We just concluded the first in a series of Short Sale seminars and we thank everyone who attended and participated. If you’re a homeowner who’s underwater and missed this event, we have a few more lined up for the year. But with some laws expiring at the end of the year, particularly the Mortgage Debt Relief Act, which may impact debt forgiven in a short sale or loan modification or foreclosure, we encourage you to schedule a free consultation with me now before time runs out. Let’s review your circumstances and find out what the best course of action is. As in any decision involving finances, we advise you to consult a tax professional to find out how it will affect you personally.
Short sales have become the norm in today’s real estate climate, and there is no clear solution – yet. Please allow me to share this article with you, written by Bryce Reynolds who is a mortgage veteran with over 30 years of experience and one of my preferred lenders. It was published in the “Letters to the Editor” section of the Las Vegas Review Journal on Jan. 26. As someone who is skilled in the finance industry, Bryce offers some thought-provoking solutions to the underwater homes scenario.
Bryce’s main point is simple: force banks to reduce the principal. Bryce writes:
“There has never been an economic recovery that was not led by a strong housing market, as well as a strong commercial construction market. Therefore, until the underwater home situation is solved, there will not be a strong and sustained recovery — period.
The proposed settlement with the banks does absolutely nothing to address the overall housing problem.
Underwater homeowners owe $709 billion more on their mortgages than their homes are worth — left unresolved, this number will increase each and every day. If banks wrote down just the principal (leaving the basic loan terms unchanged) on underwater mortgages to market value, it would save homeowners $71 billion per year. That is $71 billion in consumer dollars available to immediately kick-start the economy.”
You can read the entire article here: http://www.lvrj.com/opinion/force-banks-to-write-down-the-principal-138109773.html
Please feel free to share this article if you agree with what Bryce is proposing. We need to find and answer now and we need it fast.
Contact us today if you want to explore some workable solutions to your housing dilemma. I have aligned myself with some of the best minds in the industry who can give you sound and unbiased recommendations, so you can get back on track and move on with your life.