First of all, THDA was designed and still works to get buyers who may not otherwise be able to get into a home, into a home. There was never a reason to think of unwinding the bond that governs the THDA loan process due to what has gone on in the economy. So you are clear, there is a bond attached to the THDA loans that enable THDA to do what they do. It is my understanding that once a mortgage is secured, or wrapped, with the bond, it is fixed and cannot be changed.

While there are some people who have THDA loans that will have a hard time most will do very well since they have had some help through THDA. If you find yourself in trouble, the best thing to do is immediately call THDA and talk to them. No one wants you to loose your home and they will do everything they can to help. It really is up to you.

These Realtors know the new HAFA (Home Affordable Foreclosure Alternatives) law that went into effect on April 5^th, 2010 and can help you discover if you are a candidate for a HAFA short sale, can walk through a short sale quicker than most and also see if you will be able to get some moving assistance to help you get relocated.

The main reason to look into a short sale over letting your property go into foreclosure has to do with your credit. One of the best resources is this Short Sale VS Foreclosure white paper. It has a lot of good information about the differences each has on your overall credit rating and the time frames associated with each.

I have not had any personal experience with BoA as I have never had a loan or banked with them. However, I have listened to a number of people who have tried in vain over the pat year to get some temporary relief or a loan modification with BoA and the stories are heartbreaking. From being told they have to be behind on their mortgage when the head of BoA said before Congress in October of 2009 that you did not have to be behind on your mortgage in order for the bank to work with you to being called names and being hung up on and made to feel like you are a looser because you are having a hard time paying your mortgage.

Remember, this is one of the banks that took the American public for a ride and a half in bailout money, etc. The least they could do is work with those people who are willing and want to get a resolution made on their loans. You know the kind of people I’m talking about; the kind that want to pay their bills but have been laid off or finding work hard to come by. I don’t know about you but there is an old saying, “but for the grace of God, there go I”. We would all do well by remembering that, including the big banks and financial institutions.

For more on the story of the wrong house foreclosed on.

You can take a look at what is available in the Tennessee areas as well as a few other states in and around our immediate area and at least see what is available. However, before I would bid, I would get a qualified Realtor involved because I have heard having a Realtor’s help when purchasing a HUD property is a must if you are not experienced with this process. The main thing is you can see these properties for nothing and don’t have to join a website to check them out.

I know, short sales can be a great thing for the buyer who is smart and can wait out the bank and the seller to get a great deal.  I get it.  However, I have run into more than several people of late who have been convinced by short sale companies that in just a matter of time, their homes would be bought by the company and the bank would settle and they would not have to file for bankruptcy.  Unfortunately, for every family a short sale company helps there are many that they don’t.

You just need to be aware that the short sale company may not ever buy your home.  The reason is simple; the offer may just not make since and the bank knows they can get more by selling on the open market.  Here’s an example of a short sale deal that went south that I recently had privy to; current mortgage $580,000; current appraisal $490,000; short sale company offer $250,000.  The ban could not afford to sell the house with that kind of loss.

This is not to say that some of these companies can’t help because they can.  Just be aware of the pitfalls and know that they are not what some are claiming.  Talk to your lender first and try to make that work before signing on with anyone who makes promises that seem to good to be true; because they normally are.

What most of us have heard of and the news has certainly reported over and over again is the fact that there are, and have been recently, a historical amount of foreclosures happening in this country.  That is not in question.  However, what we have not heard about is the great opportunity for buyers it is right now if you are in the market for a home.

When this issue first came to the public eye, banks and lending institutions were not very cooperative with those who were falling behind on their mortgages as well as with those who were trying to purchase a bank owned property.  It was understandable because the loans the banks held were also above the value of the now foreclosed properties.  It is their job to get the most they can to pay back the original loans.  Because of this, they were passing on many offers.  It seems that in the last few months both of these situations have changed.  Banks are now working with their clients more often than not to get the loans renegotiated as well as starting to release properties to buy even when the losses are greater than they had expected.  This means that everyone takes a hit or two and the biggest winners are the ones that pick up the bank owned property.  However, they also potentially end up paying more for closing costs than normal so you do need to be aware.