Category Archives for "Short Sales"
Any information relevant to Short Sales
Any information relevant to Short Sales
The following is an excerpt from an article written by Carrie Bay for DSNews:
New data released by RealtyTrac Thursday shows that distressed homes – including those in default, scheduled for foreclosure auction, and REO – accounted for 25 percent of all U.S. residential sales in the third quarter.
These properties sold at an average of 32 percent below the price of their non-distressed counterparts. RealtyTrac says that’s the highest distressed-property discount it’s seen since the fourth quarter of 2005.
According to RealtyTrac’s data, the average sales price of homes in the process of foreclosure or bank-owned was $169,523 in Q3, down 2.46 percent from the previous quarter. By comparison, the tracking company says the average sales price of non-distressed properties was $249,721, up 6.42 percent from the second quarter.
RealtyTrac reported that 113,933 REO homes sold to third parties during the July to September period. That’s 26 percent fewer than were sold in the previous quarter and down nearly 35 percent from the third quarter of 2009. REOs sold for an average discount of about 41 percent.
A total of 74,815 pre-foreclosure, typically short sale, transactions were completed in the third quarter, down 24 percent from both the previous quarter and year-ago levels, based on RealtyTrac’s findings. Pre-foreclosure sales went at an average discount of 19 percent.
All in all, 188,748 U.S. properties in default, scheduled for auction, or bank-owned sold to third parties last quarter. RealtyTrac says that figure represents a decrease of 25 percent from the previous quarter and is 31 percent below the third quarter of 2009.
To speak with a certified agent who deals with foreclosures, short sales and distressed properties, click here.
The following article was written by Nick Timiraos for The Wall Street Journal, published November 29, 2010:
In April, the Obama administration formally rolled out a new program, called Home Affordable Foreclosure Alternatives, that was designed to spur more short sales, where banks allow homeowners to sell their homes for less than the mortgage debt outstanding.
Like other foreclosure-prevention initiatives, this one appears to be off to a slow start — just 342 sales have been completed through September.
HAFA was designed as a cousin to the Obama administration’s Home Affordable Modification Program, HAMP, whose woes have been well documented. HAFA works like this: Servicers are supposed to consider short sales for borrowers who aren’t able to receive a HAMP modification. Because some 700,000 HAMP applicants have been ejected from that program, there’s a potentially large pool of borrowers who might be evaluated for HAFA.
Initially announced in May 2009, HAFA was also designed to help reduce wait times by streamlining the short sale process through standardized documents and approaches for short sales. Under the program, the government offers incentive payments to mortgage-servicing companies, investors and even the borrowers that accept a short sale under prescribed guidelines.
For example, second-lien mortgages receive 6% of the unpaid loan balance in a short sale, up to a maximum of $6,000, but they must agree to relinquish all claims against a borrower. (Our story on Saturday illustrated why seconds pose problems in short sales.) The program also provides $3,000 in “move-out assistance” to borrowers.
Many real-estate agents say banks have largely ignored the program and that they are applying it unevenly. “Banks are initiating the HAFA transaction and then after three weeks they say, ‘Naw, sorry, you didn’t qualify,’” says Greg Markov, a Phoenix real-estate agent. “That three weeks is a huge pain. You wasted all this time.”
Industry officials, meanwhile, say that HAFA has been hindered by extensive documentation requirements and restrictive qualification guidelines. A homeowner that’s already relocated isn’t HAFA eligible, for example, and neither are borrowers that apply within 60 days of a foreclosure date.
The program is also voluntary, which may limit participation from second-lien holders and mortgage insurance companies that see a financial reason to avoid a short sale that requires them to forgo the opportunity to seek deficiencies against borrowers.
“It looks good on paper, but you can’t make anyone participate,” says Kevin Kauffman, a Phoenix real-estate agent who says he’s closed 150 short sales but has yet to complete one through HAFA.
Still, the Treasury and other supporters say they’re optimistic that results will pick up. Because short sales take several months to close, it’s perhaps unrealistic to expect huge numbers of deals that would close within five months. Moreover, Fannie Mae and Freddie Mac didn’t issue their own participation rules until August.
“It does take a little bit of time to see results on these,” says Dave Sunlin, Bank of America’s senior vice president for short sales and bank-owned property sales. “The concept on paper is there.”
For this article, click here.
To speak with a Short Sales Specialist, click here.
Join us for our Community Workshop to Boost Homeownership in our Community!
Learn about Affordability & Availabilty of Homes in Your Area
Wednesday December 8th
6:00 p.m. – 8:00 p.m.
-Learn How to buy a HUD Home from the Broker-In-Charge of HUD registered firm, Showcase Realty, LLC
-Foreclosure, short sale and distressed property Information: Buying & Selling
-Pertinent Mortgage Information from Wells Fargo
This is a free event but there will be an opportunity to make donations to the Boys & Girls Club of Greater Charlotte.
Limited Space! Register Today!
Join us for our Success in Distress Workshop for Agents!
Wednesday December 8th
3:00 p.m. – 5:00 p.m.
-Learn how to sell a HUD Home from the Owner and Broker-In-Charge of a HUD Registered Firm
-Gain insight into how to successfully sell foreclosures, short sales and distressed properties
-Pertinent mortgage information via Wells Fargo to share with your buyers
This is a FREE event, but donations will be made to Boys and Girls Club of Greater Charlotte.
Limited Space Available! Register Today!