I just came across this article on short sales. As the article mentions in its conclusion, many people at all price points are using the short sale option as a way to get out of an unfavorable situation. I have a lot of experience dealing with short sales here on the North Shore. Just this summer I sold a beautiful home in Matinecock through the short sale process. If you would like more information you can check out our Short Sale Resource Center or contact me to set up a private consultation.
PROPBOT September 8, 2010 LOS ANGELES, CA — In this ailing housing market borrowers throughout the nation are losing their homes every day. The quick fix was thought to be the Obama administration’s mortgage relief program. Unfortunately this program has not been conducive for homeowners who are trying to hold onto their properties. We are seeing an increasing number of homeowners fall out of the program faster than they had ever imagined. The Treasury Department states, “approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the effort have been cut loose through July.” This is nearly 50% of homeowners who had enrolled in the program.
A copious amount of borrowers have complained about the many faults that this program presents. MSNBC reports, “Borrowers complain that banks often lose their documents and then claim borrowers did not send back the necessary paperwork.” This plan was initially intended to lower the monthly mortgage payments of the people in financial trouble.
Homeowners who are in this predicament and want to avoid foreclosure can turn to companies such as Housing Assist of America (www.housingassist.com), who help those who have been turned down visit their alternatives to foreclosure. President of Housing Assist Aram Afshar says, “We have successfully helped hundreds of homeowners avoid foreclosure via a short sale. Loan modifications do not get rid of negative equity, so your property is still worth less than what you owe the banks. This is an opportunity for homeowners to get out of a bad investment.”
Real estate data company RealtyTrac reports, “Overall foreclosure activity, including notice of default, scheduled auction and repossession, rose 4 percent in July from June. Actions were taken on 325,229 properties, with one in every 397 housing units getting a foreclosure filing.” Homeowners are getting foreclosed on left and right; it is important that they know their options. Many are now turning to short sales as an opportunity to get out of an unfavorable situation.