Short Sale Resource
Losing the American Dream Buying a home is the “American Dream” and a huge investment which is normally not taken lightly. I doubt many people who sign their loan documents and open the door to their new home, think “well, if I can’t make it, I’ll just let the bank foreclose”. As a matter of fact, I haven’t met one homeowner who thought they would be facing foreclosure when they moved into their new home. Life happens, though and many today are finding themselves at the mercy of “the next paycheck” or the lack of a paycheck. What I generally find...
It is part of my normal routine to contact lenders on behalf of my clients who are in the process of trying to obtain a short sale on their home. Today, one of the lenders I called had an intro message warning their clients about third parties who approach them offering assistance on loan modifications. I was happy to hear they are educating their clients about their ability to act in their own behalf and deal directly with the bank. It is my personal recommendation to all my clients to stay in contact with their banks once they fall behind on...
A short sale is the process by which a homeowner sells their home for less than what is owed to the current lender or lenders or when the cost to sell a home does not cover the current balance due the lender. A short sale is one option for homeowners who are facing foreclosure. It’s not quite as easy as it sounds, but not as difficult as many believe. Properties sold short are always subject to lender approval. Many banks require the home be listed on the local MLS by a Realtor. I have had some banks tell my clients they...
A Homeowner’s Nightmare With the economic crisis we are facing in the real estate sector of our economy, many homeowners are realizing their home may not be the investment they thought. The dream of homeownership has turned into a nightmare which haunts them daily. In Indianapolis, we have many homeowners whose payments reset or adjusted and combined with a higher tax payment made a significant impact on their ability to stay ahead of their payments. Missed Payments It doesn’t take much in these circumstances for a homeowner to get behind. The birth of a child, an extended illness, a job...
Heres some news which really doesn’t surprise me. Earlier this year and under pressure from the government, mortgage lenders made more than 200,000 loan modifications to delinquent homeowners. The modifications came in one of three forms, or a combination: Interest rate reduction Loan term extension Principal forgiveness But despite the modifications, as of October 1, more than half of the homeowners that received assistance were already two months behind on their modified monthly payments. This late-pay statistic was a focal point on Capitol Hill yesterday as the government admitted delinquencies “were larger than [they] thought they’d be”. Loan modifications are proving inadequate...
The Hope for Homeowners (H4H) plan went into effect on October 1st. While, I do believe it is a benefit for some, I don’t think it will help or benefit as many as it should. Many of the homeowners I speak to have to weigh the financial impact of their decision to try and stay in their home. Some can not be helped by this plan. Let’s look at the details. To qualify: The home must be your primary residence You can not have ownership in any other residenial property. Your current mortgage was originated before January 1,2008 You must have made...
The recent bailout of wall street and banks has many trying to figure out exactly what it means for homeowners who may be facing foreclosure. While I don’t know the specifics about what the bailout means for individual homeowners, there are a few banks who have published their plans for assisting homeowners who are behind in their mortgage payments. In the Indianapolis area, there have been 387 bank owned homes listed on our local listing service since October 1st. That’s a lot of families displaced due to foreclosure. My frst bit of advice for homeowners who are behind is to keep in touch with their...
