The site is available in both English and Spanish and includes tools like educational videos, mortgage calculators, financial forms and checklists.   A virtual assistant will walk you through the site. 

Not all mortgages are insured by Fannie Mae, but this is a great general resource.  The site does provide a Fannie Mae Look-up Tool so you can find out if your mortgage is insured by Fannie Mae so you can take advantage of the Fannie Mae specific programs that are detailed on the site.

Again the key for anyone homeowner who is facing difficulties or anticpates that they may have an issue in the near future is to seek help as early as possible.  This website is a great first step.

Short Sale  (Deed-inlieu of Foreclosure Guidelines are similar) – According to the report the affect on your FICO score from short sale depends on how the sale is reported to the credit bureau.  If reported as “not paid as agreed” the score could go down 100+ points.  Late payments will also affect the FICO score and are reported for 7 years, with thier impact lessening over time.   Buyers looking to purchase after a short sale will have to wait to purchase another home.  If purchasing using FHA financing the wait is 3 years (possibly less if not in default at time of short sale).  For a Fannie Mae insured loan buyers need only wait 2 years if putting 20%+ down, 4 years if putting between 10%-20% down, and 7 years if putting less than 10% down.  If getting a Freddie Mac insured loan the wait is 4 years, 2 years if extenuating circumstance are documented.

Foreclosure – A foreclosure stays on your credit report for 7 years, with the impact lessening over time.  A foreclosure could lower your FICO score 100+ points.  Buyers looking to purchase after a foreclosure will again have to wait.  If purchasing using FHA financing the wait is 3 years.    If getting a Fannie Mae insured loan the wait is 5 years from the foreclosure sale date, 3 years if there are extenuating circumstances.  Additional underwriting requirements may be required.  The wait for Freddie Mac insured loans is similar with a 5 year wait, 3 years for exentuating circumstances.

Bankruptcy – Bankruptcies stay on your credit report for 7 years (10 if there was a full discharge of debt).  Bankruptcies generally have a greater negative affect on the FICO score in comparison to the above mentioned issue.  Buyers looking to repurchase after a bankruptcy using an FHA loan will have to wait 2 years from discharge date with a chapter 7 BK and 1 year with a chapter 13 BK.  If getting a Fannie Mae or Freddie Mac insured loan there is a 4 year wait for chapter 7 or 11, and 2 year wait if chapter 13.   Some allowance are made for exentuating circumstances. 

Extenuating Circumstances – include serious illness or death of a wage earner, but do not include an inability to sell a house due to job transfer or relocation. 

For a full copy of this report please feel free to contact me.

There are four primary elements to the Nevada Plan. 

1.  Mortgage modification with principal reductions and some forebearance.   The prinicipal reduciton component will be in the form of an earned forgiveness loan.   It is anticipated that 55%-60% of the programs funds will be expended on this program element.

2.  Second mortgage plan aimed at assisting borrowers who have a second lien interfereing with either a short sale or modification of the first mortgage.  Approximately 20% of the program funds will be allocated to this option.

3.  Foreclosure mitigation capacity building.  This program will expand the capacity of  HUD approved housing counseling agencies and allow them to increase “intake” capacity.

4.  Short sale faciliation-aid to the unemployed.  The Nevada plan calls for incentives to financial institutions designed to expedite the short-sale decision making and closing process.  The plan will allocate approximately 11.5% of the available funds to this part of the plan.

This fund was established by the Obama Administration in February 2010 to provide targeted aid to families in the hardest hit states of Nevada, Arizona, California, Florida and Michigan.   The total alloted to these 5 states is $1.5 billion. 

If you are interested in reading the entire NEVADA PLAN please feel free to contact me and I can forward it to you. 

FHA guidelines require a seller to get their home approved into the FHA Pre-Foreclosure Program prior to listing the property.  Sellers should work with thier REALTOR to contact the servicer (the company you pay the mortgage to) and request to be considered for a short sale.  The servicer will provide the necessary documentation and complete an FHA appraisal on the property.

If you would like more informaiton on the HUD Pre-Foreclosure (Short Sale) Program, please contact me for a complete guide.

You can determine if your loan is FHA by looking at the bottom of  your Deed of Trust , or ask your REALTOR to order a property profile from the title company which will have a copy of this document  in it.   

Once the servicer has obtained the initial documents and ordered an FHA appraisal they should be able to issue you the “Approval to Participate”    This clearly defines the FHA Fair Market Value, the deadline to get a contract for sale, minimum net proceeds that FHA will accept and the amount of the seller’s incentive and what date you have to close in order for the seller to get that money.

From the issue date on the Approval To Participate you are given a specific date to get the home under contract.  If you get the sale into contract within the first 30 days FHA will require the sale to net 88% of the FHA appraised value.   If the sale contract comes between day 31 and 60 FHA requires a 86% net.  Day 61 to the expiration of the Approval To Participate FHA will allow the offer to be 84% of the appraised value.

Once you list the property you basically have an approved short sale if the offer will provide the appropriate net to FHA.  There is one other major thing that needs to be remembered.  FHA will only allow up to 1% of the new buyer’s loan amount as a closing cost credit if the buyer of your home is doing a new FHA loan.  Many buyers in our market are needing 3% closing cost assistance from the seller.  That will not work on this type of sale.

Once an offer is received that meets the required net, it is submitted to the servicer and an Approval is issued.  This is what is need to close the short sale.  

Sellers are offered an incentive on FHA short sales.  If you successfully close the sale within 90 days of the Approval to Participate you can recieve up to $1000 incentive which can be applied to paying off a second lien or other closing costs that FHA doesn’t allow, or if there is neither of these you get the money for relocation assistance.  If it does not close in that 90 day window the amount drops to $750. 

Here is where things get tricky.  You may have a servicer (who you pay your mortgage to) that is not up to speed on FHA guidelines or has a large back log of files.  They are still required as an FHA servicer to follow FHA guidelines.  You and your REALTOR can contact FHA directly at their national servicing deparment and file a complaint.  The number is 888-297-8685.  They take your information and create a “work ticket” which is then assigned to a local field officer who contacts the servicer and resolves the issue.

Contact me today for a complete guide to FHA Pre-Foreclosure (short sales.)

Homeowners should come prepared with the following documents:

1. Monthly mortgage statements.
2. Information about other mortgages on your home if applicable.
3. Two most recent pay stubs or other income documentation for all borrowers, if self-employed a profit and loss statement.
4. Two most recent bank statements.
5. Account balances and monthly payments for credit cards and debts.
6. Estimates of monthly expenditures (medical, utitilies, insurance etc.)

The key to the new HAFA program is that the homeowner must meet the HAMP guidelines to be considered, which are as follows:

1. Property must be the homeowner’s primary residence.
2. The first mortgage must have originated before 2009.
3. Mortgage payments must be delinquent OR default is reasonably foreseeable.
4. Unpaid balance is not more than $729,750.
5. Homeowner’s TOTAL monthly payment (principle, interest, taxes, insurance and HOA dues) MUST EXCEED 31% of thier GROSS MONTHLY INCOME.

Timelines for this program are set at much shorter periods than traditional short sales. 

1. Within 30 days of the request to be considered the servicer must respond to the homeowner.
2. 14 calendar days from the servicer’s response the homeowner must sign the “short sale agreement” and return it to the servicer.
3. At this point the homeowner then lists the property.
4. Once an offer is recieved the homeowner must submit it to the servicer within 3 business days.
5. The servicer then has 10 business days to accept or reject the offer.

If the servicers can meet these deadlines it will greatly improve the market for these short sale properties.  (I for one am currently in the watch and see mode.) 

Here are some other key points that must be considered….

1. Homeowner gets a $1500 incentive for relocation assistance at the conclusion of the sale.
2. Homeowner must negotiate separately with any second mortgages etc.
3. If there is mortgage insurance the insurer must waive their rights to recieve additional payment.
4. Must be an arms-lenght transaction.
5. Servicer/Investor must agree not to pursue a deficiency balance against the homeowner (this is huge!)

Contact me for more detailed information and to see if you might qualify for this program.

Come prepared!  To make the most of the event you will want to bring the following: (1) your monthly mortgage statement, (2) information about additonal mortgages on your home, (3) 2 most recent pay stubs, income documents from all sources and a profit & loss if you are self-employed, (4) 2 most recent bank statements, (5) account balances for all monthly payments for all debts, and (6) estimates for other monthly expenditures (utilities, medical bills etc.).  Bring copies not orginials. 

In addition you can  go to http://www.makinghomeaffordable.gov  to download and complete the Request for Modification and Affidavit and the IRS 4506T-EZ.  If you do not have a computer the forms will be provided. 

Parking is free or you can take RTC Rapid and use the Convention Center stop.  For more information you can visit http://www.makinghomeaffordable.gov or call 1-888-995-HOPE(4673).

There were 45 short sales closed in February with a median list price of $159,900 and median sold price of $156,000.  The average days on market for these closed sales was 190 days.  Short sales accounted for 40.2% of the total sales in February. 

There were 41 REO/foreclosure properties sold in Februrary with a median list price of $150,000 and median sold price of $143,000.  The average days on market for these closed sales was 86 days.  The REO/foreclosure properties accounted for 36.6% of the total sales in February.

There were 26 homes sold that were not distressed sales in February with a median list price of $179,950 and a median sold price of $178,200.  The average days on the market for these closed sales was 106 days.  These sales account for 23.2% of the total sales in February.

Looking forward here is a recap of the Active and Pending Sales in the Sparks-Spanish Springs area.

There are 584 short sales currently on the market.  203 of those are active and 381 are pending short sale approval.  The median price for active/pending short sale listings is $168,250 and the average days on market is 145 days.  Short sale listings account for 62.3% of the active or active pending inventory.

There are 133 REO/foreclosure properties currently on the market.  45 of those are active and 88 are pending sale.  The median price  for active/pending REO/foreclosure properties is $145,000 and the average days on the market is 71.  REO/foreclosure listings account for only 14.2% of the active/pending inventory.

There are 220 non-distressed propertys listed.  137 are active and 83 are pending.  The median price for non-distressed listings is $249,999 with an average of 122 days on the market.  Non-distressed properties account for 23.5% of the active/pending inventory.

So, what does this mean for home buyers and sellers?  Short sales are a large part of the market.  Whether you are buying or selling a home in the Sparks-Spanish Springs area be sure to enlist an “EXPERIENCED” short sale agent to assist you.  These are complicated transactions that require a REALTOR with not only certifications but actual closing experience.

REO/foreclosure sales are becoming more scarce has banks begin to see the value of short sales and slowly release their foreclosed inventory.  These properties require immediate action from buyers as they will typcially go into contract quickly and often with multiple offers.

Non-distressed properties are in demand by buyers, but many sellers continue to over price these properties.  Some buyers are willing to pay for the convience, but not many will over pay just for the convenience.  Sellers for you that means sharpening your price and being realistic about current market conditions.

In looking at the Tahoe Donner subdivision in Truckee, which comprises the largest percentage of the sales in the overall area, the statistics are similar.  In 2002, there were 302 single family homes sold, with a median price of $495,000.  The highest median market value was reached in 2005, at $765,000.  At the end of 2009, the median price is at $568,500, again, a 25% drop since the high in 2005, yet still a 29% increase from where we were in 2002.  And similar to the picture for the entire area, the number of homes sold in 2009 in Tahoe Donner (225) was up 16.5% from 2008.

During the past year, we’ve seen our share of distressed properties come on the market, although not near as many as many areas of our state and country.  Of the 787 single family homes that sold in 2009, 127 (16%) were foreclosures and 85 (11%) were “short sales”.  We currently have only 23 foreclosure properties active on the market (3% of the total inventory available), and 102 “short sales”, comprising 14%.

As we look towards this new decade, we’re excited about the opportunities in our industry that will hopefully allow many more buyers to realize their dreams of home ownership, be it here in our mountain paradise, or wherever their dreams may take them.

The Reno Sparks Association of Realtors (RSAR) presented Shocket with the Matt Gibbons Memorial Award at their annual dinner this past November. The award was in recognition of her service to RSAR, her high ethical standards, professional accomplishments and volunteer service to the community.

Shocket was also honored by the Northern Nevada Chapter of Women’s Council of REALTORS® last month. During the group’s annual installation of new officers, Shocket was named the 2009 Member of the Year. The award recognizes an outstanding member who has exhibited dedication and service to the chapter.

A truly committed professional, Shocket has earned numerous professional designations during her career including Accredited Buyer Representative, NAR’s Green, and Certified Residential Specialist. She is a Graduate of the REALTOR® Institute, Performance Management Network, and Nevada Association of REALTORS® Leadership Academy. To better serve her customers during these challenging times, Shocket earned the Certified Distressed Property Expert designation and became a member of the Nevada Association of REALTORS® Foreclosure Prevention Taskforce.

Originally from Southern California, Amy Shocket has been a Sparks resident since 1995. She is very active in the local real estate community, currently serving on the RSAR Board of Directors, as chair of the RSAR Education Committee and is a former president of the Northern Nevada Chapter of Women’s Council of Realtors. Shocket is also a member of the National Association of REALTORS®.

You may contact Amy Shocket by phone, (775) 815-7627, by e-mail, amyshocket@sbcglobal.net, or by visiting her web site Reno-SparksRealEstate.com