Monday, July 28, 2008

Short Sale

A short sale is when a lender allows you to sell your property for less than what is actually owed on your mortgage.

Example. Say you owe $120,000 on your home. You call the bank and ask them for help and ask them if you can sell your home for less that what you owe on your home. A buyer offers you $100,000 for your home, the bank accepts the offer and you sell your home for $100,000. The bank may forgive the $20,000 that you owe them or may come after you for the remaining $20,000.

New Help for Homeowners, Congress Passes Bill for Mortgage Relief

Congress passes a bill to provide mortgage relief to prevent foreclosures. The bill focuses on helping help to struggling homeowners and stabilize a troubled housing market. This program will help debt strapped homeowners get more affordable mortgages .

The federal government wants to prevent foreclosures and will be offering FHA insured loans to homeowners to refinance their debt if certain conditions are met.
  1. Banks would have to agree to take a large loss on existing loans in exchange for avoiding often costly foreclosure.
  2. Home owners would have to prove that they will be able to afford these new mortgages.
There are too many factors at hand. Banks may decide not to participate and foreclose on homes if it leaves them in a positive position. Forgiven debt be considered income and taxable by the IRS. More details will be have to be given to determine who this will actually help.

Thursday, July 24, 2008

New Site Helps Prevent Forclosure

If you have some equity left in your home and just want out. Buy My House Before the Bank Takes It has been designed to help home owners sell their homes and avoid foreclosure. To view deals on real estate, go to

First listing has been posted on, lets see how the market responds to this listing.