Posts Tagged ‘short sales’

Short sales: read the fine print

Sunday, February 28th, 2010

Negotiating a short sale does not end at the price. Increasingly, more lenders are requiring sellers to pay back some of the loss absorbed in a short sale. Before signing a short sale agreement, sellers should take notice of any mention of a required payback. Lenders may consider removing such language if pushed back by the borrower. It’s still in the lender’s best interest to accept a short sale now than go through the expense of a foreclosure later.

DHW asks: Have you successfully sold your home as a short sale? If so, did you sign a promissory note for any part of the loss absorbed by the lender?

Debate lingers: are short sales becoming easier?

Tuesday, January 5th, 2010

The Orange County Register published a great article addressing short sales. In the article, real estate agents debate whether they are seeing any improvement in the way lenders process short sale requests. The article also highlights some benefits and pitfalls for sellers involved in short sales.

DHW asks: Do you think short sales are becoming easier?

Critics be damned. Home sales up, prices down

Tuesday, November 10th, 2009

Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.

Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.

NAR chief economist,  Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.

DHW asks: Do you see a bottom to the housing market?

Fannie Mae expands ‘Deed for Lease’

Thursday, November 5th, 2009

Fannie Mae is expanding its ‘Deed for Lease’ program to help thousands of homeowners facing foreclosure. The program is designed for those who want to stay in their homes but do not qualify for President Obama’s loan modification program. Participants transfer their title to Fannie Mae and rent back for up to one year.

Some facts about the program:

  • Fannie Mae has hired an outside agency to manage the properties (name of agency has not been released)
  • Rent cannot exceed 31% of the homeowners’ pretax income
  • Homeowners must be able to prove they can afford the market rent (established by the management company)
  • Participants must use the home as their primary residence

DHW asks: Do you think ‘Deed for Lease’ is a good idea?