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Short Sale Update 7-2-10
Posted on 02. Jul, 2010 by ctlms in Foreclosures, My Blog, News, Real Estate, Short Sale
The Good the Bad and the Holiday
In this issue I have a few industry updates.
The Good
1. President Obama today signed into law the extension to the closing deadline for the first time home buyer tax credit extending the deadline to the end of Sept that were under contract by 4/31/10. According to NAR this will save nearly 180,000 buyers from the losing the credit due to financing and short sale review delays.
1. Short sales still prove to be a better alternative to foreclosure for the lenders bottom line. According to a resent RealtyTrac report Short Sales net and average 19% higher return to the lender than foreclosure. Short sales averaged sales prices of 15% below market value while foreclosures net 34% below market value usually due to the deteriorated condition of the property after it has been foreclosed and vacant for some time.
The Bad
1. Pending home sale tumble 30% in May. That's right, in the month after the first time home buyer credit expired, pending home sales dropped 30%. This shows just how important this incentive has been to the real estate market. Keep in mind though that some of May's sales we stolen by April by buyers trying to meet the deadline.
2. So far we have seen virtually no change from the implementation of the HAFA short sale process. In fact of the 70 short sales we are current negotiating, only 2 qualify for HAFA. The biggest reason is that FHA, VA and until just a couple weeks ago, Fannie Mae and Freddie Mac loans did not qualify. Fannie and Freddie do now participate in their own version of the HAFA program but their servicers do not have to begin accepting those applications until 8/1/10. Also the 2 short sales that we are working through this program have already shown to be taking longer than that lenders normal short sale review process. One of the biggest selling features of this new program was supposed to be the reduced review time they take. NOT!
The Holiday
Enjoy it. Take a break. Relax. I have no choice in the matter, as Bank Holidays are my holidays, for the most part. I have some paperwork to do on Monday to prepare for the short week.
Remember to thank your service members.
Have a great Independence Day!
Sean Wilder
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Bio
Sean Wilder started in the pre-foreclosure business in 2007. Previously he enjoyed successbusiness in the transportation industry, real estate investing and as a licensed Realtor. Sean brought the same determination and work ethic that lead to great success in his previous businesses to Loss Mit Services based in East Windsor, CT. His focus, combined with his drive to succeed, have been essential to his success as one of the area's top short sale negotiators.
Known for finding creative ways to overcome hurdles and never ending persistence; Sean, believes in the power of team. Sean and his team are in the trenches everyday, plowing through challenges and objections while negotiating with various lenders, and finding solutions to difficult problems. It is this daily experience that brings Loss Mit Services consistent success and provides them the knowledge to share.
Sean belongs to a number of industry groups and associations that allow him to collaborate, share, learn, teach and stay updated on the latest changes in the pre-foreclosure industry at the federal, state, local and lender specific levels.
Effective Oct 1, 2009 all debt negotiation companies that offer loan modification, short sale, or foreclosure rescue services needed to be licensed by the CT Dept of Banking. Sean and his company Loss Mit Services were the 1st to be awarded the Debt Negotiation License NMLS # 828273 which can be verified at the CT Dept of Banking Website by Clicking Here. In addition, effective Oct 1, 2011 Debt Negotiators were required to also be licensed Mortgage Loan originators and Sean also has received this license, NMLS# LO-831853.
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