June 11, 2012
If you're thinking about buying a short sale it is imperative to spend time learning about the process. People are often under the impression this is the best approach for getting cheap homes, but this is rarely the case.
For the most part, buying a short sale leaves buyers at the mercy of the bank. Unfortunately, banks can change their rules throughout the negotiation process. They might ask for more money, demand property inspections and appraisals, and other items that increase the original purchase price.
Short sale properties include residential homes, commercial property, and vacant land that have entered into preforeclosure because borrowers defaulted on their mortgage loan. Banks allow property owners to list their realty through an agent at a price lower than their loan balance.
June 02, 2011
The Short Sale Act of 2011 is back on the agenda for review by the House Committee on Financial Services. Previously, submitted as H.R. 6133: Prompt Decision for Qualification of Short Sale Act of 2010 this bill was bypassed by Congress last year, but expected to pass legislation later this year.
If passed, the Short Sale Act of 2011 will require mortgage lenders to respond to borrowers request for short sale approval within 45 days of written request. If the banks fail to respond within the time period the application will be considered approved.
March 09, 2011 | Comments: 1
To fully explain short sale eligibility would almost require a book. The only established criterion is Home Affordable Foreclosure Alternative (HAFA) short sale program offered through U.S. government. All other programs requirements vary by lender.
HAFA short sale eligibility encompasses multiple factors. However, meeting each of the factors does not guarantee acceptance into the program. Instead, final decisions rest with the mortgage service provider.
Basic requirements for obtaining short sale approval under the HAFA program include:
1. Living in the home within the previous 12 months.
2. No real estate purchases made within previous 12 months.
3. Principal balance of first mortgage does not exceed $729,750.
4. First mortgage taken out prior to January 1, 2009.
5. Ability to provide documented financial hardship.
6. Property owner never convicted of certain types of felony crimes within the last 10 years.
September 13, 2010
How does a short sale work is one of the most common questions people ask. As more people face foreclosure, the need for short selling has increased. This strategy allows mortgagors the option to sell their home for less than owed on their home loan. However, short selling can lead to additional financial problems if not properly orchestrated.
In order to understand how does a short sale work, borrowers should contact their bank's loss mitigation department. Each banks' short sale policies can differ, but all require bank approval before listing the property for sale at a discounted rate
February 22, 2010
A real estate short sale is a type of agreement sometimes offered by mortgage lenders to borrowers who have fallen behind on home loan payments. In order to obtain short sale approval certain eligibility requirements must be met. While short selling offers financial relief to borrowers, it might not be the best strategy.
The real estate short sale process can take between three to six months to complete. The first step involves contacting the bank loss mitigation department. In addition to handling short sale real estate, loss mitigators also work with borrowers to obtain loan modifications, mortgage refinancing and deed in lieu of foreclosure transactions.
September 08, 2009
BPO is the acronym for Broker Price Opinion. BPO's are used within the mortgage lending industry to obtain summarized property appraisals. Broker Price Opinions are used to obtain an estimated value of real estate and are not as thorough as conventional appraisals.
BPO appraisals are often used when homeowners enter into mortgage refinancing or apply for a home equity line of credit (HELOC). BPO's are frequently used to obtain estimated property values of distressed properties such as foreclosure or short sale homes. They can also be used when borrowers obtain a loan modification to avoid foreclosure.
August 02, 2009
Short sales vs. foreclosure is a hot topic in the world of real estate. These two options might be the only thing left for borrowers struggling to make ends meet. Both can resolve financial challenges or create an entirely new set of problems.
The primary difference between short sales vs foreclosure is with short sales homeowners have the opportunity to sell their property for less than is owed on the mortgage note. Borrowers must meet certain criteria to obtain short sale approval from their lender.
July 30, 2009
Many homeowners are asking "what is a short sale?" Rumors are flying around the Internet suggesting everyone who is struggling to make ends meet can sell their home for less than they owe and walk away from their property. While there is a portion of truth to this, borrowers must meet certain criteria before being allowed to short sell their home.
Today, I would like to provide an overview of what is a short sale to clear up any confusion you may have. 'Short sale' is a real estate industry term used when a lender accepts a discounted payoff on a mortgage loan. Short sales offer homeowner's who have defaulted on their mortgage an opportunity to sell the home for a lesser amount than is owed and avoid foreclosure.
July 06, 2009
'Short sales homes' has become the buzzword of the day within the real estate arena. Word has gotten out that borrowers who have fallen behind in their mortgage payments can sell their house for less than they owe and walk away scott-free. Sounds great, but it's not 100-percent true.
Short sales homes are sold for less than borrowers owe on their mortgage note. But, the process is no walk in the park. Most banks want evidence there is a buyer in place before they will even discuss the option of short selling property. It is not easy to locate a realtor willing to tackle a short sale.
June 30, 2009
A loss mitigator refers to an individual who specializes in helping homeowners who have become delinquent on their mortgage note. Loss mitigators either work as an employee of the bank; independent representative for the lender; or an agent who represents the homeowner.
The primary roll of a loss mitigator is to develop a plan allowing borrowers to remain in their home. The most common option offered is a loan modification. When mortgage loans are modified, terms are permanently altered. In some cases, borrowers end up paying a higher mortgage payment in order to cure arrearages