Texas Short Sale » Realtors http://texas-short-sale.com/blog short sale real estate Wed, 09 Mar 2011 19:25:42 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 Buying a Short Sale with CASH http://texas-short-sale.com/blog/buying-a-short-sale-with-cash/ http://texas-short-sale.com/blog/buying-a-short-sale-with-cash/#comments Wed, 09 Mar 2011 19:25:42 +0000 admin http://texas-short-sale.com/blog/?p=98 A new trend seems to happening to folks buying short sales with cash. With a cash buyer there is no need for the property to have “value comps” to justify and approve a loan, banks can use an inflated market value BPO/appraisal to see if the unsuspecting buyer will pay more and take their “bait”. Cash is still king in this market, but more than ever cash buyers must have an accurate market value of the property their seeking. Remember every dime the bank can recover from any party of the transaction helps minimize the investor’s loss.

Now that we understand their game of short-sale cash a little better, lets get in the game. Consider the buyer get preapproved for an FHA loan with the lender servicing the property. Any servicer will take their short sale approvals into consideration if they are getting the other end of the loan. Also the FHA loan offer may have a better chance of being accepted due to the FHA value approval process.

Once the approval letter is issued, depending on the verbiage the buyer may be able to swap for cash before closing. Otherwise they can payoff the loan right away if needed. Either way, don’t let your strong cash position as a short sale buyer pay an inflated price for a distressed property.

Share

]]> http://texas-short-sale.com/blog/buying-a-short-sale-with-cash/feed/ 0 How does a HELOC affect the Short Sale http://texas-short-sale.com/blog/how-does-a-heloc-affect-the-short-sale/ http://texas-short-sale.com/blog/how-does-a-heloc-affect-the-short-sale/#comments Mon, 21 Feb 2011 17:51:44 +0000 admin http://texas-short-sale.com/blog/?p=95 If you are about to do a short sale and have a second lien, you should be aware of what type of loan it is. Usually if the second is “purchase money” meaning the second loan was made at the time of purchase you have a chance of walking away without a deficiency. (ex. 80/20 or 80/10/10 loans) One the other hand if the second is a “cash out” refinance or equity line of credit, the lender may ask that you participate in the loss. This is usually done by signing a promissory note and/or bringing a cash contribution to closing. If the cash out was used for “stuff” be assured the lender will not be as forgiving. If you can prove it was used for medical expenses, groceries, home renovations etc. you may be in a better position. Knowing this up front not only will prepare the seller for the worst case situation, but also will help Texas-Short-Sale set the proper expectations in negotiations to the lender and potential buyer.

Some second HELOC liens can be recourse loans, meaning if the home goes to foreclosure you may still be personally liable for the full amount of the loan. It is very important that you have a short sale professional working on your preforeclosure that knows not only the process of the short sale, but also understands the many different situations involved with loan types. If you or someone you know is struggling with their mortgage and does not know what to do, please contact Texas-Short-Sale for a private no cost evaluation and option plan for your specific situation.

Share

]]> http://texas-short-sale.com/blog/how-does-a-heloc-affect-the-short-sale/feed/ 0 Fannie and Freddie to join HAFA Program http://texas-short-sale.com/blog/fannie-and-freddie-to-join-hafa-program/ http://texas-short-sale.com/blog/fannie-and-freddie-to-join-hafa-program/#comments Mon, 02 Aug 2010 14:55:37 +0000 admin http://texas-short-sale.com/blog/?p=58 August 1 is the start of a new government program for what looks like all conforming loans. Until now the HAFA program was limited to only nonconforming primary residence loans. Now the conforming loan segment has entered the HAFA arena. It is supposed to be similiar to the original HAFA program, with a few minor changes. This could open a whole new variety of options for homeowners trying to short sale their homes. While HAFA may not fit everyone’s needs to sell, it may be a perfect fit for others. If you or someone you know owe more on your home than it is worth, and don’t know what to do, get in touch with me and lets discuss your options.

mark@texas-short-sale.com
214-586-8685

Share

]]> http://texas-short-sale.com/blog/fannie-and-freddie-to-join-hafa-program/feed/ 0 Fannie Adds Incentive to Avoid Foreclosure for future Texas buyers http://texas-short-sale.com/blog/fannie-adds-incentive-to-avoid-foreclosure-for-future-texas-buyers/ http://texas-short-sale.com/blog/fannie-adds-incentive-to-avoid-foreclosure-for-future-texas-buyers/#comments Mon, 03 May 2010 17:02:38 +0000 admin http://texas-short-sale.com/blog/?p=54 Beginning in July, Fannie Mae will allow financially troubled home owners to complete a “deed in lieu of foreclosure” or a short sale and be eligible to apply for a new Fannie-backed mortgage in two years.

Currently, borrowers who have completed a deed-in-lieu must wait four years to apply for a loan that Fannie will purchase. Home buyers who go through foreclosure must wait five years.

All these waiting periods can be reduced further, if the potential buyer can show extenuating circumstances. “We are beginning to think about post-recession, how you address borrowers who became unemployed through no fault of their own … and now deserve the right to re-enter the housing-finance system,” said Federal Housing Association Commissioner David Stevens.

Source: The Wall Street Journal, Nick Timiraos (04/26/2010)

Share

]]> http://texas-short-sale.com/blog/fannie-adds-incentive-to-avoid-foreclosure-for-future-texas-buyers/feed/ 3