Navigation Menu

The Financial Crisis: an Historical Perspective View more presentations from Chris Hulls. (tags: contest mortgage) VIEW ALL FORECLOSURES & SHORT SALES FOR...

Read More
Charleston Short Sale vs Charleston Foreclosures

Charleston Short Sale vs Charleston Foreclosures

By on Feb 5, 2009 in Charleston SC Foreclosures, Charleston Short Sales, Foreclosure Mess | 0 comments

SHORT SALE The term short sale is being used frequently in today’s real estate articles and discussions. A short sale is a strategy to stop the foreclosure of a home if all parties agree to this type of real estate transaction. So here is more information on what a short sale is and why it’s become a widely used real estate transaction. What is a short sale?Wikipedia says …”When the proceeds of a real estate sale fall short of the balance owed on the property. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. A short sale typically is executed to prevent a home foreclosure.” For example – If a borrower owes $200,000 on a mortgage and is in default. The lender may be willing to accept $170,000 for full payment of the $200000 mortgage. Why would a bank agree to this type of sale? The bank/lender can save money by accepting less money now compared to possibly losing more money using the foreclosure process. So why is a short sale transaction happening more often? 1 out of 5 Properties are in distress. No market level is immune. The $1 Million + price range is the fastest growing segment for foreclosures. Defaults for sub-prime loans issued in 2007 hit 11% (and thiswas before the first reset). One out of two mortgages that reset (ARMS) are going intodefault. 7% of prime mortgages are not making payments. 6.35% of sub-prime loans are in foreclosure nationally and 1 in 5 are not making payments. Nationally, 2.2 million homeowners are in foreclosure and 8.8 million are in default (30 days late with a payment) adding up to 11 million distressed properties. Potential payment increase on an “Option ARM”will be 63%. 7 out of 10 homeowners go into foreclosure without visible intervention (i.e. they don’t try and sell their home). Foreclosure vs. Short Sale A homeowner who loses...

Read More
  • RSS
  • Twitter
  • Facebook
  • Google+
  • Picasa
  • YouTube