Many home owners feel overwhelmed by financial debt. Their homes represent the biggest payment they have to deal with each month.
Financial stresses cause people to consider foreclosure. There are other options available to you. If you have an interest in exploring how a short sale option can benefit you, feel free to contact me or Nick Goglucci.
According to CitiGroup banking experts, the government solution to the foreclosure crisis in America have been ineffective at keeping American homeowners in their houses - and they fear lenders could foreclose on 8 million homeowners as the economy worsens.
Forclosures are not the solution to the American home owners, there are viable other solutions that are will eleviate the burden of forclosure - loan modification and short sales.
Loan Modifications have had a major push by the Obama Administration - but only about four percent receive long term mortgage success - not a great success story but more needs to be done to reform the loan modification process as well.
The National Association of Realtors reported that there were almost 500,000 short sale transactions in the United States in the last year alone.
Lenders are now realizing that short sales are the better option for all concerned parties. Banks previously made it increasingly difficult for borrowers and realtors to complete the short sale process, and it seemed like they were placing one road block after another to avoid or post pone the short sale transaction.
While Frustrations abound on all sides - the banks who created this frustration - are deciding it is in their best interest to complete the short sale process.
The Obama administration is now also pushing for short sale reform and are pushing for short sales to be the alternative to foreclosure - the Treasury Department recently laid out guidelines to lenders and servicers of short sale transactions:
U.S. Treasury Department set guidelines for the Short Sale process
that will go into effect April 5, 2010.
- The new Short Sale Guidelines are: Mortgage servicers have 10 days to accept or deny a short sale request. After a sale is completed, the borrower could be completely released from debt.
- Borrowers are eligible to receive a $1,500 moving allowance, if they sell their home through a short sale. Mortgage servicers will receive $1,000 for each completed short sale.
- Investors who hold first mortgages can get as much as $1,000 for allowing second lien holders to release their liens. A lien is a charge against a property that makes it security for payment of things such as a mortgage, debt or taxes.
- Second lien holders can get only as much as $3,000 in proceeds from short sale to release their liens.Realtors should be well aware of this short sale phenomenon and educate themselves in the short sale process - For It Is The Norm In Real Estate For Years To Come In America!If you find yourself in the unfortunate predicament of either a loan modification or short sale solution -Call me for further information - there is help - do not despair -
Nicholas Goglucci, PA., CRS
Certified Residential Specialist
Certified Luxury Home Marketing Specialiste-Pro Certified
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