New law proposed to speed short sale decisions

Posted on April 13, 2011 by Richard Magnone

On April 12, 2011, a new law was introduced in the U.S. Congress by Representatives Tom Rooney (R-FL) and Robert Andrews (D-NJ) known as the “Prompt Decision for Qualification for Short Sale Act of 2011″.  The law will require lenders to give an approval, disapproval, or a status on approval of a short sale within 45 days.

While the law does not require a 45 day time limit to be met (the lender can ask for additional information), it does place some obligation on the lender to respond.  This law is not a cure all, but could be a good step in getting communication going between a negotiating lender and the seller.

 

Posted in Short Sale, Short Sale Lender, Short Sale Lender | Tagged , | Leave a comment

Possible Good News for Short-Sales

Posted on March 31, 2011 by Richard Magnone

The Los Angeles Times reports that a settlement between a number of major banks and the federal government and attorneys general from all 50 states may pave the way for eased short sale approvals.  Continue reading →

Posted in Foreclosure, Short Sale Lender | Tagged , , , , | Leave a comment

Another crazy delay in foreclosures

Posted on March 29, 2011 by Richard Magnone

In case you have not hear, the Cook County Illinois Chancery Court (the place where they hear foreclosure cases) issued a general administrative order on March 2, 2011 suspending most, if not all, of the foreclosure cases being prosecuted by the Bannockburn foreclosure law firm Fisher & Shapiro because of allegations that the firm altered certain affidavits in their foreclosure cases. Continue reading →

Posted in Foreclosure | Tagged , , | Leave a comment

So, when do we close again?

Posted on March 11, 2011 by Richard Magnone

Short sales and REO transactions remind many buyers of being in the military.  Hurry up and wait.

Most contracts contain a little clause that says “time is of the essence”.  This simple little provision in a contract means that dates matter and the parties need to stick to them.  Most real estate contracts also contain a number of dates for contingencies and closing.  A time is of the essence clause means the parties need to meet those dates, unless the contract expressly builds in exceptions to the requirement to meet a date. Continue reading →

Posted in Contract, REO Buyer, Short Sale Buyer | Tagged | Leave a comment

Illinois Foreclosures Down?

Posted on March 11, 2011 by Richard Magnone

An article in Chicago Real Estate Daily indicates that Illinois foreclosures are down – way down – for February.  Does this mean things are getting better?  Likely not.  The drop is probably attributable to the mess brewing in the foreclosure courts related to the recent court decisions citing that MERS (Mortgage Electronic Registration System) does not have a right to bring a foreclosure in its name as agent for a lender and the slow play on foreclosure processing and filing in the wake of the scandals related to banks allegedly filing paperwork without actually looking at it. Continue reading →

Posted in Foreclosure | Tagged | Leave a comment

Guest View: Getting a Loan after a Shortsale or Foreclosure

Posted on February 17, 2011 by Richard Magnone

Is it worth it to do a short sale?  Why not just go into foreclosure?  What’s the difference when it comes to getting a loan in the future?  There is much confusion about the aftermath of a foreclosure or a short sale.  I reached out to my friend and colleague Matt Ewald, an experienced mortgage consultant for Wintrust Mortgage in Rolling Meadows, Illinois to get some insight from the lender’s perspective.    You can find out more about Matt and his services on his blog, here or his twitter page, here. Continue reading →

Posted in Short Sale | Tagged , , , | Leave a comment

A Disturbing Trend

Posted on February 15, 2011 by Richard Magnone

I have seen more and more short sale deals that are not disclosed as such.  This is a strange trend.  I suspect that the Sellers feel that they can get a better price if they do not publicize the transaction as a short sale.  However, in the most recent experience I had with such a sale, there was not way the Seller could meet the contract closing date.  As a result, the Seller put himself in real jeopardy of default on the contract.  I’ll be watching this trend to see if it continues.  For now, most of my attorney approval letters will flat out ask the question.  Short sales have special issues and it makes no sense for a Seller to hide from bringing those matters to the table.

Posted in Contract, Short Sale Seller | Tagged , | Leave a comment

FTC issues MARS rules to combat Mortgage Relief Scams

Posted on February 11, 2011 by Richard Magnone

Whenever there is turbulence or uncertainty in any market, it always seems that opportunists with greed driven motives pop up to take advantage of the situation.  The mortgage mess has spawned an entire industry of companies that claim that they can help homeowners get out of debt, obtain mortgage relief, or solve a homeowner’s money situation.  Some of these companies are for real.  Many are not.

The FTC issued a final set of rules, known as the “Mortgage Assistance Relief Services Rules” (MARS), effective in part beginning December 29, 2010 and in whole beginning January 31, 2011, aimed at protecting homeowners by preventing mortgage foreclosure rescue and mortgage loan modification services from collecting fees until the homeowner has a written offer from a lender or servicer. Continue reading →

Posted in Fraud, Mortgage Relief | Tagged , , | Leave a comment

Bank Walkaways Create New Issue for Chicago

Posted on January 19, 2011 by Richard Magnone

An article in the Chicago Tribune highlights the research data of a group known as the Woodstock Institute indicating that there are “thousands” of bank filed foreclosures on City of Chicago properties that are never completed by the bank.  Instead, the bank just walks away.  By ordinance, it is a requirement that a property owner register vacant buildings in the City of Chicago.  The Woodstock Institute is a nonprofit policy organization, but it is clear from their website that they support the expansion of the Community Reinvestment Act, a law that, in my opinion, is partly or maybe even mostly responsible for the mess the housing market is in today.  Continue reading →

Posted in Foreclosure | Tagged , , , , | Leave a comment

Amendment to Illinois Transfer Declaration to Track Short Sales

Posted on December 20, 2010 by Richard Magnone

Public Act 96-1083, effective January 1, 2011 amends 35 ILCS 200/31-25 the information to be provided on the Illinois Transfer Tax Declaration Form PTAX-203 to add a line item indicating whether or not the transaction was a short sale or an REO sale.

The information is being gathered in conjunction with the broader purpose of Public Act 96-1083 which is to amend the Illinois Property Tax Code to instruct the property tax appeal board on how to deal with “Compulsory Sales” (ie. short sales and REO sales) in establishing equalization factors and in the property tax complaint process.

The new forms are not available just yet, but should be soon.

Posted in REO, Short Sale, Transfer Tax | Tagged , , | Leave a comment