News Alerts For Short Sales Sunday April 18, 2010

News Alerts for: Short Sales

Mohave Valley News March sales help shrink local inventory Mohave Valley News Eight short sales closed in March. Along with the 55 foreclosures that sold, 59 percent of the properties that closed were distressed. ... See all stories on this topic

Selling out for less Jackson Clarion Ledger Uncle Sam has rolled out new legislation aimed at making the alternative - short sales - easier. The government's new legislation, the Home Affordable ... See all stories on this topic

The Virginian-Pilot New rules may help homeowners during a short sale The Virginian-Pilot Short sales have gained a reputation for being long and complicated, both for the seller and potential buyers. Sellers first must convince their lender that ... See all stories on this topic

Changes Coming to the Short Sales Program Prescott eNews Well finally Fannie Mae is addressing Short Sales. They are implementing a new short sale policy so here is what your short sale seller has to look forward ... See all stories on this topic

Distressed property boosts sales at SC resort town Myrtle Beach Sun News "There is actually a dangerous trend happening with the decline of regular sellers versus bank-owned property and short sales," Michelle Hallstrom, ... See all stories on this topic

Why a short sale often takes so long Sarasota Herald-Tribune Sometimes short sales bring more cash than foreclosures, and vice-versa. Which one it is depends on a host of factors, not the least of which is whether a ... See all stories on this topic

On the Market: Short sales Los Angeles Times (blog) For more information about HAMP programs, visit Making Home Affordable.gov or call (888) 995-4673. Here are a few of the many short sales on the market. See all stories on this topic

An Alternative to Foreclosure Wall Street Journal By ANNA PRIOR The federal government launched rules earlier this month to help facilitate short sales. But for some homeowners who are unable to complete a ... See all stories on this topic

Housing rebound uncertain Fort Wayne Journal Gazette In addition, Brown said somewhat depressed housing prices might start to rise if foreclosures and short sales ease. In a foreclosure, a lending institution ... See all stories on this topic

Elder-Care Home Foreclosures, Without Warning New York Times (blog) Jeffrey Lai, an administrator of carehomesusa.net, a four-year-old clearinghouse for such properties, said in an interview that short sales — sales based on ... See all stories on this topic

 

Short Sale News and Links

Homeowners Seeking Short Sales For Underwater Mortgage May Get Help From Lenders Red, White, and Blue Press (blog) While many homeowners are just walking away, caring little for their credit score, others are looking to short sell their home. A short sale has been said ... See all stories on this topic

FHA Guidelines and Seasoning Issues no Problem for Short Sale Funding and ... Emailwire (press release) (blog) Real estate investors who work with pre-foreclosures and short sales have become frustrated due to how difficult it is to close short sales and make a ... See all stories on this topic

Short sales spread to a Sacramento apartment complex Sacramento Bee (blog) It's not news in the least that short sales are a routine now in Sacramento's distressed housing market. But we got a report this afternoon of possibly the ... See all stories on this topic

Short sales are killing market values across entire nation St. George Daily Spectrum The most detrimental trend impacting the market currently is the short sale epidemic. The implications have affected market values nationwide. ... See all stories on this topic

The tax burden for short sales may disappear Santa Rosa Press Democrat (blog) by real.estate Short sales have helped some cash-strapped homeowners get rid of one financial burden, only to be hit by a new one. The term “short sale” ... See all stories on this topic

Federal program aims to shorten the short sale process WWSB ABC 7 Banks now have 10 days to accept or deny an offer on a short sale. This could help the real estate market in Florida and get rid of the flood of short sales ... See all stories on this topic

 

Ozarks First

New Program Helping Struggling Homeowners Avoid Foreclo...Ozarks First HAFA is a new program working with homeowners to short sale their home, if there are no other options. There's also compensation to the seller doing the ... See all stories on this topic

Bottom in Housing Near?

With the pent up demand from investors, seller capitulation and bank foreclosures and REO liquidations, a market bottom seems near.

Freeze On Home Foreclosures Says FOX

The White House is considering changes to its mortgage modification plan that could include a freeze on home foreclosures, sources tell FOX Business.

According to industry officials who have been briefed on the plan, the administration is considering changes that would require home-loan servicing companies to push delinquent borrowers into the Home Affordable Modification Program before they consider foreclosure.

Lenders, investors and mortgage-service companies would be prevented from foreclosing on a homeowner while a home buyer is solicited, responds and eventually goes through a  trial period under HAMP.

Analysts tell FOX Business that the possible changes, if adopted, effectively prevent virtually all foreclosure action in the country for an extended period.

While home prices have recovered and sales activity has picked up, the latest statistics show that the number of foreclosures nationwide continues to rise. Loans that have headed into the foreclosure process rose to 4.58% of all mortgages in the fourth quarter, the Mortgage Bankers Association said Friday.  New delinquencies, however, declined.

The freeze on home foreclosures would be a new step for the Obama Administration, which has pushed banks towards mortgage modifications as part of a solution to solve the ongoing problems in the housing market.

Embracing HAFA – (Home Affordable Modification Alternatives)

Mark Hansen is a mortgage market researcher and analyst.  He has an interesting perspective and a clear understanding of the issues.

By Mark Hansen http://mhanson.com/archives/396?shortsaleleads.org

Embracing HAFA – (Home Affordable Modification Alternatives)

It is time to move on. The best solution going forward is for the banks to fully embrace Treasury’s HAFA (short sales and DIL’s) program, begin to foreclose in earnest like they started to in 2008, and get these properties into the hands of new owners.

We know there is huge demand for distressed real estate from investors and those that really can afford to own a home and prices in the hardest hit regions have stabilized somewhat, at least temporarily. There is a lot of excitement around this one. The initial reaction from the lenders I talk to is very positive — if forced to chose, they much rather have a short sale or DIL than a foreclosure because loss severities are much less for obvious reasons.

They are not doing distressed homeowners any favors through loan mods — the distressed homeowner will be in a better position renting a property that they can really afford instead of being saddled to hundreds of thousands in debt that chews up the majority of their gross income every month. Obviously, this will be painful on many financial institutions but the fact is they can’t kick the can forever. And the longer they kick it, the greater the losses will be when the chicken finally comes home to roost.

One of the biggest unintended consequences of HAMP was creating a lack of distress inventory, which is most in demand. Without REO, which made up a large percentage of total sales last year, the depressed rate of existing home sales in 2009 was as good as it gets for a lot of years. HAFA is exactly what is needed to keep sales counts from tumbling in 2010. The only negative is that because DIL’s are REO and short sales considered ‘distressed’, there will be negative housing implications from significantly increased distressed sales as a percentage of total sales.

This is why I believe that 2010 kicks off a paradigm shift from pretend and extend to the first year of a multi-year drive to finally de-lever through increased asset liquidations spearheaded by the HAFA initiative. Over a lot of years, this is exactly what is need to essentially ‘reset’ the housing market and is where my research centers this year.

Not all short sales are tax exempt.

Former homeowners who had a short sale or foreclosure of their principal residence during 2009 are facing a challenge when preparing their income tax returns.

“When there is a cancellation of debt relating to a principal residence, different results may apply depending on the facts,” says Michael Gray, CPA, author of the Real Estate Tax Handbook. “If the loan was refinanced and cash was used for a purpose other than home improvement, like to buy a car or take a vacation, that part of the loan doesn’t qualify for the federal tax exclusion for cancellation of principal residential indebtedness. If the loan was ‘non-recourse’ (the lender can only look to the property for repayment), the short sale or foreclosure should be reported as a sale for the balance of the mortgage.”

“Some people are simply reporting the cancellation amount from information returns reported by the lenders as income, which is probably wrong, resulting in paying too much tax. To top everything else off, different rules may apply for state income tax reporting. For example, California hasn’t conformed to the federal exclusion for 2009.”

Michael Gray “wrote the book”, the Real Estate Tax Handbook, about real estate taxation and can give your audience vital information they need right now. To interview him, call 408-918-3161.

Where the "Real Money" is being made in short sales.

This video will shock you.  Watch and learn how Goldman Sachs and others at the top of the oligarchy are participating in the fleecing of America.

 www.thinkbigworksmall.com/mypage/player/tbws/23088/1000148