Short Sales Might Help Curb U.S. Housing Slump
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Daily Real Estate News | March 21, 2007Short Sales Might Help Curb U.S. Housing Slump
A growing number of lenders are approving short sales as an alternative to foreclosure, says Doug Duncan, Mortgage Bankers Association chief economist.
The move is a way for lenders to avoid having to take over and manage property.
"The way banks see it, it's better than if the house goes into foreclosure, stands empty, and sees its value spiral downward before it's auctioned on the courthouse steps," says Duncan, who expects rising delinquencies to spark an increase in pre-foreclosure sales.
Though short sales put additional downward pressure on the national median home price, Fannie Mae chief economist David Berson says they also lower the number of foreclosures and can help ease the housing downturn. Short sales are hard to track, though, because they're not counted, making it impossible to know exactly how many occur.
Source: Bloomberg, Kathleen Howley (03/21/07)
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Foreslosure Alternative
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As a realtor and an investor I specialize in short sale transactions. Please contact me with your personal situation. I am glad to help with my professional knowlege and experience. I may be able to help save your reputation, your credit, stress, and the humiliation of a public taking of your home. There is a solution for you! I KNOW HOW to find a buyer for your house, how to correctly prepare all the paper work for the offer to be acepted, and how to do mitigation in a short sale with your lender.
Here are just a few tips about a Short Sale for 2007-2008.
http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation (General Provisions of Public Law fromNational Assn. of Realtors)
Short sales set sail again, (Realty Times, Apr. 9, 2007).
 Short sales might cure U.S. housing slump, (REALTOR® Magazine Daily News, Mar. 21, 2007). 
The new exit strategy: A short sale, (Business Week, Mar. 5, 2007).
Short sale may be an option when mortgage debt looms too large, (Real Estate Journal, Feb. 19, 2007).
Family Finances: 'Short Sales' rise as housing market cools, (Wall Street Journal, Feb. 18, 2007). 
Mortgage lenders seek ways to avoid foreclosure, (REALTOR® Magazine Daily News, Jan. 24, 2007).
REALTORS®, investors should partner to solve problems, (Business First of Columbus, Mar. 3, 2006).
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Alternative to Foreclosure
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As a realtor and an investor I specialize in short sale transactions. Please contact me with your personal situation. I am glad to help with my professional knowlege and experience. I may be able to help save your reputation, your credit, stress, and the humiliation of a public taking of your home. There is a solution for you! I KNOW HOW to find a buyer for your house, how to correctly prepare all the paper work for the offer to be acepted, and how to do mitigation in a short sale with your lender.
Here are just a few tips about a Short Sale for 2007-2008.
http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation (General Provisions of Public Law fromNational Assn. of Realtors)
Short sales set sail again, (Realty Times, Apr. 9, 2007).
Short sales might cure U.S. housing slump, (REALTOR® Magazine Daily News, Mar. 21, 2007).
The new exit strategy: A short sale, (Business Week, Mar. 5, 2007).
Short sale may be an option when mortgage debt looms too large, (Real Estate Journal, Feb. 19, 2007).
Family Finances: 'Short Sales' rise as housing market cools, (Wall Street Journal, Feb. 18, 2007).
Mortgage lenders seek ways to avoid foreclosure, (REALTOR® Magazine Daily News, Jan. 24, 2007).
REALTORS®, investors should partner to solve problems, (Business First of Columbus, Mar. 3, 2006).
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Mortgage Lenders Seek Ways to Avoid Foreclosure
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Mortgage Lenders Seek Ways to Avoid Foreclosure
The number of borrowers whose mortgages are at some point in the foreclosure process has hit the highest level in five years.
The mortgage industry, which ultimately is uninterested in owning properties, is reaching out to troubled borrowers, trying to help them head off delinquencies.
Bank of America Corp. is allowing some borrowers with ARMs to refinance into a different loan at no cost. Citigroup Inc.'s CitiMortgage unit is contacting delinquent borrowers within days after a missed payment, if it doesn't fit their normal bill-paying habits. National City is one of a dozen major lenders behind a national advertising campaign that will, beginning this spring, promote a toll-free number (888/995-HOPE) that borrowers can call for homeownership counseling and referrals.
Some lenders may allow a house to be sold at a loss and forgive the remaining debt in a process known as a "short sale." These can be difficult to negotiate because many loans are packaged and sold to investors, so the mortgage company doesn’t have much flexibility.
“There are all sorts of log jams,” says John Izzo, a Las Vegas real estate practitioner, who says he is working on 19 short sales but figures that he maybe able to successfully close just one in five.
— The Wall Street Journal, Ruth Simon (01/24/07)
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