Archive | October, 2011

What Is A Short Sale Property

October 20, 2011

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short saleA short sale property is a home that being sold for less than the current amount owed to the mortgage company or lender. A home is normally sold in a short sale if the owner is no longer able to pay their loan which can be caused by various reasons. These can include, death, health concerns, divorce, job loss, etc. These reasons are always extreme life changing reasons that can vary between lenders. The lender must always approve the short sale, the owner can never choose to sell in a short sale without the approval of their lender because they always have final say.

A short sale is also an alternative to foreclosure and carries fewer negative consequences. Lenders would prefer to sell a home in a short sale rather than foreclose in the current housing market. Banks are sitting on many properties they are having difficulty selling and taking a small loss for immediate gain is an attractive offer. It’s also better for the seller but they would need to be proactive about the process because it can be time consuming. Getting started as early as possible is the best decision a seller can make if they are considering a short sale.

You can find more about short sale vs foreclosure on this page.

Buying a short sale will be similar to purchasing a property in the traditional manner but with slightly different terms. The person selling the property will always need to get final approval from their lender so this can slow down the process considerably. The process can be very long at times with many setbacks but if you have the patience to work through the complications you could walk away with a nice property with a hefty discount.

Another way that short sales differ from the traditional is that these properties are sold ‘as-is’ meaning that any repairs or concerns about the property that emerge will generally not be given attention. Major concerns will normally be addressed but the smaller items that would normally be taken care of will be left up to the buyer to handle. This is one of the costs of buying a short sale property. This is not always such a bad thing considering someone selling via a short sale will still be living in the property ans thus maintaining things as opposed to a foreclosure where the owners may trash the place before being evicted.

Overall short sale properties can be very enticing due to the discount but you need to be extra cautious and be prepared to wait a long time for the process to complete. Banks can be fickle with the price and some sellers might try to entice potential buyers with a lower price point before getting approval on that price from their lender. This can cause a huge delay if the bank never approves a price. Always have a complete inspection done and hire an agent who specializes in short sales which can help avoid any of the pitfalls that normally come up.

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Look Into Loan Modification Before Opting For A Short Sale

October 2, 2011

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Did you know that you can modify your mortgage loan? Many people are looking at loan modification in addition to exploring the short sale option. Being able to afford a mortgage in todays terrible economy is becoming increasingly difficult. Your current mortgage payment may no longer be affordable while at one time it was very affordable to a majority of homeowners. If you are one of the unlucky homeowners who can no longer afford your mortgage then loan modification was created to help you reduce your mortgage payments so they fit into your budget.

The entire idea around loan modification is to reduce your monthly payments by lowering your interest rate. It’s good to keep your monthly payment around 30% of your monthly income and loan modification can help you achieve this goal.

If you are interested in possibly keeping your home then you should take a look at loan modification. Here are some examples of reasons why a loan modification would be good idea for you:

  • Due to the economic downturn, a majority of ┬ábusinesses have suffered extreme losses while having to layoff employees or cut their salary significantly. If you could once afford your current mortgage but have suffered financial hardships due to the economic troubles ┬áthen loan modification is a great idea.
  • If you have high interest rates, you need to look into loan modification to bring those interest rates down.
  • If you have been paying down your mortgage in a timely manner you don’t want to lose your home. Loan modification can reduce your monthly payments, easing the financial stress on your bank account.
  • Through a loan modification you can avoid losing your home to foreclosure or having to sell in a short sale.

One of the downfalls to loan modification is the steep learning curve. The last thing you will want to do is hire someone to help you complete a loan modification when you are already struggling with financial stress. Luckily for those of use who like to do things on our own, a great program is available for purchase.

This program includes a 96 page guide with a fantastic 40 minute DVD that will explain everything you need to know about the loan modification process. It includes sample letters you would need to send to banks, complete checklists for everything involved start to finish, and detailed instructions to get you from the beginning to the end.

It includes explanations of the law for all 50 states. This really is a great program that can save you money and time spent searching all over the interet for the information you need. This is a one stop shop to get your home loan back on track. Avoid foreclosure, avoid a short sale. Check out this home loan modification program now.

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