About Will County, IL

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How Long Will It Take For Short Sale Approval?

The concern of how long will it take for short sale approval to be received or handed down is actually something that is very hard to answer categorically. The main reason is that you would need to look closely at the situation of the lending bank along with a host of other factors that can affect the entire approval process. The timeline for approval of a short sale transaction can run from as little as a few weeks up to almost six months. This is something that majority of homeowners need to deal with and understand in order to avoid facing foreclosure on their properties. Although the timeframe is considerably long, it is important to understand that the short sale transaction remains as one of the best options open to every homeowner facing financial challenges.

One of the determinants on how long will it take for short sale approval to be received is how fast the homeowner decides on using this type of transaction to settle outstanding financial obligations. The faster they decide and pursue the short sale transaction, the faster the approval process can begin. Let us take a look at other factors that will affect the approval time.

1. Competent real estate agents or companies.

There is no doubt that one of the determining factors on how long will it take for short sale approval to be received is the choice of short sale specialist. Many homeowners are not aware that the short sale transaction is a relatively new field of the real estate industry. This means that an experienced real estate agent is an automatic assurance that they will get competent service. They need to acquire the services of short sale specialists with a solid background on closing these types of transactions. Having a novice or inexperienced real estate agent handle the short sale transaction can lead to a number of potential problems like wasting time with unprepared buyers or incomplete submission of documentary requirements among others. There is also the inherent danger that the real estate agent may give the wrong advice preventing the homeowner from making an informed decision.

There are a number of real estate agents that look solid on the surface, but once you go deeper, you will see that they do have not successfully closed a substantial number of short sale transactions.

1. Number of liens on the property.

Another factor that will affect how long will it take for short sale approval to be released is the number of liens on the property. Every experienced real estate agent knows that dealing with one lender is challenging enough, but dealing with multiple lenders can be very complex. This is why; one of the determining factors on the approval time for short sale transactions is the number of liens on the property. Basically, each additional mortgage on the property represents an additional one to two months of processing time. Another thing to consider in terms of multiple liens is the type of liens associated with the property. If a property is under a mortgage lien and a home equity lien, then this can mean an extremely extended processing time for the approval of the short sale transaction.

Homeowners should realize that lender banks do not want to lose out on their investments, which is why there is often a squabble over the money that will be potentially generated from the sale. This further highlights the need for short sale specialists.

1. Keep track of the names and number of the lenders.

In relation to the previous factor, the real estate agent should be able to keep track of all the names and numbers of the lenders holding a lien on the property. It is not impossible for a competent real estate agent to negotiate short sale for a property that has three to five liens. However, this goes to the competency and strong background of the short sale specialist. There is no question that the more lenders involved, the longer and more complex the transaction will become. You do not want to complicate the entire process by failing to follow up and constantly communicate with all the lenders involved.

There are some lenders that may demand unsecured promissory notes from the seller or a higher payment than usual. It is up to the real estate agent and/or Seller's Attorney to negotiate these details to ensure that approval is secured at the shortest time possible.

1. Banks hold the key.

If you want to have a clear idea on how long will it take for short sale approval to be given out, take a close look at the condition of the bank holding the lien on the property. The reaction time of banks varies distinctly based on their current manpower and ability to deal with various types of loans. There are banks that have earned the reputation of being notoriously slow when dealing with short sale transaction approvals.

By far, the fastest approvals of short sale transactions and requests come from small local banks along with the VHDA. Involvement of organizations like Fannie Mae will also add a few weeks to the processing timeline. In general, when it comes to short sale transaction approvals, the bigger the bank the longer the processing time it takes.

1. Complete short sale package.

The short sale transaction is widely considered as documentation intensive, which means that lender banks rely heavily on the accompanying paperwork. Therefore, submitting a short sale package that is incomplete will add to the processing time required to secure an approval from the lender. In most instances the file gets relegated to the bottom of the pile and without regular follow up from the real estate agent, it fades into oblivion. To have a general idea on how long will it take for short sale approval from submission, take into consideration the following steps to the process:

• Acknowledgement of bank
  
• BPO or appraisal order
  
• Review of short sale file
  
• Assigning of negotiator
  
• Possibility of assigning a level 2 negotiator
• Submission to mortgage insurance company approval and/or investor approval
  
• Approval or rejection of short sale
  

Homeowners should be aware that if the processing time goes beyond 120 days, there is a possibility that the real estate agent is not paying close attention to the short sale transaction. In determining how long will it take for short sale approval to be granted, it is wise to also look into potential internal problems of the bank aside from the competency of the real estate agent. A qualified and experienced http://dtaylor.illinoisproperty.com is key to any short sale and gives the homeowner the advantage of a faster approval time. Our agents acquire the knowledge, skill and experience it takes to insure a successful short sale as well as a promising future for you. Our services are also 100% free to you because we understand that you have already been through enough in your financial burden and want nothing more than to see you through your short sale and moving forward in your life. (In the Baltimore area contact http://baltimoreshortsale.com)

Don't "Cut Your Nose Off and Spite Your Face"

when it comes to your Mortgage Financing

There's an old saying ...

"You're cutting your nose off and spiting your face" ...

Stretching the point just a bit, I want to use this saying to get a message across regarding interest rates ... and the intense focus that most home buyers, and those refinancing, place on them.

Now I know that sounds a bit ironic coming from me, a mortgage lender. But as much as I think the interest rates we are seeing right now are a huge HUGE advantage to those seeking mortgage financing ... I also think that the extreme attention and importance placed on rates by consumers can be rather myopic and ultimately end-up being detrimental to their long-term financial health.

Using a play on another old adage, I believe ... "man/woman cannot (and should not) live on interest rates alone". And too many times I see mortgage clients doing just that. They make decisions based SOLELY on interest rates.

Typically a lower interest rate, and the subsequent lower payment attached to it, puts a "fire out". Meets a need in their mind. They see a tangible difference in the numbers they're going to shell-out each month ... and that's obviously important. I understand that ...

No one ... NO one really WANTS a mortgage. No one WANTS to pay money out of their pocket each and every month. But the need is there, right? And call it the financial planner in me, but a home buyer or homeowner is typically talking the biggest financial "stake" and financial need they have in their lives when speaking to me about their mortgage financing.

So I ask you ... Why not get the "biggest bang for your buck" that you can from it? Utilize it? Maximize the benefits you receive?

A wise decision on your mortgage rate and mortgage program CAN do that for you. And simply put, the lowest interest rate ... and the mortgage program/term attached to it ... may NOT be the best overall financial decision for you. And ultimately that's what you're trying to do ... pave the way to a better, more stress-free financial future, right?

But you have to be working with a mortgage lender that has the expertise, experience, and knowledge ... and will take the time ... to explain ALL options available to you. Options that may serve a better financial purpose for you in the short and long-term. Options that may leave you much healthier financially for the future.

Many times the difference in interest rates between mortgage programs can be small ... but still carry a HUGE and reverberating impact on your finances. The importance of working with a mortgage lender that can and will "paint the picture" for you regarding the short and long-term benefits of each of your mortgage options cannot be overstated.

That's why I believe making your mortgage selection based solely on interest rates can be like ... "cutting your nose off and spiting your face".

So I suggest ... don't make the decision hurredly. Take the time to do the homework necessary to find the mortgage lender that can provide you all the information, products, and services you need. Then listen intently to what they say. Take notes. Ask questions. Get ALL the facts regarding ALL the mortgage options and interest rates currently available to you. Have the mortgage lender you're speaking with "paint you the picture" in hard numbers. Consider carefully the comparisons provided you.

Then and only then, make your final financing decision. That way when you move ahead with your financing you will know for a fact that you chose the right mortgage lender. On your Closing Day, you will know for a fact that you have the best mortgage financing for YOU personally ... in the short-term AND long-term.

You'll feel .. and be ... much happier and healthier financially for it.

* Work with a Mortgage Lender with 35 years of experience, expertise, and knowledge in mortgage lending, appraising background, and financial planning. Contact me today. Together we will discover the mortgage financing that best suit your needs, in the short-term and long-term both.

I can be contacted through any of the following:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com

Website: www.genemundt.com

Skype: 630.219.1316

Click Here 4 a: NO Cost NO Obligation Mortgage Consultation

I hope that the information provided here on interest rate "lock-in" will assist those presently pursuing mortgage financing. Should you need further information or explanation regarding this part of the mortgage process, please do not hesitate to contact me. I'll be glad to assist you further and in every way I can.

* Looking for further information or answers to your mortgage and credit questions? Contact me! I'll put my 35 years of mortgage experience and expertise to work on your behalf.

I can be found through any of the following means:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com Website: www.genemundt.com

Skype: 630.219.1316

Click Here 4 a: NO Cost NO Obligation Mortgage Consultation

Who Can Buy a HUD Home?

Almost anyone can purchase a HUD home. If you have cash or you qualify for a loan (subject to certain restrictions) you may buy one. All HUD homes are first offered to owner-occupant purchasers. These are people who are buying the home as their primary residence. After the initial period is offered to owner-occupant purchasers, the unsold HUD home is available to all buyers, including investors.

Do HUD Homes have a Warranty?

No. HUD homes are sold "as-is" without a warranty. No repairs will be performed to your home by HUD after the closing. If you are interested in a HUD home, it is highly recommended to have a home inspection by a qualified home inspection company. You should also consider purchasing your own home warranty for unknown pre-existing issues.

Part 2 - Check back periodically for more information on how to purchase a HUD home!

Loan Officer Mick Rothblott reports it may not feel like it but the US economy is recovering. We know this from the numbers and numbers don’t lie (or do they?). The non-farm payroll numbers for January was another in a series of better (still not great) economic indicators.

Non-Farm payrolls rose 243,000 in January with another 183,000 in revisions from last year adding a total of 2.1 million new jobs created in 2011. Add it all up, and there are now 163 million people in the United States on payrolls, the highest number since February of 2009.

Among other good news, the jobless rate dropped to 8.3% from 8.5% in December, the best showing since February, 2009. The unemployment rate has now declined for five straight months, partly because of unemployed workers giving up the hunt for a job but also because people are finding work.

A broad measure of unemployment, which includes people who want to work but have stopped looking and those working only part-time but who want more work, slipped to 15.1 percent in January from 15.2 percent in December.

So what does all this mean for interest rates?

The report contrasted with a fairly glum assessment of the economy offered by the Fed last week. Officials at the U.S. central bank have been debating whether to buy more bonds – a program dubbed QE3 – to drive interest rates lower. After a policy meeting last week, they said they would likely hold overnight interest rates near zero at least through late 2014.

“This is the kind of data that will challenge the Fed’s wisdom of putting a late 2014 date on prospective tightening,” said Alan Ruskin, head of G10 currency strategy at Deutsche Bank in New York. “The data plays strongly against QE3, although the Fed will surely keep it in the wings.”

Interest rates are low and will continue to remain low for the foreseeable future. How low and for how long is anyone’s guess, but if the numbers continue to show improvement, expect that markets will surely force interest rates up despite what the Fed’s intentions are. Do you agree with Nick's opinion?

mick@mickdoesloan com

www.mickdoesloans.com

http://connectmls4.mredllc.com/mls.jsp?module=reports&encurl=search/common_search_index.jsp&url=..%2Freports%2FflyerList.jsp%3FuniqueURL%3D839786893