Kris & Kim Darney

We still get asked this frequently. In today’s market, the short sale is widely accepted and looked at favorably by the banking industry. Why? Simply said, banks net more money from a short sale on average than they do an foreclosures…as much as 15 % more. The cost of 1 foreclosure or REO (Real Estate Owned) can exceed $70,000.00 to the bank due to legal fees, internal costs, property repairs and maintenance, marketing and broker fees. Our VLOG further explains the benefits to the seller as it pertains to credit and opportunity to repurchase.

If your reading this blog, chances are you have tried a loan modification and found that the terms offered to you by your lender are not going to do enough to allow you to keep your home. Let's face it, the hype of loan modifications gave us all hope in some way...that lenders, our government "loan modification companies"...had the ability and would use it to keep people in their homes.

The last six months or so have proven otherwise. Unfortunately, are experience lately, has been that people have spent a month or more waiting to find out if they in fact were going to be granted a loan modification and what the specific terms would be....only to realize the terms offered just don't do enough to make it possible to stay in the home. And in many cases, the default process has been started by the lender.

So, now what?

First, try to let go of the emotion of "Loosing" your home. It's now become a reality; you must think of this as a business decision. You want to recover from this, and will.

Get started right away, have your home listed for sale with a realtor that can prove to you they have been successful with their short sale listings, ask lot's of questions. Find out how many short sales they have had accepted and sold over the last 6 months for example...

Once you have listed your home for sale, believe it or not, a huge sense of relief is going to hit you like a ton of bricks! Finally, a start to putting closure on an out of control situation. Now you can start moving forward, most likely you will be a happier person just knowing that the nightmare of "not knowing what to do" has ended.

Finding a place to settle in for a few years will be easier than you think, the rental market has gone crazy. You have so many opportunities to live in beautiful homes it will surprise you, in most cases the monthly rent will be less than what you were paying for your mortgage payments.

Victorville, CA…

Kim and I have 2 short sale listings next to this catastrophe’. Price drops have hit as much as 65% from their 2006 highs.

Despite the rhetoric coming from Washington’s talking heads, we still have 2 to 4 years of this devastation left in the So Cal housing market. Reason…Foreclosures are on the rise and buyers are having difficulty in getting loans. bad mix…Mr. Obama…we need you.

Home values are dropping like WWII Japanese Kamikaze’s. Protect yourself from the flak and strife of the worst financial market ever!

Thanks to Vision Victory for this powerful video.

In an article released today, Bank of America is easing their policy to accept no less than 10% on HELOCs and 2nd mortgages. The new policy is reducing the payoff amount to 5% for a short sale.

A majority (77%) of California foreclosures carry HELOCs and 2nd mortgages.

Short Sales on average, result in less of a loss for banks. Typically the losses are 30% less than losses realized from the foreclosure process

The short sale is a desirable alternative to foreclosure or deed in-lieu. The short sale will impact the credit score and limit real property re-purchase from 24 to 48 months assuming credit is properly maintained. However, the foreclosure will remain on the credit report for up to 10 years and will limit re-purchase up to 7 years.