$15,000 Tax Credit For Home Buyers - Eisodep 214 - ...

$15,000 Tax Credit For Home Buyers - Eisodep 214 - AllAboutRealEstate.pro - Things you should know about new amendment to the economic stimulus package. Property values are down across the US. According to recent figures released February 4th 2009 by the National Association of Realtors (NAR) property values lost ground in the past 12 months, sighting a net property value depreciation of... Distributed by Tubemogul.

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[G2sLapTop]

Short sale homes are traditionally in much better condition when compared to a foreclosed property. Short Sales vs. Foreclosure is simply a win-win for everyone. Although I would agree with you that the best alternative would be to help the home owner stay in and keep their home, but when that option is simply NOT an option; a Short Sale could well be the better of all the other alternatives.

Thanks again for your comments. G-II

[G2sLapTop]

Short Sale Transactions provide a chance to resolve the current state of the owners home loan. We are not trying to be selfish. We are trying to help both, the tax payer who is footing the bill for the bank bail outs and, at the end of the day, a short sale may be a much better alternative for home owners over other alternatives such as judicial foreclosure, non-judicial foreclosure or deed-in-lieu, all while helping preserve the value of neighborhoods.

[G2sLapTop]

The short sale provides the lien holder an opportunity for the lien holders and their investors to eliminate the need to expense additional funds on a foreclosure procedure, possible eviction action of the home owner and/or homeless vagrant squatters, loss prevention/security, maintenance, repairs, H.O.A. dues, cost of sale and other internal fees that could well impact reserves required under federal banking regulations to be maintained by your investor.

[G2sLapTop]

YOU CLOSED WITH: That too forces property values down. What you are saying, hidden in you southern charm delivery, appears to be very, very selfish especially if you still advocate short sales.....either way...the homeowner get screwed

Actually your Intel is incorrect. Short sale transactions sell for as much as full MARKET value to just a bit below MARKET value. Such transactions can save banks additional costs that center on the foreclosure process.

[G2sLapTop]

If were going to be dragged into this swamp of bail out fever, why not do all we can to force congress to force lien holders to practice practical and responsible loss mitigation instead of simply throwing more and more money at the same failed policies that lead to the down fall of the lending industry in the first place?

[G2sLapTop]

Now doesnt it make more sense to urge lien holders to work toward responsible loss mitigation rather than take their usual, stubborn approach and foreclose on the property? Look, we, the people of the United States, have already been pillaged by our congressional leaders by TARP 1, TARP 2, AUTO MOTIVE BAIL OUTS and we are assured that TARP 3 is on its way.

[G2sLapTop]

In our opinion, thats simply foolishness on the part of any lien holder. Why should the tax money of US Citizens be spent on banks foolish and stubborn approach to loss mitigation when such stupidity does nothing to help get their balance sheets into the black. If lien holders would work more diligently to approve short sale transactions, they could cut the potential losses by as much as 50%.

[G2sLapTop]

Nevertheless, this is exactly what happens each time a bank forecloses on a property. To add to the idiocy, when the bank then has to sell the foreclosed property, the property traditionally sells for as much as 30% below MARKET value with an average of about 20% MARKET. Keep in mind that BELOW MARKET does not necessarily mean below list/asking price but rather below what the retail market value of the property is.

[G2sLapTop]

We suggest that the feds have already taken our tax dollars to dole out to banks to short up their asset base and yet, each time a bank forecloses on a property, the asset base and financial reserves, required under federal banking regulations, are depleted. Banks, as we all know, are not in the business to own real estate.

[G2sLapTop]

Hello Brent and thank you for commenting on our video. Of course by now, we all know that the $15,000 tax credit was reduced to $8,000. In any event the conceptual math is still relevant.

Now to the point of your post; You asked, If we must stop the tsunami of foreclosure that drive home values down, then why do you advocate short sales that allow you and your clients to buy below market We advocate short sale, over foreclosure.