Posted by: Meena Gujral | June 29, 2010

New Alterations in Short Sales

It is projected that about one in every ten properties will fall into short sales this year. Having a property dropping into this category is crucial for homeowners, lenders and real estate professional. This is the reason why it has become a fact of life that all of them are keeping on real estate service professionals.   

Most homeowners would want to benefit from loan modification to cope with the current status of their property. However, most of them don’t have sufficient fund sources to qualify under the Making Home Affordable program. Present debts that have long been standing on the racks scheduled for payment every month can also add to the homeowner’s crisis. 

What are most people doing about it? Most homeowners tend to turn to foreclosure. But this has been not an attractive option to lenders. Lenders would rather have homeowners choose short sales instead of foreclosing their property most of the time. The property would then have to be priced at an amount much lower than the total amount loaned from the lenders. This is a far better option for banks than having a property foreclosed even if it may incur losses from short sales. Banks prefer cash at a much hastier period than owning properties which requires much longer time before it can finally be converted into monetary assets.     

 However, the process involved in it can be very long and burdensome for the people concerned in the transaction. At an average, short sales take as much as 3 to 6 months but at some cases, it can take up to 8 to 10 months of your time. This is one of the reasons why most people squirm when they hear about the possibility of going through short sales. 

 There are new things that can bring about better days in the real estate business. Say, beginning April, 2010. There is a forthcoming hope in the real estate transaction in the form of the newly issued guidelines of the Home Affordable Foreclosure Alternatives Program. These new guidelines are expected to restructure the process and decrease the lender’s dilemma they have long been suffering.

 With all this said, here are the recent changes in the short sales guidelines we’ll all be happy to know about. 

  1. Sellers and real estate professionals will enjoy the amount of time they can save from now onwards. This is because of the pre approval of short sale terms prior to the listing of the property. The lender will also be informed of the minimum proceeds they can get from the sale of the property even before it is listed.
  2.  It will only take ten days to approve or disapprove a short sale request. That is a lot of time reduction for all the parties involved. Significant reductions in paper works also bring current short sales troubles to an end. 
  3. Loan servicers will now be disallowed to oblige cuts in the commissions intended for real estate professionals. That’s a lot of money you can keep for yourself. 
  4. Home owners will be provided with $1500 relocation assistance for every short sold property. That’s a big help for people who are about to lose a home. 
  5. The program also requires the borrower to free the homeowner from future liability for the first mortgage debt. This again is much better than having your property foreclosed and a ten-year credit liability. 
  6. Mortgage servicers will also be given $1000 for every completed short sale transaction as financial incentive. 
  7. All these can be enjoyed by everyone involved in the transaction provided that the property is the homeowner’s principal residence. The homeowner must also be either proven delinquent or have shown a relative incapacity to pay the debt in the forthcoming years.

 If you are looking to for a short sale or foreclosure property or need to sell your home as a short sale, I can help you. I have a 100% success rate in closing all my short sales. For a list of homes for sale in Mission San Jose Fremont or the Mission area in Fremont, please call Meena Gujral from Help-U-Sell Achievers Realty at 925-425-9491. You can also go to my website at:

 http://www.helpusellachievers.com

To see my Real Estate Blogs click: 

Castro Valley Homes Blog

Fremont Homes Blog

Meena’s Pleasanton Blog

Five Canyons Homes Blog

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