Donnovan Stordahl's Q&A

First of all Clay, you will see that I have two profiles....one as a licensed mortgage broker, and the second as a real estate professional.Don't be confused, as Zillow only allows 4 professional tags.If it were more, mine would be:Real Estate InvestorLicensed Mortgage BrokerReal Estate ProfessionalCertified Home SpecialistSenior Loss MitigatorSenior Loan ModifierShort Sale TrainerCertified Loan Modifcation ExpertGraphic Design ArtistWebsite Development ExpertSearch Engine Placement ConsultantSince I really can't toot my own horn that much, I thought that I come sum it up in the four categories allowed.And what would you call your titles?

Hi Jrod:Although we all love this website (Zillow.com), it does not take into account all factors involved in the process of evaluating a home's true value.Zillow is very formula based, not human, and that is why unbiased appraisers are needed to determine the exact market value.The appraiser will consider CLOSED comparable sales within a 0.5 mile radius, within the last 180 days.  If there are discrepancies on the sq ft. and lot size, they can take that into account.  The hardest comparison is to go from a 2 bd / 1 ba to a 2 bd / 2 ba, or a 3 bd / 2 ba to a 3 bd / 3 ba, as the market value for such properties (on the higher side) is much more desirable.With that having been said, YES, if you ordered the appraisal directly YOURSELF, and not from the Lender, it is YOUR APPRAISAL, and belongs to you.If you were not working with a mortgage broker, you might be stuck, as typically the appraisals are certified to the company ordering them and can't be transferred without an additional fee.As the rules for qualifying for mortgages keep getting tighter and tighter, your lender will keep changing the rules on a weekly basis.  That's why I ALWAYS recommend that you deal with a REPUTABLE Mortgage Broker, whose sole responsibility is to keep up-to-date on the changing guidelines, and has a Fiduciary responsibility to YOU, the customer.Hope this helps!

Hi Steve:Larry won't be able to answer that question, as he is not experienced in Short Sales.Here's how it works:1.) You receive a contract on your property.2.) It is submitted to the Lender (Investor) for approval.3.) The Lender (Investor) will counter or approve the offer.4.) When that approval is received, you will know exactly what is required of you, the homeowner.  This could include:a.) A non-secured promissory note for the difference owed;b.) Other conditions from the Lender (Investor);c.) No Taxable Consequences (Bush signed into Law the Mortgage Debt Forgiveness Act of 2007).Now, having said all of that, whatever resolution is obtained, DOES NOT prevent the Lender from wacking your credit for a "Settled for Less than Full" on your credit report, which will not affect it as bad as a Foreclosure.However, the alternative to that situation is going into Foreclosure and being completely responsible for the entire debt (if they should choose), plus the negative impact of a foreclosure on your credit record.No one has a crystal ball to tell you the impact of each decision you make ... it's not until you have the Lender (Investor) approval that you will know exactly what they (Lender / Investor) are requiring from you.Our attorney's position has always been "why would you continue to make payments on a property that has no equity?"I have also seen clients that had to take a non-secured promissory note for their Short Sale, stop paying on it, and get it removed from their credit report.These are my experiences in today's recession, so I hope it has helped.Feel free to blog again with any additional questions.Thanks!

Are your payments made to Deutsche Bank or another Lender?Deutsche could be in the investor on your loan, or if you make your payments to them directly, the investor could be a hedge fund, Fannie Mae, etc.

Hi Duke:Can you tell me why Wells Fargo (not the easiest to work with) denied you for a modification?  Did you give them your financials over the phone?  This is typically what we see why Loan Modifications are not successful when the homeowner is speaking directly with their lenders.Just as you had to qualify for your original loan, the same can be said about a modification.  There are rules, guidelines and formulas to be considered.  You can think of the process as the same as obtaining the original mortgage.I would recommend that you speak with a Loan Modification Specialist (Larry Jacobson won't allow me to mention companies), but obviously if you purchased a 600k house, you're smart enough to figure it out.Also, I wouldn't put to much faith into a responder to your particular situation that doesn't have much experience in today's market, and is only out there trying to get their name out in the mortgage business.Thanks!