Best Mortgage and Home Loans » Short Sale

What Do You Do When Home Modification Doesn’t Work?

admin — Thu, 08 Apr 2010 00:59:45 +0000

When a home modification doesn’t work many people think that the next step is foreclosure but that is not the way to go is you can avoid it. There are more and more Realtors who are specializing in distressed properties and short sales these days than ever before. However, you need to be very careful who you trust as Realtors who have their CDPE (Certified Distressed Property Expert) designation will never ask you to pay for anything upfront or on the backend of the sale.

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.

Short Sales Can Take a Long Time to Close

admin — Fri, 19 Jun 2009 20:03:45 +0000

So I’m talking to a Realtor last week who tells me about a client that wants to purchase a short sale property because they need something quick. They did not understand the nature of a short sale because, most of the time, they are anything but quick! In fact I have been working with several borrowers for so long now on short sales that the recent rate increase has reduced the amount of home they qualify for. How long you may ask; six and eight months!

Most banks and mortgage companies do not actually “own” the loan, they simply service it. This means they have to go back to the owner or investor and make the deal through them. This takes time as sometimes the owners are in other countries. On top of this you have second loans associated with properties that have to be in the mix as well and many people who extended second are loosing a lot of money right now as well so they aren’t really thrilled about loosing any more. Add the shear amount of homes that are seeking to go through the process and it simply boils down to time.

Beware the Short Sale

admin — Sun, 25 Jan 2009 05:19:25 +0000

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.