SlideShare une entreprise Scribd logo
1  sur  7
Télécharger pour lire hors ligne
1
SHOULD I SHORT SALE MY HOME?


             HOMEOWNER’S GUIDE:


      HOW TO SURVIVE THE WORST
     REAL ESTATE MARKET IN HISTORY

                            By

                     Tom Damron

                           and

                Tim and Julie Harris




*This book and its content is not intended to give legal or
accounting advice. Readers of this book are advised to
seek additional information from their accountant and/or
attorney. The authors and co-authors are not accountants
or attorneys.




                                                       2
Table of Contents


Chapter One.
A National Epidemic Is Looming. Are You Ready?
Chapter Two.
How Bad Is It?
Chapter Three.
Ok, I Get It. A Short Sale May Be My Best Option.
Tell Me More.
Chapter Four.
What Is A Mortgage Foreclosure?
Chapter Five.
You Have Been Warned: Foreclosure Scams.
Chapter Six.
What Are The Options For Homeowners In
Foreclosure?
Chapter Seven.
You Now Want To Short Sale Your Home:
Top 10 Short Sale Questions, Answered.
Chapter Eight.
I Thought Rates Were Falling. Won’t That Help?
Chapter Nine.
Life After Short Sale...When You Want To Buy A
Home Again…FHA To The Rescue.
Chapter Ten.
Something You Should Know: The Death Of The
Home Equity Loan - Millions Of Homeowners Shut
Out.




                                               3
Appendix A.
Loss Mitigation Companies and Contact Info.
Appendix B.
What’s the difference between Short Sale vs. Short
Payoff.
Appendix C.
(Abbreviated) The Complete State-by-State
Guidebook on the most Common Foreclosure
Procedures (FLORIDA ONLY)

Biographies of Authors




                                                4
Chapter Ten



Something You Should Know: The Death Of
The HELOC….Millions Of Homeowners Shut
Out.


Most major lenders are freezing withdrawals from
Home Equity Lines of Credit (HELOCs) – and I don’t
want you to be caught off guard by this development.
If you were planning on using your HELOC for spring
home improvements or college tuition chances are
the money has been shut off.

 You should be aware that the lender retains the right
to suspend or reduce the line of credit available if your
property value falls below the appraised value used to
originate the loan. Lenders are actively assessing
(performing Broker Price Opinions, or Appraisals)
properties and then suspending access for account
holders who have seen a downward slide in their
home value. Many of our students who do BPOs are
reporting to us a dramatic increase in BPO requests
from lenders for this reason.




Actual notice from Countrywide...sent to borrowers:

‘ I mportant message about your loan: At Countrywide
Home Loans we are committed to helping customers
sustain homeownership. As part of the commitment,

                                                    5
and in keeping with its sound risk-management and
responsible lending practices, Countrywide Home
Loan is reviewing and analyzing home equity lines of
credit in its servicing portfolio.

declined. We believe that the decline in the value of
your property, from its original appraised value at the
time your loan was made is significant. In accordance
with the terms of your Home Equity Credit Line
Agreement and Disclosure Statement (Agreement),
we have elected to suspend further draws against
your account as of the Effective Date above. ’
   The Los Angeles Times recently reported that
Countrywide notified many homeowners they’ve lost
their right to borrow against their credit lines:

‘ Tens of thousands of homeowners with home equity
lines of credit are getting a rude surprise: They ’ ve
been told by their lender that they can no longer take
money out on their credit lines because sinking home
prices have left them with little or no equity.

   Among the lenders taking such action is
Countrywide Financial Corp., which sent 122,000
letters to customers last week telling them they could
no longer borrow against their credit lines. In some
cases, according to the company, the borrowers are
now “ upside down ” —the total debt on the home
exceeds the market value of the property.



                                                   6
Calabasas-based Countrywide, the nation ’ s
largest mortgage lender, says it uses computer
modeling that factors in changes in home prices to
determine which customers will have their money tap
shut off. ’

If there was any question that consumers were feeling
the pinch before…just wait until they are told that their
homes are worth LESS than what they owe. Or in the
word of Countrywide, “Significantly Less”. Do you
think that will have an effect on the economy? Think
this will make consumers feel more confident about
housing?




                                                    7

Contenu connexe

Tendances

Intercepting and Preventing Foreclosure.
Intercepting and Preventing Foreclosure.Intercepting and Preventing Foreclosure.
Intercepting and Preventing Foreclosure.robert tapia
 
The Coming Wave Of Debt Maturities
The Coming Wave Of Debt MaturitiesThe Coming Wave Of Debt Maturities
The Coming Wave Of Debt Maturitiesbsalzer
 
The Coming Wave Of Debt Maturities
The Coming Wave Of Debt MaturitiesThe Coming Wave Of Debt Maturities
The Coming Wave Of Debt Maturitiesbsalzer
 
Subprime Meltdown: From U.S. Liquidity Crisis to Global Recession
Subprime Meltdown: From U.S. Liquidity Crisis to Global RecessionSubprime Meltdown: From U.S. Liquidity Crisis to Global Recession
Subprime Meltdown: From U.S. Liquidity Crisis to Global Recessioncharlesbrownell
 
How to become a buyer by Fidelity
How to become a buyer by FidelityHow to become a buyer by Fidelity
How to become a buyer by FidelityTheresa Osburn
 
Foreclosure alternative-short-sale
Foreclosure alternative-short-saleForeclosure alternative-short-sale
Foreclosure alternative-short-salecornnutz
 
10 things to consider when Buying a Home.
10 things to consider when Buying a Home.10 things to consider when Buying a Home.
10 things to consider when Buying a Home.Cheryl Fairbanks
 
Should I Short Sale My Home - Chapter 6
Should I Short Sale My Home - Chapter 6Should I Short Sale My Home - Chapter 6
Should I Short Sale My Home - Chapter 6Tom Damron
 
Why You Should Consider a Short Sale Instead of A Foreclosure
Why You Should Consider a Short Sale Instead of A ForeclosureWhy You Should Consider a Short Sale Instead of A Foreclosure
Why You Should Consider a Short Sale Instead of A ForeclosureRe/Max Central Properties
 
Home Buying Guide Fall 2016
Home Buying Guide Fall 2016Home Buying Guide Fall 2016
Home Buying Guide Fall 2016Bill Butler
 
Hot Potato
Hot PotatoHot Potato
Hot Potatokleveroc
 

Tendances (20)

Refinancing A Mortgage
Refinancing A Mortgage Refinancing A Mortgage
Refinancing A Mortgage
 
Intercepting and Preventing Foreclosure.
Intercepting and Preventing Foreclosure.Intercepting and Preventing Foreclosure.
Intercepting and Preventing Foreclosure.
 
The Coming Wave Of Debt Maturities
The Coming Wave Of Debt MaturitiesThe Coming Wave Of Debt Maturities
The Coming Wave Of Debt Maturities
 
The Coming Wave Of Debt Maturities
The Coming Wave Of Debt MaturitiesThe Coming Wave Of Debt Maturities
The Coming Wave Of Debt Maturities
 
Selling A House
Selling A HouseSelling A House
Selling A House
 
Divorce Lending Dec
Divorce Lending DecDivorce Lending Dec
Divorce Lending Dec
 
Subprime Meltdown: From U.S. Liquidity Crisis to Global Recession
Subprime Meltdown: From U.S. Liquidity Crisis to Global RecessionSubprime Meltdown: From U.S. Liquidity Crisis to Global Recession
Subprime Meltdown: From U.S. Liquidity Crisis to Global Recession
 
How to become a buyer by Fidelity
How to become a buyer by FidelityHow to become a buyer by Fidelity
How to become a buyer by Fidelity
 
Foreclosure alternative-short-sale
Foreclosure alternative-short-saleForeclosure alternative-short-sale
Foreclosure alternative-short-sale
 
10 things to consider when Buying a Home.
10 things to consider when Buying a Home.10 things to consider when Buying a Home.
10 things to consider when Buying a Home.
 
Should I Short Sale My Home - Chapter 6
Should I Short Sale My Home - Chapter 6Should I Short Sale My Home - Chapter 6
Should I Short Sale My Home - Chapter 6
 
Why You Should Consider a Short Sale Instead of A Foreclosure
Why You Should Consider a Short Sale Instead of A ForeclosureWhy You Should Consider a Short Sale Instead of A Foreclosure
Why You Should Consider a Short Sale Instead of A Foreclosure
 
5 Top Mortgage Tips
5 Top Mortgage Tips5 Top Mortgage Tips
5 Top Mortgage Tips
 
Home Buying Guide Fall 2016
Home Buying Guide Fall 2016Home Buying Guide Fall 2016
Home Buying Guide Fall 2016
 
BuyingaHomeFall2016
BuyingaHomeFall2016BuyingaHomeFall2016
BuyingaHomeFall2016
 
Buying a home fall 2016
Buying a home fall 2016Buying a home fall 2016
Buying a home fall 2016
 
Buying A Home eGuide
Buying A Home eGuideBuying A Home eGuide
Buying A Home eGuide
 
Lower My Mortage
Lower My MortageLower My Mortage
Lower My Mortage
 
Hot Potato
Hot PotatoHot Potato
Hot Potato
 
BuyingaHomeSpring2016
BuyingaHomeSpring2016BuyingaHomeSpring2016
BuyingaHomeSpring2016
 

Similaire à Should I Short Sale My Home - Chapter 10

Should I Short Sale My Home - Appendix B
Should I Short Sale My Home - Appendix BShould I Short Sale My Home - Appendix B
Should I Short Sale My Home - Appendix BTom Damron
 
Should I Short Sale My Home - Chapter 7
Should I Short Sale My Home - Chapter 7Should I Short Sale My Home - Chapter 7
Should I Short Sale My Home - Chapter 7Tom Damron
 
Should I Short Sale My Home eBook
Should I Short Sale My Home eBookShould I Short Sale My Home eBook
Should I Short Sale My Home eBookJoe Chen
 
Journey To Homeowning
Journey To HomeowningJourney To Homeowning
Journey To HomeowningErin Torres
 
Predatory Loan4a
Predatory Loan4aPredatory Loan4a
Predatory Loan4akramere7
 
Should I Short Sale My Home - Chapter 5
Should I Short Sale My Home - Chapter 5Should I Short Sale My Home - Chapter 5
Should I Short Sale My Home - Chapter 5Tom Damron
 
Should I Short Sale My Home - Chapter 3
Should I Short Sale My Home - Chapter 3Should I Short Sale My Home - Chapter 3
Should I Short Sale My Home - Chapter 3Tom Damron
 
Foreclosure Prevention Course
Foreclosure Prevention CourseForeclosure Prevention Course
Foreclosure Prevention CourseSpringboard
 
First Time Homebuyer Guide 2023
First Time Homebuyer Guide 2023First Time Homebuyer Guide 2023
First Time Homebuyer Guide 2023Tammy Jackson
 
BuyingaHomeSummer2016
BuyingaHomeSummer2016BuyingaHomeSummer2016
BuyingaHomeSummer2016Tonya Burling
 
Should I Short Sale My Home
Should I Short Sale My HomeShould I Short Sale My Home
Should I Short Sale My HomeTom Damron
 
Capital Mortgage Insurance Corporation (A)
Capital Mortgage Insurance Corporation (A)Capital Mortgage Insurance Corporation (A)
Capital Mortgage Insurance Corporation (A)Meghan Howard
 
P-BuyingaHomeSummer2016
P-BuyingaHomeSummer2016P-BuyingaHomeSummer2016
P-BuyingaHomeSummer2016Jean Venezia
 
The Recession Of The Housing Crisis
The Recession Of The Housing CrisisThe Recession Of The Housing Crisis
The Recession Of The Housing CrisisCourtney Peterson
 
Pros And Cons Of Predatory Lending
Pros And Cons Of Predatory LendingPros And Cons Of Predatory Lending
Pros And Cons Of Predatory LendingSusan Cox
 
Mortgage Informative Speech
Mortgage Informative SpeechMortgage Informative Speech
Mortgage Informative SpeechKim Stephens
 

Similaire à Should I Short Sale My Home - Chapter 10 (20)

Should I Short Sale My Home - Appendix B
Should I Short Sale My Home - Appendix BShould I Short Sale My Home - Appendix B
Should I Short Sale My Home - Appendix B
 
Should I Short Sale My Home - Chapter 7
Should I Short Sale My Home - Chapter 7Should I Short Sale My Home - Chapter 7
Should I Short Sale My Home - Chapter 7
 
All buyerhandouts
All buyerhandoutsAll buyerhandouts
All buyerhandouts
 
Should I Short Sale My Home eBook
Should I Short Sale My Home eBookShould I Short Sale My Home eBook
Should I Short Sale My Home eBook
 
Journey To Homeowning
Journey To HomeowningJourney To Homeowning
Journey To Homeowning
 
Predatory Loan4a
Predatory Loan4aPredatory Loan4a
Predatory Loan4a
 
Should I Short Sale My Home - Chapter 5
Should I Short Sale My Home - Chapter 5Should I Short Sale My Home - Chapter 5
Should I Short Sale My Home - Chapter 5
 
Should I Short Sale My Home - Chapter 3
Should I Short Sale My Home - Chapter 3Should I Short Sale My Home - Chapter 3
Should I Short Sale My Home - Chapter 3
 
All buyerhandouts.doc (1)
All buyerhandouts.doc (1)All buyerhandouts.doc (1)
All buyerhandouts.doc (1)
 
Foreclosure Prevention Course
Foreclosure Prevention CourseForeclosure Prevention Course
Foreclosure Prevention Course
 
First Time Homebuyer Guide 2023
First Time Homebuyer Guide 2023First Time Homebuyer Guide 2023
First Time Homebuyer Guide 2023
 
BuyingaHomeSummer2016
BuyingaHomeSummer2016BuyingaHomeSummer2016
BuyingaHomeSummer2016
 
Should I Short Sale My Home
Should I Short Sale My HomeShould I Short Sale My Home
Should I Short Sale My Home
 
Capital Mortgage Insurance Corporation (A)
Capital Mortgage Insurance Corporation (A)Capital Mortgage Insurance Corporation (A)
Capital Mortgage Insurance Corporation (A)
 
Dwell Real Estate Home Buying Guide, Summer 2016
Dwell Real Estate Home Buying Guide, Summer 2016Dwell Real Estate Home Buying Guide, Summer 2016
Dwell Real Estate Home Buying Guide, Summer 2016
 
P-BuyingaHomeSummer2016
P-BuyingaHomeSummer2016P-BuyingaHomeSummer2016
P-BuyingaHomeSummer2016
 
Sk buyinga homesummer2016
Sk  buyinga homesummer2016Sk  buyinga homesummer2016
Sk buyinga homesummer2016
 
The Recession Of The Housing Crisis
The Recession Of The Housing CrisisThe Recession Of The Housing Crisis
The Recession Of The Housing Crisis
 
Pros And Cons Of Predatory Lending
Pros And Cons Of Predatory LendingPros And Cons Of Predatory Lending
Pros And Cons Of Predatory Lending
 
Mortgage Informative Speech
Mortgage Informative SpeechMortgage Informative Speech
Mortgage Informative Speech
 

Dernier

10 Best Property Dealers in Mohali - List Real Estate Property Agents
10 Best Property Dealers in Mohali - List Real Estate Property Agents10 Best Property Dealers in Mohali - List Real Estate Property Agents
10 Best Property Dealers in Mohali - List Real Estate Property AgentsAJ Estates
 
LCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedLCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
 
2023 NAR Profile of Home Buyers and Sellers
2023 NAR Profile of Home Buyers and Sellers2023 NAR Profile of Home Buyers and Sellers
2023 NAR Profile of Home Buyers and SellersTom Blefko
 
Presentation of 2023 Results domdev.pptx
Presentation of 2023 Results domdev.pptxPresentation of 2023 Results domdev.pptx
Presentation of 2023 Results domdev.pptxklaudiafilka
 
Kohinoor Uptown Avenue at Punawale Pune - Brochure.pdf
Kohinoor Uptown Avenue at Punawale Pune - Brochure.pdfKohinoor Uptown Avenue at Punawale Pune - Brochure.pdf
Kohinoor Uptown Avenue at Punawale Pune - Brochure.pdfmonikasharma630
 
K Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better LivingK Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better Livingaidasheikh47
 
Signature Global Sector 84 In Gurugram | Easy Living
Signature Global Sector 84 In Gurugram | Easy LivingSignature Global Sector 84 In Gurugram | Easy Living
Signature Global Sector 84 In Gurugram | Easy Livingbhattrishabh270
 
LCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition RevisedLCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition RevisedTom Blefko
 
Points to Consider Before Finalizing on a Property.
Points to Consider Before Finalizing on a Property.Points to Consider Before Finalizing on a Property.
Points to Consider Before Finalizing on a Property.Sunil Agrawal and Associates
 
AIPL Joy District Sector 88, In Gurgaon.pdf
AIPL Joy District  Sector 88,  In Gurgaon.pdfAIPL Joy District  Sector 88,  In Gurgaon.pdf
AIPL Joy District Sector 88, In Gurgaon.pdfbhattrishabh270
 
Provident Manchester IVC Road Bangalore.pdf
Provident Manchester IVC Road Bangalore.pdfProvident Manchester IVC Road Bangalore.pdf
Provident Manchester IVC Road Bangalore.pdfashiyadav24
 
Common House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid ThemCommon House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid ThemHampton Luzak
 
Mantra Akrudi Pune | Lifestyle Amenities Rethink Luxury
Mantra Akrudi Pune | Lifestyle Amenities Rethink LuxuryMantra Akrudi Pune | Lifestyle Amenities Rethink Luxury
Mantra Akrudi Pune | Lifestyle Amenities Rethink Luxuryaidasheikh47
 
4S Sector 59 In Gurugram | Invest, Nest, Rest
4S Sector 59  In Gurugram | Invest, Nest, Rest4S Sector 59  In Gurugram | Invest, Nest, Rest
4S Sector 59 In Gurugram | Invest, Nest, Restbhattrishabh270
 
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdfShapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdfashiyadav24
 
2 BHK Flats In Zirakpur For Sale - AJ Estates
2 BHK Flats In Zirakpur For Sale - AJ Estates2 BHK Flats In Zirakpur For Sale - AJ Estates
2 BHK Flats In Zirakpur For Sale - AJ EstatesAJ Estates
 
LCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition RevisedLCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition RevisedTom Blefko
 
3 BHK Flats in Zirakpur for Sale - AJ Estates
3 BHK Flats in Zirakpur for Sale - AJ Estates3 BHK Flats in Zirakpur for Sale - AJ Estates
3 BHK Flats in Zirakpur for Sale - AJ EstatesAJ Estates
 

Dernier (20)

10 Best Property Dealers in Mohali - List Real Estate Property Agents
10 Best Property Dealers in Mohali - List Real Estate Property Agents10 Best Property Dealers in Mohali - List Real Estate Property Agents
10 Best Property Dealers in Mohali - List Real Estate Property Agents
 
LCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedLCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
 
2023 NAR Profile of Home Buyers and Sellers
2023 NAR Profile of Home Buyers and Sellers2023 NAR Profile of Home Buyers and Sellers
2023 NAR Profile of Home Buyers and Sellers
 
Presentation of 2023 Results domdev.pptx
Presentation of 2023 Results domdev.pptxPresentation of 2023 Results domdev.pptx
Presentation of 2023 Results domdev.pptx
 
Kohinoor Uptown Avenue at Punawale Pune - Brochure.pdf
Kohinoor Uptown Avenue at Punawale Pune - Brochure.pdfKohinoor Uptown Avenue at Punawale Pune - Brochure.pdf
Kohinoor Uptown Avenue at Punawale Pune - Brochure.pdf
 
K Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better LivingK Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better Living
 
Benefits of buying ready to move in flats.
Benefits of buying ready to move in flats.Benefits of buying ready to move in flats.
Benefits of buying ready to move in flats.
 
Signature Global Sector 84 In Gurugram | Easy Living
Signature Global Sector 84 In Gurugram | Easy LivingSignature Global Sector 84 In Gurugram | Easy Living
Signature Global Sector 84 In Gurugram | Easy Living
 
LCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition RevisedLCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
 
Points to Consider Before Finalizing on a Property.
Points to Consider Before Finalizing on a Property.Points to Consider Before Finalizing on a Property.
Points to Consider Before Finalizing on a Property.
 
AIPL Joy District Sector 88, In Gurgaon.pdf
AIPL Joy District  Sector 88,  In Gurgaon.pdfAIPL Joy District  Sector 88,  In Gurgaon.pdf
AIPL Joy District Sector 88, In Gurgaon.pdf
 
Provident Manchester IVC Road Bangalore.pdf
Provident Manchester IVC Road Bangalore.pdfProvident Manchester IVC Road Bangalore.pdf
Provident Manchester IVC Road Bangalore.pdf
 
Common House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid ThemCommon House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid Them
 
Mantra Akrudi Pune | Lifestyle Amenities Rethink Luxury
Mantra Akrudi Pune | Lifestyle Amenities Rethink LuxuryMantra Akrudi Pune | Lifestyle Amenities Rethink Luxury
Mantra Akrudi Pune | Lifestyle Amenities Rethink Luxury
 
Things to keep in mind while buying property.
Things to keep in mind while buying property.Things to keep in mind while buying property.
Things to keep in mind while buying property.
 
4S Sector 59 In Gurugram | Invest, Nest, Rest
4S Sector 59  In Gurugram | Invest, Nest, Rest4S Sector 59  In Gurugram | Invest, Nest, Rest
4S Sector 59 In Gurugram | Invest, Nest, Rest
 
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdfShapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdf
 
2 BHK Flats In Zirakpur For Sale - AJ Estates
2 BHK Flats In Zirakpur For Sale - AJ Estates2 BHK Flats In Zirakpur For Sale - AJ Estates
2 BHK Flats In Zirakpur For Sale - AJ Estates
 
LCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition RevisedLCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition Revised
 
3 BHK Flats in Zirakpur for Sale - AJ Estates
3 BHK Flats in Zirakpur for Sale - AJ Estates3 BHK Flats in Zirakpur for Sale - AJ Estates
3 BHK Flats in Zirakpur for Sale - AJ Estates
 

Should I Short Sale My Home - Chapter 10

  • 1. 1
  • 2. SHOULD I SHORT SALE MY HOME? HOMEOWNER’S GUIDE: HOW TO SURVIVE THE WORST REAL ESTATE MARKET IN HISTORY By Tom Damron and Tim and Julie Harris *This book and its content is not intended to give legal or accounting advice. Readers of this book are advised to seek additional information from their accountant and/or attorney. The authors and co-authors are not accountants or attorneys. 2
  • 3. Table of Contents Chapter One. A National Epidemic Is Looming. Are You Ready? Chapter Two. How Bad Is It? Chapter Three. Ok, I Get It. A Short Sale May Be My Best Option. Tell Me More. Chapter Four. What Is A Mortgage Foreclosure? Chapter Five. You Have Been Warned: Foreclosure Scams. Chapter Six. What Are The Options For Homeowners In Foreclosure? Chapter Seven. You Now Want To Short Sale Your Home: Top 10 Short Sale Questions, Answered. Chapter Eight. I Thought Rates Were Falling. Won’t That Help? Chapter Nine. Life After Short Sale...When You Want To Buy A Home Again…FHA To The Rescue. Chapter Ten. Something You Should Know: The Death Of The Home Equity Loan - Millions Of Homeowners Shut Out. 3
  • 4. Appendix A. Loss Mitigation Companies and Contact Info. Appendix B. What’s the difference between Short Sale vs. Short Payoff. Appendix C. (Abbreviated) The Complete State-by-State Guidebook on the most Common Foreclosure Procedures (FLORIDA ONLY) Biographies of Authors 4
  • 5. Chapter Ten Something You Should Know: The Death Of The HELOC….Millions Of Homeowners Shut Out. Most major lenders are freezing withdrawals from Home Equity Lines of Credit (HELOCs) – and I don’t want you to be caught off guard by this development. If you were planning on using your HELOC for spring home improvements or college tuition chances are the money has been shut off. You should be aware that the lender retains the right to suspend or reduce the line of credit available if your property value falls below the appraised value used to originate the loan. Lenders are actively assessing (performing Broker Price Opinions, or Appraisals) properties and then suspending access for account holders who have seen a downward slide in their home value. Many of our students who do BPOs are reporting to us a dramatic increase in BPO requests from lenders for this reason. Actual notice from Countrywide...sent to borrowers: ‘ I mportant message about your loan: At Countrywide Home Loans we are committed to helping customers sustain homeownership. As part of the commitment, 5
  • 6. and in keeping with its sound risk-management and responsible lending practices, Countrywide Home Loan is reviewing and analyzing home equity lines of credit in its servicing portfolio. declined. We believe that the decline in the value of your property, from its original appraised value at the time your loan was made is significant. In accordance with the terms of your Home Equity Credit Line Agreement and Disclosure Statement (Agreement), we have elected to suspend further draws against your account as of the Effective Date above. ’ The Los Angeles Times recently reported that Countrywide notified many homeowners they’ve lost their right to borrow against their credit lines: ‘ Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They ’ ve been told by their lender that they can no longer take money out on their credit lines because sinking home prices have left them with little or no equity. Among the lenders taking such action is Countrywide Financial Corp., which sent 122,000 letters to customers last week telling them they could no longer borrow against their credit lines. In some cases, according to the company, the borrowers are now “ upside down ” —the total debt on the home exceeds the market value of the property. 6
  • 7. Calabasas-based Countrywide, the nation ’ s largest mortgage lender, says it uses computer modeling that factors in changes in home prices to determine which customers will have their money tap shut off. ’ If there was any question that consumers were feeling the pinch before…just wait until they are told that their homes are worth LESS than what they owe. Or in the word of Countrywide, “Significantly Less”. Do you think that will have an effect on the economy? Think this will make consumers feel more confident about housing? 7