Legislating Disaster in Nevada and Maryland: Good Intentions Gone Wrong It stands to reason that if you pass a law delaying something bad for your local housing economy, like foreclosures, in hopes of buying time to help a few defaulting borrowers, you’ll be delaying the inevitable and all other homeowners in the market will eventually pay the price in the form of delayed depressed values and extended pain.That’s pretty much what’s happening right now in several states with new laws … [Read more...]
Legislating Disaster in Nevada and Maryland: Good Intentions Gone Wrong
August 1, 2012 By Leave a Comment
The ABCs of Commercial Loan Modification
May 3, 2012 By Leave a Comment
The ABCs of Commercial Loan ModificationBefore we jump into the meat of this article, let me give you a quick and dirty definition of a commercial loan modification.Definition: A modification to terms of a commercial loan that does not include refinancing. Modification occurs on a case-by-case basis when the borrower is unable to make loan payments due to financial distress.What Does This Mean For The Investor?Commercial loan modification can be an excellent option for the struggling real estate … [Read more...]
What Is a Commercial Loan Modification?
April 28, 2012 By Leave a Comment
What Is a Commercial Loan Modification?A commercial loan modification, also called a Workout Loan, may be considered if a business is in financial distress and unable to pay back a loan.In order to understand what Commercial Loan Modification means, let’s break down each word and define it:Commercial: Related to business. We are only concerned with loans taken out for business purposes. This does not include an individual loan for something like your car, home mortgage or an educational … [Read more...]
Are Short Sales the Next Big Investment Market?
April 26, 2012 By Leave a Comment
Are Short Sales the Next Big Investment Market?In January 2011, an estimated 74,000 homeowners received some form of loan modification. According to Hope Now, a non-profit mortgage relief organization, this number is 27% less than the amount one year ago. And the downward trend continued in February 2012 with 20% less loan modifications than in 2011.Why the decrease? According to Eli Tene, co-founder of Peak Corporate Network, it’s not at all surprising. He says in a company press release, … [Read more...]
Commercial Short Sale Boot Camp!
April 13, 2012 By Leave a Comment
Commercial Short Sale Boot Camp! You have to work hard to get the short sale process approved and to get through the process. Here’s how a commercial short sale works.A short sale is basically selling a property at the current market rate without adding in the debt owed to the owner or lender. This sale has to be approved by the mortgage holder in order to make the transaction happen, so that’s where the work starts.The ProcessThe first step to beginning a short sale is to get a market … [Read more...]
What Happened To All the Foreclosures?
March 5, 2012 By Leave a Comment
What Happened To All the Foreclosures?There’s something missing from the nation’s foreclosure capital. It seems that while no one was looking all of the Nevada foreclosures have disappeared. Has the market finally absorbed all of the delinquent homes so that markets can return to some semblance of normality? Hardly. You can thank a new state law – with a wave of a magician’s ward, and a quick abracadabra, the overabundance of foreclosures have gone poof.In the last legislative session … [Read more...]
Real Estate News by the Numbers: Week of February 4 – February 10
February 12, 2012 By Leave a Comment
Real Estate News by the Numbers: Week of February 4 – February 10A quick rundown of the important real estate news from the week of February 4 – February 10, by the numbers:Less than 50% – Number of lenders offering mortgages to applicants with FICO scores less than 620 and a 10 % down payment. Borrowers are being rejected, even though the applicants fit within the government sponsored enterprises’ purchasing guidelines.3.33% – Drop in consumer sentiment in January from the previous … [Read more...]
Short Sale Have a Future?
January 10, 2012 By Leave a Comment
Does The Short Sale Have A Future?One of my Realtor®, http://www.realtor.com, friends showed me a letter that her client had received about a deed-in-lieu of foreclosure program (à la Fannie Mae), http://www.fanniemae.com, whereby the seller would receive up to $7500. My friend was a little displeased that her client had received this letter because she was about to close the short sale transaction. Now, however, the client is going to opt for the deed-in-lieu because he might get more … [Read more...]
Denial Blocks Real Estate Recovery
October 27, 2011 By Leave a Comment
Denial Blocks Real Estate RecoveryForeclosure, Bankruptcy vs Home Affordable Refinancing Program ( HARP).Kevin is not giving up without a fight. I know this because those words are written on a piece of paper taped to his front door. NOT GIVING UP WITHOUT A FIGHT! His house is scheduled to go to a foreclosure auction today.Kevin bought his home on July 8th, 2003 for $270,800. The real estate market here in Phoenix was stable at the time. The housing explosion was about 18 months away. … [Read more...]
Are Short Sales on the Rise?
August 19, 2011 By Leave a Comment
The latest statistics suggest that short sales are on the rise and foreclosures are on the decline. According to research from Moody's Investors Service, in August 2009, short sales accounted for 8% of bank distressed property sales. As of mid 2011, short sales have jumped to more than 25%. Meanwhile, the time it took for a borrower to go to foreclosure grew from an average 14 months in early 2009 to 24 months in mid 2011. Why are short sales on the rise and foreclosures on the … [Read more...]
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Short Sales Cast a Long Shadow
Short Sales Cast a Long Shadow Yesterday the GSEs, Fanny and Freddie, accelerated the switch to short sales that has been underway for the past two years by announcing new servicing standards to speed up and streamline the processing of short sales for borrowers whose mortgages are held by the GSE’s, which is about half of all mortgages in the nation. The new guidelines, which take effect in November, allow servicers to approve a short sale for borrowers who have certain types of … [Read more...]