The short sale is anything but short!

Wednesday, September 17th, 2008 | Money, Real Estate, The Economy | No Comments

The news is reporting home values have declined by 27%. This number changes from month to month, but regardless of the percentage, in almost every neighborhood, Home values are below the high spike of 2006. For you who expect to live in your homes for at least five more years, this housing price fluctuation has very little to do with your life. For those who want to purchase a home, it is almost like after Christmas shopping. Unfortunately many folks who must sell their homes are SOL. Many of these folks have mortgages that are higher than the present value of the home. One way out while avoiding foreclosure is a “Short-Sale’”

I have really been discouraged with the short sale process. (Selling a home below the mortgage value) It seems like lenders are unwilling to do what is necessary to get a sale done. Many banks seem to think it a privilege to buy their vacant home and expect a buyer to wait for months for a decision. I can’t remember any of my real estate associates ever describing an easy short sale. Many short sales take months to complete with special bank generated forms and endless attempts to contact a decision maker. It is not uncommon for me to send 5 copies of personal information in a purchase contract to a bank fax or email before the banks admit they received one contract. What are these folks doing with all this personal information? And after doing 5 – 10 times the work of a normal sale, the bank expects me to cut my commissions.

The people hurt the most are never considered during all this ineptitude. A seller is not considered. Now everyone seems to think the seller just shouldn’t have purchased the property. The bankers are the real experts. They have whole departments with educated staff to evaluation properties on a professional level. The seller, it seems to me, trusted the lender to some extent. Now, he is upside down, looking at having to carry FORECLOSURE on his record. I would have expected that the lender and seller would try to partnership to minimize the loss to both. Unfortunately, it appears that redundant processes and understaffed departments slow the sale process which creates more loss for everyone.

While a file is gathering dust on a desk, the home owner’s life becomes uncertain. Some of these folks live in this home and don’t know when they can leave. Some are investors (considered a dirty word by the politically correct) who are watching their entire life savings dwindle away with an upside down situation.

The buyers are no better off. Imagine if you are trying to purchase your first home. You have a lease that ends in 45 days. What are you supposed to do?  Sit on the street with all your posession until someone finally decides to look at your offer?

Only a banker, a government bureaucrat, or someone in Congress could design a system this bad!

Tags: mortgage, Phoenix mortgages, short sale

Some Buy a New Home to Bail on the Old

Thursday, June 12th, 2008 | Money, Real Estate, The Economy | No Comments

Phil send me this aarticle with the note that this has got to stop and I agree whole heartedly. The price of homes changes with the market. This is very short sighted!

Fannie Plans Rules To Avoid Practice Described as Fraud
By NICK TIMIRAOS
June 11, 2008; Page A3

Next month, Michelle Augustine plans to walk away from her four-bedroom house in a Sacramento, Calif., subdivision and let the property fall into foreclosure. But before doing so, she hopes to lock in the purchase of another home nearby.

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Tags: foreclosure, mortgage, Phoenix real estate, Real Estate

Home from Work Program

Monday, June 2nd, 2008 | Money, Real Estate | No Comments

I attended a real estate class a few weeks ago. I was so impressed with this new program that I am flying to Texas later this month to become an instructor. Let me preface this by saying that the majority of people I speak with have significant misinformation on current down payment requirements, available programs, how to avoid foreclosure, and even the important benefits of home ownership.

The class was an introduction to an exciting program called “Home from Work.” HUD (U.S. Department of Housing and Urban Development) originally developed the program and the NAR (National Association of Realtors) has partnered with HUD to get the information to employers. It is an outreach program to bring current accurate information into the work place. Three huge issues are addressed.

* First time homebuyers – programs, advantages, the process, credit, qualifying, etc.
* Foreclosure and financial services designed to help with hardship situations.
* Employer involvement to the extent an employer will see benefit and assist their employees.

The program can be brought directly to the employees in the form of a workshop with one-on-one counseling to follow up.

It looks to be a great program that brings together non-profit organizations, Realtors®, employers and employees. A real win – win – win – win situation.

Tags: Home from work, investing, mortgage, Phoenix real estate, Real Estate

Housing rescue: What you need to know

Thursday, April 3rd, 2008 | Investment, Money, Real Estate | 2 Comments

Article from CNN Money

Washington in crisis mode

Washington is awash in plans to attack the foreclosure crisis and mortgage meltdown. With both foreclosure rates and the election season heating up, politicians and policymakers are feeling pressure to find solutions to housing problems.

Some community advocacy groups charge that 2 million Americans could lose their homes to foreclosure over the next two years. That would not only have a huge impact on neighborhoods and towns but also damage the economy.

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Tags: Glendale real estate, Laveen real estate, mortgage, Phoenix real estate, real estate investing