February 2011
February Meeting:
Fiduciary Selection – Who to Choose?
>>> REGISTER NOW FOR FEBRUARY 22 <<<
Bruce Hamilton, Krista Conover and Gary Loebner will be speaking in a panel discussion on types of fiduciaries clients may engage. They will go over trustee selection, advantages of individual, private and corporate fiduciaries, and things a client should consider in the selection process. Bruce Hamilton will explain the role, advantages and disadvantages of individual fiduciaries, Krista Conover will speak to corporate fiduciaries and Gary Loebner will explain private fiduciaries.
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January Meeting: Short Sales and Loan Modifications
Linda Weathers and Barbara Frank of SA Short Sale Servicesspoke last month on short sales and loan modifications at a very well-attended meeting. They specialize in dealing with the distressed market – people whose mortgage is upside down or for whom rent collection is not enough. Linda and Barbara gave statistics on the mortgage meltdown, explained how short sales and loan modifications work, and talked about foreclosures. Currently there are 7,043,000 mortgages in the US that are at least 30 days past due or in the process of foreclosure. Once a homeowner falls into foreclosure, eviction may take years before the borrowers finally have to turn over their keys. In California, mortgage loans in the foreclosure process have been delinquent on average 461 days.
All lenders are required to offer loan modifications; however, lenders are not required to approve loan modifications. Loan modifications use the same data and documents as a short sale. Linda and Barbara review the client situation for loan modification. If they don’t qualify, they discuss a short sale with the client. If the client is unwilling to do a short sale, they discuss foreclosure. This is a difficult decision for most people because people tend to be emotionally attached to their homes.
Linda discussed the complexities of dealing with Home Affordable Foreclosure Alternatives program (HAFA) requirements. Changes made to the HAFA program in December will increase the number of eligible borrowers who may participate and should expedite approvals.
If a short sale is advised to the client, the process is to gather documents, list the property, send in a package to the lender once you have an offer, then follow up (many times). The process often begins over again with a new buyer. Documents include an Authorization to Release Information, hardship letter, financial statement, last two months pay stubs, last two years tax returns, mortgage statement, listing agreement, property valuation, the offer, proof of the buyer’s funds, and an earnest money deposit. When all goes well, a short sales takes about nine months to complete.
Linda and Barbara believe we will see things getting “back to normal” around 2017, at which time we can expect to see short sales going away.
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Upcoming Meeting Topics
March 22, 2011
Russell Hancock
President of Joint Venture Silicon Valley
Silicon Valley and the Global Economy (tentative title)
April 26, 2011
Charles Packer, Attorney
Hopkins & Carley
Estate Planning Updates
May 24, 2011
Emmett Carson, Ph.D.
Silicon Valley Philanthropic Needs and the Silicon
Valley Foundation’s Response (tentative title)
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