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Good News Friday Podcast Week 27(5 Minutes and 41 Seconds)
Hello and Welcome back to Good News Friday! Today is Friday January 29th, 2010. My name is Bruce Karasik.
As we sit here today many Americans either have homes where they owe more than they are worth, or know someone where the amount of their mortgage exceeds the value of their home. Many people are also facing foreclosure, or their mortgage payments are too high, they may have experienced a loss of income, their home loan may be adjusting to an unaffordable higher interest rate, they want to sell their house but they do not enough equity to sell it. They want to get a fresh start and minimize the damage to their credit. We all know people who are facing these problems or it may even be you. You are upside down and don’t know what to do. A short sale may be the best solution. A short sale is where the bank agrees to accept less that the borrower owes to facilitate a sale.
Here is the Good News! There is new Federal legislation called Home Affordable Foreclosure Alternatives (HAFA). The Banks for now required to provide an alternative for those people who request a loan modification and the banks are unable to approve the modification request, the modification is offered and not accepted by the borrower, or the borrower falls out of a loan modification. In these instances, the borrower may benefit from an alternative that helps the borrower transition to more affordable housing and avoid the stigma of a foreclosure.
Here’s why a short may be a much better solution for the borrower:
1. The damage to the borrower’s credit in a short sale is much less than a foreclosure
2. It gives the borrower an opportunity to repurchase a home in a much shorter time.
3. The borrower can retain some dignity in knowing that the home was sold.
4. The borrower won't suffer the social stigma of a foreclosure.
5. There are No mortgage payments to make, unless borrower chooses to make them.
6. The borrowers if they want to can actually meet the new owners.
7. The borrower may be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
8. If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you may be eligible to buy another home immediately.
Because of this new legislation the short sales will be handled faster by the banks, they will be required to work with borrowers to facilitate the short sale with fewer delays and red tape.
This new legislation is better for the banks as well. Here’s why. It reduces the need for potentially lengthy and expensive foreclosure proceedings. The options help preserve the condition and value of the property by minimizing the time a property is vacant and subject to vandalism and deterioration. In addition, these options generally provide a substantially better outcome than a foreclosure sale for borrowers, investors and communities. Depending on your unique situation we can help you determine whether a short sale is the right solution for you.
Now more than ever it is important to contact a real professional to get the best advice. So call me or email and I will be happy to talk with you about the most current information about the Real Estate and Mortgage market and how it can affect you. Our goal is to save you money when you buy your home this year or refinance at the new lower rates.
The key to success is having the right advisors and consultants in place so you can have the right strategy. As your trusted Real Estate consultants and advisors, we at the Karasik Team work in our unique ability. My unique ability is consulting, negotiating and overseeing the transaction details. We take a customized approach and enable our clients to make informed decisions to accumulate wealth through Real Estate. In addition, we at Karasik and Associates, Mortgage Consultants, can help you come up with a strategy to determine whether this is the right time for you to buy your first home or to refinance your existing home.
We continue to believe that homeownership will remain the best avenue for American families to secure their financial future. I look forward to our continuing dialog and we invite your feedback. Please feel free to email me at Bruce@TheKarasikTeam.com, call me at my office at 805-267-0366, or you can post your responses on our blog at www.GoodNewsFriday.com.
The Good News Friday Podcast brings you good news and positive developments in the Real Estate Market, Mortgage Market, in our economy and our country. If you miss any podcast, we have archived all or our past shows so you can listen to them at any time by going to www.GoodNewsFriday.com.
So we do have some good news to be grateful for. And so, my friends, I wish you and your families a Happy, a Healthy, and Prosperous week. And that’s it for now. I’ll see you back here next week for another episode of Good News Friday!
