Frustrated With Loan Modification? Consider Short Sale

I recenlty read a great article written by Paul Kiel of the watchdog group ProPublica. The article addresses the rise of Loan Modification Failures. Mr. Kiel writes that "of the 1.2 million homeowners who have begun a modification in the last year, about 265,000 are stuck in "trial periods" for six months or more"'.

Mr. Kiel further writes that homeowners and advocates list common complaints such as mortgage servicers frequently ask for the same information over and over; give contradictory information; make mistakes and in the end, many homeowners under these trial periods end up worse off than if they'd never been on trial.

As a real estate professional, I have offered consultation with many of these distress homeowners who are frustrated, angered and under duress. Often times they just want to throw their hands upward and give up. They want out and they are contemplating abandoning their properties.

To that end, Short Sale becomes the only option I urge these homeowners to consider. Why? Short Sale minimizes damage to credit as an approved short sale means a creditor is willing to settle the debt in full for the amount owed by the debtor for a value that is less than what the creditor is owed. The remaining balance is forgiven and the homeowner will no longer owe anything to the creditor. The caveat is that the homeowner will likely receive from the creditor a IRS-1099 form for the loss amount difference which then must be reported as income on the debtor's tax return. If it's a principle residence, any Capital Gains Tax may be forgiven under the Mortgage Debt Relief Act. Always best to consult with Tax Advisors on these matters.

In contrast to the action of abandoning the home, the creditor no doubt will effect forclosure action and may release the securiity interest of the property under a Release of Lien once resold but the amount owed is not forgiven. The homeowner still owes any balances to the creditor and furthermore, maybe liable for damages as consequences of their actions.

If you would like to read Paul Kiel's article entitled "Loan Mod Logjam Continues for 265,000 Homeowners; Failures Jump"; visit www.propublica.org/site/author/paul_kiel

For more information about Short Sales or for a FREE consultation, call me at 888-713-7261 or visit my website at http://www.jesserosete.com/

What a great time to buy Real Estate!

I am a Real Estate Broker serving the greater S.F. Bay Area. With all the hoopla surrounding the current real estate market and the several foreclosure auctions that were conducted, I was curious to know what impact the market has caused to the real estate inventory.
Clearly, the media attention has been focused on the subprime fall out and subsequent foreclosure rise in many parts of the bay area. Real Estate Sales has been slow for several months according to Dataquick who monitors sales trends nationally. However, some experts speculate that sales have been flat for at least three months indicating the possibility that prices are at or near bottom.

So what does this mean to buyers? Let me just say – It’s a great time to buy real estate. With the new FHA loan limits, coupled with the large inventory of homes available for sale; If you’ve sat and waited on the fence watching the market – NOW IS the time to take advantage and buy your dream home or investment property. I recently took a look on MLS and found over 1,000 homes priced under $200k. Amazing! As a service to the buying public, I offer the following links to help you get started.

Search the Multiple Listing Service for FREE at http://www.jesserosete.com/Default.aspx?page=9

Get pre-approved on line at http://www.freeinfo-reports.com/gold_mortgageapp.asp

Arm yourself with knowledge and understanding of the buying processes and your options to finance your purchase. I strongly suggest teaming up with a high level communicator and negotiator such as yours truly but it is equally important to remember to stick to a budget plan that does not break your bank account.

Buying a home is a big step but with proper expert guidance using licensed professionals, the journey to your success can be a pleasant and rewarding experience. Good luck in your real estate endeavors!