By: Joshua C Anderson
Published: Tuesday, 2 Aug 2011
Afshar Properties Chief Correspondent
Over the past few years the housing market has taken a turn for the worst, even in affluent communities such as Beverly Hills, Bel Air and Malibu, to name a few. Homeowners are left with few options once their property value declines. In some cases, the homes are owned free and clear, but in most they carry high ticket mortgages that seem to balloon as the market declines. If a home goes into foreclosure and sells at auction, the neighborhood will be adversely affected. Often times when the property is underwater, a homeowner can choose to short sale it as long as there is a legitimate hardship, and in 90 percent of the cases, there are.
Los Angeles based Housing Assist of America knows the short sale market better than most. With over 200+ short sales under their belt and one of the biggest names in real estate backing them, they are a short sale powerhouse. Coldwell Banker brought them on board in 2011 and hasn’t looked back since. The secret to their success lies in their ability to negotiate effectively with hardball lenders, an attribute that separates Housing Assist from the distressed property expert.
Overall the short sale is a proven method to alleviate debt and get a fresh start, no matter what the property is worth or how much you owe. It is always advantageous to the seller in every aspect, however in some cases there could be tax ramifications. Whether it’s a 250k home in a modest community or 1.5 million dollar villa in Beverly Hills, the banks just want to cut there losses and move on, The process is exactly the same, but keep in mind no two short sales are alike. Avoiding foreclosure at all costs should be a top priority to sellers. And recent research has shown that lenders are approving more and more of these complex transactions. As of April 2011, bank of America has completed well over 23,500 short sales nationwide, with Wells Fargo and GMAC at 13,500 apiece and counting. JP Morgan Chase has even offered some owners as much as $30,000 as an incentive to short sale their property.
If you owe more on your property than its worth and it’s a financial burden to make the payment, the answer should be quite clear, short sale
Joshua Anderson
Wednesday, August 3, 2011
Tuesday, May 24, 2011
Wednesday, May 11, 2011
Underwater Properties Continue to Plunge
Published: Tuesday, May 10 2011 | 3:00 PM PT
By: Joshua C Anderson
Colwell Banker/Housing Assist Chief Correspondent
Los Angeles- In a recent statement released by Zillow.com, 28.4 percent of single family residences are underwater, in other words they owe more on their home than it is actually worth, and in most cases that means hundreds of thousands of dollars. Large metropolitan cities like Los Angeles, Las Vegas, Atlanta and Chicago, to name a few, have nearly 50 percent of homes underwater, and in some cities, its worse. Owning an underwater mortgage is just the tip of the iceberg, once in that position it’s very likely that a number of other problems will occur that may eventually lead to foreclosure. These problems can range from loss of income, illness, death and divorce, all of which can certainly cause financial constraints.
The original HAMP or Home Affordable Modification Program was regarded by industry experts as a failure for a number of reasons. One of the most significant aspects of the HAMP failure was that already troubled borrowers were once again set up for failure, once they defaulted on their trial payment; foreclosure proceedings began almost immediately, further deterring their situation. Another key factor was that the guidelines became too stringent for homeowners to qualify for. As a result, more than 80% of those who applied or even qualified had eventually either been denied or foreclosed.
When faced with such a dire situation, most homeowners decided they needed to make a change, for some however that meant walking away. A recent study showed that homeowners who decided to short sale rather than a foreclosure were more likely to be back on track financially within a two year period. The ramifications to their credit and livelihood were greatly reduced when they short sold the property. The only down side to short selling is that the homeowner needs to be certain that the company or realtor representing them has adequate experience. Many fly by night realtors claim to have the credentials to complete a short sale, however after months of unsuccessful negotiations, it becomes increasingly clear that they were in over their heads.
California based Housing Assist of America, www.housingassist.com, has recently teamed up with Real Estate giant Coldwell Banker in an effort to streamline the short sale process for both agents and perspective clients and the results are phenomenal, 92 percent of the clients who apply and stay cooperative throughout the process end up with favorable results. Lenders are now encouraging homeowners who have exhausted all of their options to opt for the short sale.
By: Joshua C Anderson
Colwell Banker/Housing Assist Chief Correspondent
Los Angeles- In a recent statement released by Zillow.com, 28.4 percent of single family residences are underwater, in other words they owe more on their home than it is actually worth, and in most cases that means hundreds of thousands of dollars. Large metropolitan cities like Los Angeles, Las Vegas, Atlanta and Chicago, to name a few, have nearly 50 percent of homes underwater, and in some cities, its worse. Owning an underwater mortgage is just the tip of the iceberg, once in that position it’s very likely that a number of other problems will occur that may eventually lead to foreclosure. These problems can range from loss of income, illness, death and divorce, all of which can certainly cause financial constraints.
The original HAMP or Home Affordable Modification Program was regarded by industry experts as a failure for a number of reasons. One of the most significant aspects of the HAMP failure was that already troubled borrowers were once again set up for failure, once they defaulted on their trial payment; foreclosure proceedings began almost immediately, further deterring their situation. Another key factor was that the guidelines became too stringent for homeowners to qualify for. As a result, more than 80% of those who applied or even qualified had eventually either been denied or foreclosed.
When faced with such a dire situation, most homeowners decided they needed to make a change, for some however that meant walking away. A recent study showed that homeowners who decided to short sale rather than a foreclosure were more likely to be back on track financially within a two year period. The ramifications to their credit and livelihood were greatly reduced when they short sold the property. The only down side to short selling is that the homeowner needs to be certain that the company or realtor representing them has adequate experience. Many fly by night realtors claim to have the credentials to complete a short sale, however after months of unsuccessful negotiations, it becomes increasingly clear that they were in over their heads.
California based Housing Assist of America, www.housingassist.com, has recently teamed up with Real Estate giant Coldwell Banker in an effort to streamline the short sale process for both agents and perspective clients and the results are phenomenal, 92 percent of the clients who apply and stay cooperative throughout the process end up with favorable results. Lenders are now encouraging homeowners who have exhausted all of their options to opt for the short sale.
Wednesday, February 16, 2011
The Truth Behind the Real Estate Market Recovery
Joshua Anderson, Lexington Realty Correspondent, Los Angeles Ca
Monday, Jan 31st 2011
Los Angeles- While over 100,000 delinquent homeowners flocked to the NACA convention over the past week to get their mortgages modified, only about 30 percent of them were successful. The growing number of foreclosures in California is increasing dramatically and there are absolutely no signs of a slowdown. Disgruntled homeowners left the convention looking as hopeless as they did upon entering. What lenders are not disclosing to the public is that their efforts to foreclose have been stepped up; misleading homeowners who still believe the mortgage modification program will benefit them. One woman left the convention stating that last time they were in town, about 90 days ago, they told her she would qualify the next time around, only to find out she was denied yet again.
Amidst the crisis the number of homeowners who are “underwater” has surged to 27 percent, up from 23 percent before the fourth quarter of 2010. The situation is dire and experts predict that it will only get worse. There are still a few homeowners who believe a temporary modification will solve the problem, but as the economy continues to decline, that possibility will soon fade. The mortgage foreclosure moratorium has spotted several loans with faulty paperwork, but this will not solve any immediate problems and those who are delinquent will remain on the chopping block. The overall situation could potentially regain itself within the next five years but the countries deficit puts that figure at risk. “Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short-term, mean we’re getting closer to the bottom,” said Zillow’s chief economist, Dr. Stan Humphries.
Across the nation the foreclosure figures are devastating. In Albuquerque , New Mexico, one in 46 homes are being foreclosed on, which is an increase, in 2010 it was at 60.32%.
Other hard hit cities include Spartanburg, S.C., Myrtle Beach, S.C, and Savannah, Ga. Of course the larger metropolitan cities have been devastated as well with the more affluent communities like Bel Air and Beverly Hills remaining stable.
In a small effort to stabilize the housing market the Obama administration released information regarding the reform of Fannie Mae and Freddie Mac. The exact details have yet to be released but the majority of the information was in regards to the government greatly reducing its role in the mortgage market. The Republicans have made it clear that they would like to accelerate this plan; however experts have estimated at least five years. There are reports that Fannie, Freddie and FHA loan limits will reduce from $729,750 down to $625,000. There is nothing solidified as of yet but these may be some of the changes that will take place in the near future.
In lieu of the deplorable mortgage crisis there is one short term solution that will benefit everyone in the long run, short sales. The process in which a lender accepts less than what’s owed on the mortgage and generally releases the homeowner of liability upon the closing of the short sale. The Home affordable foreclosure alternative or simply HAFA, is the latest in programs that benefit the homeowner with a $3,500 relocation assistance fee. Housing assist of America, a Los Angeles based firm handles these short sales in bulk and says that they have a solid system that works and it procures favorable results for all parties involved. Their site www.housingassist.com provides an in depth look into what the actual approvals look like from various lenders including BofA & Chase.
The problematic mortgage market will continue to falter as the years come, but the bottom may also be getting closer, this will eventually lead to a full recovery. But there is a lot of work that has to be done, and not just by the banks.
Monday, Jan 31st 2011
Los Angeles- While over 100,000 delinquent homeowners flocked to the NACA convention over the past week to get their mortgages modified, only about 30 percent of them were successful. The growing number of foreclosures in California is increasing dramatically and there are absolutely no signs of a slowdown. Disgruntled homeowners left the convention looking as hopeless as they did upon entering. What lenders are not disclosing to the public is that their efforts to foreclose have been stepped up; misleading homeowners who still believe the mortgage modification program will benefit them. One woman left the convention stating that last time they were in town, about 90 days ago, they told her she would qualify the next time around, only to find out she was denied yet again.
Amidst the crisis the number of homeowners who are “underwater” has surged to 27 percent, up from 23 percent before the fourth quarter of 2010. The situation is dire and experts predict that it will only get worse. There are still a few homeowners who believe a temporary modification will solve the problem, but as the economy continues to decline, that possibility will soon fade. The mortgage foreclosure moratorium has spotted several loans with faulty paperwork, but this will not solve any immediate problems and those who are delinquent will remain on the chopping block. The overall situation could potentially regain itself within the next five years but the countries deficit puts that figure at risk. “Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short-term, mean we’re getting closer to the bottom,” said Zillow’s chief economist, Dr. Stan Humphries.
Across the nation the foreclosure figures are devastating. In Albuquerque , New Mexico, one in 46 homes are being foreclosed on, which is an increase, in 2010 it was at 60.32%.
Other hard hit cities include Spartanburg, S.C., Myrtle Beach, S.C, and Savannah, Ga. Of course the larger metropolitan cities have been devastated as well with the more affluent communities like Bel Air and Beverly Hills remaining stable.
In a small effort to stabilize the housing market the Obama administration released information regarding the reform of Fannie Mae and Freddie Mac. The exact details have yet to be released but the majority of the information was in regards to the government greatly reducing its role in the mortgage market. The Republicans have made it clear that they would like to accelerate this plan; however experts have estimated at least five years. There are reports that Fannie, Freddie and FHA loan limits will reduce from $729,750 down to $625,000. There is nothing solidified as of yet but these may be some of the changes that will take place in the near future.
In lieu of the deplorable mortgage crisis there is one short term solution that will benefit everyone in the long run, short sales. The process in which a lender accepts less than what’s owed on the mortgage and generally releases the homeowner of liability upon the closing of the short sale. The Home affordable foreclosure alternative or simply HAFA, is the latest in programs that benefit the homeowner with a $3,500 relocation assistance fee. Housing assist of America, a Los Angeles based firm handles these short sales in bulk and says that they have a solid system that works and it procures favorable results for all parties involved. Their site www.housingassist.com provides an in depth look into what the actual approvals look like from various lenders including BofA & Chase.
The problematic mortgage market will continue to falter as the years come, but the bottom may also be getting closer, this will eventually lead to a full recovery. But there is a lot of work that has to be done, and not just by the banks.
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