Folsom Short Sales Will Become Even More Popular in Some Neighborhoods
December 29th, 2009 Categories: Default News, Loan Modification, National Real Estate Trends
Folsom Short Sales will definately be more popular in some Neighborhoods. Folsom homes that were built and sold in 2005 and 2006 will probably be where you are going to see the most short sales in Folsom.
You see, new home builders used negative am, Adjustable rate Mortgages and Pick-a-pay programs to get the most money possible for their homes. These artificially low payments allowed buyers who could normally not afford these larger homes buy them.
Now, amidst a huge market value decline and the worst economy in decades, those loans are coming unlocked.
Most of these homeowners will qualify for some type of loan modification program, may at least get the adjustable rate changed to a fixed. Some will have to extend the mortgage out to 40 or 45 years, because most secondary investors who own the note are not interested in any kind of principle reduction.
Many will go into the new HAMP program, a ninety day trial modification where after a successful trial period the homeowner applies for a long term modification. The short sale will be the best solution for those who do not qualify or choose not to do a modification.
The administration is urging participating servicers to follow through with short sales as an alternative to foreclosure for those homeowners that don’t qualify for a reworked mortgage under the Home Affordable Modification Program (HAMP).
Under the terms of the new program, once a servicer determines a homeowner does not qualify for a modification, the servicer has a 30-day window in which the borrower must be considered for the HAFA program. Each participating servicer is required to develop a written policy, consistent with investor guidelines, that describes the basis on which the servicer will offer the HAFA program to borrowers
