Short Sales may soon be a thing of the past. THe EEAS has placed emphasis on loan modifications.
I have posted a letter written to my local representative outlining the concerns. Please feel free to take this letter and send it forward to your congressman.
http://www.house.gov/apps/list/press/financialsvcs_dem/press092808.shtml
Honorable John Porter,
Sir,
Thank you for your continuing efforts hard work and long hours. Not only with the EESA. Also your service to the Henderson community.
I am hoping for this letter to be as visible as a beacon on the sea of financial turmoil we find ourselves in. I address these as a 16 year Veteran Clark County Realtor who specializes in every aspect of protecting homeowners in financial distress.
A number of concerns that aren't readily apparent.
- Loan Modifications: The hope department currently runs 3-4 weeks in returning phone calls. I expect a ‘run' on loan modifications.
- Loan modification companies are springing up across the states, No current regulation is in force, similar to the foreclosure rescue scam companies. The going rate is approx $3000 to $3500.
- Many homeowners are going to abuse the loan modification assistance. A simple example would be a homeowner could cause self inflicted financial distress through perhaps a spouse getting fired, showing a decrease in income and qualifying for a lower mortgage rate. I can supply you with many other scenarios.
- Modified loans will cause an influx in rental properties.
- Modified loans will cause an increase in ‘land contracts' A.I.T.D and other forms of creative financing.
- Short Sales (not the traded) deficiency sales will become obsolete. (Currently 31% of the residential properties marketed for sale are being sold short) Mtg lenders will have no incentive to participate, allow the debt to go bad and hand it off. Foreclosures will increase for the foreseeable future.
- The availability of funds to stimulate the housing market will be misappropriated and focused on commercial lending.
- Section 104 E.E.A.S . This appears to be self regulatory. The Secretary has to oversee himself.?
We are a group of highly seasoned real estate agents, who have been watching the developments and blogging on this outcome for over 2 years. We believe we have valid preventative measures. If we can be of any assistance please don't hesitate to call upon us. We are concerned for our community, our country, and our democracy.
I remain your humble servant,
Chris Giddings
702-481-3683
Realty Executives of Nevada
2855 St Rose Parkway
Henderson 89052
I encourage you all who have read this far to take personal leadership, the link towards the top will also take you to your local Representative. cut and past this in a word documents change it up to your personal tastes. this was written just to get you started. If you have already taken action please excuse my fervor.
Chris
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