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Short sales skyrocket in Southern California

Short sales California are a great way to remove housing inventory from the market, and reduce pressure on homeowners in California who are struggling with loan modifications california, failed loan modification applications and who may be looking at the foreclosure process. The good news is that nearly 13,000 short sales were recorded in the Southern California market in the first half of 2010.

Short Sales Skyrocket in Southern California | Mortgage Rates & Trends: Mortgage Blog

Short sale transactions are up 74 percent in Southern California this year (Orange, Riverside, San Bernadino, and Los Angeles counties).

For homeowners who need to get rid of housing debt, an increase in short sales in California is a welcome release. It also allows eligible buyers who were priced out of the market a few years ago to purchase a short sale in California at a more realistic price.

But why the change?

The government led program - Home Affordable Foreclosure Alternatives (HAFA) program has been designed to encourage short sales. As the program gathers strength, we can probably expect to see increased numbers of short sales across the country. 

Given that a large number of loan modifications california are failing families and homeowners, short sales CA does seem to be a very good alternative to the long and often drawn out loan modification CA process.


Loan Modification-California vs. Other Options

A California loan modification can be a useful strategy. However, it needs to make sense financially for both the lender and the homeowner....Lenders are in business to make a profit and they understand the need to give a little bit when it helps them in the long-term. However, do not expect that lenders will make large reductions in the principal balance just because you heard about it in a radio or television advertisement. This only happens in limited circumstance when the negotiator understands how to push the lender's buttons.

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Loan Modifications Los Angeles: Why short sales can make good credit rating sense

Homeowners struggling to make their monthly mortgage payments may fear more than losing their home through foreclosure. With Loan Modifications Los Angeles CA pointing out that when loan modifications don't work (and most of the accepted loan modification appear to fail within a 12 month period) they are left with foreclosure and the knowledge foreclosure CA will have on their credit rating. Thankfully there is another option for homeowners in financial distress, and that is a Short-sale whereby the property is sold for less than the value of the balance owed on the property loan.

Short sales can make sense -

"With a short sale on your credit, you'll lose 100 to 150 points," said Dallal, who is also a licensed real estate broker. "But with a foreclosure, you'll lose about 300 to 350 points on average, and a foreclosure stays on your record for seven to 10 years."

But why should a family go through the stress of going through a short sale as opposed to working with the lender to obtain a loan modification CA? In truth, the loan modification Los Angeles process can be a long drawn out and stressful process, especially when the homeowner works in good faith with the lender only to find the loan modification Los Angeles is still not affordable to the distressed homeowner causing the homeowner to default on the loan modification CA payments. Or the homeowner goes through the loan modification process and is turned down by the lender, leaving the homeowner with fewer options. Whilst foreclosure CA may seem like a valid option, a short sale allows the bank to immediately recoup some of its investment on the home whilst giving the homeowner some degree of control over the process.


Loan Modifications Los Angeles Failing Families

Loan modification Los Angeles sounds like a dream come true for families who are struggling to repay mortgage debt. Unfortunately, mortgages and credit card debts are at all-time highs, while the economy is at its weakest point in decades. To make matters worse it appears that banks are only half-heartedly supporting families in their efforts to obtain loan modifications LA, and the federal Homeloan Affordable Modification Plan (HAMP) has been a dismal failure, with an approval rate of about 1 percent.

Loan Modifications LA have been slow to approve loan modifications at all, sometimes taking up to a year to approve Loan Mods LA at all.

What makes matters worse for those families looking at Loan Modifications Los Angeles when you find that a very large percentage of approved loan modifications are defaulting.

Something is amiss!

The truth is, most loan modifications Los Angeles are not affordable for the average family budget. Most loan modifications seek to give the banks the best deal while not taking the families needs into consideration.

There are a number of steps lenders will go through to reclaim their return on investment, not least of which forcing families to go through the Foreclosure process.

News in the last week of course, that Fannie Mae intends to pursue those who decide their only option is to strategically default on their loans makes matters far worse than ever before. Given the dismal acceptance rate of loan modifications Los Angeles in the first place AND the number of loan mods that default within a short period of time, people under financial pressure are looking for better options and ones that won't impact negatively on their credit score.

Has loan modification Los Angeles CA worked for you? Would you still be willing to strategically default on your loan - given Fannie Mae's recent news or would you go through the foreclosure process?

For familiies and home owners it seems none of the options are appealing.



Marketing Campaigns Over Promised on Loan Modifications San Bernardino County, CA

Monthly payments were reduced somewhat in a number of cases by stretching the adjusted loan balance out 40 years. According to the Fitch Rating Agency, who rates the banks, payments had gone up for a very large percentage of homeowner. The average payment for all loan modification plans was very unaffordable, at 64% of the homeowner’s pre-tax income....If the banks are not willing to agree to part of the losses, then why would someone who is struggling with these payments agree to bailout the bank by makings the extended payments for 40 years? Homeowners have other viable options — they just need to better understand what they are!

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