Short Sale Numbers on the Rise

September 6, 2011 by  
Filed under Blog, Short Sale Numbers on the Rise

Short Sale Numbers on the Rise

In many states, short sales are increasing as homeowners in debt are trying desperately to avoid the devastating effects of foreclosure.  In the second quarter, short sales accounted for 12% of sales nationwide.  This number is up almost 10% from this time last year.  This increase was particularly sharper in California.

California Real Estate has always been expensive and desired, only with the recession, the housing market has taken a hit.  Instead of choosing to foreclose on their properties though, homeowners are taking advantage of the short sale, saving themselves from the pitfalls of foreclosure.

Short sale homes retain their value better than homes that go through foreclosure.  This, of course, helps the value of neighboring homes.  The more foreclosures, the more damage down to the value of houses in the area.  Because of this, short sales not only help the homeowner, but the  neighborhood as well.

Sherman Oaks Short Sales

September 6, 2011 by  
Filed under Blog, Sherman Oaks Short Sales

Sherman Oaks Short Sales

If paying your mortgage is a financial burden and you owe more on your property than what it’s worth, a short sale might be the answer.  Foreclosing on your property could leave you with horrible credit and your neighborhood with a decreasing property value.  In a short sale, a lender or bank will accept less than what’s owed on the house.  Lenders are open to short sales because it’s easier to cut their losses and not deal with the difficulties of the foreclosure process than to try to collect from a homeowner who doesn’t have the money they owe.  More and more short sale transactions are occurring, as homeowners are trying to climb out of debt

Tough economic times have certainly had their affect on the housing market.  Even in upscale neighborhoods like Beverly Hills and Westwood, properties have decreased significantly.  As the values of property declines, homeowners who don’t own their houses are paying high ticket mortgages that will continue to rise.  In many cases, homeowners will owe more than what their house is now worth.

If you owe more on your property than what it’s worth, and you live in Sherman Oaks, Tarzana, Encino, Studio City, or Reseda, contact Housing Assist of America for further information on the short sale process.  Housing Assist of America has helped more than two hundred homeowners conduct a short sale of their home, and they can certainly help you if you are trying to alleviate yourself of the pressures of debt.  Housing Assist of America has helped dozens of valley homeowners move their properties.

Bankruptcy May Prevent Foreclosure

July 22, 2010 by  
Filed under Bankruptcy May Prevent Foreclosure, Blog

Can Bankruptcy Prevent Foreclosure?

There are some cases where bankruptcy can help homeowners prevent foreclosure.  The first and foremost thing a bankruptcy will do is stop the foreclosure process.  Lenders are unable to proceed with a foreclosure until permitted to do so by the courts.

When filing for bankruptcy, there are two types to decide from: Chapter 7 and Chapter 13.

A chapter 7 bankruptcy will stop foreclosure, but this will usually lead to having to liquidate your assets.  Many BK attorneys prefer this method because it gets rid of all unsecured debt, but leaves secured debt such as your mortgage, exempt.  In a case like this, borrowers will still owe their mortgage payments but they can now afford to make them because all of their other debts have been discharged.

Although many experts claim that Chapter 13 is usually more effective at helping homeowners keep their home.  This gives them time to repair their finances, lasting anywhere from 3-5 years, over this period of time the court allows an income based budget with monthly payments made to trustees.

The trustees pay the bills, first paying off the secured debt. After that, the trustee pays off unsecured debt, starting with back income taxes.  Following this  comes unsecured debt, such as credit cards and medical bills.  If borrowers keep up on their payments they can emerge from bankruptcy with their homes still in their possessions.

Mortgage Loan

July 22, 2010 by  
Filed under Blog, Mortgage Loan

What is a mortgage loan?

A mortgage loan is a loan that is secured by real property though a mortgage note.  A mortgage note proves existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan.

Assets definition

July 22, 2010 by  
Filed under Assets Definition, Blog

What are assets?

Assets are economic resources.   There are tangible and intangible assets that are capable of being owned or controlled to produce value and that is held to have positive economic value. To break it down even more so, assets represent ownership of value that can be converted into cash.

HAMP Program Drops Applicants!

July 21, 2010 by  
Filed under Blog, Hamp Program Drops Applicants

HAMP Program is Failing Horribly

We will give  a head nod for the governments good intentions in attempting to modify a large number of homeowners loans, although they have horribly failed to modify majority of these loans.    530,o0o of the 1.3 million enrolled in the HAMP program have had their one time reduced payments now terminated.   These people enrolled were expected to contribute 1/3 of their income to their mortgage.   A primary reason that these homeowners have been dropped is missing payments and an inability to meet income and debt requiremenets.

A Housing Shortage Is Coming

June 16, 2010 by  
Filed under A Housing Shortage Is Coming, Blog

Are We Facing A Housing Shortage?

As the US economy has faced the worst housing crash since the Great Depression, it is hard to believe that we may be facing a housing shortage soon.  It has been made clear that the nation is not building enough homes to meet with the demand.

Just 672,000 new homes were started in April, an annualized rate and less than half the long-term run rate needed to meet the nation’s natural population growth.

So far, the shortage has been masked by a weak economy that has put a damper on home buying. Once the job market rebounds, however, people will look to have their own homes again. This pent-up demand could get unleashed on unprepared markets, causing shortages and rising local prices.

Rent or Buy?

June 9, 2010 by  
Filed under Blog, Rent or Buy?

Is it better to rent a home or buy a home?

I think that most people are starting to realize that it is best for them if they rent a home.   During the boom years this question never arose, if a person could buy a home it was in their best interest purchase a home.   Considering that the national home prices have slid  drastically, buyers are becoming much more cautious as whether it is the right time to buy.

To determine which option is better, Trulia compares the costs of buying a two-bedroom condo with the costs of renting one. Then, Nelson said, the results can be extrapolated to other classes of homes, such as larger single-family houses.

Balloon Loans

May 3, 2010 by  
Filed under Balloon Loans, Blog

Balloon Loans:

Borrowers pay at a rate lower initially than the nominal interest rate on their mortgages. The difference between the two builds up every month and has to be repaid with one huge payment at a specified date.

Fannie Mae gets tougher with interest only loan requirements

Fannie Mae is set to tighten its mortgage requirements, effective August 30, 2010. To qualify for a Fannie Mae-backed interest-only loan, a homebuyer is now required to put 30% of the purchase price down as a down-payment.

ARM’s – Fannie Mae will only buy those in the cases where the borrower can afford to make payments even if their interest rates reset to 2% higher than the loans original interest rate or the industry cap rate.

“These policy changes reflect our intention to continue providing liquidity to different market segments by ensuring that support for ARM products remains in appropriate circumstances,” said Marianne Sullivan, Senior Vice President of Single Family Credit Policy and Risk Management at Fannie Mae.

Fannie Mae a fortune 500 company is mandating that borrowers of these interest only loans have credit scores of 720, and strong reserves of cash. Fannie Mae has also stated that they will stop funding balloon mortgages.

Many borrowers saw those balloons swell to unmanageable proportions and lost their homes when they couldn’t afford or refinance the balloon payment.

Once again these guidelines are supposed to be effective August 30, 2010.

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