Special offer

Getting Though The Tough Times ~ Loan Modification Versus a Short Sale!

By
Real Estate Agent with The Address Realty BRE#01299346

I specialize in short sales and helping Sellers in hardship. It is a complicated thing we do when we help a seller with a short sale. The seller must own the decision to do a short sale and be confident that this is the best solution for their situation. As the short sale agent, you must be confident that the seller has researched and is knowledgeable about their alternatives and the consequences of their decisions.

You cannot give them legal advice although you can send them to reliable websites and advise them to seek legal and financial advice. You must see if a loan modification can work for them prior to doing the short sale.

The Banks have very different policies regarding loan modifications.

Well Fargo has a plan that offers a reduction of the loan principal balance by 20%; a low-interest only rate for 5-10 years based on the clients financial situation; and forgiveness of past due amounts. They do add a number of legal fees and the impound accounts on the back-end of the loan. What is the criteria that they use to determine who is eligible for this loan modification?

Saxon Mortgage will offer the client a reduced interest-only option but no principal reduction. In the current market here in Redding, California, that would not be helpful to the client. It is like asking them to take the guillotine rather than commit Hari Kari. We've lost over 50% in market value in the past four years. To remain in a home with a loan for $575,00 when the home is only worth $250,000 and make payments of $2000 a month would not be a wise decision.

While Well Fargo has offered a small number of clients the option to weather the storm and remain in their homes, what we really need to see is a wider application of this program. Each bank offers some type of loan modification under any number of names. Bank of America while saying they have a program to help the seller keep his home, when called and given the particulars we were advised that no program exists for our circumstances.

What makes up the criteria to make that determination.  In the Saxon Mortgage case, why would Saxon not choose to keep the seller in the house when the short sale will produced the Buyer and a new loan of the $250,000 which is market value. Saxon saves money by keeping the seller in the home. HELLO! Is anybody out there doing the numbers? WHY would they choose to make a bad financial decision?

Bank of America has a choice to keep the current seller in the house at market value or take the additional loss of paying for the short sale with the same net result. The bank will have to pay closing costs and commissions and some legal fees to get the short sale done. Why does this not make sense? It is a losing proposition. If banks are all about the bottom line, well why are we having this discussion (sorry....rant).

I would love to have someone explain to me why such common sense does not prevail and why we live in this current surreal world when making simply choices could make the real estate industry whole again. Of course, that does not even touch on the real value of a new point of view and perspective by the banks on this better course of action. It's a good business decision and those people who recover from this current situation will remember who did good business.

It won't be Saxon Mortgage or Bank of America.

I am Jeanean Gendron, your Redding and Shasta County Specialist. You can reach me at 530 276-7417. I answer my phone. Visit our website and The Shasta Lifestyle blog to learn more about real estate and living here in Redding and Shasta County.

Posted by

Jeanean Gendron - Specializing in Marketing and Selling Unique Properties--We love where we live and work and we love our listings. This is why we specialize in marketing and selling unqiue properties that have been developed to the highest and best use of the land.

 

It is a priviledge to market a well developed property that promotes a lifestyle Buyers are looking for. It's not really about a price range but about the lifestyle and the Buyer who will find that it has value. MARK IT SOLD!

 

Jeanean Gendron

 

Specializing in Marketing and Selling Unique Properties

 

866 441-0078

 

Learn more about how we market and sell our listings:

 

Marketing the Land - Marketing the View - Marketing Luxury - Marketing Lifestyle

 

SELLERS: FREE MARKET VALUATION--If you are looking to sell your home in Shasta County, CA or in the Redding CA area, we specialize in marketing and selling unique properties. We SELL our listings. With a pervasive web presence (15+ websites/blogsites) we are able to target specific Buyers interested in your property. With the right price point, beautiful marketing and by knowing who our Buyer is, we are able to sell all our llistings. We provide the Buyer with the tools, information and knowledge they need to identify and buy the right property here in the North State. We have Buyers contacting us to relocate to the North State daily.

 

We target the local, regional, national and international markets.

 

MARK IT SOLD!

 

 

BUYERS: If you are looking to relocate to the North State download our free RELOCATION GUIDE. It has local demographics and photos of the beauty of the surounding areas. We love living and working here in Shasta County, California. We are photographers and so we share the beauty with you. We also provide you with a FREE MLS ACCOUNT for ALL ACTIVE LISTINGS IN SHASTA COUNTY, CA. You are able to save searches and receive email notice for new listings. Real time data that helps you understand the market values in Shasta County, CA.

We call it Living The Shasta Lifestyle!

 

Featured Listings - Redding and Shasta County Real Estate Resource - How Much Is My Home Worth ~ Search all Homes in Shasta County -  Dream Home Finder - Search for Schools in Redding and Shasta County

Jeanean Gendron

DeliciousDiggBlip.tvFlickrStumbleUponTechnorati

TwitterFacebookLinkedInYouTubeRSS

Visit our main real estate website that provides you with the ability to Search the MLS and to set up A FREE MLS ACCOUNT so that you can save searches and select favorite properties. See all Shasta County MLS Listings in real time. I also have many saved searches for unique properties (ranch, views, river, acreage).

 

There are saved City Searches and Community Searches for all of Shasta County.

 

 The Shasta Lifestyle is our blog site where we showcase our photography and the beauty of the North State and why you want to live here.

 

Here are my websites/blog sites:

 

REDDING COMMUNITIES

Redding Real Estate Ramblings

 

LUXURY HOMES

Redding Luxury Homes

 

RESALE OCHOA & SHEHAN HOMES

BelAir EstatesCrown MeadowsSummerfield Meadows

New Homes Shasta County

 

All Rights Reserved © 2014 Jeanean Gendron

Comments (0)