| f Short Sales and Foreclosures = Great Deals for | | | | processing, leaving Realtors across the country |
| Patient Homebuyers | | | | complaining that lenders are often difficult to |
| Short Sales and foreclosures are reaching record | | | | reach, and sometimes only communicating by |
| levels in the U.S. as many homeowners are feeling | | | | infrequent e-mails. |
| the squeeze from the recent recession. Whether | | | | There is some good news for those considering |
| the reason for having to give up their home is | | | | purchasing a short sale property. A short sale |
| related to job loss and not being able to make the | | | | occurs when the lending institution agrees to let |
| mortgage payments, or the homeowner simply | | | | the home sell for less than the loan amount. This |
| realizing their property is worth far less than they | | | | process is much faster and less costly for the |
| owe on the mortgage and walking away | | | | bank, and saves the homeowner from having |
| (strategic default), the end result is the same; | | | | their property foreclosed upon. Traditionally a |
| there are some great deals coming on the | | | | short sale would still take a considerable amount |
| market!! | | | | of time to complete; however, the Obama |
| Foreclosure numbers have gone up 16% in the | | | | administration has implemented new policy that |
| first quarter compared to '09 figures and, | | | | should improve this situation. |
| according to the Mortgage Bankers Association | | | | A new program has been put in place to help |
| there approximately 5-7 million properties | | | | accelerate short sales and Mark Zandi, Chief |
| currently eligible for bank repossession. For many, | | | | Economist at Moody's Analytics, predicts 350,000 |
| this spells doom and gloom, but for the fortunate | | | | homeowners will take part in the program over |
| (or lucky) portion of the population who are less | | | | the next couple of years. The program provides |
| affected by the economic slump, this spells | | | | the homeowner with cash incentives for moving |
| opportunity. | | | | expenses, encouraging them to choose this option |
| Although the deals are great, purchasing a | | | | over just walking away from their home. Another |
| property that has been foreclosed upon is not as | | | | component to this program is that mortgage |
| straightforward as buying a regular home. The | | | | companies will have to set a minimum price |
| biggest difference being the time it takes to close | | | | before the house is listed. This will speed up the |
| the deal. Buying a home from a lending institution | | | | process considerably compared to the past when |
| is usually frustrating and time consuming, | | | | lenders would not begin calculating what they |
| sometimes taking upwards of a year to complete | | | | would take until they had an offer in hand. |
| the sale. Once the decision has been made to | | | | So, if you have the resources and the patience to |
| purchase a new home, most people would like to | | | | buy a foreclosure or a short sale you will definitely |
| get the deal done and be moved in as soon as | | | | (and sadly) have plenty of great deals to choose |
| possible. If considering purchasing a foreclosure or | | | | from and hopefully, with the new policies in place, |
| short sale, you better have a lot of patience. The | | | | the process will not be as trying as it has been in |
| reason for the time delays is the increasing | | | | the past. |
| numbers of foreclosures the banks are | | | | |