Podcast 30A Radio – Real Estate Round Up: Luxury Home in Inlet Beach and National Real Estate News, August 28 2009

Podcast #12 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. Featured stories are 236 Park Place in Inlet Beach as our Luxury home spotlight of the week and 33 Morgan Lane in Magnolia Cottages by The Sea as our Distressed Property Pick of the week,  Mortgage Delinquencies for Second Quarter 2009, Mars vs. Venus: What She Like vs. What He Likes, Foreclosure guilt haunts some homebuyers and National Real Estate News.

Industry Statistics – Mortgage Delinquencies for Second Quarter 2009

Below is a summary of Industry Statistics for Mortgage Delinquencies across the nation for Q2 2009. This is a snap shot across all mortgages, prime, subprime, FHA and VA. The numbers are still staggering but it appears there is some stabilization. We need to keep a close eye on the market and the unemployment rate. Also, we must pay close attention to see how the market holds up through the traditionally slow winter months.

Another Home Saved From Foreclosure in Windswept Estates!

It has been a very busy summer for Team Baranowski and The Short Sale Gurus LLC. Every short sale that we engage in is an emotional roller coaster. We hear first hand the heart wrenching stories of homeowner’s financial hardship and their struggle to keep from loosing their home. We also get the see a new family be able to afford a home, sometimes as a first time home buyer, in a very difficult economy and give us hope that the market will stabilize and turn for the better.

This week Team Baranowski and The Short Sale Gurus successfully closed on another short sale in Windswept Estates. It is a wonderful 2,796 square foot 3 Bedroom 2 Bath home built in 2005 by Marlin Design and Construction. It had all the essentials to making a beautiful home: hardwood floors, a fireplace, granite countertops, 10′ foot ceilings and lots of built in cabinetry. The home was located on the popular Windswept Estates golf course, Windswept Dunes.

The home was originally purchased in 2005 at the height of the market for $483,000. The home was listed in March of 2009 and put on a specific marketing and listing plan customized for a short sale. The home went under contract in May and we received approval in July due to the excellent negotiation skills of Joe Baranowski of the Short Sale Gurus LLC. Joe has been negotiating and helping homeowners with short sales for over two years and helps train negotiators across the country. He has negotiated over $15 million in deficiencies!

The buyers had a USDA loan under the SHIP program and it took 30 days to get the loan ready for closing once the short sale was approved. The entire transaction went very smooth and the both the sellers and buyers were a pleasure to work with. The selling agent also was a joy to work with and very professional. I hope to do more transactions with Don. Angie with South Walton Title kept the closing process smooth and streamlines as possible.

Here is a breakdown of the short sale:

Original Purchase price 2005: $483,000

Short Sale Purchase price 2009: $225,000

1st Mortgage: Nationpoint $392,000

2nd Mortgage: Nationpoint $95,000

New Loan: USDA Loan under SHIP program

Total Deficiency forgiven less closing costs: $292,147

Total time to negotiate with Lender: 9 weeks

100% Deficiency forgiven, no promissory notes or cash out from seller

If you or someone you know is looking at buying or selling distressed property…rely on the experts, The Distressed Property Experts of Team Baranowski! Call 850-259-1788 or email us for a free consultation.
Note: The information provided is for informational purposes. No legal advise is given or implied. Please check with a qualified attorney in your area

Bank of America formerly Countrywide New Short Sale Policies and Guidelines

With almost 1 in 5 home loans in Florida originating from Bank of America formerly Countrywide, it is highly likely that if you are looking to purchase a short sale or sell a property as a short sale it is serviced by Bank of America. Team Baranowski has dealt with dozens of short sales with Bank of America and we are slowly seeing the process attempting to be standardized and streamlined. See a post about Bank of America’s streamlined process here.

During one of our many short sale negotiations with Bank of America, we received a very detailed and information packed emailed that detailed some of their new and not so new polices that are being pushed down from their Senior Vice President to the hundreds of Loan Services Specialists in the Short Sale Department. The not so new polices seem to now be formalized and documented versus recognized as a standard practice.

Since the email is confidential and secured, I am not able to post it here. However, this is a snapshot of the critical points to Bank of Americas new short sale policies.

1. Bank of America continues to adhere to the 10 to 12 business days for a negotiator to review the short sale file. This is typically through each phase including: short sale submission, triage, Level 1 Negotiator, Level 2 Negotiator, Investor Review, and Level 3 Negotiator
2. Under NEW GUIDELINES it is now necessary for MOST sellers to contribute to the loss in order to qualify for a short sale. Clients must be prepared for this probability. Contribution will be in the form of cash or a 0% 15 year promissory note. Contribution requirements are assessed on a case by case basis. Determining factors include: if the seller is current on other debts, as reported on the seller’s credit report, then the contribution will be a firm requirement.
3. Bank of America will contribute a MAXIMUM of $3,000 towards a 2nd mortgage pay off. This has been a standard policy and it now appears to be a firm policy. If Bank of America owns both the first and second mortgage, please pay close attention as Bank  of America has been selling off their second mortgages. This will have an impact on your short sale payoff. If you have specific questions about this please contact me.
4. Fees that will not be paid by Bank of America and must be removed from their side of the HUD: sub escrow, recording fees, recon fees, doc prep, processing fees, wire fees, notary fees, courier fees, loss mitigation/ 3rd party negotiation fees and home warranties. All of these fees will not be paid by the investor that owns the loan.

We have had great success with Bank of America short sales. It takes patience, diligence and deep knowledge of their processes to work through system. We have had short sales approved in 6 weeks and some take as long as 5 months. Bank of America short sales is the most popular and heavily discussed topic on my blog and I get emails and phone call daily in regards to this topic. 

Podcast 30A Radio – Real Estate Round Up: Little Redfish Luxury Home and National Real Estate News, August 21 2009

Podcast #11 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. This show covers events in South Walton including: Scalloping in Port St. Joe, Topsail Dolphin program. Featured stories are 111 Little Redfish Lane as our Luxury pick of the week and 538 Calle Escada as our Distressed Property Pick of the week,  Women vs. men real estate decision making, Bank of America formerly Countrywide new short sale policies and guidelines and National Real Estate News.

Home in Santa Rosa Beach 538 Calle Escada as Craig’s Top Investment and Distressed Property Pick for August 21st, 2009

Every week I pick a top investment or distressed property pick. This week I picked a wonderful home in the Escada subdivision on 538 Calle Escada.  This home just came on the market  Monday and is located on the south side of Highway 98 in the wonderful subdivision of Escada. This home is a short sale. Escada has been a very hot development with every property in this subdivision selling this season with multiple offers. There is only one other home for sale and it is not a distressed property.

Home in Santa Rosa Beach 538 CALLE ESCADA

Distressed property in Santa Rosa Beach

538 Calle Escada is a wonderful 3 Bedroom 2 1/2 Bath home with a large second floor loft area to be used as a game room or workout room or office. Great floor plan with a breakfast nook area and dining area. There is a screened in porch, fenced-in back yard and a large garage. Escada has a community pool, a sport court, a playground and a club room. Low HOA fees ($65 monthly) make this a wonderful opportunity for anyone looking for primary or secondary residence. This is a facilitated short sale and will have a dedicated negotiator managing the process.

If you are interested in this distressed home in Santa Rosa Beach or would like to preview other homes in Santa Rosa Beach. Please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

Podcast 30A Radio – Real Estate Round Up: Eden Park Luxury Home and Luxury Homes Going Green in South Walton Beach, August 14 2009

Podcast #10 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. This show covers events in South Walton including: 5 whale sharks off Grayton Beach, YOLO Board competition in WaterColor and Seaside’s Farmers Market. Featured stories are 361 Eden Park Road as our Luxury and Distressed Property Pick of the week and Luxury Homes Going Green in South Walton Beach.

Podcast 30A Radio – Real Estate Round Up: Santa Rosa Beach Luxury Home and South Walton News, August 7 2009

Podcast #9 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. We are back after a two week vacation. This show covers: Making Home Affordable Program, Countrywide’s promised loan relief update,  a beautiful Santa Rosa Beach Luxury Beach  Home as Tracy’s Top Luxury Pick of the week, a  Seabreeze Home as Craig’s Top Investment and Distressed Property Pick of the week,  recent events in South Walton 30A Area, National Real Estate News, and Celebrity Real Estate News.

Home in Seacrest 18 Seabreeze Place as Craig’s Top Investment and Distressed Property Pick for August 7th, 2009

Every week I pick a top investment and distressed property pick. This week I picked a wonderful home in the Seabreeze subdivision. I picked 18 Seabreeze Place in Seacrest, FL. This property is located on the north side of 30A in the wonderful Seabreeze Subdivision on a large tree-covered lot.  This home is a short stroll to the Seabreeze private beach access.

Home in Seacrest 18 Seabreeze Place

Every week I try to choose a property that is not one of my listings…but this is such a great deal that I had to make it a top pick. This is a 3 bedroom 3.5 bath 2,408sf gem for $305,000. It has a great back porch, huge wooded lot a large open great room, spiral staircase and a large open living room. The house also has a full lock out apartment on the first floor which can be used as a guest suite, a short or long term renter or a man pad. At $345,000 this is $135/sf for a home right off Scenic Highway 30A!

If you are interested in this distressed home in Seabreeze or would like to preview other homes in the Seacrest Area. Please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

Is Countrywide’s promised loan relief falling short?

Countrywide, now Bank of America, short sale and mortgage modification horror stories are common place in most conversations with my colleagues and customers. I get asked daily about the never ending wait for short sales and mortgage modifications to be approved by the lender. I read a very interesting article in The Miami Herald by Monica Hatcher that discusses this very topic.

Countrywide agreed last year to give Florida customers mortgage relief as part of a settlement over lending practices, but critics say the company is not living up to its end of the bargain. As part of a settlement, the now-defunct subprime mortgage giant promised $1 billion in mortgage relief to its legions of struggling Florida customers.

Now, eight months later, borrowers trapped in problem loans say Countrywide Financial is not living up to the terms of the $8.4 billion deal.

The loan modifications were part of a settlement reached with Florida and 10 other states that allowed Countrywide, which merged with Bank of America a year ago, to avoid prosecution for allegedly using deceptive sales and marketing practices to sell borrowers risky, high-cost mortgages.

Both borrowers, short sale negotiators and loan modification consultants complain of abysmal customer service and a maddening process that can take months to complete. Mortgage brokers and attorneys criticize the low number of loan modifications completed, considering the company’s past dominance in Florida.

Under the settlement, Countrywide admitted no guilt in the civil cases filed by Florida and the other states.

The lawsuits were dropped, but Florida is moving forward with a case against the company’s former chief executive, Angelo Mozilo, for allegedly engaging in deceptive lending and other illegal practices related to the sale of mortgage-backed securities.

A motion to dismiss the case against Mozilo is being heard Wednesday in Broward Circuit Court. If the case proceeds, he would be the highest profile lending executive to face trial since the start of the mortgage debacle.

Back in October, Countrywide estimated about 52,000 Florida borrowers were potentially eligible for help, which included loan modifications for subprime and payment option adjustable rate mortgages – loans especially prone to default because of payments that shoot up.

It promised to waive all fees and penalties and agreed to make cash payments to families needing help to relocate after foreclosure. The company also set aside $21 million to compensate borrowers who quickly defaulted on their loans – often a sign they never had a chance of affording a home to begin with.

As part of its outreach, the company also said it would offer modifications to borrowers even if they had not yet fallen behind. But homeowners, including many of my customers have pleaded for a loan modification to no avail and had to shift gears and short sale their homes.

Rick Simon, a spokesman for Bank of America, which now owns Countrywide, defended the company’s efforts. “We are very proud of our record,” he said. “We think we are running ahead of the schedule envisioned.”

He did, however, acknowledge that after a quick start, the pace of modifications slowed during the first part of the year as the company waited for the release of the Making Home Affordable federal loan modification program.

Simon also said the company is struggling with the volume of borrowers calling in for aid. The company has 7,400 home retention specialists handling 80,000 calls a day.

According to its first compliance report to the state, Countrywide said it modified 6,497 Florida loans between December – when the settlement took effect – and March 31.

Critics say it is impossible to gauge the significance of the number, since the total number of Countrywide subprime and payment option loans in Florida is unknown. The attorney general’s office said it does not have the number, which Bank of America also would not disclose.

“We’re in a state of 15 million people and they probably made a loan to one in five adults. Where are the modifications? Countrywide could have modified 52,000 loans in Miami-Dade County alone,” said Grant Stern, a Bay Harbor Islands-based mortgage consultant.

Countrywide has also made $491,963 in relocation payments. And it said it would begin making payments early next year to borrowers that defaulted quickly. On Tuesday, the attorney general’s office announced another payment from Countrywide: $4 million that will be used to offer foreclosure defense services to borrowers through the Florida Bar Foundation.

Beyond that, neither the state nor the attorney general’s office is making the details of the first compliance report public. Last month, Countrywide obtained a temporary protective order from a Broward Circuit Court judge to prevent the release of further details, citing trade secrets. The state, consequently, released only a single page summary of the report.

Critics claim they need to see a detailed account to evaluate how much the company is doing to repair the damage from its lending practices.

“There is no list of loans. There is no mechanism to ensure transparency or to track what happens with the loans. We don’t know who gets relief and who doesn’t and why,” said April Charney, a senior staff attorney with Jacksonville Area Legal Aid.

Some fault McCollum’s office for giving too much control to Countrywide to administer the relief. “They left it up to Bank of America and Countrywide to help borrowers and that is sort of like asking the tobacco industry to take care of smokers who get cancer,” said Guy Cecala, publisher of Inside Mortgage Finance.

The state should have demanded $1 billion in cash from the company to use for its own foreclosure prevention programs, he said.

Another development some find troublesome is that Countrywide has begun modifying mortgages under the federal Making Home Affordable program, which subsidizes reductions in interest rates and makes incentive payments to lenders for each completed modification.

Countrywide should not be allowed to substitute one obligation – reviewing loans and making modifications under the federal plan – with its obligations under the settlement.

The settlement should be used to qualify borrowers who cannot be modified under the federal plan, he said. “[The settlement] was to make people whole because of Countrywide’s law-breaking lending practices and that obligation still needs to be satisfied,” King said.

Even some customers who eventually succeed in getting a Countrywide loan modification have few nice things to say about the experience. Team Baranowski has handled dozens of short sales with Coutrywide / Bank of America and it is a very long and frustrating process. However, we have been able to successfully negotiate over 95% of the short sales we handle with this lender.

If you or someone you know is looking at buying or selling distressed property…rely on the experts, The Distressed Property Experts of Team Baranowski! Call 850-259-1788 or email us for a free consultation.
Note: The information provided is for informational purposes. No legal advise is given or implied. Please check with a qualified attorney in your area