Short Sales

Although many people out there dread “short sales” when looking for homes, please be patient because things are changing. Lenders are starting to become more cooperative  with these types of sales. A recent article in the Sacramento Bee stated the following regarding short sales:

“It’s a more cooperative solution,” said David Sunlin, senior vice president with Charlottebased Bank of America Home Loans. He said the firm is adding staff and streamlining procedures to do more short sales more quickly as an alternative to foreclosing. “It allows the borrower to leave on their own terms. It’s a more dignified exit strategy and the credit reporting is less negative afterward,” he said. “It’s a win for the lender as well. It’s going to shorten the recovery cycle, which is important to all of us.”

Many clients and prospective buyers want to know why short sales take so long to get approved…

Short sales take so long because lenders must negotiate permission from other parties, such as investors and private mortgage insurers. Most recent home loans also have so-called “seconds,” an extra loan that financed the down payment. Other short sales involve home equity loans or homeowner associations seeking restitution for unpaid dues.

From SacBee.com

For the full article click here

If you know anyone who may be in a short sale situation, please have them give me a call before they decide to let their home foreclose. We are also hearing now that by doing a short sale, rather than foreclosing, a homeowner can potentially buy another property in as little as 2 years. I am here as a resource and would like to help as many people as possible to save them from foreclosure.

The Obama Administration recently announced incentives for borrowers and servicers for borrowers who are unable to modify their loan under the governments Home Affordable Modification program. The new incentives include:

*$1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure

*$1,500 for borrowers/homeowners to help with relocation expenses

*up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government   for every $2 paid by the investors to the second lien holders).

For more information click here

If I can help anyone you may know, please feel free to call or email me.

Thanks!

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