During the housing “boom” a default borrower would get a short-sale approval 90% of the time as long as they qualified and the purchase amount met the lenders minimum net requirements.  Now, that number has been cut in half. Why? Primary lenders are back-logged and desperate to NOT foreclose.  As a result, junior position lien holders, [...] Related posts:

1. Fannie Mae: Your Landlord?
2. Distressed Properties Drive One-Third of Sales
3. Water-Logged Processing Affects Short Sales

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HAFA - Home Affordable Foreclosure Alternative Program : HAFA is an extension of the HAMP program introduvced by the Obama administration. With the failure of the Loan Modification program to keep homeowners in their homes, with many homeowners reluctant to sign modification agreements that does not reduce principal balances the administration has introduced the HAFA program which is designed to streamline the short sale process. www.mypbchomes.com

The key to success in this program is the homeowner: are they willing to take $1500 relocation money in exchange to paying a partial mortgage (no more than 31% Gross Income) for the duration of the Short Sale process and losing their home in the end. Many did not want to cooperate in the HAMP program and refused to return lenders calls and respond to their letters.

The Obama administration is quickly running out of options and is neglecting the driving force of any economy JOBS. Hopefully the HAFA program will bring much more success than the HAMP program. www.mypbchomes.com
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Are there drawbacks to buying a Short Sale?

The major drawback in making an offer of purchase in a Short Sale is that you can wait for months and end up with the Lender not approving the sale, lately there are cases in which first mortgage has approved the sale and the second position lender would not give an approval. However if you have time to wait you can still get a home that is a great value. www.mypbchomes.com

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Is a Short Sale a Bargain?

There are three types of Sellers in the current Real Estate market with Short Sales and Foreclosed (Bank Owned) properties making up the bulk of properties offered for sale. www.mypbchomes.com

· Regular sales; are often the higher priced properties with the sellers being limited their mortgage(s), even those with low or no mortgages are expecting to net an amount that they are unwilling to go below. www.mypbchomes.com

· Short Sales (Pre-foreclosure); are often priced below market as it takes an offer of contract to commence a Short Sale therefore the seller will present an accept an offer without bias putting the burden on the Lender(s) who would consider the offer if it is reasonable and is backed up by a BPO (Brokers Price Opinion).

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· Foreclosure (Bank Owned); these are often a great value that is equal to or better than a short sale, however often times these properties, being neglected for some time can be in distressed condition or can be fixed up by the Lender to be in great condition.

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