California Real Estate Sales

When it was time for George Gabelman to cook up some offers for his home, he hired a real estate agent. And he picked one the same way most people do:

“He was a personal friend. I live in New Jersey and I come down here visiting and I met him one day and we got to be friends.”

Is that how you were hired where you work? Look, you’re paying 6% of your home’s value for this person. Make sure you get your money’s worth.

Boil it down, and agents get paid big bucks for two reasons: one, first, they have access to Multiple Listing, that exposes your home to the most potential buyers. Second, they should be good at marketing that house. .

And that’s where you separate the wheat from the chaff. How? By asking the same questions you were asked when you applied for your job. Like experience:

“I’m new. I’m new in the business. Only 28 years.”

And effectiveness. How much property have you personally sold in the last year?

“In the last year, I have sold nearly 20 million dollars.”

And then how are you specifically planning to market my property? What’s your plan?

“Newspaper advertising is usually done today just for the benefit of the owner. But that’s not how a piece of property gets sold. Internet. Internet, internet, internet.”

And then there’s the feeling you get…the same feeling that someone had the day they hired you.

Bottom line? Selling a home is tough, especially these days. If you’re going to hire help, get your money’s worth.

The Home Affordable Unemployment Program (HAUP) begins today. It is designed to provide relief to unemployed homeowners. HAUP (referred to as “UP”), “offers eligible unemployed borrowers a forbearance plan to temporarily reduce or suspend their mortgage payments.”

By August 1, 2010, all servicers who are participating in Making Home Affordable will be helping homeowners who are struggling to stay current because of unemployment.

Here are the details:

Forbearance Plan Eligibility:

A borrower must meet the Home Affordable Modification Program (HAMP) eligibility criteria as well as:

• be unemployed when request is made;
• be entitled to receive unemployment benefits in the month of the UP forbearance plan effective date (servicers have discretion to require a borrower to have received unemployment benefits for up to three months before commencement of the forbearance plan); and
• request an UP forbearance plan before they become seriously delinquent (i.e., miss three monthly mortgage payments).

Forbearance Plan Evaluation:

Servicers must follow these requirements when evaluating a borrower for an UP forbearance plan:

• Unemployed borrowers who request assistance for HAMP must first be evaluated for an UP forbearance plan. If they qualify, they must be offered an UP forbearance plan before they can be considered for HAMP.
• Borrowers currently in a HAMP trial period plan who become unemployed may receive an UP forbearance plan if they have missed less than three monthly payments as of the first payment due date of the HAMP trial period plan. If they do qualify, their existing HAMP trial period plan must be cancelled and the UP forbearance plan must immediately begin without waiting until the borrower has received three months of unemployment benefits.
• Borrowers previously determined to be ineligible for a HAMP modification may request an UP forbearance plan if they meet the eligibility requirements.
• Borrowers in a permanent HAMP modification who become unemployed are not eligible for an UP forbearance plan.

Forbearance Plan Terms

• Term must be three months or upon reemployment (whichever is less). Servicers may extend this period according to their investor/regulatory guidelines.
• Monthly mortgage payment must be reduced to less than or equal to 31% of the borrower’s gross monthly household income and may be suspended in full.

Transition to HAMP

• Borrowers in an UP forbearance plan will be evaluated for HAMP at either reemployment or 30 days prior to the UP forbearance period expiring (whichever happens first).

For those with questions (after speaking with your servicer), you can talk with a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).

On April 5, the federal Home Affordable Foreclosure Alternatives Program (HAFA) went into effect with the goal of accelerating short sales by providing incentives and guidelines for short sales and deed-in-lieu of foreclosures.

Watch this video “Understanding Federal Short Sales Rules: HAFA (Revised, Apr. 5)” from National Association of REALTORS®

Los Angeles South Bay Residents may contact Lee Williams of Keller Williams Realty by completing the form below. We offer local assistance in conjunction with your HUD Approved Housing Counselor and your Mortgage Loan Servicer.

To request a modification fill out these two forms:

• Request Form (Request for Modification and Affidavit)

• Tax Form (Form 4506T-EZ)

Determine if you are eligible for a Home Affordable Modification by using the simple tool on this website.

If you are eligible, you can request a Home Affordable Modification by completing the easy steps below. If you need assistance completing the forms or have questions about the process, free help is available by calling the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673) and asking for MHA HELP.

Step 1 – Complete the Request Form (Request for Modification and Affidavit)

The Request Formprovides information to your mortgage servicer about your home and financial situation. You can download an instruction guide for completing the Request Form here. After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer.  All of the borrowers on the mortgage must sign the Request Form.

Step 2 – Complete the Tax Authorization (IRS 4506T-EZ Form)

The Tax Formgives permission to your mortgage servicer to request a copy of the most recent tax return you have filed with the Internal Revenue Service (IRS). Click here for instructions on completing the form.After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer.  Only one taxpayer is required to sign the Tax Form.

Step 3 – Gather Proof of Income

Your mortgage servicer is required to verify your income to ensure that the modified mortgage payments will be affordable for you.  The type of documentation you need to provide depends on the source of your income.  The simple Proof of Income Checklist will tell you what documents you need to collect if you are a wage earner, self-employed, or receive retirement income.  Be sure to make copies of your income documentation and keep the originals for your records. 

Step 4 – Send the Documents to Your Mortgage Servicer

After you complete, print, and sign the Request Form and Tax Form, send these documents, along with your proof of income, to your mortgage servicer.  You will find the correct mailing address and fax number at Contact Your Mortgage Servicer.

Step 5 – Contact a knowledgeable Realtor in your area who can help tie it all together. Complete the questions below to find out more about these and other foreclosure avoidance programs.

It is important to explore all of your options to avoid foreclosure but often there comes a time to end the stress. Watch this video to hear the benefits to cutting your losses and begin living the rest of your life.

With so many people having trouble making their mortgage payment or possibly facing foreclosure it is a shame that there are scams designed to prey upon these people at such a difficult point in their lives.  Watch this video to find out how you can avoid falling victim to foreclosure scams.

If you are having difficulty making your payments and want to explore your options at loan modification or short sale complete the form below.