Posts Tagged ‘Owner-occupier’

Fewer than three of five short sales close in California

C.A.R. released the results of a statewide survey on short sales and the challenges REALTORS® face in working with lenders and servicers. 

The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays.  The survey also found that fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures. 

“The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,” said C.A.R. President Beth L. Peerce.  “Instead we’re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.”

More info

Enhanced by Zemanta

Foreclosure Sales– What Every Homeowner Should Know

 Summary: There are several procedures to be followed before a bank can make a foreclosure sale due to non-repayment by a homeowner. At any stage of this process, the homeowner can repay the bank to get back his property. There are also other options to retain the property for which a homeowner can get advice from a debt counsellor.

A foreclosure sale takes place when a borrower is unable to make payments towards his mortgage as per the agreed schedule and the bank recovers the money owed to it by selling the property. When a mortgage is entered into, the title remains with the bank and does not get transferred to the home owner until the last scheduled payment towards the mortgage is made. However, there are certain procedures to be followed before the bank can sell the property and every home owner should be aware of their rights with regard to a foreclosure.

The exact procedure for a foreclosure sale may vary from one State to another; however before the bank can sell the property, there are certain procedures to be followed. As the first step in the process, the bank has to send a formal communication by certified mail to the borrower informing him about the default in payment. The letter usually outlines the period of time and the specific amount that the home owner has to pay the bank in order to avoid foreclosure.

If the homeowner is unable to pay the amount due to the bank within the period specified in the notice, then the bank can proceed with the foreclosure either through the judicial process or a non-judicial remedy depending on the laws of the State and the clauses in the mortgage deed. Under the judicial process, the bank will have to approach the court to get a clearance to sell the property. Once the bank gets the authorization to sell, then a formal notice regarding the sale is sent to the homeowner who has to vacate the property within a specified time.

The bank then puts up the property for auction or sale and the property is sold to the highest bidder if it is close to or higher than the expected price. In case the bids are not suitable, the bank may purchase the property with the intent to resell at a later date. A point that every homeowner should be aware of is that at any stage in the process before the final foreclosure, he can choose to repay the bank the amount due and take possession of the property. There are other options available to a homeowner such as negotiating with the bank to accept a lower payment, refinancing the mortgage, selling the home, making a short sale or modifying the loan. For help in finding out the best option, contact me!

Written by Carol Pefley

www.carolpefley.com

Enhanced by Zemanta

Benefits of Short Sales

Short sales are famous for its low home prices and it is also offers benefits to sellers, lenders and buyers as well. A short sale is where the homeowner owes more than his or her mortgage. However, the lenders must approve the sale amount and agree to cover the expenses the seller cannot obviously pay.

A combination of regular property transaction and a foreclosure by the bank makes up the short sales. The homeowner who cannot comply anymore with the mortgage will make an agreement with the lender that instead of foreclosing the property, the property will be put up for sale. Once the property is bought, the seller will then pay the money to the lender which will benefit the seller because he or she doesn’t need to worry anymore when it comes to paying the loan the lender gave him or her.

Short sales benefit the buyers because of the cost of the property. It is known that when a property is up for a short sale it is being sold at a very low price so the seller can pay off the loan immediately. This is to avoid a foreclosure which may cause hassle to the seller and the lender as well and it will be even more difficult to find a buyer because the prices will be a bit higher.

If you’re looking for a home, then you probably need to look for homes that are up for short sales especially if you need an immediate home and you can’t stand any more waiting for a property to be on sale. There is lesser competition in a short sale which will likely give you the opportunity to score up a home in a fast way.

Short sales benefit the three people involved in the particular sale; the lender will be paid off in a fast way, the seller will be able to pay the loan immediately and the buyer will get a home in a fast way. However, it is best that you do a walk-through when you are buying a short sale home because some of these homes have damages. However, there are homes that are up in a short sale that are still in very good condition.

So, if you want to score a home in a fast way, you should look for short sales around the area and probably you can seek help from a real estate agent.

Written by Carol Pefley

www.carolpefley.com

Enhanced by Zemanta