Considering Foreclosure? Don’t!

March 17, 2011 by  
Filed under Short Sale/Loan Modification Blog

Considering Foreclosure?  Don’t!

The market is on it’s knees, and a ton of us are upside on our mortgages, dealing with negative equity, and plain and simple, living in financial hell.  Foreclosure might seem like a likely option, but before ruining your credit, you might want to consider a short sale: A short sale is a sale of a property in which the proceeds fall short of the total owed.  Short sales save lenders time and effort in trying to collect finances that the homeowner simply doesn’t have.  Sure the lender takes a loss, but everybody avoids foreclosure, which involves hefty fees, load of time, and bad credit for the homeowner.

HAMP, the federal Home Affordable Modification Program is making it possible for those upside on their mortgages to engage in short sales or deeds in lieu of foreclosure.  So before you foreclose on your property, consider a short sale.  After all, you’ll want to shop around in the housing market sometime in the future, and shopping with bad credit is never easy.  Now short sales don’t always pan out, but if you’re having trouble making payments on your mortgage, you have nothing to lose in trying before foreclosing on your property.  So go short, and consider a short sale.

1 Million Homes Reposessed

January 17, 2011 by  
Filed under 1 Million Homes Reposessed in 2010

1 Million Homes Reposessed in 2010

The number of foreclosures that we saw in 2010 was astronomical.  There were over 1 million people who lost their home! Realtytrac reported close to 2.9 million foreclosure notices.

Nevada has led the pact with foreclosures for the fourth year in a row.  One in every 11 homes received a foreclosure filing.

Overall, 2010 was a rough one for the mortgage industry. The big news was the robo-signing scandal, which erupted in the fall amid allegations that banks were foreclosing on homes without having read the documentation.

In the first quarter of 2010, eyes were still focused on Obama’s HAMP program, while many analysts were still optimistic about saving their homes.  But as time progressed it was quite obvious that the HAMP program was losing the fight against foreclosures.

Then the next shoe to drop came in June, with a report from Fitch Ratings that showed HAMP modifications re-defaulting at a high clip. The company forecast that three-quarters of all HAMP mods would ultimately fail.

The next few years are looking to be very difficult on the economy and the housing industry.   Some industry analysts, such as Laurie Goodman, head of Amherst Securities mortgage group, say that as many as 11 million mortgage borrowers are in potential danger of default.

However, Rick Sharga, RealtyTrac’s spokesman, predicted 4 million to 5 million and scoffed at quantifying the magnitude of the potential disaster, comparing it to “taking inventory of deck chairs on the Titanic.”

Only time will tell, but if you have any questions regarding your home and the position you are currently in, feel free to call us at 888-877-0078.

Housing Assist Coldwellbanker