A recent survey from Financial Industry Regulatory Authority (FINRA) Invest Education Foundation shows that young Americans are more likely to have homes underwater.
The survey determined that, 25 percent of Americans between 18 and 34 years of age are currently underwater on their mortgage. Additionally, younger Americans,, are more likely to show signs of financial stress, including making late mortgage payments. This data was taken from a total of 25,500 participants. So how does this compare to older Americans? 18 percent of adults aged 35 to 54 are underwater and only 8 percent of individuals 55 or over are underwater.To put things into perspective, the FINRA Foundation found 14 percent of adults said they were underwater on their mortgage.
Beyond just age, the FINRA survey also found that residents of California, Massachusetts, and New Jersey are the most financially capable, while residents of Mississippi, Arkansas and Kentucky were found to be in the least financially capable states.
For more information on the FIRA survey visit: http://www.dsnews.com/articles/survey-finds-younger-homeowners-are-underwater-2013-05-29
Homepathforshortsale.com is a new website and short sale tool from Fannie Mae. The goal of the site is to help speed up the short sale process, by registering offers with agents. Launched in February, the site has assisted in closing over 10,000 short sales.
Registration means more productivity, claims Fannie Mae. The agency is confident that with more transparency the processes will be more streamlined and efficient.
The new process will go as follows: agents will now be required to supply Fannie Mae with short sale offer information as well as documents and information required for the sale. Some of the things the agency will be looking for include; property address, MLS listing and HUD-1 settlement statement.
“Fannie Mae recognizes the very important role real estate professionals play in the short sale process and we want to work closely with them to get short sales done,” said Jay Ryan, VP for real estate sales, Fannie Mae.
With homepathforshortsale.com, agents can now submit issues that are delaying short sales online. Once submitted, the agent can place a request that will ensure that the problem is solved in a timely manor.
For more information on homepathforshortsale.com
Fitch, a global rating agency, has recently reported that short sales are becoming more favorable over loan modifications, in the battle to avoid foreclosure. According to the report, in 2012 short sales rose to represent 51 % of resolutions as loan modifications dropped to only 26 % the same year. Loan mods have decreased over 50% in the last year, while short sales rose over 16%.
So why are underwater homeowners turning to short sales over loan mods? According to the managing director at Fitch “Loan modifications have fallen due partly to overall declines in mortgage delinquencies… however, they may also have fallen out of favor since many modified loans have already failed and do not qualify for another modification.”
Other reasons why loan mods have decreased so sharply include the differences between banks and non bank services, like myshortsale.com. Recently banks have decreased their staff, are dealing with stricter requirements due to the national mortgage settlement and have a higher loan per employee ratio.
If you are facing foreclosure now is the time to short sale.
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Were you underwater on your mortgage and saved by a short sale? Now that you have avoided foreclosure, what is next? As a short sale participant you should know that you can be eligible to become a homeowner again in as little as 2 years! As more and more “boomerang buyers” are returning to the housing market, a serious problem is being uncovered, short sales are turing up as foreclosures on many participants credit reports. Who is to blame for this? According to ABC Action News, it is the banks and credit bureaus. Neither have created a special code to report a short sale and because of this, reporters are using the foreclosure code.
Why is this so determential? Foreclosures have a wait time of no less than 7 years to apply for another mortgage and affects a credit scores much more dramatically than a short sale. However, credit bureaus like “Experian say the problem is not theirs. In an email, a spokesperson explained. ‘The short sales and foreclosures are being coded correctly on Experian’s credit reports. Where we have found the discrepancies occurring is in the underwriting process.'”
As more and more short sale participants are faced with an incorrect credit report, politicians like Senator Bill Nelson, from Florida are asking for a federal investigation. Currently, the only option short sale participants who have an incorrect foreclosure listed on their credit score is to contact their lender and request a letter stating that their house was closed in a short sale and that the foreclosure should be removed from their credit report.
Read more: http://www.abcactionnews.com/dpp/money/consumer/taking_action_for_you/short-sales-show-up-on-credit-reports-as-foreclosure-sellers-unable-to-get-back-in-housing-market#ixzz2TvwJ6twj
Thinking about a short sale? Wondering if you qualify? In order to answer this question, it is first important to understand what a short sale is. A short sale occurs when a homeowner owes more on their home than it is worth and the mortgage lender accepts less than the total amount that is due.
How to Qualify…
There are 3 ways to qualify for a short sale.
- The home’s market value has dropped. This means that your home is worth less than unpaid balance due to your mortgage lender.
- The mortgage is in default status. A mortgage goes into default status when the homeowner falls behind on their payments.
- The seller has fallen on hard times. As a homeowner you can submit a letter of hardship to your lender in order to participate in a short sale. Examples of hardship include: Unemployment, divorce and medical emergencies.
Do you qualify? Need more information? Call our short sale experts today! 1-800-318-5110
The time is now! Do not foreclose on your home! Short sale it instead. Realtors nation wide are advising those who are in danger of foreclosure to short sale their homes. Telegram.com reported “Now more than ever it is imperative that homeowners in default on their mortgage payments attempt to short sale their homes in order to avoid the ever increasing consequences of being foreclosed upon.”
One consequence that recent homeowners who foreclosed on their homes are dealing with involves applying for a new job. In the past job applications have always asked, “have you ever filed for bankruptcy?” But now the next question that follows is “have you ever had a foreclosure?” So now even a potential job can be jeopardized by a foreclosure. “Both the public and private sectors are now publicly frowning upon those with foreclosures. Many government entities such as Federal, State, City and County governments, school districts, public hospitals and other quazi-governmental agencies already filter out those with foreclosures on their applications for employment and promotion.” (realtytoast.com)
Another consequence of participating in a foreclosure is its timeline that is continuing to grow longer, quarter after quarter. According to inmannews.com, “the average time it took a lender to repossess a home in the first quarter of 2013 jumped by 15 percent from the fourth quarter of 2012, rising from 414 days to 477 days. Last quarter’s average timeline is the longest that RealtyTrac has recorded.” In comparison if you short sell your home with one of our experts, the process has a significantly shorter timeline.
On top of these two new developments, foreclosures still have a more significant effect on your credit score, than a short sale. Foreclosures also restrict you from buying a home for 7 years. Clearly the time is now, short sale your home while you still can! Call one of our short sale experts today, 1-800-318-5110.
Earlier today, FastFunds Financial Corporation and Net Life Holdings announced a major development in the mortgage industry. The company is introducing a new mortgage product that is specially designed for previous homeowners who participated in a short sale. It is estimated that more than 6 million previous homeowners are considered boomerang buyers, people who are reentering the housing marketing after loosing their previous home, would qualify for this mortgage.
What NET LIFE LCMO® (Life Collateralized Mortgage Obligation) is proposing is a new mortgage product that is specially designed for boomerang buyers. According to NET LIFE a LCMO is “is a residential, business or corporate real estate mortgage which is not based on credit history (“no doc”), or personal guarantees (“non-recourse”). All that is required for which to qualify is: (a.) that you are healthy (that you qualify for Life Insurance), (b.) that the property maintains and sustains its stated value and (c.) that you have the income to pay your mortgage.”
For more information on this innovative mortgage click the link below….
Fannie Mae has just announced a new tool to improve the short sale process. In the past, short sales atmyshortsale.com have been a quick, easy process, as compared to the rest of the industry. But now, short sales can be even faster. With the release of The HomePath for Short Sales Tool, agents will now be able to communicate directly with Fannie Mae. The tool is multifunctional; it will not only help to solve challenges but also will be used by agents to receive a recommended list price from Fannie Mae before listing the property. Some challenges that can be answered by The HomePathfor Short Sales include, valuation disputes, delays by servicers or uncooperative subordinate lien holders. The VP for real estate sales at Fannie Mae said “By giving agents a straightforward, transparent way to escalate short sale issues to Fannie Mae, we will close more sales, prevent foreclosures and help neighborhoods continue to recover.” Overall, the goal of the HomePath for Short Sales tool is to help improve the communication between agents and Fannie Mae, benefiting the entire short sale process.
1) There are no options to avoid foreclosure. Between the options available through Fannie Mae and other government-sponsored enterprises this could not be further from the truth! Short sales are the way to avoid foreclosure. Call one of our short sale specialists and have a conversation today! 1-800- 318- 5110
2) Short Sales are not common. Last year alone there were 422,605 short sales and since 2009 there have been over 1.15 million sales. In addition to those statistics, experts are predicting 2013 to be the largest year to date for short sales.
3) The short sale process is difficult. Although some short sale can be time consuming, it is not a difficult process. However, to further simplify the process it is smart to work with a short sale expert who has experience like our agents at myshortsale.com
4) If you are behind on your payments you can perform a short sale. It is essential that you are as up to date with as many as possible if not all payments. The closer a home gets to foreclosure the less likely the bank will be willing to perform the sale. This rule also applies to homeowner association fees.
5) If you go through with a short sale, you will not be able to purchase another house. This simply is not true, however the time it takes to purchase another house it is based on your personal credit score. Fannie Mae and Freddie Mac recently announced in November, a homeowner may be eligible in as little as two years after a short sale to repurchase.However the average wait time is 2-3 years.
Below are 3 tips that can help ensure a successful short sale!
1) Choose an experienced short sale agent. All of our short sale specialists here at myshortsale.com are seasoned experts who will help make your short sale process run as smooth as possible. All we do is short sales.
2) Understand potential consequences. Make sure to double check whether or not the lender has agreed to waive the deficiency or the balance that will be left on the loan after the sale. Armed with this information, it wont be a surprise expense if you receive a collection letter after the sale requiring you to pay the difference between what the house sold for and what was owed on the mortgage.
3) Pay your HOA fees! It is critical to keep up with your HOA payments if you are selling a condo or apartment. During a short sale, the homeowner association dues must be paid up to date at the time of the sale.