Archives for February 2009

What’s In a Short Sale Package?

If you are considering a short sale your lender will require a list of documents that will need to be faxed with your offer. This is known as a short sale package.

Here is the typical list of documents required by most lenders.

Hardship letter (explanation of why you need a short sale)
Financial Statement
Last two months bank statements
Last two tax returns
Two most recent pay stubs
Buyer pre approval letter or proof of funds
HUD1 or Net Sheet
Purchase Contract
Listing agreement and authorization letter if listed by a real estate agent

The actual documents that are required vary from lender to lender. It is worth contacting them to find out exactly what they need and where to send it. Keep in mind if you send them an incomplete package it could delay your short sale approval.

American Red Cross Crab Feed On Valentines Day

Tomorrow is the 5^th annual All-You-Can-Eat Crab Feed benefiting the local chapter of The American Red Cross. The event is being held at the Win River Casino, there will be a live auction, raffle and dancing. Should be a lot of fun.

Here are the details: click here

For reservations call 244-8000

Fannie Mae Removes 4 Property Limit For Investors

Last Friday Fannie Mae announced that they are lifting the rule that limits investors to only four financed properties starting March 1st. Fannie Mae’s policy change will increase the limit of four financed properties to ten. This should get investors active again which will help keep the inventory of foreclosures and short sales down.

Homeowners buying a 5th, 6th, 7th, 8th, 9th or 10th home will need to meet the following standards, as set forth by Fannie Mae

1. 720 credit score

2. 25% downpayment for a 1-unit (30% for a 2-4 unit)

3. No mortgage delinquencies in the last 12 months

4. 6 months of reserves for each investment property

Real Estate Agents Demand Fair Distribution of Foreclosure Listings

This is getting a bit ridiculous. Now real estate agents are looking for a piece of the bailout. Heres the story from DSNews.com

A group of real estate agents is organizing a petition calling for changes to the Troubled Asset Relief Program (TARP) that would allow more real estate agents the opportunity to sell REO properties.

The petition, organized by Foreclosureu.com based in Rogers, Minnesota, a suburb of Minneapolis, says banks are unfairly limiting which real estate agents can sell REO properties. The petition says 0.006 percent of the nation’s real estate agents sell 95 percent of available REO properties in the country.

According to the petition, “The lenders disposing these real estate assets have made it exceedingly difficult and in many cases impossible, for the vast majority of Realtors to fairly compete for this business…With many markets around the country being totally dominated with foreclosure sales only, the rest of the industry of over 1 million Realtors has nothing left to compete for.”

The group called the bank actions “unfair, inefficient and anti-competitive,” but said they were tolerated when the government did not have a stake in the institutions. But now that banks that have REO properties are receiving TARP funds, those practices should change.

In a press release, the group said, “Now that the American taxpayer has a direct interest in a large number of these banking institutions, Realtors have acquired a legitimate say in how these institutions distribute this business.”

The petition calls for legislation that would require “fair and proportionate” distribution of REO listings to real estate agents that want to compete for work.

The petitioners hopes to get 100,000 signatures, and the petition will be sent to the members of Congress on March 1.

It sounds like one more step towards Socialism to me. Why stop at bank owned properties? Lets spread all the listings around, that way its fair for everyone.

Increased Tax Credit For Homebuyers

The price tag for the economic stimulus package Congress is developing got a $19 billion bump Wednesday when the Senate approved doubling the housing tax credit to $15,000 and expanding it to include all homebuyers, not just those buying their first home.

The proposal would create a credit worth 10 percent of the value of a new or existing home, and is capped at $15,000, up from the $7,500 first time homebuyer tax credit already in place. The credit would not have to be repaid so long as the homeowner stays in the home for three years, and would be available for a year after the legislation is put into law.

Georgia Sen. Johnny Isakson, who proposed the amendment, said, “It is time to fix housing first. We have a pervasive housing problem, and we have a historical precedent that works.”

Isakson is referring to a $2,000 tax credit Congress passed in the mid-1970s, when market conditions led to a housing crisis that left the country with a three-year supply of homes.

The credit comes one day after the Senate voted to give a credit to new car buyers.

Archives for February 2009

What’s In a Short Sale Package?

American Red Cross Crab Feed On Valentines Day

Fannie Mae Removes 4 Property Limit For Investors

Real Estate Agents Demand Fair Distribution of Foreclosure Listings

Increased Tax Credit For Homebuyers

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