What are short sales and how do they work for a homeowner in hard times? This will help to understand more about the short sale and how it works. It can be a long process to go through for the buyer and the seller of a short sale. The home owner and the bank both have to agree on the price that is being offered for the home. The bank does not have to get back with you ( the buyer) until they are ready to do so, that could be months down the road.

Going through with a short sale usually causes a great deal of stress because it means that a person can no longer afford a property in which they own. There are a few different ways to get out of ones commitment to between the bank and the property, including bankruptcy or foreclosure, but many people are now choosing short sales because lenders have become more open to them. A short sale means selling a property for a lower price than owed on it and the lender agrees to waive this remaining amount. If one is forced to unload one’s property in a hurry, the best thing to do is learn as much as possible about this process then contact a local agent before once the smart decision is made to. What it Means

When a lender agrees to a short sale, it means that it is accepting less than what is due on the property. In some cases, it might make more sense to foreclose the property and attempt to resell it, while in other situations; it makes more sense to go through with a short sale. The lender will agree to whichever methods gets it most of its money back. In addition, one must qualify for a short sale before the lender will even consider this proposition.

The Process

To begin the short sale process simply contact the lender/ servicer and speak with someone who can make a decision on the matter. A letter of authorization will need to be submitted to the lender, so that the lender can look into ones personal information to ensure that one is eligible for a short sale. As with any form of asset and property management, the lender has to look at the borrowers financial situation before coming to a conclusion. One must have a real estate agent provide a preliminary net sheet, which will give the lender an estimate of how much to expect to receive on the sale and, therefore, how short the amount received will end up being.

Making the Decision

In the end, it is always a good idea to have the short sale handled by a real estate agent  well versed in short sales. Short sales are only a good idea when this becomes absolutely impossible due to significant income changes in one’s life. These things do happen to people occasionally, so it is good to know that an option is available that can allow one to escape this burden under the right circumstances.

Beginning November 1st, 2012, these are the changes:

Lenders will now streamlined short sale approach for borrowers most in need.

Lenders will now have the power to quickly and easily qualify certain borrowers who are current on their mortgages for short sales:

Lenders will waive the right to pursue deficiency judgments in exchange for a financial contribution when a borrower has sufficient income or assets to make cash contributions or sign promissory notes.

Offer special treatment for military personnel with Permanent Change of
Station (PCS) orders:

Consolidate existing short sales programs into a single uniform program:
Provide servicers and borrowers clarity on processing a short sale when a
Foreclosure sale is pending.

• Fannie Mae and Freddie Mac will offer a maximum $6,000 to second lien holders to expedite a short sale.

California has been hard hit so they are trying to speed up the process of the short sales. Maybe it will help so that there are not as many foreclosures where there have been so many already.

Deanna, D&D Taking Out The Trash, LLC

According to Michael Lombardi, financial expert and lead contributor to Profit Confidential, the housing market recovery, just like the rest of the so-called economic recovery, is fake. Lombardi reports that investors are propelling the housing market, not would-be homeowners, and he believes this makes a big difference.

For there to be normal recovery in the housing market, Lombardi claims that the number of first-time homebuyers should be increasing. He notes that these homebuyers need to be buying a house to live in, rather than to simply renovate, rent, and flip—not speculation.

In the article “What My Real Estate Agent Showed Me Last Week,” Lombardi reports that first-time homebuyers accounted for 31% of the purchasers in August—compared to 34% in July and 32% in August of 2011.

“If lowering the mortgage rates to boost the housing market was the plan, then it is achieved. But the participation rate of first-time buyers is going the opposite way,” says Lombardi.

Lombardi believes that for there to be a healthy recovery in housing market, first-time buyers need to enter the housing market with borrowing. Instead, he notes that the opposite is happening—many all-cash transactions by investors buying homes to rent them.

Lombardi reasons that the demand in the housing market looks to be increasing, because investor and private equity firms are buying foreclosure homes with cash—then they simply rent the homes for a higher return than they are paying on their invested capital.

“From the looks of it, the ‘bounce’ in the housing market is not very convincing,” concludes Lombardi.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

With the track record of the profit Confidential, they are good to listen to.

If it is all fake then what can we trust.

Deanna D&D Taking Out The Trash, LLC

Winter time is a little slower in parts of the country for foreclosure work. Do you need to add to your work load to make end meet? Then you might want to work with real estate agents ( have clients that need help cleaning before they sell or before they move in.), homeowners that are buying/selling, renters and landlords- they have people that are moving out/in.                     
 
If you add them to your list of client then you have a steady income coming in. You can get repeat business from them as well. Cleaning the place from top to bottom so it is clean for the people moving out/in.  If someone is packing up to move then they do not always have time to clean before they leave ( home owner or renter.) It can take some of the stress off of them if they do not have to spend the time cleaning up as well.  

Real estate agents can recommend you to the people that are buying/selling. Landlord want the rental unit clean for the next person that is moving into it. This can add up to be a good amount in you wallet by helping them to get things cleaned up.

Deanna
D&D Taking Out The Trash, LLC