Loss Mitigation: Short Sales: Nothing Short about the Approval Process.
With the current housing mess people think that banks would be chomping at the bit to approve short sales. That is when a lender approves for a sale which is less than the face mortgage balance. Banks and lenders do not operate under a charity model. They will only approve a short sale if they believe in the long run that they will be saving money. This equation doesn’t always work out to the benefit of the current seller. Also, banks are currently inundated with REOs which are taking over a lot of the time of those in the loss mitigation departments. Read More
Buy a Home to Bail on Your Current Home. New Face of Foreclosures.
You’d be surprised what is going on in the current housing market. Many people are now trying a new technique by bailing out on their current home in order to purchase a new home while their credit is good. If you do the math, it would make sense at least from the buyer/seller perspective. Say you bought a $600,000 home at the peak which is now only worth $300,000. You’ve been diligently making your payments so your credit is still good. You see a similar home selling for $300,000. You decide to buy the $300,000 home, and then try to sell you $600,000 home with little concern of whether it sells or not. Your credit will be ruined but at least you’ll have a new place and for most people, good credit is all about being able to buy a home. This of course is illegal but that hasn’t stopped people this decade: Read More
Doing The Housing Math on the Ed McMahon Home: Facing Potential Foreclosure in Beverly Hills.
Ed McMahon is a household name with most American families. His jovial attitude and his Publisher Clearing House awards are etched on the minds of many Americans. The idea of him knocking on your door and presenting you with an oversized check is at the core of the American dream jackpot. One would associate wealth when it comes to Ed McMahon. In another demonstration that the housing market is touching every niche of the U.S. housing market the Wall Street Journal reports that Ed McMahon may be facing foreclosure to no other than Countrywide Financial:
Myth Busted: Being Owned By the Ownership Society in California: How Housing and Credit Came Crashing Down.
In 2003 President Bush talked about an ownership society to encourage the American public to take personal responsibility for their own actions and success. This was the rallying cry for the major tax cuts that were being pushed onto the American scene supposedly to bolster economic growth. The plan itself seemed to be working for a few years since homeownership rates were going through the roof and it seemed that all was well. However, the underbelly of that boom was that America in a decade long bubble through deficit spending, was only forestalling a time when all would come crashing down.