Is a Short Sale Right for You? Read and then Decide!

Posted by Owen McGab Enaohwo on Jul 27, 2010 | View Comments

Real Estate is totally different today than it was just ten years ago, especially because of the “Great Recession”. One thing that has changed is that, more than ever, the term “Short Sale” is now a hot topic that almost anyone paying attention to the news media must have heard. Many sellers who have determined that they can’t sell their home for the amount they owe are now considering doing a short sale instead of allowing the lender to foreclose. But is it always a good thing? How can you tell whether a short sale is right for you? Let’s take a look at some guidelines that will help you decide.

Strategic Default Vs. Strategic Short Sale; which one do you think is the best choice? – Part 2

Posted by Owen McGab Enaohwo on Jul 21, 2010 | View Comments

In my Part 1 of this blog post, I pointed out a new study by Experian that showed an alarming number of homeowners who were electing to intentionally have their homes foreclosed upon by refusing to make their mortgage payments even though they can afford it. This trend which is now called a “Strategic Default” was accelerated greatly with the housing collapse of 2008, when homeowners suddenly found themselves in possession of homes that are now worth as little as half of what they paid for it, their home values have been reduced to the point that they feel like they are swimming in negative equity. Also the mortgage payment for many of these people have become more expensive than what they can pay as rent for a similar house—hence, they have made the financial decision to strategically default, to essentially walk away. Is this the right choice?

Strategic Default Vs. Strategic Short Sale; which one do you think is the best choice? – Part 1

Posted by Owen McGab Enaohwo on Jul 15, 2010 | View Comments

There was an article on the Los Angeles Times website a few months ago that discussed the increasing problem of Strategic Defaults in the United States. I want to tell you why the study cited in the article is right and why this is a growing problem that is gradually reaching crisis proportions in America. Then on my next blog post (Part 2 of this series), I will show you why Strategic Short Sale is the solution.

This LA Times article cited a study conducted by Experian, one of the three national credit bureaus.  They studied the credit files of 24 million Americans and discovered that “homeowners who have high credit scores when applying for a home loan are about 50 percent more likely than low-scoring borrowers to go into strategic default.”

How to Leverage your Self Directed IRA funds in Real Estate – The rules of the game.

Posted by Owen McGab Enaohwo on Jul 13, 2010 | View Comments

The Employment Retirement Income Securities Act (ERISA) made you responsible for your retirement savings, plain and simple! How you invest your funds that you have set aside for retirement is at your discretion. The law excludes only two types of investments under the ERISA and IRS Codes. These investments are: 1. Collectibles and 2. Life Insurance Contracts

What is my Life going to be like After the Short Sale?

Posted by Owen McGab Enaohwo on Jul 10, 2010 | View Comments

Although a short sale is a much better option than a foreclosure—one which won’t leave you foreclosed out of your property with a foreclosure on your record—it is, granted, not a happy time. It can be quite stressful. One of the biggest stresses for the person going through it is wondering what life will be like after the short sale. Just how will it affect your future? There are two primary considerations that I’ll examine:  how the short sale will affect your credit, and how soon after a short sale you can again buy a home.

How to write a Hardship Letter for a Short Sale – A sample you can use!

Posted by Owen McGab Enaohwo on Jul 9, 2010 | View Comments

In a previous blog post, I mentioned that one of the documents required by lenders in order to begin the short sale process is a hardship letter. I will now take some time to explain what it is, why you need it and how to write one. I will even include an example that you can remodel to suit your own true situation.

In my opinion, the hardship letter is one of the important documents you’ll be expected to submit to your mortgage lender because it gives them a snapshot of the financial distress that you are experiencing. It is basically is a signed and dated one page letter (handwritten or typed) through which you explain the reasons why you are having a difficult time making payments. You can also include information on what you have done so far to resolve the situation and why you need the lender to approve the short sale in order for you to avoid foreclosure. Of all the other required documents, the hardship letter leaves the most room for creativity, and therefore the most potential to confuse people as to what it should contain.

Should I Strategically Default on my mortgage and “punish” Fannie Mae?

Posted by Owen McGab Enaohwo on Jul 2, 2010 | View Comments

A couple of days ago the Federal National Mortgage Association (AKA Fannie Mae) sent out a press release stating their plans to “punish” homeowners who strategically default (walk away) on their loan. They also released an updated guideline explaining what they had in mind. This news immediately caused a storm and the news media as well as some notable real estate professionals where all ranting about it.