Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

March 9th, 2010

New Federal Program That Pays Homeowners To Short-Sell

Categories: Buyers, Carlsbad, Sellers

Carlsbad, CA - In an interesting turn of events, the federal government is instituting a program designed to encourage short sales.  In this program, expected to start in April,  the government  will provide $1,000 to the first lender, $1,000 to the second lender, and $1,500 in relocation assistance to the homeowner to encourage a short sale. 

Is it enough to really encourage the banks to be more cooperative in a short sale environment?  Probably not.  Will it encourage more homeowners to attempt to short sell their house versus a foreclosure – maybe.  Read the rest of this entry »

Tags: Carlsbad Foreclosures, Carlsbad Short Sales

Posted by Mike and Amy Mewborn// Please leave a comment.

October 12th, 2009

Carlsbad Short Sales Getting Tougher

Categories: Home Loans

Due to the hassles and costs involved, more banks are not agreeing to short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. According First American CoreLogic, one-third of borrowers owe more on their mortgages than their properties are worth, making it more enticing for borrowers to just walk away.

When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale.

Today, banks demand 9.5 weeks to respond to a short-sale request, compared to 4.5 weeks a year ago, according to research firm Campbell Communications. Their reluctance is frequently stymieing sales and frustrating real estate practitioners.

Source: Based on article from Business Week – Christopher Palmeri

Tags: Carlsbad Short Sales

Posted by Mike and Amy Mewborn// Please leave a comment.