Minnesota Short Sale Expert

We see it all the time on the news but the reality is that the mortgage default rate (homeowners entering into some level of delinquency or foreclosure) is going through the roof. Here are some REAL numbers that came out recently from the Mortgage Banker’s Association…

• Over 12% of ALL mortgages nationwide are in some level of foreclosure.
• SUB-PRIME mortgages have reached a level of almost 40% of all mortgages are in default right now. This number is expected to continue increasing.
• The total estimated number of properties nationwide that are currently in distress is 8,700,000.
• In May 2009 the seasonally adjusted unemployment rate was 9.4% and the highest rate ever recorded by the U.S. Bureau of Labor Statistics was 10.8% in Nov/Dec 1982.

All of these numbers give a clear indication that more and more homeowners will be or already are facing the possibility of losing their home through foreclosure. There are options other than letting it go back to the bank. The best option would be to keep the homeowner in the property through a modification if possible. However, these modifications simply do not work for a large section of homeowners and get turned down by the lenders.

The next best option that a homeowner can choose is to short sale the home. This is where I can help. I am a Certified Distressed Property Expert – CDPE and I specialize in helping families avoid foreclosure by handling a short sale on the home. If you or anyone you know might be facing some of these challenges, please do not hesitate to pick up the phone and call me directly. You can also simply send an email through the website for additional information.

Thanks for reading..!!

Rob Reinke

This topic is on the minds of many right now. With so many of us facing challenges keeping up on the mortgage payments the most common option is to look at possibly doing a loan modification. The federal government has come out with “plans” and the media is talking about them, but will they actually work for you..?? It would be great if there was a simple website that we could plug in some of our own personal and financial information and it would kick back an answer of yes or no.  But of course nothing is ever that easy.

The last figure that I saw is that over 85% of all loan modifications applied for never end up going through to be successful. This is very discouraging. Either the lenders are willing to do them or their not. Why take several months to make a decision that it is not approved..?? If the lender does modify the loan what is modified are the TERMS not the amount that you owe.

Most people think that their situation will warrant that the lender will accept the loan modification. After all they have been a great client to this lender. Maybe there has never even been a payment missed. The reality is that a loan modification has qualification guidelines that rival getting the loan in the first place. In many cases (not all) if one of the borrowers has lost a job and the income has gone down, they don’t qualify. This of course seems odd that they would not want to work with the borrower to keep them in this loan even if it means modifying it. The unfortunate reality is that if these homeowners are not able to modify they will be forced to take more drastic steps including selling it as a short sale or even letting it go back through foreclosure. These loan modification applications are taking several months to even get any answers which often times forces the homeowner to miss additional payments getting them into even a deeper hole.  

I would recommend looking at your options with doing a loan modification but NOT to get your hopes up that it will actually be approved n the end. If you see no other options please feel free to call me about your possibility of doing a short sale on your property.