Westminster Short Sale: Are Fannie Mae Short Sales Tough?

Westminster CO – Another agent recently e-mailed the Stop Foreclosure Insitute. They were having a hard time with a short sale on a Fannie Mae Loan.

Get my Free, Step By Step Loan Modification Guide by clicking here.

View My VIDEO BLOG at www.youtube.com/watch?v=2dyXXXiKcJE.

Here is an excerpt from the agent's e-mail.

"I spoke with Josh @ Fannie Mae. He said that once there is a foreclosure sale, per an agreement with lender, Fannie Mae would pay the lender the full balance of the note."

I started to comment, "What incentive is there for the lender to process a short sale? He said I know where you’re going with that and we couldn't comment."

It appears that the title would be transferred to Fannie Mae and the lender would be reimbursed for the FULL balance of the note. This is crazy! When Fannie Mae is the investor, it seems a JOKE to bother with the short sale!!

My Comments: Fannie Mae short sales are the best and easiest short sales to get approved. This is because Fannie is one of the most reasonable loan owners out there.

The problem is that no one at the lenders really cares. The reason the lender is getting paid off completely is because they already sold the loan to Fannie, and the lender is only the servicer of the loan.

Remember, Fannie was created to free up lender's money. That way lenders could go make more loans. The problem is that Fannie has entrusted their investment to these lenders. Let me explain.

Here is how I see it. It's a huge win for a lender to under staff the departments handling their loan.

Their business model is to grant loans and sell them to Fannie for a profit. Fannie takes on all the risk and even pays you a monthly payment for collecting the payments, for being the servicer of the loan, i.e.: collector of escrows, principal, and interest for the investor, FNMA.

Cut your staff handling their loans to the bone. That way you can make a monthly profit from the monthly Fannie payments. A lender can't lose. You make money granting the loan.

You sell the loan to Fannie for a profit. You make money each month handling the loan for Fannie. At the end of the day, the loan goes bad.

You can't do a competent job negotiating the short sale. Why is that? The reason is you are cutting staff costs. But, you don't lose money from your negligence. Fannie Mae and Uncle Sam do. Sound like a sweet deal?

But, we still love Fannie Mae Short Sales. The Stop Foreclosure Institute has sold countless Fannie Mae Short Sales successfully.

Thinking about a loan modification?Our Westminster loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at denverforeclosureblog@gmail.com to request a Free Copy. Or, click here to request a copy.

Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this, Dan Hopper.

View My VIDEO BLOG at www.youtube.com/watch?v=2dyXXXiKcJE.

Dan Hopper is a Real Estate Broker at Remax Alliance. Westminster Short Sales Realtor:

Phone: 303-521-0984. denverforeclosureblog@gmail.com.


View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.



Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Dan Hopper's personal views and do not reflect the views of Remax Alliance.

This information on Westminster Short Sale: Are Fannie Mae Short Sales Tough? is provided as a courtesy to our viewers to help them make informed decisions.

Westminster Short Sales: How To Look At A Short Sale From The Lender’s Perspective

Westminster CO – The Stop Foreclosure Institute received a few responses from yesterday’s blog post. Most of the questions went something like this.

“I think a lender would be stupid to approve an investment property short sale for a wealthy person. If I was the lender I would sue them for the loss!”

View My VIDEO BLOG at www.youtube.com/watch?v=Y5A0B9IKdPM.

The bottom line is that people didn’t think a lender would allow a wealthy person to walk away from the debt on an investment property.

Get my Free, Step By Step Loan Modification Guide by clicking here.

Here are a few reasons why a lender will allow a wealthy investor to walk away from an upside down investment property.

Lenders know that if they can give a customer what they want, then it will help them. If they don’t give a customer what they want, then everything turns into a fight.

Some homeowners will hire a lawyer to review every clause in the mortgage. They will check to make sure that each clause of the mortgage meets every single conceivable state and federal law. Some of the investigating an attorney will do is called, “Forensic auditing”. This may lead to a bigger issue for the lender, when these loans get sold over and over again to investors, and the original documents get lost or misplaced. It will place a lot of pressure on the lenders / investors to negotiate the short sale to avoid law suits!!

Other people will declare bankruptcy to avoid paying the debt. This is the biggest impediment keeping lenders from collecting on a debt.

Debt is very hard to collect even in court. In fact, only around 8-10% of all judgments are ever collected. That means a lot of people and lenders spend thousands of dollars in court getting a judgment, only to never collect the money.

This is one of the reasons that a debt collection company recently bought $20 Million Dollars worth of Deficiency Judgments for $150,000. I don’t know which lender sold them, but apparently that is all they thought they were worth.

I hope this helps you see why a lender would find it simpler to approve a short sale rather than pursuing a debtor in the hopes of collecting on the deficiency.

Thinking about a loan modification?Our Westminster loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at denverforeclosureblog@gmail.com to request a Free Copy. Or, click here to request a copy.

Thinking about a short sale?
 
I can help you short sale your property so you can move on with your life. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this, Dan Hopper.

View My VIDEO BLOG at www.youtube.com/watch?v=Y5A0B9IKdPM.

Dan is a Real Estate Broker at Remax Alliance. Westminster Short Sales Realtor:
Phone: 303-521-0984. denverforeclosureblog@gmail.com.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax adviser before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.

This information on Westminster Short Sales: How To Look At A Short Sale From The Lender’s Perspective is provided as a courtesy to our viewers to help them make informed decisions.

Westminster Short Sale Q & A: Can This Seller Short Sale?

Westminster CO – The Stop Foreclosure Institute recently received a question from Aaron. Here was his question.

“I recently purchased another home and I make a good living. However, I can’t afford to pay both mortgages.

(The house won’t rent for half of the current payment.) An agent told me that the house is worth about $50K less than the mortgage amount. Is it realistic for me to try the short sale? The only hardship was created when I decided to move to a larger home to accommodate my family”, said Aaron.
Get my Free, Step By Step Loan Modification Guide by clicking here.

View My VIDEO BLOG at www.youtube.com/watch?v=CFvdzkF68Cg.

Here was our answer to Aaron’s Question. I think you can short sale. In our experience short sale negotiators do not spend hours going thru every single document in a short sale file. But, they screen the short sale packages that they receive to insure ALL asked for documents do exist!! With so many files on their desks, they may push an incomplete file aside and thus delay YOUR short sale request by weeks, or even months!

Most negotiators have 100-300 short sale files on their desk at any given time. One manager in a short sale department said that a negotiator spends less than 2-3 hours on a short sale file. This is WHY you must make sure your short sale package is complete and concise for the bank to review and see their NET after the short sale!! Another important reason hire an experienced Short Sale Broker!!
In our opinion, I think they glance at the hardship letter, if they even read it at all. Their job is to simply make sure the home isn’t being sold too cheap. (Thus, the purpose of the banks’ BPOs and appraisals)

Here is one other reason we think that you can short sale. We have heard stories of wealthy people short selling their investment properties. (Investment properties may prevent you from using HB3648 Mortgage Debt Forgiveness-call for details)

These people have lots of disposable income, but their lenders are still approving their short sales. Your lender may not work with you until you have missed a payment or two. (There are exceptions to this, contact me for details)

Try the short sale before you miss a payment. Whether or not you go late is up to you. If you do decide to short sale, contact us and we will put you in touch with an experienced short sale broker in your area.

Thinking about a loan modification?Our Westminster loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at denverforeclosureblog@gmail.com to request a Free Copy. Or, click here to request a copy.
Thinking about a short sale?
 
I can help you short sale your property so you can move on with your life. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

View My VIDEO BLOG at www.youtube.com/watch?v=CFvdzkF68Cg.

Thanks for reading this, Dan Hopper.

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:
Phone: 303-521-0984 denverforeclosureblog@gmail.com.
View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax adviser before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.

This information on Westminster Short Sale Q & A: Can This Seller Short Sale? is provided as a courtesy to our viewers to help them make informed decisions.

Show Your Lender Home Much They Will Lose Rejecting Your Westminster Loan Mod

Westminster CO – Lenders reject loan modifications only to lose more money when they sell the home after foreclosure. Here is how to prove the loss to them.

Get my Free, Step By Step Loan Modification Guide by clicking here.

When you request your free loan modification guide, you will have the option of also receiving a property valuation. This is called a BPO (short for Broker’s Price Opinion), and it is a real estate agent’s opinion of the value of a property.

Lenders use BPOs to determine a property’s value for short sale processing. Find out what you can pay the lender as a monthly payment. Then, find out the mortgage amount that equals that payment.

For example, $1,200 a month will pay off a $211,346 mortgage over 30 years. $2,000 will pay off a $352,243 mortgage. $3,500 will pay off a $616,426 mortgage. $600 will pay off a $105,673 mortgage.

The lender should approve your loan mod if the payment you propose will pay off a mortgage amount that is more than the property value.

It is in their best interest because it will reduce their losses. In fact, lenders usually only net around 80-85% of a property’s value after foreclosure.

This is why lenders were only willing to lend up to 85% of a property’s value historically. So use this to your advantage. Keep reminding the loan modification negotiator of these facts.

And hold the negotiator accountable if they reject your loan mod and lose even more money as a result. Thinking about a loan modification?

Our Westminster loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at denverforeclosureblog@gmail.com to request a Free Copy. Or, click here to request a copy.

Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this, Dan Hopper.

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.

This information on Show Your Lender Home Much They Will Lose Rejecting Your Westminster Loan Mod is provided as a courtesy to our viewers to help them make informed decisions.

Recommended Steps To Take Before You Strategically Default In Westminster

Westminster CO – Here are the recommended steps to take before you strategically default. We have consulted a financial expert who recommends these steps before strategically defaulting.

He believes that taking these steps will reduce the likelihood of your lender pursuing you after a short sale or foreclosure. We have to warn you of what could happen if you take these steps.

If you stop paying your credit cards, car loan, or house payment, then you could lose your house, car, and face lawsuits from your creditors. Your credit rating will also suffer.

In addition, you risk being chased down by your credit cards. All of this is risky and no one knows for sure exactly what will happen. So consult legal counsel before you stop paying anything.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Step #1: Miss a payment or two on an unsecured debt. This can be a credit cards, medical bills, or signature loans. Make sure you get more than 30 days behind on the payment. If it is less than 30 days, then it won’t report to the credit bureaus.

Whether you should completely stop paying the credit cards is another decision. The expert we consulted said you don’t want to be paying your credit cards and not paying your mortgage.

He said it makes it look too obvious that you are strategically defaulting. That is a decision you will have to make on your own. I have a hard time recommending that people stop paying their credit cards cold turkey.

But, going cold turkey is necessary for a successful strategic default. Maybe you can default and settle with the credit cards after the home is sold or foreclosed.

Step #2: Go more than 30 days late on a car payment or your house payment. Then, catch back up on the payments. Remember, the goal is to look just like everyone else who is defaulting because of a loss in income.

Your credit rating will start to decline after these 2 steps. You are right on track. The financial expert said that high credit scores (700 and higher) are probably the biggest indicator lenders use to track strategic defaults.

Your credit score won’t be high anymore. This is the first thing that will make it look like your aren’t strategically defaulting.

Step #3: Go more than 30 days late on your house payment and then catch up again. Most people who experience a loss of income slowly get behind on different payments. They go past 30 days on their mortgage and then catch it back up.

They finally stop paying altogether a few months later. This leads to the next step.

Step #4: Stop paying your mortgage. You will probably want to stop paying all unsecured debts at the same time.

This will make you look as close as possible to a person who is simply having financial problems and is not strategically defaulting.

Thinking about a short sale?

I can help you short sale your property so you can move on with your life. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Westminster loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dan Hopper.

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:
Phone: 303-521-0984. denverforeclosureblog@gmail.com.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.

This information on Recommended Steps To Take Before You Strategically Default In Westminster is provided as a courtesy to our viewers to help them make informed decisions.

Thinking About A Strategic Default in Westminster? FICO May Be Tracking You!

Westminster CO – Banks must hate Strategic Defaults. A person who walks away from hundreds of thousands of dollars in debt gets on their nerves.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

It must bug them so bad that Fair Isaac, the founder of the FICO score, came out with a program that tracks strategic defaults. Here is the story according to Inman News:

“Article Title: FICO to walkaways: You’re on our screen

Fair Isaac, developer of the ubiquitous FICO score, has a new warning for homeowners plotting a strategic default or walkaway: We can now spot you in advance. We’ve developed a black-box risk-identification tool that enables lenders and mortgage servicers to tag you months in advance — and then pursue their own strategic measures to intervene.

The tool is so effective, according to FICO, that it can “capture nearly 67 percent of strategic defaulters” who are otherwise unremarkable and undetectable, paying their mortgages on time.

Sound a little spooky? Not for the major lenders who are working with FICO to install the new statistical risk-scoring model, aimed at some of the costliest and most perplexing defaulters in the marketplace: people who just stop paying on their loan abruptly, without ever previously being late, even though they have the income to pay.

Strategic walkaways are a multibillion-dollar headache to banks and investors. A study by researchers at the University of Chicago’s Booth School of Business found that during last September alone, 35 percent of mortgage defaults in the U.S. were strategic — up sharply from 26 percent in March 2009.
With an estimated 23 percent of all residential mortgages underwater as of March of this year,
according to data from consulting firm CoreLogic, spotting — and dealing with — walkaways has become a high priority for the biggest banks.

Walkaways are also more than a slight concern to default risk-scoring giants like Fair Isaac and Vantage Score LLC, the joint venture created by the three national credit bureaus: Equifax, Experian and Trans Union.

Both companies have been stunned to find that the very consumers they deemed the least likely to go into default — people with 800-plus FICOs and 900-plus Vantage scores — are statistically more likely to default strategically, with no outward signs of impending payment stoppages, than the lower-scoring masses.

People with low FICO scores still default more often than high scorers, but when high scorers do default, they are far more likely to do so out of the blue. In the lowest score category (300 to 499) more than twice as many people default non-strategically — they begin missing payments over time, typically because of income declines — than strategically.

These walkaways are especially vexing to score-modeling experts like Andrew Jennings, Fair Isaac’s chief analytic officer and head of FICO Labs. “They open up new credit accounts” before stopping their mortgage payments, he told me in an interview last week. “They prepare.”

They intentionally default on their mortgages in part “because they believe it is in their best financial interest, and because they believe the consequences will be minimal,” Jennings said.

Jennings supervised Fair Isaac’s work in developing a special tool that pinpoints likely strategic defaulters while they’re still cocooning and haven’t yet revealed their intentions to lenders.

Some of the research involved examining massive samples of credit bureau data — 5 percent of all U.S. mortgage accounts — during a recent one-year period, looking for telltale clues, month by month, that would separate out strategic defaulters from ordinary defaulters.

What the project turned up, said Jennings, helped formulate the model that FICO has now created for lenders and servicers.

So what’s in the black box? Obviously the complex statistical model and exactly how it works is proprietary. But Jennings said it looks at a composite of separate risk factors from credit and real estate databases, and enables servicers to identify borrowers whose profiles match those of strategic defaulters most closely.

Some of the key characteristics include:

–How long have the borrowers owned the house? The shorter the time span, the higher the risk.

–Are they good to excellent managers of their household finances and credit relationships? Do they make modest and responsible use of credit cards and other revolving debt? Do they pay their accounts on time as a rule? Do they rarely, if ever, go over the limits on their cards — or even come close?

–Have they departed from their past credit usage patterns in recent months by opening up multiple new accounts?

–Based on local property-value indexes, is it likely that they have slipped into negative equity territory? Remember: How deeply underwater is only a moderately predictive factor. Lots of owners whose properties are worth far less than their mortgage balances do not strategically default, but keep plugging away paying every month, while borrowers who fit the FICO strategic defaulter profile may be only slightly underwater but still walk away abruptly.

By the way, location is not a key factor in the equation. FICO found that 40 percent of all strategic defaulters live in “recourse” states where lenders can — and do — pursue defaulters for any un-recovered debts following a foreclosure.

Of course, the model cannot peer into would-be walkaways’ minds and motivations. “We’re not trying to explain their psyches,” Jennings said, “but you see the patterns” and certain borrowers’ profiles light up like flashing neon signs.

The top bracket of high-risk homeowners identified by FICO’s new model are 110 times more likely to strategically default than other borrowers — even though they otherwise appear to be solid customers, according to Fair Isaac.

Armed with these risk profiles, what are banks and servicers likely to do as they scan their portfolios? Fair Isaac recommends that they intervene early with what it calls “pre-delinquent treatments.”

These include contacting high-risk borrowers to warn them about the consequences of strategic defaults: Their credit scores will tank by 150 points or more, they’ll be hampered or penalized in applications for rentals, employment, car loans or leases, and they can forget about buying another home for at least several years, possibly as long as seven.

If they live in a state that allows deficiency recoveries, servicers will probably emphasize their determination to do so in the event of any default.

Will all this work? Major banks and FICO think it should help. The jury is out at the moment, but if the early detection concept is valid, who knows?

Maybe it will cause some homeowners to think twice and discourage them from taking that first, crucial step: Secretly plotting their walkaway, months in advance.” End of Article.

This has big repercussions for anyone thinking about a strategic default. Tomorrow we’ll talk about how this affects you if you and what to do to avoid problems on a strategic default.

Thinking about a short sale?


When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Westminster loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dan Hopper.

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:

Phone: 303-521-0984. denverforeclosureblog@gmail.com.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.

This information on Thinking About A Strategic Default in Westminster? FICO May Be Tracking You! is provided as a courtesy to our viewers to help them make informed decisions.

Westminster Short Sales: My home is in foreclosure. How soon will the bank kick me out?

Westminster CO – The Stop Foreclosure Institute recently received a question from another realtor named Sandy.
Here is her question.
“An agent in my office currently has a listing under contract. It is a short sale, the sad thing is that Large National Bank (to remain unnamed) notified the sellers that they had foreclosed a month ago.

Fact is, they had not foreclosed. The employee didn’t know what they were talking about. Valuable time and a buyer were lost during this fiasco. This deal is currently awaiting approval. There is no telling what will happen in the end.

My question is this. What can we do to track the foreclosures and see when the bank is foreclosing. Sandy.”
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

View My VIDEO BLOG at www.youtube.com/user/avoidforeclosures?feature=mhum

Here is the answer to Sandy’s Question. The best way that I have seen to track this is by checking the docket, in most states.

The docket is the record at the courthouse of everything that is happening on a foreclosure. In some states the foreclosure is a court case and you can track the case.

In Colorado, it is the only state that uses Deed of Trusts and Promissory notes instead of mortgages. So the foreclosure process is handled through the local County Public Trustee system. The Deed of Trust gives the Public Trustee the right to start the foreclosure process when a loan is in default.

Short sale brokers can check online or by a phone call to the County Public Trustee, where the property resides in, in order to see the deadline dates of the foreclosure process.

Make sure you hire a short sale broker that is familiar with the foreclosure process in their state. There is NO excuse to not know if a property has gone to “sale” during the foreclosure! Understanding this process can help you negotiate the short sale with the lender(s), in order to avoid foreclosure!

Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Westminster loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dan Hopper.

View My VIDEO BLOG at www.youtube.com/user/avoidforeclosures?feature=mhum

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:
Phone: 303-521-0984. denverforeclosureblog@gmail.com.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice
Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Hopper’s personal views and do not reflect the views of Remax Alliance.
This information on Westminster Short Sales: My home is in foreclosure. How soon will the bank kick me out? is provided as a courtesy to our viewers to help them make informed decisions.


This information on Westminster Short Sales: My home is in foreclosure. How soon will the bank kick me out? is provided as a courtesy to our viewers to help them make informed decisions.

Westminster Short Sale Question: What Do I Owe You If The Short Sales Isn't Successful?

Westminster CO – The Stop Foreclosure Institute recently received this question from Tamra. Here is Tamra’s Question.

View My VIDEO BLOG at www.youtube.com/watch?v=DyMOzZDKgZQ.

“I would like to hire you to help me short sale my house. However, I am concerned that if the short sale doesn’t go thru, then I will still owe you money. My friend told me to check on that before I started. Is it true that I would owe you money if the short sale didn’t go thru? Tamra.”

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here is the answer to Tamra’s question. 

Tamra, No, you will not have to pay anything if the short sale doesn’t go thru. We only get paid when the short sale is approved and the home sells.
Until then, there is no cost to you. In addition, all the short sales we have sold don’t require the seller to pay anything.
What usually happens is that we send your lender a sample closing statement. It has all the costs itemized including our commission.
If your lender is ok with the numbers, then they approve the short sale. If not, then they tell us what needs to be changed.
It is a back and forth process until we come to an agreement. The bottom line is that a short sale will not cost you anything.
The only time you would be paying money is if your lender demands a promissory note, or you live in a state where they have the right to collect after a short sale or foreclosure.
However, even in those states in most cases we are able to negotiate a complete release on the debt. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Westminster loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dan Hopper.

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:
Phone: 303-521-0984. denverforeclosureblog@gmail.com.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. , Westminster Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.
Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax adviser before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.
This information on Westminster Short Sale Question: What Do I Owe You If The Short Sales Isn’t Successful? is provided as a courtesy to our viewers to help them make informed decisions.

A Common Myth About Westminster Short Sales: Banks don't like short sales and prefer foreclosure

Westminster CO – One of the Stop Foreclosure Institute members talked to a homeowner recently about a short sales. Her house was close to being foreclosed upon.

View My VIDEO blog at www.youtube.com/watch?v=tbWPHrU694c.

She had thought about short selling the house. But, she had heard from her friends that banks don’t really like short sales and never pursued the option.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

The fact is that banks are better setup for foreclosures. It is only with the recent historic drop in home values that short sales have more common.

Banks always knew that a short sale would reduce their losses compared to a foreclosure. Even the federal government agrees. That is why congress added short sale incentives to the recent loan modification laws.
FHA is another quasi federal agency that prefers short sales over foreclosure. They pay lenders $750 plus to process a short sale. I don’t think they pay them anything extra to process a foreclosure.
The bottom line is that most lenders do prefer short sales over foreclosure. The reason is best explained by a recent study done by Boston Consulting Group.

The study found that a short sale nets a lender 20% more than a foreclosure. Banks understand numbers and want to reduce their losses. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Westminster loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

View My VIDEO blog at www.youtube.com/watch?v=tbWPHrU694c.

Thanks for reading this, Dan Hopper.

Dan is a Real Estate Agent at Remax Alliance. Westminster Short Sales Realtor:
Phone: 303-521-0984. denverforeclosureblog@gmail.com.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Westminster Colorado. Westminster Loan Modification Help, Westminster Short Sales. Westminster Short Sale Realtor. Arvada CO Loan Modification Help, Arvada CO Short Sales. Arvada CO Short Sale Realtor. Westminster CO Short Sales. Westminster Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Dan Hopper’s personal views and do not reflect the views of Remax Alliance.
This information on A Common Myth About Westminster Short Sales: Banks don’t like short sales and prefer foreclosure is provided as a courtesy to our viewers to help them make informed decisions.