Short Sales Information from Edwin Gerace

SHORT SALE INFORMATION THAT YOU CAN USE..............

1. Starting April 5, some distressed homeowners possibly could qualify for $1,500 in relocation expenses.
2. short sale is the event when you must sell your property for a lower amount than what is owed on the outstanding mortgage balance. While putting your home up for a short sale is generally not something you want to do, in certain circumstance it is unavoidable and can actually be a sort of win-win situation for both the mortgage lender and homeowner. By selling your home as a short sale you will be able to limit the damage done to your credit score and also limit the losses on the lenders behalf as well.
3. The banks are then able to dictate the whole process of selling the homes by controlling, terms & conditions, and limiting the buyer's options to independent financing, title work, etc. These "Third Party or Bank Short Sales" utilize unscrupulous marketing practices to manipulate the market, techniques that are expressly forbidden by a realtor's "Code of Ethics". With the vast percentages of homes that are bank owned on the same market as those sold by private parties, the whole process is affected at the further expense to Americans, in reduced property values, impossible loan restrictions and a bulging inventory.
4. MDA DataQuick reported yesterday that the county’s median price in February rose $17,000 from the previous month to $322,000, its level for most of the second half of 2009. On a year-over-year basis, the median was up 13 percent, the best increase in five years
5. Washington, DC - On April 5, 2010, the Obama Administration and the U.S. Treasury Department will offically activate the HAFA (Home Affordable Foreclosure Alternatives) program, which gives struggling homeowners incentives to take advantage of two alternative options to foreclosure. A helpful web site, http://www.whatishafa.org/, has already been launched to explain the program. Through the program, homeowners are encouraged to do a short sale - in which the borrower and the mortgage servicer agree to sell the home for less than the value of the loan. They can also do a deed-in-lieu of foreclosure, in which the homeowner voluntarily gives the deed of the property to the servicer. Incentives include being fully released from future liability for the first mortgage debt, and $1,500 for borrower relocation assistance. There are also incentives for investors and lenders.

The key to Short Sales is to do one 2 things for a sucessfull

MANAGE EXPECTATIONS OF BUYERS AND SELLERS.

DOCUMENT AND COMMUNICATE WITH ALL PARTIES.

For imformation about the homes for short sale in your community contact Edwin Gerace at mail@609SOLD.com or Call 803-609-7653

For a Certified Short Sale Mediator Expert to guide you as a buyer or seller contact Edwin Gerace at mail@609SOLD.com or Call 803-609-7653

Surge in short sale requests unlikely to impact housing market
Although short sales are likely to increase in 2010, the jump in these transactions is unlikely to have any real impact on the housing market, according to a new study by Housing Predictor. While more at-risk homeowners are turning to short sales as an alternative to foreclosure, Housing Predictor says the small number of short sales that are actually approved by banks represent less than 1 percent of all homes facing foreclosure. In the first half of 2009, only 40,000 short sales were completed, according to the most recent data available from the Office of the Comptroller of Currency shows.In addition, Housing Predictor said only an estimated 8 to 12 percent of all homeowners who request short sales accomplish a completed transaction. Because lenders only write off short sales as a loss when a property is sold, this small percentage of completed transactions leaves a gaping hole in the troubled banking industry's problem with short sales.

Source Real Trends

Snap Shot look at Short Sales

There is some great issues with banks and learning the systems of "Short Sales" but over the last year. The banks have not been willing to work with the consumers. The banks are not willing to be timely with the getting information to the new buyers. The banks are not willing to work with in a timely manor with the sellers.

Studies have shown that it costs the bank more money if a property was foreclosed upon than if they accepted a 'short sale'. For homeowners, a 'short sale' makes much more sense for several reasons:
1- There is a much higher chance that the deficiency judgment could be negotiated in a short sale versus a foreclosure.
2- A short sale would have less of a negative impact on the homeowner's credit rating.
3- The homeowner would have at least some control over the timing of their relocation to new living arrangements.
4- A 'short sale' would allow the homeowner to leave with dignity.
5- It does not leave a house vacant for a year or more and bring other bank owned homes value down due to condition of subject property.
6- And Finally it just makes sense ( Banks don’t get it)

In the past, the banks used to process the loan (take the application, put together the file, etc.), lend you the money, and service the loan (send the bills, make collection calls, follow-up, etc.).

Over the last eight to ten years, the lending of mortgage money has shifted. First Wall Street and then the federal government became the primary lender in the mortgage sector. But, neither Wall Street nor the government had any interest in processing or servicing the mortgage. Mortgage companies continued to process the loans, but a new industry was created to fill the need for the servicing of these loans. So now, a separate and independent entity is servicing a tremendous portion of existing mortgages.

Just ten years ago, 37.4 percent of all mortgage loans were securitized (thus requiring a servicing company). Today, that number is 79.3 percent. Servicing companies actually collected more fees for a foreclosure than they did for a 'short sale'. Actually, the servicing company would lose money if they did a 'short sale'.

The federal government realizing that modifications were not the answer and banks realizing that the foreclosure process was too expensive, have agreed to change the fee structure to make it more profitable for the servicing companies to lean toward 'short sales'

Now knowing that information the process for short sales over the last 6 months to a year have become easier on everyone with one exception. While the process is easier, the volume has increased to the point that customer service has been thrown out the window and time of the essence is not spoken of.

My advice:
1- If you are in the need of a short sale, contact someone locally to help you through the process ( Loss Mitigation Specialist or an attorney). I can recommend someone to you if you need that assistance.

2- If you are interested in purchasing a Short Sale home, understand the process and understand it takes time and 85% of the time the delays are not the agents, or sellers fault. However, work with an agent that has done these type of transaction before. I can recommend someone to you if you need that assistance.

Short Sales information, Columbia Homes

Short Sale in Columbia, SC by Edwin Gerace

What is a Short Sale and can it save my house? This is in no way something you want to gamble with. You need a professional that knows Short Sales and is an expert in the area. Edwin Gerace is that agent. When days and weeks count, you don't need to risk your largest financial asset with an agent that is not knowledgeable in short sales.

For short sale assistance and other options to consider first before you should consider a short sale contact. There are other options besides than a short sale in the Columbia, SC so that you can stop foreclosure! There is Loan Modifications, and many others.

Edwin Gerace has access to a Loss Mitigation Specialist here locally that works on your behalf to help you through this banking process and decide what is the best path for you. If it is the Short Sale process she will help you and get from point A to Point B. Here is why that is vital. Imagine you going to the front of the bank and talking with the hostess, that is you. Edwin Gerace's friend has relationships with bankers and goes through the drive through and knows what to ask for and has the documents they want and require so that you don't have to wait any longer than you should. Does that sound easy? It is is and can save valuable time.

Listing your house with Real Estate Agent or Broker that knows about short sales. In many cases you may be able to sell your house before your foreclosure is final. Email Edwin Gerace for information

The other option that few consider is to rent your house. In many cases you may get a considerable down payment and perhaps a little more than your actual mortgage. If you need assistance to rent your house consult a property manager and notify your lender.

If you have considered all the alternatives to foreclosure, then a short sale may be the best possibility to move on with your life with the least amount of damage. You win, the bank wins. Your house gets sold; the bank gets a new mortgage. Feel Free to visit my website for more information.

However, in many cases your house may get sold for less than the amount owed, and then the bank can come after you for the difference. Some banks ask for that the remaining funds that were not satisfied to be paid over time or some times they 1099 the seller too.

Earlier this week, mortgage giant Fannie Mae said homeowners who stop making payments and then send their keys back to lenders months later will not be able to get another mortgage through that firm for five years. Freddie Mac also is going after walk-away borrowers, mortgage lenders say. Neighbors of the people who walk way are already being punished by lower home values due to the foreclosure. "People should hang in there as long as they can, ask for help and try to work with their lender,"

If you are going to consider a short sale to prevent foreclosure in the Columbia SC area, consider a company that understands how and has the contacts with a team of professionals that are properly trained to get a short sale completed.

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