Do you know people who have been living in their house for a few years now without paying their mortgage? Wondering when something is going to happen? Well I see the trend changing. Recently I have been talking to home owners who have diligently been working on their loan modification,and nothing is happening so far and now all of a sudden a Notice of Default is filed. It seems like investors are getting fed up with loan servicers -the bank you are talking to to get your modification done- who take so long to make a decision. In our area, this means that if you are not careful, the bank will sell your house -foreclose- while you are still under the impression that you are working on a loan modification. Last year, when a homeowner was receiving a Notice of Default, nothing was going to happen within a short period of time. This has changed, now I see it happening more and more that a bank will move forward with the Notice of Trustee sale 3 months after the Notice of Default has been filed. And 3 weeks after the Notice of Trustee sale, the Trustee Sale will take place -> this is what we call the foreclosure.
If you want to avoid a foreclosure, a short sale is a good alternative for a lot of distressed home owners. One of the benefits is that you are more in charge of the situation, you can negotiate the deficiency,
A few months ago, CDEP posted that Freddie Mac reported its short sale volume was up 600%. Today, REOInsider reported that “short sale volume is up more than 150% from volume in 2Q09, according to the Federal Housing Finance Agency’s second quarter government-sponsored enterprise (GSE) ‘Foreclosure Prevention & Refinance Report.’”
Short sales are on the rise nationwide. More and more agents are receiving training in assisting distressed homeowners, and there is a movement to provide solutions to these homeowners facing foreclosure. Your truly did some extensive training to be able to help distressed home owners with alternatives to foreclosure.
Mirjam