Service Center For Denver Short Sales

 “Foreclosure homes sold for 34 percent less than the average price of a non-distressed home during the third quarter of 2011, according to new data released by RealtyTrac Thursday.” EDITOR’S NOTE: There are two different markets today, the distressed and the non-distressed, the pre or foreclosed or the owner occupied homes. The difference in prices stems from a number of reasons. Any property that falls behind on payments is occupied by an owner that can’t make a payment and can’t keep the place up either. The banks further the adverse conditions by leaving a property vacant for months or even years causing further decay. Take what a foreclosure or pre-foreclosure sells for, add to it the cost to fix all the deferred maintenance and the property would most likely be selling close to a non distressed property.  Read More

EDITOR’S NOTE: The following in only partly true. The other part is that Banks hold investors away until no one else wants a property so the price is automatically reduced to attract an offer. Also, the Bank many times holds the properties too long and they become weather beaten and run down further, so only an investor has the cash to buy and renovate. One more foolish move for the Banks.

Homebuyers with enough cash in hand to cover their offer price in full are able to bid significantly lower on properties and according to a new industry report released Monday, because they offer a shorter and more reliable closing timeline without the impediments of a mortgage, they often win out with that lower bid. The study found that this low-bid-winning dynamic is particularly true for distressed properties because mortgage servicers selling foreclosed or REO homes generally prefer transactions that can settle within 30 days. Read More

EDITOR’S NOTE: I agree with Paul Dales, senior economist at Capital Economics.

Dales called Obama’s proposal “another policy that tinkers at the margins rather than striking at the heart of the problems that are holding back housing and the wider economy.”

If the proposal is not staved off by Republicans, who according to Dales, “already think the government is too involved in housing,” it will likely have little effect on the market, Dales said. Read More

EDITOR’S NOTE: The government for another time has found away to take a well working tool of theirs and mess things up! I refer to the story in the Sunday Denver Post. What happens is that the value of condos will be pushed down and only investors will be interested starting a vicious cycle. Take a minute and read this one.

EDITOR’S NOTE: How long will the low interest rates last? That will be determined by demand for money in all industries. If the demand slips a bit and the demand for loans stays about the same the rate should stay close to the same or dip ever so slightly.  Money like any commodity is subject to supply and demand.

Data released Thursday by Freddie Mac shows the average rate for a 30-year fixed mortgage edged down to 3.88 percent (0.8 point) for the week ending January 19, to hit a new all-time low.  Read More.

EDITOR’S NOTE: Introducing an unemployment forbearance. Forbearance as defined by Webster is : a refraining from the enforcement of something (as a debt, right, or obligation) that is due. The government however may have a different definition. What happens to the principal and interest not paid for the forbearance period?

Fannie Mae issued new guidelines to its servicers Wednesday, introducing an unemployment forbearance program which provides servicers the flexibility to assist borrowers who have a financial hardship due to job loss, including those facing imminent default. Read More.

EDITOR’S NOTE: It has taken a year or two for the banks and government to get their act together. They move slowly but they move. So if you have a house that you owe more on than it is worth call us immediately at 303-659-6386. Please don’t wait to the last minute.

While the seizure process has been “highly dysfunctional,” there were “strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets,” RealtyTrac Chief Executive Officer Brandon Moore said in the statement.

Read more: Home Seizures May Jump 25% This Year as US Foreclosures Resume,

EDITOR’S NOTE: The distressed portion of the Real Estate market is driving down prices and until these properties are cleared from the market Short Sales are the only way out if your property is worth less than what is owed on it.For help call 303-659-6386.

EDITOR’S NOTE: Here is something new, Foreclosure Mediation. What’s there to negotiate? The Homeowner owes the money, the bank is due the money and the Deed of Trust’s bottom line says if you don’t pay you don’t stay. Unless the bank is willing to reduce the note and interest rate or tack on the amount to the end of the loan or extend the loan or all of the above, then what good is it? For help call 303-659-6386. I totally agree with the paragraph below.

Foreclosure mediation programs are viewed by policymakers and consumer advocates as a means to bring borrowers and their lenders together to work out an alternative to foreclosure. But some industry participants contend that mandated mediation programs only delay the inevitable. Read The Full Article.

EDITOR’S NOTE: I’m a little confused. This article says there have been 910,000 loan mods have been granted but later in the article it says A total of 38,243 …HAMP mods have been granted. I will let you see where I went wrong.

Treasury released a new report Monday highlighting results from the Home Affordable Modification Program (HAMP). Nearly 910,000 homeowners have received a permanent HAMP modification, saving $9.9 billion in monthly mortgage payments. Officials say they will continue to press servicers to assist underwater borrowers and address second-lien issues. A total of 38,243 principal-reducing permanent HAMP mods have been granted, and 54,828 second-lien mods have been started under the federal program. Read More