Apparently, President Obama is not the only one actively trying to help homeowners in these dire economic times. Just a few days ago, some of the biggest banks, including JPMorgan Chase, Wells Fargo, and Allied Financial, announced an incentivized effort to help troubled homeowners wipe their mortgages off the books. These banks are currently offering up to $35,000 in cash to homeowners who opt for a short sale.
In a short sale, a bank or lender will accept less than the outstanding amount that the borrower owes. Short sales are top option not only because of the current foreclosure backlog, but also because the foreclosure process overall is extremely slow and tedious. When modification is not an option, a short sale produces better results for both the homeowner and the lender.
If you are underwater on your mortgage and making payments is a financial nightmare, you should strongly consider a short sale. Housing Assist of America has helped thousands of Los Angeles homeowners in preventing foreclosure on their homes. If you are considering a short sale, now is the time, especially with the added bonus from these banks. Housing Assist of America will not only help you conduct a short sale, but help you collect these massive incentives as well.
On Wednesday, President Obama released details of a new housing proposal aimed at helping millions of homeowners lower their monthly mortgage payments. The new $5 billion to $10 billion dollar plan will enact a streamlined refinancing program for homeowners who are current on their payments. The new housing plan also calls for easier access to simple mortgage disclosure forms as well as homeowner protection from wrongful foreclosure.
The new plan, which must still be approved by congress, would also administer simpler refinancing plan for homeowners whose mortgages are owned by banks or possessed by investors. To be eligible, however, homeowners must be up to date on their payments for the past six months and hold a credit score of 580 or higher. The program will not be applicable to jumbo loans nor loans greater than the Federal Housing Administration’s loan limits.
House Speaker John A. Boehner is among those who feel that the plan, like many other Obama relief plans, will ultimately fail. Regardless, the plan isn’t close to a cure all for the housing market nor will it save every underwater homeowner. Like other proposals, some relief will be found for those in mild debt, but there is still no answer for those who are completely upside down on their mortgage payments. The solution for underwater homeowners is still the same: Inquire about a short sale. Short sales occur when a homeowner sells the property for less then when he owes. Homeowners must get the bank’s consent before the sale, as well as word that they will forgive the deficiency on the sale. Short sales are a great option because there’s less paperwork, less hassle, and nobody needs to declare bankruptcy or take the time and energy to foreclose. For more information on short sales, contact Housing Assist of America today
Though in 2011 there were certain times when experts felt the housing market was heading for a resurgence, the flight never actually occurred. Housing experts are extremely excited about 2012 though, some going as far as saying the housing crisis might come to an end.
Experts agree that low prices and interest rates will be met by lowering numbers of unemployment and easier access to financing, which will make the market surge. Also, the delayed release of foreclosed properties could impel buyers into activity. Values are seemingly holding up like they haven’t in quite some time, and though we’ve seen this before, this time, it might be for real.
Though 2012 might be the beginning of the end of the down housing market, not every homeowner will be affected. Some will still have to deal with debt and threat of foreclosure. If foreclosure is looming and you are looking for ways to prevent it, contact Housing Assist of America today.
Economists and experts tend to agree that the housing market crisis might be coming to an end. Though it might take some time for the wounds to heal and the market to make a complete turn around, these early signs of change are certainly noteworthy and exciting. So how can you take advantage of a rising market? Well, it seems as though apartment buildings, and not small homes will remain at the boom of the market’s rise. Buyers are becoming renters and the landlords are reaping the rewards. If you have the assets, be a landlord and take advantage!
In the stock market, the housing market turnaround is causing a stir as well. Financiers are realizing that buying the big banks could make for double digit returns. Low share prices and the hopes that employment will rise mean the values of shares in bigger bank will increase. So stock up before the shares rise and thank me later.
In 2011, short sale and foreclosure numbers, indicators of an unhealthy housing market increased by a gigantic margin. From last year, in the Sherman Oaks area, the number of short sales increased by more than 150%. The number of Sherman Oaks foreclosures has increased by more than 33% since last year. These numbers indicate that Sherman Oaks homeowners are struggling (or were struggling) with their monthly mortgage payments, and either did something about it by conducting a short sale, or lost their homes to foreclosure.
At the same time, the number of forecloses homes purchased has risen, meaning potential buyers are looking to save an extra buck by purchasing these homes that banks are selling at reasonable prices. In turn, the resale value of homes that are not bank owned, are losing value because buyers prefer the discount of bank owned homes.
If you are one of the thousands of people who can’t afford their monthly mortgage, and foreclosure is looming, do yourself a favor and contact Housing Assist of America today, for information on the short sale process and preventing foreclosure.