How to solve the housing crisis – My Short Sale Solution Program – North Scottsdale Real Estate

My solution to the housing crisis:

My solution to the housing crisis is to incentivize banks to streamline the short sale process by offering them a percentage of the deficiency out of the Government’s $75 Billion Dollar Mortgage Modification Fund on top of what the home sells for on the open market. The borrower receiving the short sale principle reduction would then agree to pay back that percentage to the US Taxpayers through a long term, low interest payment. The bank(s) agree not to pursue the borrower for the deficiency. The percentage that the bank(s) receive can be worked out; be it 10%, 20%, 50%, or whatever.

Everybody wins. The banks have a financial incentive to make the short sale process easy and not pursue homeowners for the deficiency. The borrowers receiving the short sale get out from a bad financial situation but are held responsible for a payback of the Government funds they use to do so. This will minimize the number of people who are not in danger of going into foreclosure taking advantage of the program. For the US Taxpayers, this program will speedup the recovery, drop foreclosure rates significantly, and ensure that they are paid back for the bulk of financial assistance they provide.

Undoubtedly there will be people who take advantage of the program. There will also be people who stop making their deficiency percentage payback payments.

What’s your opinion? Email us at MyOpinion@ThePrecisionTeam.com

For more stories like this and other North Scottsdale Real Estate information visit http://www.North-ScottsdaleRealEstate.com

The Real Reason Banks Won’t Give You a Loan Modification or Short Sale– North Scottsdale Real Estate

This video looks at the stats the Mortgage Bankers Association released for the 4^th Quarter 2009 Mortgage delinquencies and foreclosures. It also answers the question of why banks make it so hard to complete a loan modification or a short sale.

10.44% of all home loans in America were at least one payment past due but not yet in the foreclosure process. 4.58% of all home loans in America were in the foreclosure process. 15.02% of all home loans in America, on a non-seasonally adjusted basis, were in foreclosure or at least one payment past due. This was the highest ever recorded in the MBA delinquency survey. As high as these numbers were at the end of 2009, it still means that roughly 85% of all home loans in America are running smoothly. Lenders are reluctant to make the loan modification or short sale process easy for troubled homeowners because they are afraid that a chunk of the 85% of people making their mortgage payments might stop and try to take advantage.

Here is the report from the Mortgage Bankers Association:

http://www.mbaa.org/NewsandMedia/PressCenter/71891.htm

For more Information like this and North Scottsdale Real Estate News visit:

http://www.North-ScottsdaleRealEstate.com

Paying Homeowners to Short Sale with HAFA – North Scottsdale Real Estate

As part of the Government’s Home Affordable Modification Program (HAMP) the treasury department unrolled the Home Affordable Foreclosure Alternatives Program (HAFA) which will pay homeowners to sell at a loss. This is in an effort to encourage more troubled homeowners to go through a short sale rather than a foreclosure. HAFA starts April 5^th, 2010.

$1500 to the home owner to ease their transition to a new home “relocation assistance”

Servicing bank will get $1000.

Another $1000 can go toward a second loan, if there is one

The payments come out of the $75 Billion mortgage modification plan. As well, the program is supposed to help streamline and standardize the short sale process.

Lenders and investment pools owning many home loans get more money from short sales

Community and the lender doesn’t have to deal with a vacant home (Up to 50% of vacant homes get ransacked)

Borrower gets assurance the lender will not sue for unpaid mortgage balance

Federal Program would require banks to accept offer if it is at or above the value assigned by a real estate agent

Borrower must prove hardship and that foreclosure is immanent

Here is the program outline from Home Affordable Modification Program:

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Here is a Ney York Times article talking about Home Affordable Foreclosure Alternatives Program:

http://www.nytimes.com/2010/03/08/business/08short.html?pagewanted=all

Congratulations to The Abrams Team The Softball Team Sponsored by The Precision Team!

Congratulations to The Abrams Team The Softball Team Sponsored by The Precision Team!

This isn’t Top Gun. 2nd place for 2nd Best! As you know, Steve and Ceaser were there to document some of the action from three of the most exciting Softball Games ever to be played. Here are some of the action shots they captured on their high-tech camera phone…


Steve Rowe dominated the left field with his batting assault and his defensive glove skills.


Pitching solid however unknowing he was about to take a shot to the ankle by the ensuing batter, did this stop him, NO. Infact he went on to pinch run for Nick, fellow injured badass


Jake knows he going to slide in to home this at bat the only question is does the catcher dare stand in his way


Jake and Tyler locked down the left infield with golden glove performances


Jackie- the sure hand outfielder caught almost every single ball hit to her, got on base almost every at bat, one hell of a playoff performance, the endorsement deals are coming


Inning after inning of throwing the high heat fastball, fortunately or unfortunately kept getting hit after hit and having to run on a ravaged foot, ankle, low knee injury


I will destroy Cyrus and take my rightful place in the dugout with the pretty ladys of the team and get the attention I deserve


A solid no 2 perfomance against the MMA specialists at the Lions Den

North Scottsdale Real Estate Market Statistics

3-4-2010

The following table contains units of homes on the MLS in North Scottsdale, which is comprised of zip codes: 85258, 85260, 85255, 85254, 85259, 85262. All information was pulled on 3/4/2010 from ARMLS’ Home Listings Database and is deemed reliable but not guaranteed.

The bottom 2/3 of the table compares the last three months of sales to the same 3 months a year ago and is broken down by All Sales, Equity (not bank owned and not short sale), short sale, and REO (Bank Owned). I took it a step further and break it down by the type of home sold (All Types, Single Family Houses, Condo/Townhouses).

ACTIVE – All Home Types
Sale Type	12/31/09	2/10/10		3/3/10
All	3428	3613		3627
Regular	2438	2562		2583
Short Sale	738	794		803
Short Sale	277	302		314
REO	253	259		241
PENDING – All Home Types
Sale Type		2/10/10		3/3/10
All	507	590		626
Regular	195	251		268
Short Sale	197	222		217
REO	116	117		142
CLOSED – All Home Types					1 YEAR COMPARISON
	Dec-09		Jan-10	Feb-10	Dec-08	Jan-09	Feb-09
All	402		294	345	232	179	200
Avg ALL Price	$ 470,897		$544,065	$498,617	$553,456	$561,310	$594,394
Equity	205		145	176	149	86	106
Avg Equity Price	$553,851		$713,975	$602,346	$655,215	$736,476	$768,587
Short Sale	74		59	77	19	24	23
Avg ShrtSl Price	$381,746		$446,462	$413,184	$394,342	$530,542	$461,609
REO	123		89	90	62	68	71
Avg REO Price	$386,277		$336,870	$368,862	$360,680	$354,295	$377,345
CLOSED – Single Family					1 YEAR COMPARISON
	Dec-09	Jan-10		Feb-10	Dec-08	Jan-09	Feb-09
All	281	213		236	179	132	154
Avg ALL Price	$ 578,913	$669,154		$633,214	$621,588	$664,631	$689,384
Equity	148	116		122	119	64	84
Avg Equity Price	$654,628	$814,354		$752,081	$710,246	$872,219	$876,547
Short Sale	52	40		62	12	20	18
Avg ShrtSl Price	$470,258	$592,298		$469,303	$507,833	$582,900	$526,778
REO	81	57		52	47	48	52
Avg REO Price	$510,322	$427,593		$549,768	$426,404	$421,902	$443,329
Closed – Condo/Townhse					1 YEAR COMPARISON
	Dec-09	Jan-10		Feb-10	Dec-08	Jan-09	Feb-09
All	121	81		109	53	47	46
Avg ALL Price	$220,051	$215,128		$204,033	$323,349	$271,133	$276,384
Equity	57	29		57	30	22	22
Avg Equity Price	$292,182	$312,459		$264,063	$436,927	$341,589	$356,377
Short Sale	22	19		15	7	4	5
Avg ShrtSl Price	$172,536	$139,439		$181,227	$199,786	$268,750	$227,000
REO	42	32		37	15	20	19
Avg REO Price	$147,046	$175,270		$303,000	$154,747	$192,040	$196,757

Foreclose or Short Sale before 2012 – The Mortgage Debt Relief Act – North Scottsdale Real Estate

The Mortgage Debt Relief Act of 2007 is the prefect example of strength in numbers. With so many individuals and families going through either foreclosure or a short sale, the Government is making an exception to their standard policy of treating forgiven debt as income.

The Mortgage Debt Relief Act of 2007 is over at the end of 2012, which implies that if you are going to go through a short sale or a foreclosure on your primary residence… you better do it soon. Talk to your accountant. The following video talks about some of the highlights of the Mortgage Debt Relief Act of 2007.

For specifics on The Mortgage Debt Relief Act of 2007 straight from the horse’s mouth visit the IRS’ website at http://www.irs.gov/individuals/article/0,,id=179414,00.html

Home Affordable Refinance Program Does Not Work – North Scottsdale Real Estate

The Government announced that they are extending the “Making Homes Affordable Program”, which was set to end on June 10^th, 2010, to now run through June 30^th, 2011. The program was designed to help 4-5 million homeowners. It has only helped 220,000… the program does not work because current market values are significantly lower than the writers of the program foresaw. While they are updating the expiration of the program, they should also address the requirement that the first mortgage has to be less than 125% of the current market value.

Check out the program specifics here: Making Homes Affordable FAQ

Have you had any experiences with making homes affordable or other Government programs created for the housing crisis? If so, please email us at MyOpinion@ThePrecisionTeam.com or leave a comment below.