 Metro-Detroit Michigan Real Estate & Entrepreneur Investment ClubWe are Metro-Detroit's source for connections and information on Metro-Detroit real estate and business. Our Next Renegade Detroit Investors MeetingTuesday November 3rd at 6:00 PM! Renegade Detroit Investors presents: Property Solutions of Michigan is negotiating dozens of deals right now in Michigan as well as Nationally. Steve has been investing in Real Estate since 2005, and has been doing short sales since 2006. He has invested in multi-family, single-family and done complete rehab projects with 18 rental units currently owned. In 2006 Steve began to focus his business more on short sales as he saw the market shift that was taking place. He has over 12 years experience in Title Insurance where he was a Title Examiner and Closer for some of the largest title insurance companies in the country. He has worked in the foreclosure niche for some time, as a Title Examiner for Trott & Trott's Attorneys Title being intimately involved in the foreclosure process. Their company has successfully negotiated and closed dozens of short sale transactions both as a buyer and negotiator. Al has been investing in Real Estate since 1990. He has invested and worked in just about every investing niche possible! He has owned rentals, done full rehab projects, owned commercial buildings, and of course short sales. They got together in mid 2008 and have been successfully building a short sale investing business together since then. The cost for first time attendees is only $10 or $25 for everyone else. Annual memberships are available at a discount. Free food is always available at the meetings!
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Tuesday, October 27, 2009
Tuesday, October 6, 2009
U.S. Treasury set to finalize home "short sales" plan
Well this is good news. I've heard some talk about this, and read about it back in May. Good to see its going to start being pushed more. I know that Wachovia is offering sellers up to $2500, which comes out of the Net to the lender, to the homeowner is default, distress or foreclosure. Let's see if anything good actually comes from this, eh?
Steve
U.S. Treasury set to finalize home "short sales" plan
By Al Yoon Al Yoon – Fri Oct 2, 7:13 pm ET
NEW YORK (Reuters) – The U.S. Treasury will soon finalize a plan to expand its incentives for mortgage companies to include "short sales" as a way to stem a rising tide of foreclosures, according to a Treasury spokeswoman.
"Short sales," or sales of homes for less than the balance on existing mortgages, are seen as a key way to supplement other efforts such as loan modifications to steady housing. Unlike most modifications, "short sales" eliminate the problem of negative equity that has become a big reason for defaults as home prices have plunged.
The incentives, first announced in May, would expand the government's Home Affordable Modification Program that has seen limited success in lowering payments for hundreds of thousands of homeowners deemed eligible. Just 12 percent of homeowners eligible have had their loans reworked, leaving millions more foreclosures to come, the Treasury said on September 9.
More short sales may alleviate fears that a raft of "shadow supply," or foreclosures in the pipeline, will flood the market and deal a blow to the nascent rebound in housing seen over the U.S. summer months, analysts said. The overhang of supply is currently about 7 million units, or 135 percent of a year's of existing home sales, according to Amherst Securities Group.
"What they are trying to do is move some of these foreclosures in the pipeline, and bring them to a resolution before (foreclosure) happens," said Lisa Marquis Jackson, a vice president at Irvine, California-based John Burns Real Estate Consulting. "12 percent of these being modified isn't enough to clean these up."
Realtors express frustrations with banks when trying to negotiate a short sale, which can take four to five months to complete, according to John Burns consultants. Buyers often walk away from sales because banks are slow to respond, or balk at the offer.
The Treasury will use up to $10 billion from a previously announced $50 billion pool of mortgage modification funds for payments to address lender concerns that home prices will continue falling in high-cost areas.
Incentives will be calculated on recent declines of local home prices and average home prices in these markets, the Treasury said in May. They would add to other incentives that servicers can receive for reducing loan payments.
In May, the Treasury proposed lenders would receive a $1,000 payment for allowing the owner to sell the house for less than the amount owed on the mortgage, and accepting the proceeds as full repayment. They can also receive $1,000 for accepting a similar deed-in-lieu transaction, in which the deed is simply transferred to the lender instead of going through a costly foreclosure.
Borrowers who agree to short sales or deed-in-lieu deals can received up to $1,500 in closing costs. Treasury also said it will pay second lien holders up to $1,000 to relinquish their claims in such transactions.
"Presumably, the Treasury is trying to help facilitate a transaction that will result in less loss to the lender than in the case of a foreclosure," John Burns consultants said in a research note dated Oct 1 alerting clients of an impending Treasury announcement.
(Additional reporting by Emily Kaiser and David Lawder in Washington; Editing by Diane Craft)
Steve
U.S. Treasury set to finalize home "short sales" plan
By Al Yoon Al Yoon – Fri Oct 2, 7:13 pm ET
NEW YORK (Reuters) – The U.S. Treasury will soon finalize a plan to expand its incentives for mortgage companies to include "short sales" as a way to stem a rising tide of foreclosures, according to a Treasury spokeswoman.
"Short sales," or sales of homes for less than the balance on existing mortgages, are seen as a key way to supplement other efforts such as loan modifications to steady housing. Unlike most modifications, "short sales" eliminate the problem of negative equity that has become a big reason for defaults as home prices have plunged.
The incentives, first announced in May, would expand the government's Home Affordable Modification Program that has seen limited success in lowering payments for hundreds of thousands of homeowners deemed eligible. Just 12 percent of homeowners eligible have had their loans reworked, leaving millions more foreclosures to come, the Treasury said on September 9.
More short sales may alleviate fears that a raft of "shadow supply," or foreclosures in the pipeline, will flood the market and deal a blow to the nascent rebound in housing seen over the U.S. summer months, analysts said. The overhang of supply is currently about 7 million units, or 135 percent of a year's of existing home sales, according to Amherst Securities Group.
"What they are trying to do is move some of these foreclosures in the pipeline, and bring them to a resolution before (foreclosure) happens," said Lisa Marquis Jackson, a vice president at Irvine, California-based John Burns Real Estate Consulting. "12 percent of these being modified isn't enough to clean these up."
Realtors express frustrations with banks when trying to negotiate a short sale, which can take four to five months to complete, according to John Burns consultants. Buyers often walk away from sales because banks are slow to respond, or balk at the offer.
The Treasury will use up to $10 billion from a previously announced $50 billion pool of mortgage modification funds for payments to address lender concerns that home prices will continue falling in high-cost areas.
Incentives will be calculated on recent declines of local home prices and average home prices in these markets, the Treasury said in May. They would add to other incentives that servicers can receive for reducing loan payments.
In May, the Treasury proposed lenders would receive a $1,000 payment for allowing the owner to sell the house for less than the amount owed on the mortgage, and accepting the proceeds as full repayment. They can also receive $1,000 for accepting a similar deed-in-lieu transaction, in which the deed is simply transferred to the lender instead of going through a costly foreclosure.
Borrowers who agree to short sales or deed-in-lieu deals can received up to $1,500 in closing costs. Treasury also said it will pay second lien holders up to $1,000 to relinquish their claims in such transactions.
"Presumably, the Treasury is trying to help facilitate a transaction that will result in less loss to the lender than in the case of a foreclosure," John Burns consultants said in a research note dated Oct 1 alerting clients of an impending Treasury announcement.
(Additional reporting by Emily Kaiser and David Lawder in Washington; Editing by Diane Craft)
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