I was talking with a real estate broker today about the process of short sales, and why they are so difficult to do, and she told me a rather sad (and she said typical) story. A borrower in Compton had an $800,000 mortgage, and was about to close a short sale for $170,000.
Everything was all set to go, when the lender told the borrower that if she didn't sell, she would get a modification. The borrower in the end did not sign off on the short sale; she never did get the modification, and was foreclosed on 60 days later. Both the borrower and the lender would have been better off had the short sale happened--the borrower's credit history would have taken a smaller hit, while the lender would almost surely recover more money.
Everything was all set to go, when the lender told the borrower that if she didn't sell, she would get a modification. The borrower in the end did not sign off on the short sale; she never did get the modification, and was foreclosed on 60 days later. Both the borrower and the lender would have been better off had the short sale happened--the borrower's credit history would have taken a smaller hit, while the lender would almost surely recover more money.
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For home owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
ReplyDeleteAnna Thomson from Payday Loans @
When making real-estate-secured loans, lenders routinely require borrowers to maintain specified types and amounts of insurance on the property that serves as the lender's collateral.
ReplyDelete-------------
Real estate course
Real estate industry is the greatest industry where people can invest lots of money and can earn more benefit in future. People need lots of money to buy property and they can get loan from lenders or from banks.
ReplyDeleteشقق تمليك جدة
ReplyDeleteIt can be described more roughly by the number of rooms. A studio apartment has a single bedroom with no living room (possibly a separate kitchen istanbul real estate).
A one-bedroom apartment has a living or dining room istanbul property separate from the bedroom. Two bedroom, three bedroom, and larger units are common.
(A bedroom is defined istanbul properties as a room with a closet for clothes storage.)
The size of an apartment or house can be istanbul property described in square feet or meters. In the United States, this istanbul real estate includes the area of "living space",
excluding the garage and other non-living spaces. The "square meters" figure of a house in Europe istanbul properties may report the total area of the walls enclosing the home,
thus including any attached garage and non-living spaces, which makes it important to inquire what kind of surface definition has been used.
In recent years, istanbul real estate many economists have recognized that the lack of
effective real estate laws can be a significant istanbul properties barrier to investment in
many developing countries. In most societies, rich and poor, a significant fraction of the total wealth is in the form of istanbul property land and buildings.
In most advanced economies, the main source of capital istanbul real estate used by
individuals and small companies to purchase and improve land and buildings is mortgage loans (or other instruments). These are loans for which the real property
itself constitutes collateral. Banks are willing to make such loans at favorable rates in large part because,
istanbul property if the borrower does not make payments, the lender can foreclose by
filing a court action which allows them to take back the property and sell it to get their money back. For investors, profitability can be enhanced by using an off
plan or pre-construction strategy to purchase at a lower price which is often the case in the pre-construction istanbul properties phase of development.