This really is a stunning story
that there aren't more protections given our military personnel.Â It is
an obvious hardship when they get called away to active duty.Â I don't
know how the banks should be dealing with this, but it doesn't seem
right that they get foreclosed upon in this situation.
Perhaps there's a way to somehow suspend the payments or put them on the back end of the mortgage.
The new Consumer Financial Protection Bureau has stepped in and asked the banks not to foreclose.
Visit Short Sale Minnesota or John Murphy Reports for more information.
Andrew Jeffrey from Minyanville and published on Yahoo! Finance had an excellent piece worth considering for all of those thinking about buying and/or selling residential real estate for your personal residence or for an investment.Â (I know, I'm biased as I sell real estate, but the news has been so bad for so long, can you blame me for posting something so positive?).
Mr. Jeffrey elaborates on each one of these points, but for those of you in a hurry, here are his main points:
3. Pent up demand among young adults.
6. Higher rents and low interest rates.
7. A booming apartment market.
8. Investor appetite remains strong.
9. The stock market.
He offers good insight on each one of these items.Â For more information like this visit me at JohnMurphyReport.com.
Two credit rating agencies came out with reports today that state
there are likely to be record foreclosures in 2011 even after the record
year that was 2010 according to this story running on Housing Wire.
S&P expects it to take 49 months at this point to clear the market of foreclosures and short sales.Â 4 years is a long time.
If you're struggling with your house payments, there is help and the
opportunity to get out of your house with a short sale.Â Every person's
situation is different.Â Contact us to see if we can help.
Often times upside down homeowners will be hesitant to even contact a real estate agent because they don't have the money to pay the commissions if they were to sell their house.
In a short sale, the banks pays the real estate commissions and closing costs
associated with closing the sale provided they approve the short sale.Â
There are some expenses the banks typically won't pay such as water
bills, utility bills and HOA (homeowners association fees).Â They also won't pay for home warranties.
Now I say all of this with the caveat that we are seeing more and more people pursue short sales
but they are employed and they still have some cash.Â Sometimes the
banks are requiring those people to come to the table with some cash and
they may also ask them to sign a promissory note for a specified amount at zero percent interest or a very low interest rate.
So if you're concerned that you don't have the money to pay the real
estate commissions don't worry.Â The biggest issue is to help you figure
out what to do with your house.Â If it's in your best interest to do a
short sale, than get going with the short sale.
I've heard from more than a few sources that short sales are expected
to continue to rise in 2011 and beyond.Â Some are saying that short
sales will overtake foreclosures.Â I'm not sure that will happen in 2011
but it makes sense why the banks would want more short sales and fewer
Here's a link that shows the top states in the U.S. for short sale transactions.Â Minnesota is not one of them, but they are growing in this state.
Related ArticlesComing Soon: A 300-Percent Increase in Foreclosures
Struggling home owners need to get their heads around the impact
their housing financial crisis will have on their future ability to get a
Fannie Mae is the 800 pound gorilla in the secondary mortgage
market.Â They drive everything.Â They continue to stress the need for
home owners to pursue other options besides foreclosure.Â Basically, if
you go all the way through foreclosure, it's likely going to take 7
years again to get a mortgage.Â If you pursue a short sale or
deed-in-lieu (DIL) you might be eligible 2 years after the completion of
that action.Â Bankruptcy is 4 years.Â Click here for the most recent Fannie Mae guidelines.
It's worth noting that bankruptcy seems to have less impact than a
foreclosure.Â Many people end up pursuing bankruptcy at some point
during the short sale process - not everyone, but many do.Â Sometimes
home owners will pursue bankruptcy after they get an approval from the
bank, but they won't release the seller's obligation for the debt owed.Â
At that point, depending upon the seller's circumstances, and with
competent legal advice, they may decide to have the debt discharged
Has the National Association of Realtors lost their power and
influence?Â President Obama announced lots of new initiatives,
strategies and reorganizations, but there was no mention of helping
housing except perhaps to consolidate 5 government agencies that have
some involvement in housing.Â Don't get me wrong, I don't think there
should be any new initiatives for housing other than figure out what to
do with Fannie Mae and Freddie Mac which are still big problems that at
some point will have to be addressed by our lawmakers.
One of the things the National Association of Realtors could do is to
encourage a change to accounting rules and allow investors to be able
to accelerate their depreciation for investment real estate.