Short Sale Scoop

Saving on a Home

realtor22 — Wed, 29 Jul 2009 17:15:44 +0000

I am sure many of you know that now is an excellent time to buy real estate. Prices are at their lowest on all types of properties and they wont stay this way forever. Some short sales make for great fixer-uppers while others are good enough to move into with no renovation. Buying short sales as an investment could also pay off in the future.

For Example:

House A: Value in 2006: $580,000 Value in 2009 $340,000 (Discounted Shortsale Value) The house lost 42% of its value. It’s practically a steal!

High Mortgage? Simple Solutions

realtor22 — Tue, 28 Jul 2009 18:49:46 +0000

A Loan Modification is when a lender agrees to modify any or some of the terms of the mortgage, making it more affordable for you.

These changes may include:

1) Reducing or modifying the interest rate
2) Extending the term of the loan
2) Changing the monthly payments
4) Combining any of the above

A Loan Modification will give you a fresh start, bringing your mortgage up to date after capitalizing any delinquent interest, escrow, fees, and other costs based on investor guidelines.
Acting quickly should be your number one priority because when it comes to foreclosure, everything is extrem

Other solutions to avoid foreclosure and KEEP YOU IN YOUR HOME include:

Reinstatement: Occurs when the property owner pays off the amount in default to bring the loan payments current in order to stop the foreclosure process and return to the original terms of a loan.

Repayment Plan: This foreclosure option lets you repay part of your delinquency each month, in addition to your regular monthly payment. A repayment plan is the perfect option for someone that experienced momentary financial hardship, but is now back on their feet.Forbearance: In order to stay in your home, a lender will agree to delay or reduce payments for a short period of time, with the understanding that another option will be used to bring your balance current.

source: http://ishortsale.com

Short Sales: For Commercial Properties Also?

realtor22 — Mon, 27 Jul 2009 17:33:04 +0000

As the landscape of the American real estate market continues to erode, many borrowers are increasingly turning to loss mitigation specialists to help negotiate “short sales” to avoid foreclosure. Experts report that the growing inventory of homes on the market has helped in this surge and there is no foreseeable relief in many areas across the country. Are short sales just an opportunity to bailout homeowners?

Raffi Tal, Chief Operating Officer of I Short Sale, Inc. (ishortsale.com) reports, “We continue to help borrowers that own commercial properties throughout the country. At first, all we were seeing were homeowners; but sure enough the investors followed and we were here to help!”

For commercial investors, financial hardship occurs when you least expect it. A new shopping plaza opens down the street and your retail outlet can no longer generate enough revenue to cover monthly costs; you cannot rent warehouse space because the local railroad track is under construction; or the once thriving manufacturing facility has to shut down its doors due to overseas production. Unforeseen circumstances can arise at a blink of an eye forcing a property owner into foreclosure. In the commercial sector, the expertise of the negotiator is even more critical due to the complexity of the underlying property. “With foreclosures reaching a record high this year, it is no wonder that so called “specialists” are popping up everywhere. Often these specialists concentrate only on one specific region of the residential market,” suggests Tal.

“With our experience from the last cycle in the early ’90s, we have a business model that caters to all types of property owners, including industrial, office, retail, and multi-family.” A short sale is an agreement wherein the lender allows for the property owner to sell the property at a price lower than the current mortgage debt amount.

As short sales require additional time and effort from both the property owner and/or the realtor, many people turn to loss mitigation specialists to negotiate with lenders, as well as find buyers to purchase their distressed real estate.

Don’t Just Walk Away – Short Sale v. Foreclosure

realtor22 — Fri, 24 Jul 2009 17:50:18 +0000

The deteriorating economic situationin our country has caused millions of homeowners to get behind on their mortgage payments. Households are being squeezed from all directions as the job market contracts while costs for healthcare, food, and gasoline continue toclimb in chorus. Americans wonder how times could ever get so bad.

With access to cheap credit, Americans pumped the bubble by securing financing without even undergoing simple background checks. Questionable lending practices allowed for home prices to become inflated as more and more people jumped into the property market. The law of gravity states that what goes up must come down. Everyone can agree that this crisis has been more like an airplane crash than the soft landing predicted by our government officials.

The house of cards has collapsed and our nation is now left with a myriad of borrowers burdened by the inability to cover their monthly mortgage bills. Millions of homeowners now owe money on a mortgage that exceeds the value of their home. Realtors have coined this term as an upside-down mortgage. Unfortunately not many homeowners know their rights and alternatives to relieve themselves from this burden.

Short sales and foreclosures are the two most common ways to close a delinquent loan. In a short sale, the lender agrees to accept less than what is owed in exchange for avoiding the expensive and lengthy foreclosure process. In a foreclosure, the lender will repossess the property from a borrower and then try to sell it on the open market in order to recover a portion of their money.

Over the past year millions of borrowers have decided to simply stop paying their mortgage and from their homes, handing ownership over to the banks. Individuals who default on their mortgage and go through foreclosure have their credit ratings ruined for 7 years further complicating their lives. They will find it virtually impossible to secure a future mortgage or financing for any other purpose. Homeowners should weigh the benefits of a short sale (better credit ratings, and elimination of debt) versus ruined credit and the embarrassment of being evicted from their own home during a foreclosure. The Federal government has recognized that short sales are a favorable option to bring the current housing meltdown to an end.

Industry experts agree that it is in both the homeowners and lenders best interest to perform a short sale. Congress recently passed legislation that ceases taxation obligations on short sales and encourages lenders to negotiate solutions with distressed homeowners.

Raffi Tal, COO of I Short Sale, Inc. (ishortsale.com) explains, “The passage of the Mortgage Forgiveness Tax Relief Act in 2007 eliminated the tax obligation for homeowners who have their mortgage debt released through a short sale and foreclosure (up to $1 million per individual or $2 million per couple).”

Tal, makes clear that with taxes no longer an issue, short sales are clearly the best option for homeowners in distress as well as for lenders. This legislation helped create a surge in demand for short sale services. Banks recognize that foreclosures hurt the homeowner, scar neighborhoods, and most of all are expensive. Beyond the financial implications, a short sale upholds the homeowners dignity and helps avoid the unpleasant process of eviction.

Theres no doubt that tough times are upon us, but homeowners can take comfort in the fact that there is a light at the end of the tunnel. The market will naturally adjust itself as savvy buyers purchase property at affordable prices alleviating the glut in housing supply. Most industry experts agree that the housing market will begin recovering towards mid to late 2009 (Wall Street Journal) and that the increase in short sale transactions may be speeding up the recovery process. Homeowners must avoid the foreclosure option completely and turn to other practical solutions. Companies like I Short Salenow provide free consultations to property owners by working on their behalf to alleviate the burden of debt and give them a fresh start.