[007 license to sell]

This article covers what is happening with housing inventory. What they don't address about the short sales are that some home owners doing short sales have decided to pull the short sale or not respond because of the banks having to prove they own the note before they can foreclose.

It's true banks have been gearing up to sell bundles to Hedge Funds which in turn rent out the properties for a few years. And some banks will also rent out some of their foreclosed homes themselves. These institutions have been contacting property mangers to get ready to handle their rentals.

This could be bad news for the small private investor, or the buyer looking to purchase a primary residence.

Single-family home inventory down to six-week supply

[vegastoabq]

Just spoke with a realtor yesterday as I just listed my home and there arent any homes in my neighborhood for sale right now. Inventory has dropped and most homes that are in good shape and priced right are selling fast. Just about everything I looked at in the 150k to 200k range has a contract on it in this area.

[eventusstultorummagister]

Large swaths of single-family rentals might not be a good thing. Rents are rising, but they don’t always rise. Rents impact capitalization rates. If rents drop, so will capitalization rates and property values. In addition, renters don’t care for properties as well as owners. Could a higher percentage of neglected properties translate into more downward price pressure for owners?

[007 license to sell]

If your a home owner that is under water in your home and BOA owns the note there could be good news for you.
Bank of America announced it is refining its short sale process to streamline its approval process and reduce the wait in accepting offers and making it to closing. The changes are expected to trim the bank’s decision time in half -- from 45 days or longer to 20 days, Inman News reports.

Starting April 14, the bank states it will permit its short sale specialists, using a third-party platform called Equator, to complete document collection, valuations, and underwriting at the same time, which is expected to help speed the process.

Bank of America also announced starting April 14 that real estate agents will be required to submit five documents in short sale transactions to be considered by the lender. These required documents include:

• A purchase contract including BOA disclosure form, this form is put out by the bank.
• HUD-1
• IRS Form is signed by the seller giving the bank permission to look at past tax filings
• BOA short sale addendum
• BOA third party form

Keep in mind your note could be owned by an outside investor that BOA is servicing the note for so it could appear that BOA owns the note but really doesn't so even though BOA states it will speed up the process, the investor may not be willing to approve the short sale unless the seller agrees to paying a portion of the deficiency especially if the seller appears to be doing a strategic default.
Also if there is mortgage insurance on the property the seller can not collect that if they agree to a short sale or a foreclosure. It takes 1000 days for all mortgage insurance premiums to be paid, this is why allot of short sales don't get approved and end up in foreclosure.
I just caution buyers and sellers to look at all news with skepticism because the banks have proven that what they say they will do is one thing v/w what they really will do.

[eventusstultorummagister]

Brandon Moore, CEO of RealtyTrac, said in a statement. ''The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen — both in terms of new foreclosure activity and new short sale activity.''

[eventusstultorummagister]

"For the Lopez family, the letter they received from Bank of America is like winning the lottery"

I-Team: Las Vegas Homeowner Receives Major Principal Reduction

[SportyandMisty]

Originally Posted by 007 license to sell

... Also if there is mortgage insurance on the property the seller can not collect that if they agree to a short sale or a foreclosure. It takes 1000 days for all mortgage insurance premiums to be paid, this is why allot of short sales don't get approved and end up in foreclosure...

Can you explain this the above? I don't understand.

[vegastoabq]

Originally Posted by eventusstultorummagister

"For the Lopez family, the letter they received from Bank of America is like winning the lottery"

I-Team: Las Vegas Homeowner Receives Major Principal Reduction

Wow! I was hoping that wasnt going to start happening. There are ALOT of people in this valley the did cash out REFIs during the boom and now want their principal reduced. I feel like a fool now that I paid cash for my house and have always lived within my means.

[WestieJeff]

Did you read the comments on the article stating the guy only paid 150k or so for the house and then cash out refi'd 150k extra and now he got that reduced down. Free 150k for him.

Definitely doesn't seem like the way we should be "teaching" people. I can tell you one thing for sure, I'll never put more than 20% down on a house ever again.

Originally Posted by vegastoabq

Wow! I was hoping that wasnt going to start happening. There are ALOT of people in this valley the did cash out REFIs during the boom and now want their principal reduced. I feel like a fool now that I paid cash for my house and have always lived within my means.

[Robustus]

Originally Posted by vegastoabq

Wow! I was hoping that wasnt going to start happening. There are ALOT of people in this valley the did cash out REFIs during the boom and now want their principal reduced. I feel like a fool now that I paid cash for my house and have always lived within my means.

So, if I get a loan to buy a new car, and a few years later the car is worth half what I paid, how do I get the lender to reduce what I owe by half?

Fantastic new precedent.