the date of the notice. This notice must be sent certified mail, return receipt requested, to the last known address of the obligor(s) and must include the name and address of the Trustee and must further advise the obligor(s) that if he believes that he may be subject to a claim by a person other than the lender to enforce it he may petition the circuit court of the city or county wherein the property lies for an order requiring the lender to provide adequate protection against any such claim. The Trustee cannot proceed to sale without either the original note or the lost note notice (with the return receipt or returned envelope).
Virginia Foreclosure Days 2-14
Examination and review of title. The lender and title insurer are advised of any title defects and appropriate steps are undertaken to clear any title defects.
Virginia Foreclosure Days 15-20
Preparation of foreclosure notices to owners of record title and any others liable on the note. The minimum notice is 14 days prior to the date of the sale. Additionally, if there are IRS liens, homeowners' or condominium association liens or junior deed of trust, lien notice must be given to these lien holders as well. Simultaneously, with the foreclosure notice, the newspaper advertisement of sale is prepared and forwarded to the appropriate newspaper for publication. The language of the deed of trust usually controls the advertising required. The minimum advertisement required for a Virginia foreclosure is, if weekly, once a week for 2 successive weeks, or if daily, once a day for 3 successive days. If the deed of trust is silent on the number of publications then it must be advertised once a week for 4 successive weeks. However, if the property lies within a city or in a county contiguous to a city, daily publication for 5 days, which may be consecutive, is deemed adequate.
Virginia Foreclosure Day 50
The Virginia foreclosure sale is held. The Trustee conducts the sale. Virginia foreclosure law allows the lender to submit to the Trustee a written one-price bid in advance of the sale. The Trustee cannot bid actively on behalf of the lender but can open the bidding at the one-price bid of the lender. A bidder's deposit of 10% of the successful bid is required at the time of sale. If the lender is the successful bidder this is waived. The lender is advised of the sale results immediately following the sale.
Virginia Foreclosure Days 51-65
Assuming the lender is the successful bidder, the proposed foreclosure deed, a copy of the proposed accounting, a "receipt" for the net sale proceeds and an invoice for the expenses of sale, including the cost of recording the foreclosure deed, is submitted to the lender. Upon receipt of the requested funds and the "receipt" the deed is recorded and costs are paid. At this point, except for the accounting, the foreclosure is complete. Except for the IRS lien situations, there is no right of redemption in Virginia. If a third party is the successful bidder the Trustee coordinates the settlement with the bidder's attorney and proceeds to closing. If the successful bidder defaults, the bidder's deposit is used to pay the expenses of the Virginia foreclosure with the excess funds forwarded to the lender and the process begins again.
Virginia Foreclosure Days 90-100
The Trustee is required to file an accounting of the sale with the Commissioner of Accounts within 6 months of the date of the Virginia foreclosure sale. Included in this report is the accounting, copies of the canceled checks for all sale expenses, the original note (or lost note affidavit and lost note notice with receipts) and a copy of the recorded foreclosure deed.
Insurer/Guarantor Requirements
FHA and VA regulations set forth specific time requirements for the institution and completion of the foreclosure process which must be met by the servicer in order to maintain the loan guaranty. The typical "time-line" previously set forth well exceeds these requirements. Daily monitoring of all pending foreclosures allows the firm to be ever cognizant of its time and reporting responsibilities.
How Virginia Foreclosure Deed of Trust Construed
Every deed of trust to secure debts or indemnify sureties is in the nature of a contract and shall be construed according to its terms to the extent not in conflict with the requirements of Virginia's foreclosure law. Unless otherwise provided therein, it shall be construed to impose and confer upon the parties thereto, and the beneficiaries thereunder, the following duties, rights and obligations in like manner as if the same were expressly provided for by such deed of trust:
1. The deed shall be construed as given to secure the performance of each of the covenants entered into by the grantor as well as the payment of the primary obligation.
2. The grantor shall be deemed to covenant that he will pay all taxes, levies, assessments and charges upon the property, including the fees and charges of such agents or attorneys as the trustee may deem advisable to employ at any time for the purpose of the trust, so long as any obligation upon the grantor under the deed of trust remains undischarged.
3. The grantor shall be deemed to covenant that he will keep the improvements on the property in tenantable condition, whether such improvements were on the property when the deed of trust was given or were thereafter placed thereon.
4. The grantor shall be deemed to covenant that no waste shall be committed or suffered upon the property.
5. The grantor shall be deemed to covenant that in the event of his failure to meet any obligations imposed upon him then the trustee or any beneficiary may, at his option, satisfy the same. The money so advanced, with interest thereon as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be otherwise recoverable from the grantor as a debt. In addition, to the extent not otherwise covered, the grantor shall be deemed to covenant that amount advanced or incurred by the trustee or any beneficiary under a deed of trust (i) with respect to an obligation secured by a lien or encumbrance prior to the lien of the deed of trust or (ii) for the protection of the lien secured by the deed of trust, together with interest as provided in the deed of trust, shall be a part of the debt secured by the deed of trust, to be paid next after expenses of executing the trust.
6. A covenant to pay interest shall be deemed a covenant to pay interest on the principal balance as such rate may vary or be modified from time to time by the parties under the original instruments or agreements or a written agreement of modification whether or not recorded, and all the interest on the principal secured by the deed of trust shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust.
Any covenant, otherwise authorized by law, that the lender shall be entitled to share in the gross income or the net income, or the gross rent or revenues, or net rents or revenues of the property, or in any portion of the proceeds or appreciation upon sale or appraisal or similar event, shall be on an equal priority with the principal debt secured by the deed of trust, in the event of sale to be paid next after the expenses of executing the trust, and shall be specified in the recorded deed of trust or other recorded document in order to be notice of record as against subsequent parties.
7. In the event of default in the payment of the debt secured, or any part thereof; at maturity, or in the payment of interest when due, or of the breach of any of the covenants entered into or imposed upon the grantor, then at the request of any beneficiary the trustee shall forthwith declare all the debts and obligations secured by the deed of trust at once due and payable and may take possession of the property and proceed to sell the same at auction at the premises or in the front of the circuit court building or at such other place in the city or county in which the property or the greater part thereof lies, or in the corporate limits of any city surrounded by or contiguous to such county, or in the case of annexed land, in the county of which the land was formerly a part, as the trustee may select upon such terms and conditions as the trustee may deem best.
8. If the Virginia foreclosure sale is upon credit terms, the deferred purchase money shall bear interest from the day of sale and shall be secured by a deed of trust upon the property contemporaneous with the trustee's deed to the purchaser.
9. The party secured by the deed of trust, or the holders of greater than fifty percent of the monetary obligations secured thereby, shall have the right and power to appoint a substitute trustee or trustees for any reason and, regardless of whether such right and power is expressly granted in such deed of trust, by executing and acknowledging an instrument designating and appointing a substitute. When the instrument of appointment has been executed, the substitute trustee or trustees named therein shall be vested with all the powers, rights, authority and duties vested in the trustee or trustees in the original deed of trust. The instrument of appointment shall be recorded in the office of the clerk wherein the original deed of trust is recorded prior to or at the time of recordation of any instrument in which a power, right, authority or duty conferred by the original deed of trust is exercised.
Notices Required before Sale by Trustee to Owners
A. In addition to the advertisement, the trustee or the party secured shall give written notice of the time, date and place of any proposed sale in execution of a deed of trust by personal delivery or by mail to (i) the present owner of the property to be sold at his last known address as such owner and address appear in the records of the party secured, (ii) any subordinate lien holder who holds a note against the property secured by a deed of trust recorded at least thirty days prior to the proposed sale and whose address is recorded with the deed of trust, (iii) any assignee of such a note secured by a deed of trust provided the assignment and address of assignee are likewise recorded at least thirty days prior to the proposed sale, (iv) any condominium unit owners association which has filed a lien, (v) any property owners' association which has filed a lien, and (vi) any proprietary lessees association which has filed a lien. Written notice shall be given pursuant to clauses (iv), (v) and (vi), only if the lien is recorded at least thirty days prior to the proposed sale. Mailing of a copy of the advertisement or a notice containing the same information to the owner by certified or registered mail no less than fourteen days prior to such sale and to lien holders, the property owners association or proprietary lessees' association, their assigns and the condominium unit owners' association, at the address noted in the memorandum of lien, by ordinary mail no less than fourteen days prior to such sale shall be a sufficient compliance with the requirement of notice. The written notice of proposed sale when given as provided herein shall be deemed an effective exercise of any right of acceleration contained in such deed of trust or otherwise possessed by the party secured relative to the indebtedness secured. The inadvertent failure to give notice as required by this subsection shall not impose liability on either the trustee or the secured party.
If a note or other evidence of indebtedness secured by a deed of trust is lost or for any reason cannot be produced and the beneficiary submits to the trustee an affidavit to that effect, the trustee may nonetheless proceed to sale, provided the beneficiary has given written notice to the person required to pay the instrument that the instrument is unavailable and a request for sale will be made of the trustee upon expiration of fourteen days from the date of mailing of the notice. The notice shall be sent by certified mail, return receipt requested, to the last known address of the person required to pay the instrument as reflected in the records of the beneficiary and shall include the name and mailing address of the trustee. The notice shall further advise the person required to pay the instrument that if he believes he may be subject to a claim by a person other than the beneficiary to enforce the instrument he may petition the circuit court of the county or city where the property or some part thereof lies for an order requiring the beneficiary to provide adequate protection against any such claim. If deemed appropriate by the court, the court may condition the sale on a finding that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means. If the trustee proceeds to sale, the fact that the instrument is lost or cannot be produced shall not affect the authority of the trustee to sell or the validity of the Virginia foreclosure sale.
Failure to comply with the requirements of notice contained in this section shall not affect the validity of the sale, and a purchaser for value at such sale shall be under no duty to ascertain whether such notice was validly given.
In the event of postponement of sale, which may be done in the discretion of the trustee, no new or additional notice need be given pursuant to this section.
Advertisement Required before Sale by Trustee
A. Advertisement of sale by a trustee or trustees in execution of a deed of trust shall be in a newspaper having a general circulation in the city or county wherein the property to be sold, or any portion thereof; lies pursuant to the following provisions:
1. If the deed of trust itself provides for the number of publications of such newspaper advertisement, which may be done by using the words "advertisement required" or words of like purport followed by the number agreed upon, then no other or different advertisement shall be necessary, provided that, if such advertisement be inserted on a weekly basis it shall be published not less than once a week for two weeks and if such advertisement be inserted on a daily basis it shall be published not less than once a day for three days, which may be consecutive days, in the same manner as if the method were set forth in the deed of trust. Should the deed of trust provide for advertising on other than a weekly or daily basis either of the foregoing provisions shall be complied with in addition to those provided in such deed of trust. Notwithstanding the provisions of the deed of trust, the Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
2. If the deed of trust does not provide for the number of publications of such newspaper advertisement, the trustee shall advertise once a week for four successive weeks; provided, however, that if the property or some portion thereof is located in a city or in a county immediately contiguous to a city, publication of the advertisement five different days, which may be consecutive days, shall be deemed adequate. The Virginia foreclosure sale shall be held on any day following the day of the last advertisement which is no earlier than eight days following the first advertisement nor more than thirty days following the last advertisement.
B. Such advertisement shall be placed in that section of the newspaper where legal notices appear or where the type of property being sold is generally advertised for sale.
C. In addition to the advertisement required by subsection A above, the trustee shall give such other further and different advertisement as the deed of trust may require and in addition may give such additional advertisement as he may deem appropriate.
D. In the event of postponement of sale, which postponement shall be at the discretion of the trustee, advertisement of such postponed sale shall be in the same manner as the original advertisement of sale.
E. Failure to comply with the requirements for advertisement contained in this section shall, upon petition, render a sale of the property voidable by the court.
Contents of Advertisements of Virginia Foreclosure Sale
The advertisement of sale under any deed of trust, in addition to such other matters as may be required by such deed of trust or by the trustee, in his discretion, shall set forth a description of the property to be sold, which description need not be as extensive as that contained in the deed of trust, and shall identify the property by street address, if any, or if none, shall give the general location of the property with reference to streets, routes, or known landmarks. Where available, tax map identification may be used but is not required. The advertisement shall also include the time, place and terms of sale and shall give the name or names of the trustee or trustees. It shall set forth the name, address and telephone number of such person (either a trustee or the party secured or his agent or attorney) as may be able to respond to inquiries concerning the sale.
Powers and Duties of trustee in event of sale under a deed of trust
A. In the event of sale under a deed of trust, the trustee shall have the following powers and duties in addition to all others:
1. Written one-price bids may be made and shall be received by the trustee from the beneficiary or any other person for entity by announcement of the trustee at the sale. Any person other than the trustee may bid at the Virginia foreclosure sale, including a person who has submitted a written one-price bid. Upon request to the trustee or trustees, any other bidder in attendance at a foreclosure sale shall be permitted to inspect written bids. Whenever the written bid of the beneficiary is the highest bid submitted at the sale, such document shall be filed by the trustee with his account of sale. The written bid submitted pursuant to this subsection may be prepared by the beneficiary, its agent or attorney.
2. The trustee may require of any bidder at any sale a cash deposit of as much as ten per centum of the sale price (unless the deed of trust specifies a higher or lower maximum, which may be done by the words "bidder's deposit of not more than... dollars may be required," or words of like purport) before his bid is received, which shall be returned to the bidder unless the property is sold to him, otherwise to be applied to his credit in settlement or, should he fail to complete his purchase promptly, to be applied to pay the costs and expense of sale and the balance, if any, to be retained by the trustee as his compensation in connection with that foreclosure sale.
3. The trustee shall receive and receipt for the proceeds of sale, no purchaser being required to see to the application of the proceeds, account for the same to the commissioner of accounts and apply the same, first, to discharge the expenses of executing the trust, including a reasonable commission to the trustee; secondly, to discharge all taxes, levies, and assessment, with costs and interest if they have priority over the lien of the deed of trust, including the due pro rata thereof for the current year; thirdly, to discharge in the order of their priority, if any, the remaining debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which sale is made, with lawful interest; and, fourthly, the residue of the proceeds shall be paid to the grantor or his assigns; provided, however, that the trustee as to such residue shall not be bound by any inheritance, devise, conveyance, assignment or lien of or upon the grantor's equity, without actual notice thereof prior to distribution; provided further that such order of priorities shall not be changed or varied by the deed of trust.
B. Upon discharge (other than by sale by the trustee) of all debts, duties and obligations imposed by the deed upon the grantor, including any expenses incurred preparatory to sale, then upon the grantor's request the trustee shall execute and deliver a good and sufficient deed of release at the grantor's own proper costs and charges.
Rob Alley, Realtor
Virginia Real Estate Solutions
Keller Williams Charlottesville
434-975-9000
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvilleshortsale.com
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Wednesday, December 30, 2009
Short Sale Incentives Coming in 2010
Short Sale Incentives Coming in 2010, Treasury Says
As HousingWire first reported, the US Treasury Department will launch the Home Affordable Foreclosure Alternatives Program (HAFA) in 2010.
HAFA will complement the Home Affordable Modification Program (HAMP) by providing financial incentives to servicers, borrowers and investors to go forward with short sales or a deed-in-lieu, according to a Treasury announcement late Monday (available to download here).
In a short sale, the bank sells the property for a price short of the balance owed on the property’s loan.
Under HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. Borrowers must be HAMP-eligible to qualify for HAFA and must be considered for the new program within 30 days of failing to qualify for or complete a HAMP trial.
Borrowers must be able to provide the buyer of the home with a clear title. Any subordinate liens must be paid off in full. The borrower can also negotiate with the holder to release the liens before the closing date.
HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.
The borrower also receives a $1,500 incentive for relocation after the transaction. The servicer receives a $1,000 incentive to cover administration and processing costs, and investors will be paid a maximum of $1,000 for allowing up to $3,000 in short-sale proceeds to be paid out to subordinate lien holders. In total, each transaction under HAFA will cost the Treasury up to $3,500 of incentive payments.
HAFA will officially launch on April 5, 2010, but servicers can implement the program prior to that date. However, in order to participate in the program, the servicer must have signed a HAMP servicer participation agreement by Dec. 31, 2009.
HousingWire first reported on HAFA’s forthcoming launch in October, when the chief of the Homeowner Preservation Office at the Treasury, Laurie Maggiano, released information on HAFA when she spoke at the Mortgage Bankers Association’s annual convention in San Diego.
Two weeks later, Herb Allison testified before the Congressional Oversight Panel (COP), which reviews actions taken by the Treasury, and indicated guidelines were being developed.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
As HousingWire first reported, the US Treasury Department will launch the Home Affordable Foreclosure Alternatives Program (HAFA) in 2010.
HAFA will complement the Home Affordable Modification Program (HAMP) by providing financial incentives to servicers, borrowers and investors to go forward with short sales or a deed-in-lieu, according to a Treasury announcement late Monday (available to download here).
In a short sale, the bank sells the property for a price short of the balance owed on the property’s loan.
Under HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. Borrowers must be HAMP-eligible to qualify for HAFA and must be considered for the new program within 30 days of failing to qualify for or complete a HAMP trial.
Borrowers must be able to provide the buyer of the home with a clear title. Any subordinate liens must be paid off in full. The borrower can also negotiate with the holder to release the liens before the closing date.
HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.
The borrower also receives a $1,500 incentive for relocation after the transaction. The servicer receives a $1,000 incentive to cover administration and processing costs, and investors will be paid a maximum of $1,000 for allowing up to $3,000 in short-sale proceeds to be paid out to subordinate lien holders. In total, each transaction under HAFA will cost the Treasury up to $3,500 of incentive payments.
HAFA will officially launch on April 5, 2010, but servicers can implement the program prior to that date. However, in order to participate in the program, the servicer must have signed a HAMP servicer participation agreement by Dec. 31, 2009.
HousingWire first reported on HAFA’s forthcoming launch in October, when the chief of the Homeowner Preservation Office at the Treasury, Laurie Maggiano, released information on HAFA when she spoke at the Mortgage Bankers Association’s annual convention in San Diego.
Two weeks later, Herb Allison testified before the Congressional Oversight Panel (COP), which reviews actions taken by the Treasury, and indicated guidelines were being developed.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Short Sale Incentives Coming in 2010
Short Sale Incentives Coming in 2010, Treasury Says
As HousingWire first reported, the US Treasury Department will launch the Home Affordable Foreclosure Alternatives Program (HAFA) in 2010.
HAFA will complement the Home Affordable Modification Program (HAMP) by providing financial incentives to servicers, borrowers and investors to go forward with short sales or a deed-in-lieu, according to a Treasury announcement late Monday (available to download here).
In a short sale, the bank sells the property for a price short of the balance owed on the property’s loan.
Under HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. Borrowers must be HAMP-eligible to qualify for HAFA and must be considered for the new program within 30 days of failing to qualify for or complete a HAMP trial.
Borrowers must be able to provide the buyer of the home with a clear title. Any subordinate liens must be paid off in full. The borrower can also negotiate with the holder to release the liens before the closing date.
HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.
The borrower also receives a $1,500 incentive for relocation after the transaction. The servicer receives a $1,000 incentive to cover administration and processing costs, and investors will be paid a maximum of $1,000 for allowing up to $3,000 in short-sale proceeds to be paid out to subordinate lien holders. In total, each transaction under HAFA will cost the Treasury up to $3,500 of incentive payments.
HAFA will officially launch on April 5, 2010, but servicers can implement the program prior to that date. However, in order to participate in the program, the servicer must have signed a HAMP servicer participation agreement by Dec. 31, 2009.
HousingWire first reported on HAFA’s forthcoming launch in October, when the chief of the Homeowner Preservation Office at the Treasury, Laurie Maggiano, released information on HAFA when she spoke at the Mortgage Bankers Association’s annual convention in San Diego.
Two weeks later, Herb Allison testified before the Congressional Oversight Panel (COP), which reviews actions taken by the Treasury, and indicated guidelines were being developed.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
As HousingWire first reported, the US Treasury Department will launch the Home Affordable Foreclosure Alternatives Program (HAFA) in 2010.
HAFA will complement the Home Affordable Modification Program (HAMP) by providing financial incentives to servicers, borrowers and investors to go forward with short sales or a deed-in-lieu, according to a Treasury announcement late Monday (available to download here).
In a short sale, the bank sells the property for a price short of the balance owed on the property’s loan.
Under HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. Borrowers must be HAMP-eligible to qualify for HAFA and must be considered for the new program within 30 days of failing to qualify for or complete a HAMP trial.
Borrowers must be able to provide the buyer of the home with a clear title. Any subordinate liens must be paid off in full. The borrower can also negotiate with the holder to release the liens before the closing date.
HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.
The borrower also receives a $1,500 incentive for relocation after the transaction. The servicer receives a $1,000 incentive to cover administration and processing costs, and investors will be paid a maximum of $1,000 for allowing up to $3,000 in short-sale proceeds to be paid out to subordinate lien holders. In total, each transaction under HAFA will cost the Treasury up to $3,500 of incentive payments.
HAFA will officially launch on April 5, 2010, but servicers can implement the program prior to that date. However, in order to participate in the program, the servicer must have signed a HAMP servicer participation agreement by Dec. 31, 2009.
HousingWire first reported on HAFA’s forthcoming launch in October, when the chief of the Homeowner Preservation Office at the Treasury, Laurie Maggiano, released information on HAFA when she spoke at the Mortgage Bankers Association’s annual convention in San Diego.
Two weeks later, Herb Allison testified before the Congressional Oversight Panel (COP), which reviews actions taken by the Treasury, and indicated guidelines were being developed.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Friday, October 9, 2009
Great day to be in Charlottesville Real Estate
Our Real Estate Group Update for Charlottesville and Central Virginia
Its a great day to be at Keller Williams and its great day to be in Real Estate in Charlottesville. Had a closing yesterday, got two Charlottesville short sales approved and closing within the next 30 days, got 4 REO/Bank Owned Properties coming on the market, and we are listing 3 homes, and 2 more short sales.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Its a great day to be at Keller Williams and its great day to be in Real Estate in Charlottesville. Had a closing yesterday, got two Charlottesville short sales approved and closing within the next 30 days, got 4 REO/Bank Owned Properties coming on the market, and we are listing 3 homes, and 2 more short sales.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Great day to be in Charlottesville Real Estate
Our Real Estate Group Update for Charlottesville and Central Virginia
Its a great day to be at Keller Williams and its great day to be in Real Estate in Charlottesville. Had a closing yesterday, got two Charlottesville short sales approved and closing within the next 30 days, got 4 REO/Bank Owned Properties coming on the market, and we are listing 3 homes, and 2 more short sales.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Its a great day to be at Keller Williams and its great day to be in Real Estate in Charlottesville. Had a closing yesterday, got two Charlottesville short sales approved and closing within the next 30 days, got 4 REO/Bank Owned Properties coming on the market, and we are listing 3 homes, and 2 more short sales.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Thursday, August 20, 2009
Does Foreclosure Cause Depression?
Foreclosure Epidemic Spawns Depression
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Does Foreclosure Cause Depression?
Foreclosure Epidemic Spawns Depression
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Wednesday, August 12, 2009
Broker Price Opinions in Charlottesville Picking Up
There are a number of reasons that a bank would order a Broker Price Opinion. Some good and some bad, but with Albemarle County being the 4th highest county in Virginia in Preforeclosures they are on the rise.
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Broker Price Opinions in Charlottesville Picking Up
There are a number of reasons that a bank would order a Broker Price Opinion. Some good and some bad, but with Albemarle County being the 4th highest county in Virginia in Preforeclosures they are on the rise.
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Monday, August 10, 2009
Fannie Mae Posts Loss, Freddie Mac Posts Gain
Fannie Mae announces that it lost $14.8 billion dollars in the second quarter of 2009. Freddie Mac posts gain of $768 million.
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Fannie Mae Posts Loss, Freddie Mac Posts Gain
Fannie Mae announces that it lost $14.8 billion dollars in the second quarter of 2009. Freddie Mac posts gain of $768 million.
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday, August 4, 2009
New Rule for Short Sale Listings in Charlottesville
The Charlottesville Area Association of Realtors (CAAR) has come out with a new rule for Short Sale Listings in the Central Virginia Area.
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Rule for Short Sale Listings in Charlottesville
The Charlottesville Area Association of Realtors (CAAR) has come out with a new rule for Short Sale Listings in the Central Virginia Area.
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
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