It is projected that about one in every ten properties will fall into short sales this year. Having a property dropping into this category is crucial for Fremont homeowners, lenders and real estate professional. This is the reason why it has become a fact of life that all of them are keeping on real estate service professionals.   

Most Fremont homeowners would want to benefit from loan modification to cope with the current status of their property. However, most of them don’t have sufficient fund sources to qualify under the Making Home Affordable program. Present debts that have long been standing on the racks scheduled for payment every month can also add to the Fremont homeowner’s crisis. 

What are most people doing about it? Most homeowners tend to turn to foreclosure. But this has been not an attractive option to lenders. Lenders would rather have Fremont homeowners choose short sales instead of foreclosing their property most of the time. The property would then have to be priced at an amount much lower than the total amount loaned from the lenders. This is a far better option for banks than having a property foreclosed even if it may incur losses from short sales. Banks prefer cash at a much hastier period than owning properties which requires much longer time before it can finally be converted into monetary assets.     

 However, the process involved in it can be very long and burdensome for the people concerned in the transaction. At an average, short sales take as much as 3 to 6 months but at some cases, it can take up to 8 to 10 months of your time. This is one of the reasons why most people squirm when they hear about the possibility of going through short sales. 

 There are new things that can bring about better days in the real estate business. Say, beginning April, 2010. There is a forthcoming hope in the real estate transaction in the form of the newly issued guidelines of the Home Affordable Foreclosure Alternatives Program. These new guidelines are expected to restructure the process and decrease the lender’s dilemma they have long been suffering.

 With all this said, here are the recent changes in the short sales guidelines we’ll all be happy to know about. 

1. Fremont sellers and Fremont real estate professionals will enjoy the amount of time they can save from now onwards. This is because of the pre approval of short sale terms prior to the listing of the property. The lender will also be informed of the minimum proceeds they can get from the sale of the property even before it is listed.
2.  It will only take ten days to approve or disapprove a short sale request. That is a lot of time reduction for all the parties involved. Significant reductions in paper works also bring current short sales troubles to an end. 
3. Loan servicers will now be disallowed to oblige cuts in the commissions intended for real estate professionals. That’s a lot of money you can keep for yourself. 
4. Home owners will be provided with $1500 relocation assistance for every short sold property. That’s a big help for people who are about to lose a home. 
5. The program also requires the borrower to free the homeowner from future liability for the first mortgage debt. This again is much better than having your property foreclosed and a ten-year credit liability. 
6. Mortgage servicers will also be given $1000 for every completed short sale transaction as financial incentive. 
7. All these can be enjoyed by everyone involved in the transaction provided that the property is the homeowner’s principal residence. The Fremont homeowner must also be either proven delinquent or have shown a relative incapacity to pay the debt in the forthcoming years.

Thank you for taking the time to read the information I have made available to you. This information is brought to you by your Fremont real estate expert Clyde Brown.  If you are considering buying or selling property, planning to relocate, looking for Fremont homes for sale, or looking for any other information about real estate in the Fremont real estate market, or the surrounding areas, please visit the most complete website dedicated to everything real estate related www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Bay Area Realtor, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. For all your East Bay cities needs including Fremont, Newark, Union City, Hayward, Oakland, Santa Clara, Milpitas, Dublin, Livermore, Pleasanton, and San Ramon. Clyde Brown Legacy Real Estate & Associates.