How to Short Sale Your Home

April 19, 2011 by  
Filed under how to short sale your home

Key Words: short sale, real estate, instructions, property obligations, property loans, process, tips, warns

How To Short Sale Your Home 

If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. Short sale often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.


The general processes of doing a short sale are:


1.  Verify the value of your property

2.  Add up all the costs of selling the property

3.  Determine the amount owed against the property

4.  Do the calculations: Subtract the total amount owing against the property from the estimated proceeds of the sale.

5.  Contact the lender(s)

6.  Ask the lender what its procedures are for a short sale

7.  Sell the property


Here are some tips and warns to remember when you are starting the Short Sale process:


  • Closing costs will include title and escrow fees (if the seller is responsible for any portion of them, which will depend on your county), attorney fees, a portion of unpaid property taxes, re-conveyance fees, notary fees, delivery fees, documentary fees and/or transfer fees.
  • If you sell the property without the assistance of a real estate broker, you will save the amount of the commission and have more to apply toward paying off your loan.
  • If you feel more secure having a real estate broker handle the transaction, consider using a discount broker to market your property. You could also try to negotiate the sales commission with your broker.
  • Remember that the amount on your monthly loan statement does not include interest. Interest is accrued until the date a loan is paid off, so you may have as much as 30 days of interest on top of the balance owing, and you’ll need to include this interest in the total payoff amount.
  • If a property is sold under a short sale, the lender may require the buyer to make up the difference, either through a personal obligation or a collection.
  • The IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant.

Home Mortgages

April 19, 2011 by  
Filed under Home Mortgages

 

Home Mortgages

With the fact that $11 trillion debt from home mortgages in the U.S., it is critical to most Americans’ financial well-being and the entire economy to ensure the right kind of home mortgages. Also, in order to make home ownership broadly available and affordable, we need a secondary mortgage market that operates fairly and efficiently for all parties. In this case, it is imperative for Congress and the Obama administration to solve the Fannie Mae and Freddie Mac problem and eventually figure out the proper role of the federal government in supporting a secondary market for home mortgages.

As Fannie and Freddie unwind, three principles have been shaped for future home financing. First, all parties involved in making and investing in mortgage loans need to share a financial interest in the quality of those loans. That includes the customer taking out the loan, the financial institution or broker originating the loan, and the investor who ultimately owns the loan. Higher down payments for homeowners and more financial skin in the game for banks in the near future.

 Second, whatever role the federal government assumes in mortgage finance going forward, its role needs to be explicit, not implicit, so that consumers would benefit from worldwide liquidity for mortgage products. To protect taxpayers, adequate levels of private capital should be required to take the risk of loss. In this way, the federal government would only act as a “catastrophe risk” backstop much like the role the FDIC plays in protecting bank deposits up to a certain limit. Banks would pay a fee, just as they do for FDIC insurance, and the homeowner’s mortgage would be guaranteed up to a certain amount by the federal agency providing the insurance.

 And third, as we move forward in a post-GSE marketplace, we need to make sure we have uniform underwriting and servicing standards for mortgage loans, and more common products for what are called conforming mortgage loans. An efficient secondary market depends on relatively standard products and processes. Otherwise every batch of loans has to be examined in detail for its unique qualities, an examination that results in higher transaction costs and ultimately less attractive investments. The lack of standardization drains the lifeblood out of secondary market operations.

Mortgage financing is a big deal for millions of Americans and for our economy overall. All sides should be looking for solutions that will help all Americans. The path forward will not be easy, but I truly believe the solutions can be found. It will require hard work, courage, and cooperation across the board.

What Would You Do For Free Mortgage? Adzookie Wants To Know

What Would You Do For Free Mortgage? Adzookie Wants To Know

 Advertisers at Adzookie.com, have come up with an interesting way to publicize their new company.  If you’ll allow it, Adzookie will paint your entire house, transforming it into a giant billboard, promoting their company.  Your house will look awful.  You will shutter at the sight of it.  People will stare.  But…Adzookie will pay your mortgage every month for an entire year.

Adzookie has shared that they have received thousands of callers wanting their houses painted.  Obviously, the incentive outweighs the shame for some people who are so upside on their payments, or so in debt that they would be willing to stew in the embarrassment of living in a an internet pop up house just to ease their financial burden.

Adzookie is also playing off the fact that the housing market is still upside down and that people are doing anything to help with their mortgages.  But isn’t this saying something about us on a larger, deeper level?  Of course.  Where’s our self respect?  Have we no shame?  Maybe the truth is…money’s the problem today.  We’ll deal with our self respect later.  

Rising Commodities Prices Hurting New Home Sale Revenues

Rising Commodities Prices Hurting New Home Sale Revenues

The housing market can’t catch a break.  But now, as the prices of commodities is on the rise, it’s the homebuilders who are deeper in loss.  Around the world,  commodities like oil, copper, and lumber, are seeing a rapid price inflation.  Of course, this means builders are having to spend more on materials in the construction of new houses., thus, losing more money on the final sale.

Commodities like the ones listed above, are regularly used in new home construction.  Commodities are used as material in framing, sheathing, siding, and wiring.  And they’re used to build doors, windows, decks, driveways, etc.  As the prices of these commodities rises, the price of construction rises, and so the home builders have less area for profit. 

 The trends in rising commodities prices doesn’t look like it will be reversing anytime soon, so, hang on home builders, you’re headache of a roller coaster ride might continue a bit longer.  Nevertheless, the housing market has to get better some day, right?

Mortgage Applications Continue To Slump

April 14, 2011 by  
Filed under Short Sale/Loan Modification Blog

Mortgage Applications Continue To Slump

The amount of home buyers and refinancers who applied for mortgages this week was recorded at two percent less then the amount who applied the week before.  This is concerning considering   the spring real estate market has just began, and the numbers of applications for mortgages were thought to increase.  

Though the number of home purchasers has risen recently by nearly seven percent, the amount of people refinancing has dropped over six percent.  Though it seems like a turnaround when you consider those numbers, keep in mind that the these percentages reflect the same numbers from the 1997 levels…which isn’t saying much.  

Save Money…Buy A Foreclosed House!

Save Money…Buy A Foreclosed House!

If you’re in the market and looking to buy, you should definitely consider purchasing a foreclosed house.  Houses being offered as ‘short sales’ should not be overlooked.  When a lender agrees to accept less then what a homeowner owes on his house, the property is put on the market as a ‘short sale’.  Buying distressed properties is tedious, but if you’re dedicated and willing, it will prove worth your while.

So what makes buying a foreclosed house so stressful?  Well, you’ll be dealing with multiple third parties instead of a single agent, and so the process is entirely time consuming.  This is particularly tedious because each of their third parties has a separate agenda and code to adhere to.  As you can imagine, there’s a lot of back and forth talk.

But if you’re thick skinned and can take the angst, you should seriously consider buying a distressed property.  And now for a few suggestions to help you out.  When you make an offer bid low, but not insultingly low, as the houses are already priced to sell (seriously!) Also, make sure you are pre approved to be financed before you even discuss a negotiation.  And lastly, make sure you generate a contract that give you leeway to terminate the sale if the house is not in the condition you presumed it to be.  Now take these tips to the bank, and get ready for a new house at a fraction of the price 



How To Conduct A Short Sale Of Your Home

April 7, 2011 by  
Filed under Short Sale/Loan Modification Blog

How To Conduct A Short Sale Of Your Home

If you are thinking about foreclosing on your home, you should consider doing a short sale first.  Filing for bankruptcy not only destroys credit, but let’s be honest here, it carries with it a certain stigma that is somewhat shameful.   Regardless, many feel this is the only option if upside down on mortgage payments.  But there actually is another option: a better option.

A short sale is an agreement between the lender and the borrower in which the lender agrees to accept half the total amount do.  Lenders will complete short sales for a few reasons.  First off, they will no longer have to chase borrowers for payment.  Second, they will avoid the costs and troubles of foreclosing on the property.  Though some lenders will not consider a short sale, borrowers should definitely inquire before agreeing to foreclose.

If a short sale sounds right for you, the first thing you must do is contact the lender and suggest the idea.  If he agrees, call a real estate lawyer and inquire about the legal ramifications of following through with the short sale.  Finally, reach out to an accountant and ask about possible short sale taxes.  So before you even consider foreclosing, make sure to question the lender about a short sale.  You’ll save yourself time, money, bad credit, and a heck of a headache.

House Prices Dropping

April 4, 2011 by  
Filed under House Prices Dropping

House Prices Dropping

Every month, house prices have been falling further and further, in near dramatic fashion.  This is only one of a few statistics relaying that the housing market is not making a comeback.  In addition to the falling prices, the number of sales of available houses on the market is dropping as well.

One relaying factor in the price drop has to do with a plethora of houses available for sale.  Because of job losses and our economic strife, people have had to sell their houses, or worse yet, foreclose on their properties.  As these houses flood the market, the prices of every house on the market drop accordingly in an effort to compete.

Of course, this is all great news for buyers right now, but not if you have to sell your property first.  So, buy if you can, but hold off on selling until the market finally makes its comeback.  That of course is…if it ever does.

Housing Market Making A Comeback

April 1, 2011 by  
Filed under Housing Market Making A Comeback

Housing Market Making A Comeback

In a recent study conducted by Metrostudy, data has been compiled revealing a reversal of the new home overload that helped sink the market a few years back.  The study has concluded that, in the 41 cities covered, the number of houses that are either vacant, in construction or for sale has decreased almost by almost one fourth.  People are buying houses again, and seemingly, less people are being forced into foreclosure.

Also helping the housing market is the fact that now, some foreclosed houses are being rented out instead of sold.  Because more people are renting, and less are buying, the idea is working to lower housing vacancy and thus keeping the resale value of existing houses from dramatically depressing.

Now this doesn’t mean to finally sell your house after holding off for so long.  What it does mean is that the turn around might be finally happening.  Of course, the problem is that everything is constantly changing, and just as the market begins to make a comeback, it can easily begin to slip away once again.

Home Vacancies Hurting Housing Market

April 1, 2011 by  
Filed under Home Vacancies Hurting Housing Market

Home Vacancies Hurting Housing Market

The Census bureau has quoted the national vacancy rate at 11.4%, meaning more then 10% of houses in the country are unoccupied.  Of course, in tough economic times, people are having to foreclose on their houses and so, most of the houses in the statistic represent exactly that.

http://media.cnbc.com/i/CNBC/Sections/News_And_Analysis/_News/_SLIDESHOWS/Homeowner%20Vacancy%20Rates/home_vacancy_rates_cover.jpg

The more vacant homes, the more pressure on home prices as houses sit on the market, and depressing the resale value of any home over time.  Maine and Vermont lead the way with more then 20 % of homes unoccupied.  At the opposite end of the spectrum, Connecticut has a home vacancy rate of just 7.9%.

But there’s a glitch in the number.  When the census takes inventory, they count summer homes, second homes, vacation homes, and temporary houses as unoccupied, even though they are only unoccupied for periods of time.  The houses do in fact, have owners, and are thus paid for, or being paid for.  So in reality, the amount of homes unoccupied is actually less then the census has stated, meaning, perhaps the housing market isn’t as terrible as once previously thought.

Housing Assist Coldwellbanker