Summer Short Sales – Why all the fuss all of the Sudden?

As many of you know I have not been the fan of short sales to date, so you might be wondering why the sudden change of heart?  It would seem that someone on a national level figured out that foreclosures are really a measure of last resort.  All we need to do is look around us to see that the onslaught of foreclosures have driven prices down.  A quick look forward will tell you that with values dropping, more and more people are short everyday with a mounting pile of foreclosures looming.  Foreclosures cost banks a considerable amount of time and money over a short sale.  So after being at this foreclosure thing for a while with more to go, it seems a good time to evaluate logical alternatives.

In the attached pdf, you will see that the revival of the short sale as an alternative to foreclosure has caught on.  The federal government now is offering financial incentives to banks and borrowers to look at short sales and deed in lieu of foreclosure as prerequisites to foreclosure.  This summer will see the efforts moved from foreclosure to short sale in an effort to preserve property values, keep people in their homes longer and offer a less expensive alternative to foreclosure.

Even though the push to short sale was introduced in May, it does seem that the banks are slow to catch on.  But given time, we will all be better prepared to handle the short sale.  In short, as the following articles and the attached pdf outline, banks are to offer loan modifications, short sales (with a licensed real estate agent who specializes in the neighborhood), and deed in lieu of foreclosure prior to being able to enforce the foreclosure.

Next week we look at loan modifications – if you have any stories you would like to share – please send them my way.

Here are some links on the Making Home Afforable Programs for Short Sales

http://realestateblog360.blogspot.com/2009/05/obama-announces-big-incentives-on-short.html
http://blog.frontdoor.com/blog/2009/06/16/foreclosure-fix-short-sales-offer-solution-to-flood-of-foreclosures/

Additionally, Just in from HomeServices Lending

http://www.bloomberg.com/apps/news?pid=20601087&sid=avAvJacs7UcU

Also , while I have your rapt attention I would like to mention that in addition to these Summer Short Sale emails you will also now be receiving  a weekly email recap of internal and external blog posts.  I think you all contribute some amazing information that I think everyone benefits from.  I would also like to share some of the following resources with regard to the HVCC – and how to fight the struggling appraisal process.  Scott Neitzel, President of HomeServices Lending, is making the rounds to office meetings to discuss this and more acronyms that will drive you crazy.  Scott will help you navigate the alphabet soup that has become the mortgage process.

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2009/06/open-letter-from-a-la-mode-chairman-reversing-the-damage-done-by-the-hvcc.html
http://www.realtor.org/hvcc

And thanks to Lisa Lajes Rosen for sharing this one on facebook
http://leadpress.com/legislation/hvcc-update/

Enjoy the summer reading!  You all are going to have fun while learning in Summer School by email.  See you next week.