As of 11/26/09 there are over 1,000 short sales being sold publicly via the SoCAL MLS/CARETS IDX data feed in Active status in the city of Los Angeles alone, 1,015 to be exact (this does not include anything listed in Los Angeles County). 790 of the 1,015 are listed below the Fannie Mae traditional conforming loan amount of $417,000 and 945 of the 1,015 are below the new super conforming loan amount limit of $729,000. Of these 1,015 listings 310 are priced below $200,000. Only 25 of the properties are listed at $1 million+ price range. My takeaway: Short Sales are typically much better suited for the first time FHA approved home buyer than REO's because
Most of them fall within a listing price range that there…
Want to feel frusturated and Raise your stress level? Click this link and read
Found this blog post on Active Rain. Reading this post is the best way I think for the average layman to understand the frusturation with dealing with Lenders Loss Mitigation Departments.
This article did not surprise me though. I've been waiting > 2 months for a Loss Mitigation Department to give me an updated approval. I have a buyer willing to purchase property on terms approved by investor (based on Febuary 2009 BPO). All I need is updated approval with new buyers name.
For liability reasons it "wouldn't be prudent" for us to give you direct advice on this topic but here are some excellent sources of information for you to review with either your CPA or Tax Lawyer.
IRS Links:
IRS FAQ re: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
IRS News Update: Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form
IRS Publication 4681 re: Canceled, Debts, Foreclosures and Abandonments
Interesting article, it says that only 25 people in the whole country have qualified for the "Hope for Homeowners" program...25 in the whole country... with the guidelines setup as they were though I'm surprised its even that high. Despite its name this program has not exactly been what I would call a "light at the end of the tunnel" for US Households.
I do think there will be some major changes in lender willingness to do loan mods between now and end of 2009, especially with regard to their willingness to reduce principal balances, stay tuned...
Update 3/24/09: Here is a new article from Inman News with some…
