Posted by: Catherine | June 16, 2009

Don’t expect much from this new Short Sale Moratorium

Unfortunately this “new” law to forestall foreclosures won’t have much effect on most borrowers in distress. This law has a HUGE loophole to exempt lenders with a satisfactory loan modification process in place. So all a lender has to do is prove they have a plan in place to help homeowners, and voila, they are exempt. Now what their plan is, and what the reality is may be two different things, we know that.

Sadly, there isn’t much help to be found in all these “laws” to stop foreclosure. If you’ve lost your job, lost the ability to repay, have gone thru a divorce, income catastrophe, or have to move for your job – do you really want your foreclosure delayed?

Of course there are choices and alternatives to foreclosure i.e. short sale, deed in lieu (haven’t met anyone yet to successfully do this) – but if you’ve decided to walk away, isn’t it best to let it go, cut your losses? Or do you want another 90 days of late payments and the feeling of drowning in debt and collections calls?

If you want to explore a short sale, call me . Even for consideration for a deed in lieu, one very real requirement typically is the attempt to sell it yourself. In our market, you will have no problems finding a buyer at the right price. Most “distressed” properties (i.e. REO, bank owned, short sales) are getting multiple offers.

For more information on the new foreclosure moratorium, the full law, and complicated wording check out:

Assembly Bill ABX 2 7

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