OfflineThis story just in about declining home prices. They just keep getting cheaper.
http://www.msnbc.msn.com/id/42319427/ns/business-real_estate/
The question has to be in some of these cities, "Where the hell is the bottom?"
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I guess we will just hang on for the ride!
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the way they lump short sales in with foreclosure when they name causes in this article. (caustic reflection)
I mean, the way I learned short sales, when equity permits, the exiting homeowner recoups some of their investment which almost always gets spent into the economy rather quickly. You gotta reckon much of it even goes to durable goods rather than consumables like food and gas. Right?
So, I get caustic when the two processes are lumped together. In a foreclosure scenario, the bank loses, the homeowner loses, the local community loses, and the economy loses. At this point, the REI can finally enter the picture and begin to rectify the situation.
In a short sale situation, the existing equity can create small, but significant wins, for the homeowner, the bank, the economy, and the local community because the REI enters the picture and interrupts the more damaging process of foreclosure.
Can I get a witness?
; ) peace,
Dana w/ Crossroads Solutions LLC
http://www.DanaLeigh209.com
http://www.DanaLeigh209.net
http://www.ULostThis.com
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I am direct to the VP of a $100 million dollar open-ended debt and equity fund which actively writes checks to fund businesses with an EBITDA of at least $1 million a year. We fund also have access to up to $500,000,000 for the purchase of distressed real estate, specially commercial $7,500,000 and up.
There is no equity in a short sale. A short sale is when the homeowner owes the lender more that the property is worth. The homeowner gets nothing back, they owed more than the lender agreed to settle for. They have correctly put short sales in with foreclosures. You are correct that a short sale is less damaging to a homeowners credit that a foreclosure. The homeowner can be taxed on the deficient amount that the bank writes off however. A 1099 can be issued to the home owner. The amount the lender writes off can be viewed as a profit to the homeowner and they get taxed. Nice huh!
So, in a short sale the lender loses and the homeowner loses(not as bad as foreclosure), Housing prices are affected causing a downward trend, but REIs can get a good deal and put a nice property back on the market at a fair price. The equity that is gained by doing a short sale goes to the investor/buyer when they sell the house to the end buyer or rent it. Same as when a REI does a foreclosure property.
Michael Mangham
MD Home Acquisitions LLC
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