Category — Loan Modifications

The Obama Administration set guidelines for financially troubled borrowers to sell their homes last week.  The government created these guidelines to encourage the use of short sales. 

To put it simply using a definition from the Wall Street Journal, a short sale is a transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. Short Sales are often less damaging to a neighborhood’s property values than a foreclosure would be.  The program makes it easier for borrowers to voluntarily transfer ownership of properties through a “deed in lieu” of foreclosure. 

This plan will award borrowers $1500 from the government if they sell their home for less than they owe on it.  This is the newest addition to Obama’s $75 billion foreclosure prevention plan. 

Call 252-261-3800 or email sales@seasiderealty.com to speak with a short sales specialist.

Occupied homes seem to sell better, especially in a very competitive market. Realtors and builders have used staging techniques to help sell homes for a long time, but “staging” is reaching new heights these days.

Builders have developed a new strategy to help sell their new construction in a distressed real estate market.  Johanna Calvin is a 45-year old Los Angeles event coordinator and decorator who has seen business slow. Quality First Home Marketing, a San Diego start-up,  is offering Johanna incentives for giving their townhomes a stylish look that make the home seem like someone is living there.  Usually “Home Staging” companies will charge the homeowner thousands of dollars to decorate the house with furniture, but Johanna actually lives in the townhouses for a greatly discounted rate and also receives a bonus if the house sells quickly.

Vacancy of homes is a factor that can drive the price of real estate down.  By filling the homes, the real estate will in turn gain more value.  Showhomes Management LLC, a franchise operation based in Nashville, has about 350 “resident managers” who occupy these high end homes in order to facilitate sales.  The company has reported that their revenues have increased 88% since last year!

MakingHomeAffordable.gov is a new website which was launched on March 19^th by the Obama Administration. 

The idea of the website is to help the average consumer determine if they can qualify for a loan modification or refinancing.  The site offers tools and calculators to help borrowers determine if they are eligible for different types of loan modification programs. 

Some additional features include: detailed information about this government program, self assessment tools, a mortgage calculator, resources to find free counseling, and a checklist of required documents.