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About Me
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Gerard Scheffler- Default and Distressed Property Sales Expert (773) 909-3346
www.chicagolandhomegallery.com - Park Ridge, Illinois, United States
- Gerard Scheffler has been very actively involved in the real estate profession for over seven years. In 2005, immediately after receiving his Broker’s License, he established his first Chicago based brokerage company. The company turned out to be very successful with hundreds of satisfied customers and millions of dollars in closed real estate transactions. Over the years, Gerard has developed a network of returning customers who always refer his services to their family and friends. He is presently a managing broker at Home Gallery Realty brokerage firm specializing in default and distressed property sales. Regardless of his professional development and success, Gerard is constantly looking for ways to improve his skills as well as build his company image and reputation. He is very hardworking and aggressive when it comes to representing his customers ‘ real estate needs and doing his job right. He will work with you to ensure that your property is sold for the highest price possible in the shortest amount of time with the least amount of inconvenience to you. Area of service includes Cook, DuPage, Kane, Lake and Mchenry County in the State of Illinois.
Wednesday, July 25, 2012
FHA Announces New Details for Distressed Loan Sale ( Chicago )
During a conference call Wednesday, Acting Federal Housing Administration (FHA) Commissioner Carol Galante announced applications are now being accepted for the Distressed Asset Stabilization Program, which is scheduled to hold its next sale in September.
About 40 percent of the sale will be concentrated in four hard-hit metro areas: Chicago, Newark, Phoenix, and Tampa, where about 3,500 loans are to be sold.
Assuming this upcoming sale is successful, Galante said FHA intends to look at other geographies with significant inventory for future sales.
When the program expansion was first announced in June, an upwards of 5,000 loans were expected to be sold. Now, Galante said the national number appears to be closer to 9,000.
While the new number is an approximation for now, Galante explained much more interest has been generated for the program since the loan sales will be held on an ongoing quarterly basis.
FHA first introduced the program in 2010 as a pilot, which led to the purchase of 2,100 single-family loans. The program prevents FHA-insured loans from getting lost to foreclosure by allowing investors to purchase at-risk mortgages, then turn them into performing loans.
A servicer can place a loan into the loan pool for sale if the borrower is at least six months delinquent, all loss mitigation options have been exhausted, a foreclosure proceeding has been initiated, and if the borrower is not in bankruptcy.
The FHA-insured notes are sold to investors at a price that is generally below the outstanding principal balance.
FHA also announced new neighborhood stabilization requirements for the hard-hit metros selected. In those areas, no more than 50 percent of loans purchased within a pool can be sold as REO properties.
“These markets were chosen because of the high concentration of FHA loans in the pipeline for foreclosure and because each allows us to test this strategy under a variety of market conditions,” said Galante.
Other options must be sought such as leasing the property to the homeowner or a modification. A short sale to a private investor doesn’t qualify for neighborhood stabilization credit.
For the program, 1-4 units will also be eligible, not just single-family homes.
FHA stated in a release that eligible investors need to have experience in asset management and property management, as well as a proven track record in helping seriously delinquent borrowers find an alternative to foreclosure.
Source DSNews by :Esther Cho
Short Sale Bill Addresses Slow Approval from 2nd Lien Holders
Rep. Jerry McNerney (D-Stockton) recently introduced a bill to speed up the short sale process by requiring subordinate mortgage lien holders to make a decision on a short sale within 45 days.
McNerney’s bill proposes that if the lender does not make a decision within the given time period, the short sale will be approved on the 46th day.
The bill, titled Fast Help For Homeowners (FHFH) Act, received strong support from the National Association of Realtors (NAR).
“Second mortgage lien holders frequently hold up and cancel the short sale transaction while trying to collect the largest possible payout in exchange for releasing the homeowner’s lien, even though the secondary lien holder often gets nothing if the home ends up going into foreclosure,” said NAR President Moe Veissi, in a statement. “While efforts have been made to improve primary lien holders’ response times, issues still abound with second and subsequent lien holders, and this legislation is a step in the right direction.”
The NAR also stated that its members continue to report delays in completing short sale transactions due to drawn out response times for whether or not an offer was accepted.
In a recent DS News interview with RealtyTrac VP Daren Blomquist, issues with second liens was also noted as problem for servicers when attempting to complete a short sale transaction.
The bill is cosponsored by Reps. Dennis Cardoza (D-California), Tom Rooney (R-Florida), George Miller (D-California), Jim Costa (D-California), Barbara Lee (D-California), and Richard Nugent (R-Florida).
Souce DSNews by; Esther Cho
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