Comments on: Short Sales Summary

By: Desert Realtor

Desert Realtor — Mon, 07 Dec 2009 02:29:03 +0000

It really irks me to see short sales offered on multi-million dollar second and third resort homes here in country club heaven. Lots of fishy deals. The lenders should just bring down the hammer. Flakes, in any economic level, should not get a free pass.

By: pemeliza

pemeliza — Sun, 06 Dec 2009 21:14:11 +0000

I agree with “buy a house”. There is too much fraud going on with short sales these days.

By: keepitinflated

keepitinflated — Sun, 06 Dec 2009 17:11:44 +0000

Mr Sunlin even if your assertion about damage and vacancy is correct the increase in people not paying their mortgage makes the loan holders worse off.

I am blown away that in the legislation the realtor actually got it worded that the processors needed to pay the realtors their full 6% on short sales. So much for the only sellers in town being allowed to set their own price.

By: keepitinflated

keepitinflated — Sun, 06 Dec 2009 17:07:44 +0000

What an abuse of data. Foreclosures occurred more often in the worst neighborhoods with few owner occupied homes. That is why foreclosure severity is higher than short sale severity.

Due to the difficulty in closing a short sale, because processors (not banks, banks hold very few loans), need to be highly aware of fraud a short sale will sell for less than an equivalent foreclosure.

Even worse, since the real estate industry has convinced sellers a short sale prevents credit damage (something the credit score people say is untrue), more people are looking to a short sale as an escape versus making their payments (increasing time to close cause there needs to be proof the person is unable to meet their contractual obligations).

Short sales hurt the market and despite Sean Shallis’ insistence people are prepared to buy short sales. Of course finding a way to increase affordable inventory increases a realtor’s paycheck.

BTW I have used Sean as a realtor, great negotiator to have on your side, just do not believe anything he says.

By: Jim the Realtor

Jim the Realtor — Sun, 06 Dec 2009 16:39:37 +0000

Agreed on the agency paper, but they are offering these terms to non-agency paper holders too.

A collection agency would probably be happy to offer $1,100 for every loan over $100,000 and go to work on collecting.

By: W.C. Varones

W.C. Varones — Sun, 06 Dec 2009 16:36:24 +0000

DILs should be called by their full name, Deed-In-Lieu Defaulted Owner.

By: Kingside

Kingside — Sun, 06 Dec 2009 15:47:18 +0000

“Will lenders/servicers agree to forfeit deficiency judgements for a measy $1,000 per loan?”

If it is a FNMA or FMAC loan that is delinquent, or defaulted HAMP mod, I think they will.

Interesting that this program is slated to start in April 2010. In one sense, I give the govt. credit for looking ahead on what will likely be a high recidivism rate on the HAMP mods.

Also interesting that this shows up only in the servicing guidelines without the usual big govt press release trumpeting their new programs. Not very consistant with their usual press releases emphasizing efforts to keep people in their homes.

By: buy a house and get rich

buy a house and get rich — Sun, 06 Dec 2009 15:44:34 +0000

Is this really going to help?Everyone knows short sales are very difficult to close.As I talked about in earlier posts I think it is best to put out at least 10 offers hoping one sticks.why waste your time hoping a short sale will go through after 6 months.This is a big problem in the market right now.Inventory seems low and the only thing for sale are short sales for the most part.I think the bank should foreclose and get the inventory on the market quick.There are buyers out there right now.