Hardship Letter is One of the Most Important Documents in Loan Modification and Short Sale Processing

Borrowers who are considering a short sale of their property or doing a loan modification must be prepared to provide the lender with a hardship letter.  This letter describes the financial distress which the Borrower is undergoing.  Along with the financial information such as tax returns, personal financial statements, cash flow worksheets, etc., the hardship letter paints a very good picture of the Borrower’s situation that the tax returns and other hard numbers may not convey.

A hardship letter should not be longer than one page.  It can be, but it is better to present your case clearly and concisely in three to four paragraphs at the most.  Make certain the letter is always dated and signed by all the Borrowers on the loan

 
What is hardship?

First, to state, decreased value of your house and consequently a loss of equity is not an example of hardship.  Being so-called “upside down” on your home does not constitute a hardship.  The home being worth less than is owed is the reason to request a short sale so you may sell your home because of the hardship.  The reasons a Borrower experience a hardship are usually very simple: unemployment, curtailment of income, increase in medical bills, death of a contributing family member, divorce, medical conditions and relocation.  In the hardship letter go into moderate detail of the hardship, you may be experience more than one so please elaborate on both.

The Borrower should be prepared to provide the lender with the supporting information for the hardship.  If the hardship is caused by unemployment, the bank may ask for proof of unemployment income receipts.  The Bank can ask for a proof of medical bills, evidence of loss of income, divorce decree, etc.

A hardship letter should be well written as it is the main depiction of one’s financial situation.  It describes the reasons for the loan delinquency.  Hardship is an event that recently occurred and is best described in writing as the figures and numbers on financial statements may not show it well.  It should also explain anything that will show on taxes, bank statements, etc.  An example may be a large deposit that came from a retirement account to keep your bills paid or if last year’s taxes showed substantial income but now you are unemployed, etc.

This beautiful rambler in Huntsville, Utah home is the perfect place to call home.  Located near the Huntsville Utah Monastery this home offers mountain views in all directions on a flat 2 acre lot.  The community of Monastery Cove is zoned for horses, making it the perfect home for animals too.  Enjoy the quiet of a small town living in the beauty of Ogden Valley.  Snowbasin is within a twenty minute drive, Pineview Reservoir is an easy ten minute drive or bike ride.  This is located in unincorporated Huntsville and falls under Weber County for ordinances, etc.,

The Huntsville Home

Built in 2006 as a builder’s personal residence, the upgrades and thoughtful design of this home immediately demand your attention.  The exterior features real rock, timber trusses, stucco, landscaped yard and a three car garage.  The back of the home has a west facing covered deck open to the surrounding Wasatch Mountains.

One of Ogden’s finest homes, this open mountain home is a perfect 10 out of 10. Located in Quail Creek sub division, at 1780 Meadow Creek Lane, enjoy the close proximities of outdoor activities, hiking trails and Utah’s world class skiing. The hillsides of the Ben Lomond Mountain Range provide a beautiful environment for this home. The large windows throughout the home let the sunlight in and provide an exceptional sense of positive energy. The outside covering of the house is a mix of brick and stucco. This Ramble/Ranch style house was built in 2000 and to this day is still in pristine condition. Complete with a fully landscaped yard consisting of flat terrain and pine trees in abundance! This deluxe Ogden home offers features such as bay box windows with great views, fully fenced yard and family game room located in the downstairs portion of the home.

When first entering this home, immediately notice the detail in this 5,000 plus square foot Ogden home. A tile entry way will lead you to the north where a formal room is located. This room with beautiful flooring, plantation shutter window coverings and a pair of glass French style doors creates a luxurious warm feel.

Proceeding through the foyer, you come to the great room. This gathering room contains a beautiful fireplace, built in cabinetry, vaulted ceilings, and beautiful picturesque windows; it is simply the heart of the home.  The spacious kitchen area features wood cabinets, recently updated appliances and granite countertops. There is an informal dining with area for family and friends in the great space with access to the covered patio and backyard for evening dinners.

Well designed, this spacious Ogden rambler offers a master suite, office, garage access, great room, and laundry room for convenient main level living. The master bedroom opens up to a large master bathroom with 480 degrees of mirrors, jetted tub , separate shower, dual vanities and a massive walk in closet sufficient for a princess’ wardrobe.  All while complementing the scheme and style of this luxurious suite.

NOTICE OF PUBLIC HEARING OF THE TOWN COUNCIL
OF HUNTSVILLE TOWN, FEBRUARY 2nd, 2012
Public notice is hereby given that the Town Council of Huntsville, Utah,
Weber County, will hold a Public Hearing on February 2nd, 2012, at
6:00 p.m. at the Ogden Valley Branch Library. To discuss the following item:
As reported in the last couple Huntsville Town Council and Huntsville
Planning Commission meetings, the Town recently completed the
purchasing of the vacant property where the old Valley School stood.
The purchase was made possible by the combination of a Federal
community development block grant (CDBG) and a bank loan. The grant
made this important acquisition possible, but requires the building of a
new Town maintenance building which will replace the dilapidated
current facilities. Approximately 2 acres will be used for this purpose,
leaving over half the total area available for other uses. Removing a part
of the road between the park and school property to blend them together
better and provide more usable acreage has also been discussed.
Potential uses for the available acreage that have been suggested include:
•Multi-use sports field (soccer, lacrosse, football, baseball, etc.)
•Performing arts complex
•Cluster of commercial buildings for shops/restaurant adjacent to the
current downtown area
•Assisted living facility
•Stage/outdoor music area
•Weber Pathways trailhead station
Dated this 4th day of January, 2012. All interested parties are invited to attend.

This post is courtesy of one of our favorite landscape architects, Laurie VanZandt of Utah.  She does an excellent job at defining spaces, transitioning to indigenous vegetation and well, keeping outdoor living spaces at their best.  Several area homes in Park City, Deer Valley, Eden and Huntsville bare her signature.

Putting Your Garden to ‘Bed’ for the Winter

Autumn in the Ogden Valley is amazing.  The shadows are so defined, the light is amazing, the color show seems to go on and on.  However, it can also be very fickle – one day has gorgeous blue skies and  ‘shorts and sweater weather’, and the next day can be a wet soggy mess with freezing temperatures.  This can make it difficult to know what to do and when to put your garden to ‘bed’ for the winter.

 Fall Garden Preparation

There can be lot to do in the autumn garden to prepare for next spring’s growing season.  Usually fall clean ups will begin in mid to late October.  Use sharpened, clean clippers to avoid spreading diseases.  Sometimes perennials may still be in bloom, and it can seem too soon to cut them back when they are still showing so much green.  The option can be to wait until spring to cut them back, but the new shoots will then be growing up through a soggy mass, and it can be much harder to clean the plant up.  In general, cut all perennials and ornamental grasses to the ground. Fall is also the time to divide any spring blooming perennials that have gotten to be too big.

 Shrubs and trees are easier to prune in the fall, as the foliage will have dropped.  Prune out any crossing, dead or damaged branches. Shape the plants by cutting back overly long branches.  Maintain a natural shape and avoid turning shrubs into ‘balls’ or ‘boxes’ unless you are desiring to create a hedge.  Pull out all the spent plants in the vegetable garden.  This is a good time to start a compost pile if you haven’t already. Any garden art, furniture and planting containers that are not frost resistant should be stored inside.

 Late autumn, before the ground freezes, is the best time to plant spring blooming bulbs.  Tulips, daffodils, allium, and crocus among others, all do well in the Valley. Daffodils will be the least likely to be nibbled on by deer, and now come in a wider range of color.  Pansies can also be planted at this time, will overwinter, and give an early spring bloom as soon as the snow melts.

 Utah is one of the driest states in the nation, and our falls and early winters can often times have very little precipitation. Evergreens will suffer without regular water until the ground freezes. You will often see dead or dying spruce and pines in the spring after a particularly dry fall, even if we had an extremely wet winter. If the root ball is dry going into winter, evergreen trees and shrubs will struggle. To avoid this, after irrigation has been turned off, deep water pines, spruce and fir every two weeks or so until the ground is frozen unless there is significant rainfall.

 Late Autumn and Winter gardens can be some of the most beautiful. Long shadows create such interesting patterns and texture against windswept snow.  Landscape architecture elements such as stone walls, water features, obelisks and other sculptural pieces can add structure and silhouette. Evergreen foliage, interesting bark, rose hips and berries can add color and will also attract birds.

Laurie Van Zandt

The Ardent Gardener Landscape Design

801.388.8103

 info@theardentgardener.net

www.theardentgardener.net

Eden Utah Home for Sale

5752 E Elkhorn Drive, Eden, Utah

One of Eden, Utah’s finest, this well proportioned mountain home is a perfect 10 in Ogden Valley, Utah.  Located in the Wolf Creek Utah development, enjoy  close proximity to the Wolf Creek golf course, hiking trails, pool, fitness center and Utah’s world class skiing.  Boasting views of the reflective waters of Pineview Reservoir with Snowbasin as a back drop brings the outdoors in through large picture windows.  It is a mere 8 minute drive to Powder Mountain Ski Resort, perfect for first tracks on a powder day.

Immediately notice the detail in this 5,000 square foot Utah ski home as you step in the front door.  Accented with large alder crown mouldings, plaster accent walls, stunning hardwood and travertine floors creates a luxurious warm feel.   With 12 foot ceilings and an open floor plan, it feels like home and provides the space necessary for any gathering.

The main floor has two bedrooms and two full baths which includes the luxury of having the master suite on the main floor.  The master bedroom opens up to the large covered deck viewing the beautiful Ogden Valley and features a private stone fireplace.  Gather and entertain in the kitchen adjoining the great room with commercial grade appliances, large granite counter tops, custom cabinetry and spacious layout.  Lounge in the great room while warming up next to the authentic rock fireplace with built in book shelves and view Pineview Reservoir and Snowbasin out of the large glass windows to the south.

The lower level is designed for fun and gathering  with an additional kitchen including all appliances and a granite countertop bar.  It is perfect to accommodate any guests with 2 bedrooms, walk-in closets, a full bathroom, and a hot tub for those après ski recoveries. The large family room is big enough for just about anything imaginable including the space for ping pong tables, air hockey tables, and shuffle boards.  Come bring your friends and relax in the great theater complete with stadium seating and a main projection screen for viewing cinema favorites.

This fully landscaped home is perfect for those that love the mountains, enjoy beautiful views, and who love to relax.   Powder Mountain, Snowbasin, and Wolf Mountain Ski Resorts are in close proximately, and the heated driveway makes an easy access after a long day on the slopes.  There is plenty of storage space and even a 3 car garage to store any winter or summer equipment you may have.

Contact Mountain Luxury Real Estate, a division of Mountain Real Estate for information on this or any other home in Ogden Valley or greater Ogden area and let the local experts be your personal guide.

Mountain Real Estate Companies is proud to have offices in Eden, Ogden and Park City.  Please visit any of our sites for additional information or for our most frequent updates, follow us on Facebook or Twitter.  Our company has three divisions Mountain REO, servicing short sales and bank owned properties, Mountain Living, delivering quality homes and Mountain Luxury, featuring some of real estate’s most amazing properties.

888-9MY-UTAH

Do banks commit fraud?  Do they steer appraisals? They do.

There is so much talk about how borrowers have defrauded the system and manipulated appraisals.  Which I have no doubt they have but I represent several distressed borrowers trying to work out short sales and the lack of integrity on the part of some banks (not all of them) is astounding.

The Foreclosure

A Utah bank forecloses on a property and has an internal appraisal thirty days prior to the foreclosure for $275,000.  The borrower owes $276,000.  The bank buys the property back at the foreclosure auction for $245,000 and sues the borrower for $31,000 plus legal fees.  When this property was purchased the borrower put 30% down and had made payments for three years on a 20 year amortized loan.

The Deficiency Lawsuit

In the lawsuit the bank hires an expert witness, an appraiser, to testify to value.  This appraiser supplies an appraisal for $255,000.  In this second appraisal he utilizes comparable properties over 5 years old.  To be fair, it is a unique property but he specifically excludes comparable properties that would increase the value.

In the appraisers deposition he was asked why he has omitted these comparable properties.  He begins to speak and then halts, stating he can’t recall.  Upon asking how the appraisal was ordered he replies, “the bank representative ordered it.”  In the appraisal submitted from the “expert”, the foreclosure value was disclosed at the time he ordered it and it is likely he was steered toward a value.  This is extremely common with local banks.

Fortunately the client had a great attorney, Celeste Canning PLLC, and myself, real estate broker Brandi Hammon, from Mountain Real Estate Companies to research the appraisal.  Celeste caught the previous appraisal done 30 days prior by the same appraiser on file with the bank.  Once the banks lawyer sent it over it was substantially higher and oddly enough included a comparable he omitted on the second one.  It is likely high enough to dismiss the deficiency and pursue the bank for legal fees.

Why are appraisers potentially biased toward banks?

One appraiser I tried to hire for a client with a pending foreclosure from a local bank stated he could not appraise the property due to a potential conflict with the bank.  The conflict?  They give him a lot of business.  Appraisers evaluate the bank’s foreclosed properties.  They are required to do this periodically by the FDIC in order to substantiate the value the bank has allocated to the property.  If the property is valued lower than what is on the balance sheet, they are forced to write the value down to match the appraisal.  So if a bank is hiring an appraiser to value the property once for the foreclosure sale and then again between two and four times per year by FDIC regulations they have a very valuable client.  The bonus is that there is very little exposure to litigation in these situations versus when a buyer purchases a home and it is foreclosed upon and the home sells for substantially less than the appraised value.  In which case, the bank can potentially pursue the appraiser.

Appraisers are usually highly professional.  The fact that banks can hire them directly for deficiencies and foreclosures is unfortunate.  Beware and if in litigation request ALL appraisals on hand or ordered by the bank for the life of the loan.

Knowledge is power.

by: Brandi Hammon

President, Broker Mountain Real Estate Companies NRBA, CDPE

Mountain Real Estate Companies offers specialized services for both banks and borrowers with distressed properties.  Bridging the gap in understanding both sides of the default our experience creates mutually beneficial solutions to better protect borrowers and home values in our communities.  If you have questions, email or call, it is our intent to help as many people as possible. Offices currently in Ogden, Eden and Park City Utah.

888-9MY-UTAH

The Huntsville Home

This cozy Utah home was built in 1929 and claims the name of “Grandma’s house” according to the owner.   Located in the heart of Huntsville, this home exudes history including the extinct Hawaiian mahogany wood floor inside, period wall paper and light fixtures.  It is located across from the Shooting Star, Utah’s oldest continually operational tavern.  This inviting home has just enough room for comfortable living. Two bedrooms and a full bathroom are conveniently located on the main floor.  The downstairs features an additional bedroom perfect for a guest if needed with a bathroom and living room with lower ceilings.

This ¾ acre home site presents as the perfect yard with a meandering front walk, flower beds, mature trees, mature raspberry and strawberry patches, plenty of shade and stately mature trees.  The backyard has plenty of space for a motor home, trailers, toys so additional storage is unnecessary.  The 3 car detached garage offers additional storage and protection from the elements.

Just to add a bit of ski town pleasure to this charming Huntsville Utah home, it comes with an outdoor hot tub on the patio.

Property Zoning

This property has unique zoning including commercial zoning on the front of the property.  While it is presently used as a residence this may benefit future owners.  Please contact Huntsville Town for additional information.  The property also allows animals, including horses.  There is a fenced pasture presently on the property.

Home History

The home has been in the same family for several generations.  It has been immaculately maintained and improved.  The roof is new, wiring and plumbing have been updated, and the furnace is relatively new.  It is move in ready and very charming.

Huntsville Town

Huntsville Town is incorporated and this property is within the town boundaries.  This home is situated approximately 15 minutes to Snowbasin, 20 minutes to Powder Mountain and a short walk to Pineview Reservoir.  Huntsville currently allows ATVs and snowmobiles on the roads in town and don’t forget the ice rink in the winter and the beautiful park.  If a small mountain town is what you seek, this charming Huntsville home is just right.

Real Estate Sales Info

Contact Mountain Luxury Real Estate, a division of Mountain Real Estate for information on this or any other home in Ogden Valley or greater Ogden area and let the local experts be your personal guide.

Mountain Real Estate Companies is proud to have offices in Eden, Ogden and Park City.  Please visit any of our sites for additional information or for our most frequent updates, follow us on Facebook or Twitter.  Our company has three divisions Mountain REO, servicing short sales and bank owned properties, Mountain Living, delivering quality homes and Mountain Luxury, featuring some of real estate’s most amazing properties.

888-9MY-UTAH

Or send us an email.

Ogden Valley issues were the focus of a packed Weber County Commission agenda.

Several residents turned out to let commissioners know they want to preserve the rural atmosphere of the valley.

At three separate public hearings, residents and workers asked commissioners to not allow more rezones for large equipment storage, reconsider allowing internally lighted signs and reject a transportation plan that allows for a possible road through sensitive lands.

Thom Summers, with S&S Excavating in Eden, said he believes the county is unfair to rezone land to allow other businesses more space to store large construction equipment, as no other companies have expressed an interest in buying any of the land currently available for that use.

The definitions of what qualifies as large equipment are ambiguous and may unfairly give an advantage to businesses like landscaping companies that excavate basements and septic tanks, while punishing actual excavating companies, said Steve Clarke, speaking as chairman of the Growth with Excellence Mandate committee.

Clarke said the GEM committee was also concerned about disrupting the valley plan by creating more storage land, when current land was not being fully used.

The commissioners did not end up voting on the issue, instead setting it aside for review.

Other residents opposed allowing internally lighted signs in the valley.

If Ogden Valley wants to become a nice resort area, the signs cheapen the look of the town, said Brandi Hammon, with Mountain Luxury Real Estate.

Clarke, this time speaking as an Eden resident, said there are ways to advertise businesses without allowing the signs, which are not conducive to the rural atmosphere in the valley.

Commissioners still passed an ordinance amendment changing the maximum sign size, but asked planners to look at the possibility of restricting internally lighted signs. The final problem was with a Transportation Master Plan map, which had a potential road marked that, if built, would pass over sensitive lands and historic farmlands.

Although the amendment to the transportation plan was focused on a right of way for Highway 39 through Ogden Canyon, the residents who spoke were more concerned about urbanization by potential roads around towns in the valley.

“Anything that might restrict, confine or define what they could do with it (the farmland) in the future is a step that should not be taken,” said Sharon Holmstrom, of Eden.

Hammon said she didn’t believe the map was developed well enough to be called a master plan and that she felt it left too much open to the whims of future development.

Eden resident Dan Harris said he did not want the potential road to be on a master plan map because it gave the road too much validity as an option.

Planning Director Rob Scott said he did not understand why people were upset about the road, as it has been on the transportation map for more than 20 years.

He said the term “master plan” is just a change in terminology, and doesn’t lend the potential road any more legal weight than under a different name.

The commissioners approved the amendment, but chose to call the map the Ogden Valley Transportation Element map.

To see more of the Standard-Examiner, or to subscribe to the newspaper, go to
http://www.standard.net. Copyright (c) 2009, Standard-Examiner, Ogden, Utah
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.

Copyright (C) 2009, Standard-Examiner, Ogden, Utah

Foreclosures and Short Sales Seminars
Most of us know someone involved with a short sale, pre-foreclosure or foreclosure in
the Utah real estate market. While these properties represent a large portion of those being
bought and sold currently, most individuals are unaware of several of the intricacies
involved with these transactions. Brandi Hammon, with Mountain Luxury Real Estate
and Development, and Celeste C. Canning PLLC, attorney at law, will be presenting a
synopsis of the process involved in a short sale and foreclosure as well as the legal
differences between the two on an ongoing as needed basis.  Please email to request a new seminar or simply request basic information.  These events are open to the public and pertain to both buyers and sellers. There will also
be an open forum for a question and answer session.
Brandi Hammon is a licensed Utah real estate broker and owner of Mountain Luxury Real
Estate and Development. She has successfully stayed foreclosure proceedings, purchased
foreclosures, purchased REOs, bought and sold short sales, and aided in helping people
keep their homes. She currently lists more than 30 short sales in the Ogden Valley and
has over 100 listings. She and her team sell more real estate than any other brokerage in
Ogden Valley. Contact Brandi directly at 801-745-8400 or
brandi@mountainluxury.com.
Celeste Canning is a licensed attorney with a practice in business law, taxation, estate
planning and real estate. She is in private practice with an office in Ogden and resides in
Ogden Valley. She can be reached directly at 801-612-9299 or ccanninglaw@aol.com.
For further questions please contact Mountain Luxury at 801-745-8400.   www.MountainLuxury.com

Short Sales
By Brandi Hammon
An Overview
In essence, a short sale occurs when a lien holder agrees to take less than the amount
owed on a property in order for the owner to successfully sell it. There are varying
reasons for owners to short sale a property. Owing more on a property than it is worth is
the obvious, but most owners could just wait until a market recovers if other
circumstances in their lives would allow for this. Real estate values have always gone up
and down at times but life’s needs don’t always correspond. So in a down market job
loss or change, reduced income, relocation, medical needs, family needs, and divorce are
just a few of the possible reasons one might need to sell. So sellers must approach their
lenders/lien holders and ask for a reduction in the principle loan amount if they owe more
than the property is worth. This will avoid a foreclosure and reduce the likelihood of
legal implications later on.

The Short Sale Process
Short sales can be simple or complicated but they are always an act of persistence. More
often than not, banks will not cooperate in a short sale unless the owner is behind on their
payments. Late payments affect the seller’s credit as the past due payments are reported
to credit bureaus. Usually a short sale is also a “pre-foreclosure” and has a limited
amount of time before the bank will foreclose on the property due to missed payments.
The amount of time to negotiate a short sale varies by the terms of the loan, the bank, and
the seller. On average, there is at least 180 days from the first missed payment to
successfully negotiate a short sale. While the exact repercussions of a short sale to your
credit are unknown at this time, it is generally assumed it is less damaging to have a short
sale than to have a foreclosure and there are possibilities of other legal benefits.
The key to successfully completing a short sale is to 1- get an offer and 2- get it
negotiated with the bank. Most property owners have a hard time talking to their lenders
regarding the situation. Fortunately there are alternatives to negotiating your short sale
yourself. Short sale facilitators, these are firms specializing in short sales as well as loan
modifications, they charge a one time fee to help you through the process. Facilitators
use attorneys to negotiate with the banks and usually have a good idea of what will be
accepted by a bank because of previous deals. Attorneys are an excellent choice, whether
you use the attorney to negotiate a short sale or not, you should absolutely consult one no
matter how you choose to negotiate a short sale. Verify they have experience with short
sales. The possible affects of a short can be discussed including 1099’s write offs,
current exemptions and deficiencies. Real estate agents are another solution as they are
likely to be working with you to get an offer on your property, they can be a good choice
if they have experience with short sales and understand the process. Again, consult an
attorney whether you negotiate the sale or use another professional to assist you so you
have a very clear understanding of your circumstances.
As the owner you will be required, at a minimum, to send in a hardship letter describing
your current situation. The most common additional documentation includes two months
bank statements, previous year’s tax returns, itemized expenses, a profit and loss if tax
returns are not available and your most recent paystubs. All of these items will need to
be submitted to the bank. It is a good idea to submit these documents early so your
packet is ready when an offer is received. Once an offer is received, it will be assigned to
a negotiator in the loss mitigation department. The negotiator will then reply with
changes, a counter offer, acceptance, or a rejection. There are no guarantees a short sale
will be accepted but the current financial climate is rapidly making lenders much more
agreeable.

Local Implications for Ogden and Ogden Valley
Short sales and foreclosures are here to stay for a period of at least 18 months in the
Ogden Valley. While they represent some amazing values in the market right now, they
have contributed to a decline in property values. Short sale transactions are not to be
used by appraisers to determine value due to the distressed situation but still have an
affect on the market by bringing nicer homes in at lower prices to compete for buyers.
This creates some amazing opportunities for buyers with recent short sales in the
Preserve generating multiple offers on new homes at $300,000 and under. The new
owners are elated. Sellers have an excellent opportunity to work through a short sale
with their banks but also have great opportunities to get their loans renegotiated to better
terms even on investment properties. While all banks are different, there are solutions for
both buyers and sellers right now.
Remember when locals where saying their kids couldn’t afford to live here anymore? If
they could ever afford it, now would be the time. Lots are selling for as little as $56,000
in Eden. Amazing!