That's right... There have been court-ordered freezes issued on foreclosures within all 50 states. This has been sparked by claims of forged and potentially flawed documents among the nation’s largest lending institutions that did not have the processes in place to handle the overwhelming volume of foreclosures.
What does this mean to us?
1. It means that, depending on who your mortgage is with, if you are behind on your payments you will not go to foreclosure (not right now anyhow)... Call me to see if your bank has put a freeze on your foreclosure.
2. REO's (real estate owned by the bank) may not be as readily available if the banks are now scrambling to do quality assurance and make sure their REO's were legitimately acquired.
3. Banks will be very uninterested in acquiring any more real estate than they have already! So, that means that if you are behind on your mortgage now is an EXCELLENT time to do a short sale. The process - we list your house, we get an offer, we take it to the bank, and ask them to accept the offer even if it is lower than what is owed on the loan. You are much more likely to get an approval now! Imagine – walking away from that home that you owe WAY more on than you can sell it for…
If you or anyone you know might be falling behind on your mortgage call us today! Don’t wait – we can help you!!!!
Sunday, October 17, 2010
Monday, October 4, 2010
Short Sale Deals...why they go bad -
A short sale is when a homeowner owes more on their property than it can be sold for. If the homeowner meets certain criteria (loss of job, death in family, sickness, military ordered move, etc.) they can attempt a short sale with the bank. They are basically asking the bank to accept a sale that does not cover the amount of the loan. They are asking the bank to waive the deficiency.
Reasons that short sales fail:
1. The all time number one answer to why short sales fail is...."the agent does not know how to work a short sale deal". Yep, it's sad but true. If your agent has not done a short sale and/or is not appropriately trained to do a short sale then I suggest you run away from them as fast as you can (Unless you like the idea of going to foreclosure). This goes for the agents representing buyers too! Agents representing buyers MUST understand short sales in order to appropriately educate their buyer.
2. The second reason short sales fail is..."the ever changing rules". The banks rules of short sales change hourly it seems. The banks are getting better about this though. They are putting processes in place that make the short sale process more stream lined and therefore more efficient. Not to side with the bank but...agents are sending in thousands of short sale requests and WASTING the banks time with incomplete packages and lack of knowledge of the process.
3. The third reason short sales fail is..."the buyer gets tired of waiting". Buyers should be educated in the BEGINNING that a short sale can take from 2 to 6 months - possibly even longer in some extreme cases. Even properly educated buyers get anxious though. They are ready for an answer as to whether this deal is going through - and who can blame them. Just remember guys...good things come to those who wait! The property is likely being purchased at WELL below the market value of the property. So, hang on tight buyers - your day will come!
If you or anyone you know has questions about short sales or might be facing a financial hardship please call us at 228-223-0665.
Reasons that short sales fail:
1. The all time number one answer to why short sales fail is...."the agent does not know how to work a short sale deal". Yep, it's sad but true. If your agent has not done a short sale and/or is not appropriately trained to do a short sale then I suggest you run away from them as fast as you can (Unless you like the idea of going to foreclosure). This goes for the agents representing buyers too! Agents representing buyers MUST understand short sales in order to appropriately educate their buyer.
2. The second reason short sales fail is..."the ever changing rules". The banks rules of short sales change hourly it seems. The banks are getting better about this though. They are putting processes in place that make the short sale process more stream lined and therefore more efficient. Not to side with the bank but...agents are sending in thousands of short sale requests and WASTING the banks time with incomplete packages and lack of knowledge of the process.
3. The third reason short sales fail is..."the buyer gets tired of waiting". Buyers should be educated in the BEGINNING that a short sale can take from 2 to 6 months - possibly even longer in some extreme cases. Even properly educated buyers get anxious though. They are ready for an answer as to whether this deal is going through - and who can blame them. Just remember guys...good things come to those who wait! The property is likely being purchased at WELL below the market value of the property. So, hang on tight buyers - your day will come!
If you or anyone you know has questions about short sales or might be facing a financial hardship please call us at 228-223-0665.
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