Posted by HomesLLCWA on December 05, 2009 at 13:33:22:
dhamps - Here’s the highlights, as described in that article:
FMAC/FNMA first mortgages only - though other investors may opt in
Not lots of incentive for juniors, though reading the entire proposal will lead to further understanding
Property MUST be the borrower’s principal residence (There’s a glut of investment properties in foreclosure status)
For the principal residence/property to qualify, the debt must be in excess of 31% of the borrowers yearly income.
Seller will have to continue to make payments, on the property, equal to 31% of their yearly income - so if their current mortgage payment exceed 31% of their income, then the monthly payment is reduced.
So, taking the above into account, one can already see continued opportunity - and I’ll just outline a few things:
What if the borrower has NO $ to pay the mortgage
Vacation/2ND homes are not principal mortgages
Valuation process - Is the BPO process improved
These short sales are capped @ $729,750. - so what about the higher debt associated with luxury homes
Commercial shorts
Listen, though we’re sometimes referred to in a less than favorable manner, investors have been, and will continue to be, a neccessary link in real estate.
What’s unfortuante is, like in all industry, there are bad apples that screw it up for all - and recent legislation(s) have been haphazardly put together and enacted to remove the bad.
Just keep both eyes on your congressmen, senators and state officials, ensuring that any legislation is easily interpreted so that honest and ethical investors can continue to do what they’ve done for years -
Peace
Short Sale Changes coming soon??? - Posted by dhamps
Posted by dhamps on December 03, 2009 at 13:12:00:
does anyone know how this is going to effect The investors? does this change anything for us? Or close us out? I found this article explaining the changes and does not look good. says it strats in April 2010
Re: Short Sale Changes coming soon??? - Posted by Dave T
Posted by Dave T on December 03, 2009 at 14:40:02:
The legislation makes it easier for an owner in distress to modify his loan and stay in the property. There will still be short sales, but maybe fewer of them to go around.
The benefit to the investor is that the short sale process will be standardized, both in the application and in the qualifying process, so the turn around time between submission and approval should be much quicker.
Re: Short Sale Changes coming soon??? - Posted by dhamps
Posted by dhamps on December 03, 2009 at 18:13:08:
I guess I cant see that this will work. It seems to be set up for realtors only? Homeowners deals directly with the bank. then they list with a realtor. Realtor gets there commish. capped at 6%. and a few other factors.
It also seems to be only good for freddie and frannie backed loans. Also, The one that is REALLY odd, is that the homeowner has to pay 31% of there monthly income as there mortgage or they will not allow a short sale? or they will not qualify???
So, Are these set in stone?? Do we have to do short sales this way? I have read blogs that are happy about some of the rule changes but have they actually read this? Also, the buyer cannot sell for 90 days??? That cuts us out as flippers. Can someone clear this up for me?