short sale: “Should I Buy a Short Sale?”
- 12/21/16 06:07 AM
“Should I Buy a Short Sale?”
Hi Joe, I am looking at a house which is up for "short sale". Would we be able to do the same type of transaction/loan as last time with a house on short sale? Why do people do a short sale? Is it to their advantage? Is it like bankruptcy?
Ruth
I couldn’t understand that the Realtor did not adequately explain the answers to these questions. I decided to call my clients to listen to what they had been told.
These clients have an opportunity to purchase a home at a very good price and it is a … (12 comments)
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short sale: “This is Really Wrong”
- 08/02/15 11:22 PM
“This is Really Wrong”
When loan officers just don’t know their guidelines it makes all of us in the mortgage business look foolish and stupid.
The guideline clearly states that if someone had a foreclosure, they have to wait 3 years before FHA will allow a new loan to be done. There are also other criteria, but one should have stopped all that was going on.
What I did not understand is there were two different preapprovals, a mortgage application, a home inspection, an appraisal, lots of wasted time and money.
You would think that a large lender like this would do a … (29 comments)
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short sale: “Are Your Clients Checking You Out on Linkedin?”
- 08/02/15 10:50 PM
“Are Your Clients Checking You Out on Linkedin?”
I promise you they are, so are you sharing your message? If not you should be. Here is an example of an email that I received that demonstrates this point:
I have been reading your blogs on Linkedin for some time, read many of your recommendations very impressive. My sense is, you may be able to help me.
My wife and I had a short sale about a year ago, the event was traumatic as you can imagine. I told her that I was going to reach out to you, but she is extremely embarrassed … (40 comments)
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short sale: “Realtor Referral Didn’t Think Anyone Would Give Them a Mortgage”
- 09/30/14 10:29 PM
“Realtor Referral Didn’t Think Anyone Would Give Them a Mortgage”
They called saying that they spoke to a Realtor in the grocery store and she suggested that they stop by and see me. They called asking if they could stop by, which they did.
I listened to the STORY, but so far I didn’t understand the problem. They did a short sale 4 years earlier and they were paying $1450 for a 3 bedroom ranch. They were right up front, saying that they didn’t think anyone would be willing to give them a mortgage.
Their mid … (30 comments)
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short sale: The Challenges of Paying Off a Private Mortgage
- 07/17/14 05:31 AM
“The Challenges of Paying Off a Private Mortgage”
Many turned to alternative ways to purchase real estate after experiencing a foreclosure, short sale and bankruptcy. Many have found lease option opportunities and others have found owners that were willing to hold the mortgage.
Alfred contacted me last year to refinance his existing mortgage, the immediate problem, he paid the payments in cash and had below average credit. I let him know, paying cash for his mortgage payment could not be done any longer, all payments by check.
He had one charge card with a spending limit … (22 comments)
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short sale: Yes, We Will Take a Deed in Lieu but You can't Immediately Buy Another Home
- 06/10/14 11:02 PM
“Yes, We Will Take a Deed in Lieu but You can't Immediately Buy Another Home”
I got a call from folks that were referred by one of their kids. She told me that she and her husband had been discharged from bankruptcy 4 years ago and deeded their current home to the servicer last month Now they wanted to get preapproved for the purchase of another home.
I told her the discharge from the bankruptcy part was fine, but they couldn't get a mortgage until May of 2017, 36 months past the deed in lieu of foreclosure. I … (15 comments)
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short sale: “Even After Bankruptcy, Banks Cause Much More Harm”
- 03/03/14 03:19 AM
“Even After Bankruptcy, Banks Cause Much More Harm” When someone goes through bankruptcy and there is real estate included, the ability to be able to get a mortgage in the future has many variables. The shortest distance between two points is usually and FHA mortgage. There are some basic guidelines. There are a number of variables that I will not get into this post, but as mentioned here are the basics: 1) You must wait 2 years after the BK. 2) You must have re-established credit, preferably 3 accounts that show up on the credit report and a minimum … (52 comments)
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short sale: “Many Foreclosure Firms Say the Debt Relief Act not being Extended, is Causing More Foreclosures”
- 02/17/14 09:44 PM
“Many Foreclosure Firms Say the Debt Relief Act not being Extended, is Causing More Foreclosures”
In the last few days I have had conversations with three foreclosure firms and all said the same thing, there are already more foreclosures being started and continued mainly because it is anticipated that the bill may not be extended. That is hard for me to believe, but maybe the banks and attorneys know more than we do.
Lenders and servicing companies would much rather see the short sale process continue instead of ramping up the foreclosure machine again. The foreclosure process takes … (13 comments)
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short sale: “Short Sale Just Blew Up”
- 02/10/14 09:36 PM
“Short Sale Just Blew Up”
I have had a mortgage application pending for 3 months. Normally when a transaction doesn’t move forward, it is usually the note holder or the servicer not agreeing to accept the dollars they would be receiving.
In this case the actual seller backed out of the transaction because of the possible tax consequence. Since the Debt Relief Act expired 12/31/13 and there is no guarantee that it will be extended, the sellers felt they couldn’t take that chance.
This is the second time this week that this issue has shown … (27 comments)
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short sale: “Why We Need Larger and Smaller Lenders”
- 02/08/14 10:10 PM
“Why We Need Larger and Smaller Lenders”
Being a mortgage broker, we are fortunate to be able to do business with some of the largest lenders in the country and also some of the smaller lenders.
Some of these lenders will focus on niche loan products like loans down to a 540 credit score, some will do mortgages for borrowers that own multiple properties (up to 10), jumbo loans up to a million—90% loan to value with no mortgage insurance, homes with large amounts of acreage, farms, mortgages for borrowers 12 months after a short sale, odd year mortgages like … (19 comments)
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short sale: “Why are they Called Short Sales, when they really are Long Sales?”
- 02/06/14 08:24 PM
“Why are they Called Short Sales, when they really are Long Sales?”
In the last two years I have purchased 2 short sale properties and one currently on deposit. The two that I purchased took 10 months and 8 months respectively to close. The one currently on deposit I got the signed purchase agreement 7/7/13 and who knows how much longer or even will it close. Not sure what is to decide as there are no contingencies?
Being an investor, it really doesn’t matter to me, but how about clients that I am doing mortgages for? Some of my … (40 comments)
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short sale: “I Am Seeing More Short Sales being Accepted”
- 11/26/13 10:27 PM
“I Am Seeing More Short Sales being Accepted”
Two of my clients have gotten their bids accepted and just got one accepted on a purchase that I am doing as well. Maybe it is just me, but I am seeing more urgency.
In all these cases the transactions are all closing by the end of the year. The current importance is that the current debt forgiveness act expires 12/31/13. As many of you know, I have blogged about this issue many times. If the debt forgiveness act doesn’t get extended, there is going to be fewer short … (15 comments)
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short sale: “Hunting for a House to Flip this Weekend”
- 11/10/13 09:01 PM
“Hunting for a House to Flip this Weekend” We looked at 8 properties over the weekend and ended up making three offers, two on short sale the other was bank owned. The last short sale I purchase took 8 months before the transaction closed. I’m never sure if I am going to get any or all of the properties. Short sale property number one was on the market at $69,900 for 61 days, my offer was $60,000. Short sale number two was on the market at $109,900 for 286 days, my offer was $80,000. The bank owned property is … (9 comments)
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short sale: “Should I Pay Cash or Get a Mortgage?”
- 10/15/13 10:29 PM
“Should I Pay Cash or Get a Mortgage?”
Greg wanted to buy a home that was on the market for $280,000. He sold his previous home 3 years earlier, which was a short sale, he got divorced 3 years earlier and was involved in a serious auto accident, again 3 years ago. 2010 was a really bad year him.
Between all these events his credit went in the tank, his credit scores were all in the 400’s. His question to me, can I get a $50,000 mortgage with those kinds of credit scores. The simple … (10 comments)
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short sale: “Bill in the Senate to Extend Debt Forgiveness for 2 Years”
- 06/24/13 02:52 AM
“Bill in the Senate to Extend Debt Forgiveness for 2 Years” In spite of increased real estate values, there is still a boat load of homes in foreclosure, about to go into foreclosure or are upside down and the owners need to sell for one reason or another. The present debt forgiveness bill is due to expire 12/31/13. If it is not extended, it will extend the real estate recovery a number of years. Homeowners will stop agreeing to do short sales and may choose to walk away or stop paying their mortgages all together. The short sale process … (12 comments)
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short sale: “Many Don’t Believe They Can Buy a Home”
- 06/14/13 09:37 PM
“Many Don’t Believe They Can Buy a Home”
I love when I get a call from someone that says, I don’t think I can buy, but my friends suggested I call you. I immediately ask, why they don’t think they can buy? Some of the most common reasons:
1) I had a bankruptcy
2) I have bad credit
3) I had a short sale
4) I had a foreclosure
5) I was unemployed
6) I got divorced
7) I don’t have much of a down payment
… (21 comments)
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short sale: “Home Ownership at Lowest Level Since 1995”
- 05/04/13 02:43 AM
“Home Ownership at Lowest Level Since 1995”
I keep reading about homeownership continuing drop. The only thing that makes any sense to me is the many homes that were foreclosed or sold as short sales and most of these folks have not yet “done their time” and can’t buy a home yet. Most of these want to own again and will continue coming back into the market.
Another factor that I keep seeing is the effect unemployment on housing. All the claims the current administration made about needing 4 more years to finish the job. What exactly does … (11 comments)
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short sale: “You Don’t Qualify, is What Many Potential Home Buyers are Hearing”
- 05/03/13 12:04 AM
“You Don’t Qualify, is What Many Potential Home Buyers are Hearing”
For first time home buyers, there are numerous reasons that we are seeing as to why they do not qualify for a mortgage. The number one reason that we are seeing is student loans. Other reasons, too much credit card debts, large car payments and issues with credit.
For Second—third time home buyers, the number one reason I’m seeing is credit. Credit as a result of a bankruptcy, foreclosure, short sales and collections accounts. Other reasons, over extended credit cards, loss of over-time and bonuses and … (13 comments)
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short sale: “Should I Short Sale My Home?”
- 05/01/13 10:37 PM
“Should I Short Sale My Home?”
I did a mortgage for Dianne a number of years ago, a truly raving fan and had referred many folks in the last few years.
Dianne told me that she wanted to sell her home, but was told that the value was less than her debt. I asked what she estimated was the debt, she said approximately $191,000. She told me the Realtor she spoke too, told her the property was worth $190,000. Did he do a Comparative Market Analysis (CMA)? She asked me what that was, which concerned me immediately.
… (18 comments)
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short sale: “One in Five bankers Feel Lending Standards Will Ease”
- 04/10/13 11:40 PM
“One in Five bankers Feel Lending Standards Will Ease”
A recent survey of bankers questioned about lending standards in the future. I don’t know about you, but one in five odds do not make me feel warm and fuzzy. We have all been hearing that lending standards are going to ease for the last couple of years. I have not seen any easing at all.
There are some that would say, easing lending guidelines is the reason that many are in trouble in the first place, actually that is true. The stupidity of some … (10 comments)
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“Should I Buy a Short Sale?”
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