Foreclosures were down in September in the Coachella Valley. That is according to the Desert Sun, Oct. 14, 2011. click here to view article . This is a very interesting article. I wonder if the foreclosures are down because more people are doing short sales, and perhaps those are not included in the number? I will say that last season in La Quinta we sold many homes, in all price ranges, due to the pricing decline. The sales decreased the inventory substantially. During the summer months (which are always slow in the desert) the inventory was not built back up. People don’t want to put their homes on the market during the summer months if they don’t have to because it is so hot and it is believed (whether right or wrong) that the buyers that come in the summer are “bottom feeders”, out to negotiate lower than the market values. Now that the Golf Courses are being reseeded and the flowers are being planted and the winter snowbirds are returning, the inventory is slowly beginning to build again—-and at those same low prices. Regardless of whether we see more or less foreclosures than in prior years, my feeling is that we will continue to see the buyers in the desert because the prices are so incredibly in the buyers favor. The only problem may be that there will not be the number of homes available that there were in the past. I would say to any “would be buyer” that now is definitely the time to buy! Don’t wait too much longer or you may have waited yourself out of good inventory!
Incredible Buying Opportunity In The Citrus
79615 Mandarina, in the Citrus Club in La Quinta, Ca. Priced at $489,000. Watch the Video to understand why this is such a tremendous deal.
After short-selling a home, how long before you can purchase?
How long must a buyer wait before buying a new home if they have:
• Chapter 7
• Chapter 13
• Foreclosure
• Deed-in-Lieu of Foreclosure
• Short Sale
Below are the underwriting guidelines for both Conforming and FHA Loans.
CONFORMING:
- Time Elapsed After a Chapter 7 Bankruptcy: Time elapsed must be 48 months or greater from either the discharge or dismissal date.
- Time Elapsed After a Chapter 13 bankruptcy: Time elapsed must be 24 – 48 months or greater from either the discharge or dismissal date depending on Cause of bankruptcy
- Time Elapsed After Multiple Bankruptcy Filings Within the Last Seven Years: Time elapsed must be 36 or 60 months or greater from the most recent discharge or dismissal date depending on Cause of bankruptcy
- Time Elapsed After Completion of Foreclosure: Time elapsed must be 36 months or greater.
Additionally, the following is required:
- The property must be owner-occupied, and the loan must be a purchase transaction, and the borrower must contribute the greater of 10% minimum down payment or the minimum required for the loan program.
- Time elapsed must be 84 months or greater if:
- The property is a second home or investment property; or
- If the loan is a rate and term or cash-out transaction.
- Time Elapsed After Short Sale or Completion of Deed-in-Lieu of Foreclosure:
- Time elapsed must be 24 months or greater.
FHA:
- Time Elapsed After a Chapter 7 Bankruptcy: 24 months since the discharge date and good credit has been reestablished. Bankruptcies less than 24 months (but not less than 12 months) may be allowed provided the reason for the bankruptcy was due to extenuating circumstances, theborrower has exhibited an ability to manage financial affairs, and the reason for the bankruptcy is not likely to recur.
- Time Elapsed After a Chapter 13 bankruptcy: Bankruptcies are allowed after 12 months of the payout period provided performance has been satisfactory and borrower receives court approval to enter into the mortgage transaction.
- Time Elapsed After Completion Foreclosure / Deed-in-Lieu / Short Sale: A borrower whose previous residence or other real property was foreclosed, “Short sold” on or has given a deed-in-lieu of foreclosure within the previous 36 months is generally not eligible.
All of the above information is typically the minimum time frame and each case is treated independently. This information is provided by Bret Cohn who is mortgage broker at Franklin Loan Center. For more information, please contact him at 760-779-8136.
A short sale may not mean you’re home free
The Wall Street Journal
A short sale may not mean you’re home free
Some homeowners who sell their homes through short sales are finding their mortgage companies still try to collect some or all of the difference between the bank-approved short-sale price and the outstanding mortgage balance. Some mortgage companies also are taking legal action to recover unpaid amounts after a foreclosure is completed.
MAKING SENSE OF THE STORY FOR CONSUMERS
- A lender tactic gaining popularity is for the holders of mortgages or home-equity loans to require borrowers in short sales to sign a promissory note — a written promise to pay back a loan or debt.
- HSBC Finance has implemented a one-year moratorium on the collection of deficiency balances for short sales and foreclosures that occur after April 1, due to the “current economic environment,” according to an official with the company.
- Not all borrowers who sell their homes through a short sale or lose their homes to foreclosure will receive a deficiency claim. Often, mortgage companies don’t try to collect unpaid amounts either because state laws prohibit or limit such actions or the cost outweighs the potential return. California has anti-deficiency rules that prohibit lenders from pursuing borrowers after foreclosure, but California does not have anti-deficiency rules for a short sale.
- The borrower’s situation often is the determining factor in whether the lender tries to collect the unpaid debt or not. The borrower’s employment status, assets, whether the home was purchased as an investment, and the amount of debt owed are taken into consideration.
- It is important that sellers are informed of the lenders requirements, read the fine print, and ask questions when selling their home via a short sale. According to one real estate attorney who represents financially troubled homeowners, every short sale she has worked with has had a promissory note or terms giving the lender the right to collect a deficiency. Often, the terms are buried in the sale contract, according to the attorney.
To read the full story, please click here