Homeowners that are facing a foreclosure have a number of options available to stop the foreclosure process. One of the options available on is a “short sale”; this is where the lender will allow you to sell the home for less then what the current amount owed is. Many homeowners simply let their home go into foreclosure because they are not sure about the options, or just give up. Before giving up and letting your home go into foreclosure keep in mind that you do have options, and depending on which one you choose, there are a number of pros and cons for each.

Short sales can help lenders avoid the costly and sometimes lengthy process of a foreclosure. One of the key benefits to a short sales is the long term affect on your credit score, a foreclosure is much worse then a short sale with regards to your credit score and ability to recover from your hardship quickly.

Short sales are a simple concept; lenders agree to allow you to sell your home for less then what the current mortgage is on the property. Many lenders will accept a short sale and relief you of the balance of the mortgage, this is good news for homeowners facing foreclosure. Most states allow the lender to attempt to collect the shortfall after a foreclosure is processed; a short sale may relieve you of this additional burden.

Bear in mind that not all lenders will agree to short sales, if the circumstances are right, some lenders will not do short sales at all. If you are current on your mortgage payments, you have very little chance to have a short sale approved. In most cases, you will need to be several payments in the rears in order to have a lender consider a short sale.

Foreclosures will have a greater impact on your credit score. You can typically expect your credit score to sink at least 200-300 points. The long-term affect of a foreclosure on your credit may hinder your ability to make purchases with credit for up to 10 years. Lenders may not offer competitive rates on a new mortgage loan for three to five years, after a foreclosure.

Doing a short sell will have far less repercussions on your credit report; generally your score will fall between 75-100 points. With a short sale, lenders will typically offer reasonable interest rates on a new mortgage after about 18 months.

During a foreclosure you credit should be your primary concern. Repairing bad credit and getting back on your feet is much easier if with choices that offer the least amount of impact on your credit score. The savings on interest alone with credit cards, auto loan and mortgage loans in the future should be enough to convince you, if not think about the strength of your buying power in the future.

While we were looking at paying cash on a short sale house, the bank pre-approved an offer for a “wholesaler”. The “wholesaler” is now looking for a cash buyer before closing. The house has no leins and all taxes are paid up… what is the usual time frame the buyer (or the wholesaler in this case) has before the closing? In other words, how long does the “wholesaler” have to close the deal after the bank has approved their short sale offer? If we made a cash offer to the “wholesaler”, would it be best to complete the cash transaction through a title company and title attorney?

We are actively looking for a home and there are 3 homes out of a BUNCH of homes that we would be happy with. The 3 homes are short sales. Can we submit an offer for more than one home at a time or do we need to submit one – wait to see if it gets accepted/rejected and THEN submit another one?

My concern is if we submit 2 or more offers and they all get accepted, know what I mean?

Large building complexes like offices, housing apartments, malls, multiplexes, which have changed the urbanscape, do not have any mandatory inspections to ensure that building plans and fire safety norms are in place, says
Vivek Shukla

The avoidable tragedy at Carlton Towers in Bangalore on February 23 has once again highlighted the sheer apathy of agencies that look after the safety aspect of our buildings.
The investigation into the Carlton Towers tragedy has revealed that the magnitude of the tragedy could have been worse as the terrace was stocked with 1,000 liters of diesel. And before Carlton Towers, another shocking incident took place close to Bangalore on January 26, where a building under construction collapsed, killing 27 people – this too has brought into sharp focus several chinks and lacunae in safety norms followed in the building construction industry. Even as investigations are going on in both these cases, experts admit that violation of building plans is normal looking at the state of other buildings under construction.
Large building complexes like offices, housing apartments, malls, multiplexes, which have changed the urbanscape, do not have any mandatory inspections to ensure that the building plans and fire safety norms are in place.
Some say that developers deviate even up to 10% from the sanctioned plan in many of these buildings. Violations through non-installation of fire equipment, congested staircases, and entry to the main building from basement, narrow entry roads and absence of trained personnel to tackle emergencies are major causes of concern in all highrise buildings.
Brushing aside all these allegations on developers, R K Arora, CMD of Supertech Group, says that it is not at all true that developers ignore the guidelines of National Building Code (NBC) in order to earn more. Realtors are providing all the essential safety measure in their projects and they also have a team of highly qualified professionals to take care of all the construction work as per the norms set by the NBC, he avers.
Echoing these thoughts, Ajmal Zaheer Khan of Kothari Associates, said that no realtor with any standing in the market could afford to overlook safety measures in buildings. He made it clear that they should work on this aspect every time and all the time.
Some say that another factor that compromises building safety is the extensive use of filtered sand in many structures. As this is not of good quality and does not have a binding nature, tragedy is waiting to happen in many constructions everywhere.
And, for various reasons, civic authorities have been found wanting in ensuring that the buildings are constructed as per building bylaws and the NBC.
A study conducted not long ago by a consumer organization in Mumbai and Gujarat looked at 18 housing projects, comprising 4,500 units, constructed by private and government agencies. Predictably, findings spoke of gross violation of building bylaws, use of substandard materials, and inadequate/ nil technical supervision. Residents speak of damp roofs, peeling plaster, faulty wiring, leaky taps, corroded reinforcement, splintered windows and vibrating parapets. Most of the users had to replace shutters and fixtures of the joinery within a short time.
Another disturbing trend that is gaining ground is that, now, priority is given to elegance and aesthetics, and safety in building construction is given a go by. “It is really very unfortunate that priority is given to elegance and aesthetics, and not to safety of the buildings,” rues Nazma Rizvi, formerly of School of Planning and Architecture, adding, “I think some developers award contracts to builders on the basis of lowest quotation. Quality of construction takes a backseat. As a result, neither the materials nor the workmanship is tested as specified by the NBC.”
Quality shortfall can have lethal fallout. Realty market watcher, Devinder Gupta of Century 21 India, strongly feels that there is a possibility that some realtors in small towns play with the lives of people because they violate the norms of NBC, but that in big cities they cannot afford to take such a risk. One, Carlton-like incident completely ruins their reputation. No realtor can take this huge risk while constructing his building, he says.
“Absolutely,” says Sunil Jindal, CEO of SVP Developers, “Quality of construction has always been a top priority for established developers. Every contract awarded to a contractor invariably contains inspection and testing clause, on the basis of which it becomes mandatory for the contractor to undertake certain prescribed tests to ensure best quality construction.”
Some also say that, at least in some cases, developers also violate NBC in respect of materials, workmanship, size and height of rooms to be adopted for comfortable living, utilizing the latest developments in building designs and construction techniques. The situation can improve only when developers arrange for quality checking, either directly or through independent agencies.
Rajeev Rai, vice-president (Corporate) at Assotech Ltd, says that it is not at all fair to blame the entire community of developers for one or two incidents.
“Fact of the mater is that they see to it that inspection and testing procedures are followed at project sites. Their engineers at site also ensure that all inspection and testing is done as per the guidelines of NBC,” he says.
As far as National Building Code is concerned, it is a document containing standardized requirement for the design and construction of buildings in the country. Although codes may sometimes seem fuzzy, they are the result of years of experience and testing, says Rizvi.
Building codes exist to protect the public’s health, safety and welfare. It regulates building construction and building use in order to protect the health, safety and welfare of the occupant. There cannot be any debate that all the stakeholders have to ensure that NBC is followed in letter and spirit so that the lives of innocent people are not put in danger.

Courtesy:- Times Property dt:- 06-Mar-2010

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Short sales way up due to realty woes
While the real estate slump never hit greater Williamsburg as hard as it did elsewhere, it has nonetheless led to an unusual number of foreclosures and a related phenomenon.

Read more on The Virginia Gazette

Foreclosure is of one of the most traumatic experiences a homeowner can face. The embarrassment of losing a home to foreclosure is compounded by the foreclosure’s devastating effects on your credit scores and ability to qualify for new credit. With an increase of 79% in foreclosure rates in 2007, increasing number of homeowners are facing the nightmare of losing their home. If you can no longer afford to make your mortgage payments, there are alternatives to foreclosure proceedings. One of the options receiving a lot of attention in the news is called a “short sale.”

What is a Short Sale?

A short sale is as an “agreement” between the homeowner and lender to allow a home to be sold for less than the amount that is owed on the mortgage. Short sales can be a helpful compromise for everyone involved. For a debt-ridden Seller, a short sale spares them some of the pain, embarrassment, and credit challenges that result from foreclosure. The lender avoids the work and expenses involved if they had to seize and auction off your property. The seller receives no money from the sale of the home but the lender does not report the transaction as a foreclosure to the credit bureau.

Selling a home through a short sale differs from selling a home under normal circumstances. While a buyer and seller may come to some sort of agreement on their own, the lender in a short sale will ultimately have final approval of any sales contract.

It’s important to note that the short sales occur at the sole discretion of your lender. Not all lenders will agree to short sales or discounted payoffs, especially if foreclosure presents them with a better opportunity to recoup their losses. Additionally, not all sellers and properties qualify for short sales. Usually, Borrowers must be at least 91 days delinquent before a lender will even discuss a short sale. There may be tax ramifications associated with any short payoff or foreclosure; therefore you should contact your tax advisor or lawyer before proceeding.

How Do I Proceed With A Short Sale?

Requirements vary from lender to lender, but most will demand that you prepare and submit a extensive array of documentation. This includes a written declaration (“hardship letter”) and supporting documentation proving an inability to make payments. You may be required to submit pay stubs, tax returns, and statements listing your assets.

This task can be made less daunting by employing the services of a loss mitigation specialist. These financial consultants have solid working relationships with mortgage lenders which allow them to help you avoid the common pitfalls you would encounter trying to negotiate with the lender yourself. Time is of the essence in finding the right alternative after defaulting on a loan. The average consumer might spend days making phone calls just to find the right department or person responsible for handling short sales for your lender. Figuring out the proper documentation to submit is both confusing and time consuming for consumers with little experience with the process.

A loss mitigation consultant will perform a thorough assessment of your personal finances and analyze your lender’s loss mitigation policies. They negotiate with your lender to find you the best possible solution to your home foreclosure problem. Their expert assistance with document preparation can present a much stronger case to convince the lender to agree to a short sale.

Loss mitigation consultants can also advise you about several additional alternatives to foreclosure besides short sales. Some homeowners situations are better served by Repayment Plans (Forbearance Agreement), Loan Modification/Refunding, or Deed-in-Lieu of Foreclosure.

Financial hardships are sometimes unavoidable. If you can no longer make payments on time, contact a loss mitigation consultant immediately to discuss your options. Alternatives to foreclosure exist and quick action on your part can save your credit score and leave you with less financial challenges in the future.

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