Portland Short Sale Real Estate: February Will Bring New Rules to Ease Short Sale Transactions

Starting February 1st, there will be some new rules from the Home Affordable Foreclosure Alternatives Program that should help ease the pain of buying or selling a short sale in Portland. First, “Once a sales contract has been initiated, loan servicers then have 30 days to approve or reject the transaction.”  This should speed up the rate at which it takes to close on a short sale.  Right now there are twice as many short sale listings than bank owned listings on the active market, but there are 2-3 times as many sale pending bank owned properties than short sale properties.  It’s pretty obvious what’s more attractive to buyers. Also, “Another big change: Loan servicers will no longer be restricted on paying second-lien holders, allowing them more freedom particularly when dealing with second-lien holders when borrowers owe less than $100,000. Loan servicers used to be restricted to paying second-lien holders no more than 6 percent of outstanding loan balance (with an overall limit of $6,000) in exchange for releasing subordinate liens. Second-lien holders have been another big obstacle to completing short sale transactions.”

What is a Short Sale? A Short Sale is when the seller is trying to sell their home for less than what is owed on it. If the seller will be unable to pay the difference at the time of closing then he will need to obtain the bank/lenders approval (“3rd party approval”) to “sell short” of what he owes before the home can be sold to another party. A home isn’t necessarily in pre-foreclosure for it to be a short sale; they may have been able to keep up with the payments avoiding the pre-foreclosure process.

As Scott McDonald of the McDonald Group said back in June, “We all know mortgage rates are low right now, but Freddie Mac really put a light on it by saying they are currently lower than they have been since they began tracking this data in 1971 and MSNBC.com states the last time they were this low was in the 1950′s. Yup, the economy stinks right now, but if you’re in a position that’s somewhat insulated from economic trends and are thinking of buying a home, now really is the time.”

Let’s repeat: Now is the time to buy a home in Portland. Luxury homes in the Portland area are steeply discounted, and first-time homebuyers can find opportunities to own their own spot in one of Portland’s hip neighborhoods. The McDonanld Group is your experienced Portland Realtor, and we’re ready to help you grab a great deal on a great home, so contact us today. We’ve got access to the best homes for sale in Portland, including rock bottom prices on bank owned homes, foreclosures, and short-sales. Don’t miss this historic opportunity!

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