mortgages

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Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy

Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy
Buying a Home and Getting a Mortgage Loan After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy
(Updated 10/24/2014)

Many financially distressed homeowners who are facing foreclosure and considering a deed-in-lieu of foreclosure, short sale or even bankruptcy have asked me how long they will need to wait to buy a home after foreclosure, short sale or bankruptcy. Since the answers are found in multiple places, I decided to compile a complete list and cross reference them for accuracy. In order to accomplish that task and compile the Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy below, I utilized the following sources:

Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy

Federal Housing Administration (FHA) Insured Loan
FHA Extenuating Circumstances: “Serious illness or death of a wage earner. Divorce and the inability to sell a property due to a job transfer or relocation does not qualify as an acceptable extenuating circumstance.”

  • Minimum Waiting Period Under The New FHA Back To Work Program – Under the new FHA “Back to Work – Extenuating Circumstances” Program, if you have had a foreclosure, short sale, deed-in-lieu of foreclosure, or have filed bankruptcy you may qualify for a new home loan if you are back to work and can document the extenuating circumstances. You must have a 12 month record of on-time rental housing payments with no delinquencies and not have been 30 days late on more than one non-housing loan payment. If there are still any open collection or judgment accounts, then those will have to factored into your debt calculations for the new loan.
  • Foreclosure – 3 years from the date foreclosure completed and property transferred back to the bank. Less than 2 years, but not less than 12 months from the date foreclosure completed and property transferred back to the bank may be possible with acceptable “extenuating circumstances”.
  • Deed-in Lieu – Same as Foreclosure.
  • Short Sale – 3 years from the date sale closed and transferred to the new owner. No waiting period if seller/borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND seller/borrower was not taking advantage of declining market conditions.
  • Bankruptcy (Chapter 7) – 2 years from date of bankruptcy discharge with re-established credit paid as agreed or no new credit obligations incurred. Less than 2 years, but not less than 12 months from the date of bankruptcy discharge may be possible with acceptable “extenuating circumstances” AND borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.
  • Bankruptcy (Chapter 13) – 1 year from the start date of the bankruptcy re-payment period has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.

Veterans Administration (VA) Guaranteed Loan
VA Extenuating Circumstances: “Unemployment, prolonged strikes medical bills not covered by insurance, etc. Divorce is not viewed as beyond the control of the borrower and/or spouse.”

  • Foreclosure – 2 years from the date foreclosure completed and property transferred back to the bank. Less than 2 years, but not less than 12 months from the date foreclosure completed and property transferred back to the bank may be possible if credit re-established and paid as agreed and with acceptable “extenuating circumstances”.
  • Deed-in Lieu – Same as Foreclosure.
  • Short Sale – 2 years from the date sale closed and transferred to the new owner. No waiting period if seller/borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND seller/borrower was not taking advantage of declining market conditions.
  • Bankruptcy (Chapter 7) – 2 years from date of bankruptcy discharge. Less than 2 years, but not less than 12 months from the date of bankruptcy discharge may be possible if credit re-established and paid as agreed and with acceptable “extenuating circumstances”.
  • Bankruptcy (Chapter 13) – 1 year from the start date of the bankruptcy re-payment period has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.

United States Department of Agriculture (USDA) Rural Housing Loan
USDA Extenuating Circumstances: “Loss of job; delay or reduction in government benefits or other loss of income; increased expenses due to illness, death, etc. Circumstances surrounding the adverse information must have been temporary in nature, and beyond the applicant’s control, and have been removed so their reoccurrence is unlikely or the adverse action or delinquency was the result of a refusal to make full payment because of defective goods or services or as a result of some other justifiable dispute relating to the goods or services purchased or contracted for.”

  • Foreclosure – 3 years from the date foreclosure completed and property transferred back to the bank. Less than 3 years from the date foreclosure completed and property transferred back to the bank may be possible with acceptable “extenuating circumstances”.
  • Deed-in Lieu – Same as Foreclosure.
  • Short Sale – Same as Foreclosure.
  • Bankruptcy (Chapter 7 or 11) – 3 years from date of bankruptcy discharge. Less than 3 years from the date of bankruptcy discharge may be possible with acceptable “extenuating circumstances”.
  • Bankruptcy (Chapter 13) – 1 year from date repayment was completed and bankruptcy discharge. Less than 1 year from the date of bankruptcy discharge may be possible with acceptable “extenuating circumstances”.

Conventional Conforming Mortgage Loan (meets Fannie Mae (FNMA) and Freddie Mac (FHLMC) Loan Purchasing Guidelines)
Conventional Extenuating Circumstances: “Nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.”

  • Foreclosure – 7 years from the date foreclosure completed and property transferred back to the bank if there are no acceptable “extenuating circumstances”. 3 years from the date foreclosure completed and property transferred back to the bank with acceptable “extenuating circumstances” AND at least 10% Down Payment. Primary home purchase and rate/term refinance only (non-owner occupied and second homes not allowed).
  • Deed-in Lieu – NEW = 2 years from completion of a DIL. OLD = 7 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with less than 10% Down Payment. 4 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with 10% Down Payment. 2 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with 20% Down Payment. 2 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with 10% Down Payment and acceptable “extenuating circumstances”.
  • Short Sale – NEW = 2 years from completion of a short sale.
  • Bankruptcy (Chapter 7 or 11) – NEW = 2 years from date of bankruptcy discharge. OLD = 4 years from date of bankruptcy discharge. 2 years from the date of bankruptcy discharge may be possible with acceptable “extenuating circumstances”.
  • Bankruptcy (Chapter 13) – 2 years from date of bankruptcy discharge. 4 years from date of bankruptcy dismissal.

As you can see by the information above and the lesser credit damage caused by a short sale (versus a deed-in-lieu, foreclosure or bankruptcy), a short sale is generally the best option for a financially distressed homeowner who is facing foreclosure or who cannot afford to pay their mortgage. You should contact a foreclosure defense and/or bankruptcy attorney, a short sale real estate specialist like myself, or a legitimate mortgage loan counselor to evaluate all of your options. Please just do not let the bank foreclose on you without trying to prevent foreclosure. If you have a mortgage loan with Wells Fargo, Bank of America (BAC Home Loans or Countrywide Mortgage), CitiMortgage, Chase (JPMorgan Chase), America’s Servicing Company (ASC), GMAC, a Fannie Mae owned loan, a Freddie Mac owned loan, an FHA insured mortgage loan, a THDA mortgage loan, or any type mortgage loan, and you have missed mortgage payments, or will miss mortgage payments and live in the Nashville Tennessee area (Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne, Antioch, Columbia, Mt. Juliet, Springfield, Gallatin, Hermitage and Hendersonville), please contact Nashville Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options including a short sale or short sales (if you have multiple properties).

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Jim McCormack is a Nashville Real Estate Broker who provides Expert Real Estate Solutions for for Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Homeowners and Real Estate Investors Facing Foreclosure and Needing to Short Sell Their Homes and/or Investment Properties. Jim Specializes in Short Sales and Foreclosures and Providing Sellers Short Sale Help and Foreclosure Help. Jim’s Help is Free to Nashville TN Short Sale Sellers. Jim Helps Sellers Stop Bank and Mortgage Foreclosure with a Short Sale, or a Fast Cash Offer. Avoid Foreclosure by Working Directly with a Nashville Tennessee Real Estate Expert and Investor who is Uniquely Skilled, Honest, Compassionate, Caring and Exceptionally responsive to the needs of his clients. Jim Encourages You to See What His Clients Say About Him. For Buyers, Jim understands the Various Nashville Tennessee Housing and Investment Real Estate Markets Extremely Well and is Particularly Skilled at Assisting Buyers with Determining the Market Values of Homes and Investment Properties. Due to that Real Estate Valuation Expertise, Jim can Help Nashville Home and Investment Property Buyers Get Fantastic Deals on Their Nashville Area Real Estate Purchases.

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Law Professor Advocates Strategic Mortgage Loan Default

Law Professor Advocates Strategic Mortgage Loan Default

Per this academic law paper, Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis, the author, Brent T. White (a law professor at The University of Arizona James E. Rogers College of Law) advocates strategic mortgage loan default as a very viable option for both financially distressed and non-financially distressed underwater homeowners (i.e. the mortgage balance(s) exceeds the value of their home – there is negative equity). The major issues addressed in this paper include the following:

  • Part I: Most underwater homeowners are not walking away from their homes (i.e. strategically defaulting on their mortgages).
  • Part II: From a purely financial standpoint “many more homeowners should be strategically defaulting.”
  • Part III: Homeowner and borrower “emotions such as shame, guilt, and fear play the largest role in homeowner decisions” to keep paying on their mortgage loans even though they are financial black holes and the most rational action would be to strategically default.
  • Part IV: The “government, the media, and the financial industry” and expected credit score damage combine to pressure underwater homeowners to keep paying on underwater mortgages even though strategic default would be the best financial option.
  • Part V: Substantial differences in behavioral norms between underwater homeowners (borrowers) and banks give the banks substantial artificial leverage over the homeowners. In other words, the banks regularly fail as evidenced by the TARP bank bailouts and all the other unprecedented government actions to artificially prop up the banks so the banks clearly have no shame in threatening to default and close their doors in order to get money from the government (i.e. morality has nothing to do with their decision making), yet those very same banks pressure underwater homeowners to pay their mortgages by playing the “moral card”. According to the author, this situation has “created an imbalance in which individual homeowners have borne a disproportionate financial burden from the housing collapse.”
  • Part VI: Government policy should seek out ways to level the playing field between underwater homeowners and banks so that given the circumstances mutually beneficial outcomes can be reached.

My view is that after seeking proper real estate (i.e. from me), legal and financial advice, underwater homeowners should consider “walking away” from their homes only as a last resort. In almost all cases, underwater homeowners should attempt the following loss mitigation actions (listed in order):

  1. Short Sale.
  2. Deed-in-Lieu of Foreclosure.
  3. Strategic Default (i.e. walking away).

Free* Short Sale and Foreclosure Help and Assistance for Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Murfreesboro, Smyrna, La Vergne, Columbia, Mt. Juliet, Springfield, Gallatin and Middle Tennessee Financially Distressed Homeowners and Property Owners. Stop the Bank from Foreclosing with a Quick Cash Offer or Short Sale. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee or La Vergne Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact Jim to discuss a short sale (when the real estate sale proceeds are not sufficient to pay off the mortgages and liens on the property). Jim helps sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in any Middle TN County (Rutherford, Williamson, Davidson, Maury, Sumner & Robertson). If you need to short sell your house or property, or you need a quick sale to stop a foreclosure sale, you can Get Free* Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor. (*Free: In a real estate short sale, the bank or mortgage company usually approves and pays all of Jim’s commissions and fees.)

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Homeowners Spending Their Mortgage Payments?

Homeowners Spending Their Mortgage Payments?

According to this Diana Olick article on CNBC.com, Mortgage Defaults May Be Driving Consumer Spending, recent studies show that “Americans are now far more likely to pay their other bills first before their mortgage (which is a big turnaround historically speaking).” As a result, the thought is that many of the nearly 7.4 million homeowners who are not paying their mortgage payments (defined as the total number of delinquent first mortgages plus REO properties – see the most recent mortgage performance data current as of March 31, 2010 in the LPS Mortgage Monitor: April 2010 Mortgage Performance Observations published by Lender Processing Services, a provider of mortgage processing services, settlement services, mortgage performance analytics and default solutions) may actually be spending money that would normally go toward making the monthly mortgage payment on consumer goods and services (i.e. food, clothing, car payments, medical expenses, entertainment, travel, etc.). The article mentions that Paul Jackson, publisher of Housingwire.com, wrote an article, For Consumers, Time to Shop (Until the Mortgage Drops), in which “he describes a case study of someone who applied for the government’s Home Affordable Modification Program. The person had an $1,880.00 monthly mortgage payment on which they’d defaulted, but said person’s monthly bank statement showed payments to a tanning salon, nail spa, liquor stores, DirecTV bill with premium charges, and $1,700.00 in retail purchases from The Gap, Old Navy, Home Depot, Sears, etc.” Jackson goes on to say “Even if you assume that just half of the current 7.4 million currently delinquent mortgages fit this sort of ’spending profile’ (that is, they are spending their mortgage) and you assume a $1,000 median monthly mortgage payment for most U.S. homeowners — you get a $3.7 billion boost per month to consumer spending. It’s certainly enough spending to matter in the overall scheme of things.” I find this truly scary, but I do believe that this is happening. In fact, I think this behavioral trend will become even more common as housing prices continue decline leaving more and more homeowners (I use that term loosely since until you have more equity than you have debt on your home the bank “owns” more of the home than you do) in position where they owe more than their homes are worth (i.e. underwater or negative equity). Frankly, I think this behavior is the result of a rather logical decision making process. If you were an underwater homeowner who owned a home and you had a choice between paying your mortgage (when you know you will never see that money again) and buying goods and services that you can enjoy now, what would you do? This is all a matter of economics and mathematics and in that vane paying for a declining asset (i.e. the home) makes no sense. As a result of this you can bet that foreclosures and short sales will continue to occur at high levels for the next several years.

Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Nashville TN and Middle TN. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN).  If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor.

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How To Stop Foreclosure

How To Stop Foreclosure

Homeowners and real estate owners who are in foreclosure, or who have received a letter from their mortgage lender’s attorney stating that the foreclosure process will begin, or have received a notice of default frequently ask me how they can stop the foreclosure. Therefore, I listed the best ways to stop a foreclosure action below depending on whether you want to keep your home or investment property.

Options if you want to keep your home or investment property:

  • Mortgage Refinance – If you have not missed a payment yet you still may be able to refinance into a more affordable loan. You should investigate this option as soon as you know that there may be financial trouble as this option will only remain viable for a short period of time. If your home is worth substantially less than the mortgage(s) you need to refinance this option will not work.
  • Loan Modification – Contact your mortgage lender as soon as you miss a mortgage payment and ask about their loan modification options. Don’t expect much help, though, as most loan modification requests are not approved.
  • Loan Forbearance – If you are denied for a loan modification due to your financial issue being temporary you may be able to get a loan forbearance agreement with your lender. Basically, forbearance is a temporary reduction in your mortgage payment (usually 3-6 months) where the part of the payments that you did not make (i.e. the difference between the normal payments and the reduced payments) is added to the final forbearance payment. Due to the large final payment, this option most likely only a temporary way to stop foreclosure. However, getting the foreclosure stopped is absolutely necessary so that you can review other options (see below).

Options if you do not want to (or or not able to) keep your home or investment property:

  • Short Sale – A short sale is a sale of real estate where the sale proceeds are not sufficient to pay off the liens on the real estate (usually the mortgage(s), tax liens and unpaid HOA and condo fees). This is the best way to proceed in that you can frequently, but not always, get the mortgage debt(s) fully satisfied and get released from any future obligations. A short sale is also less damaging to your credit than the other options. If you decide that a short sale is your best option I highly recommend that you chose a REALTOR who specializes in short sales (i.e. not a traditional REALTOR, or neighborhood expert), or a short sale investor. In either case, you need someone who knows how to close short sales since they are very different than regular real estate sales.
  • Bankruptcy – If you have a lot of unsecured debt (i.e. personal loans, credit cards, unpaid bills, collection accounts, etc.) and just need to buy time to evaluate other options a bankruptcy could work for you. Please know that bankruptcy will not save your home. It will only delay the foreclosure unless the lender wants to work with you. Due to the complex laws which regulate personal bankruptcy, you will need to contact a bankruptcy attorney.
  • Deed in Lieu of Foreclosure – Basically, a Deed in Lieu of Foreclosure is where you deed your home directly to your mortgage lender in exchange for them stopping the foreclosure. While this option is better than foreclosure, at least from a credit score standpoint, it will usually not get you released from the debt and probably will not work if you have other mortgages on the property.

Please note that all the options above will be slightly more difficult for real estate investors than they are for homeowners.

Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Nashville TN and Middle TN. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

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Housing Headed For Trouble

Housing Headed For Trouble

As a short sale specialist, my listings usually sell very quickly. However, since March 2010 began my short sale listings are selling more slowly than they did previously. I attribute this to the first-time home buyer tax credit since those buyers were the primary buyer pool in my market Middle Tennessee. I think this is particularly true for most markets in the US where the tax credit had a substantial short term impact (particularly in lower priced markets where the $8,000 tax credit is a fairly substantial percentage of the sale prices). Now that the first time home buyer tax credit is nearing expiration, those tax credit buyers are, apparently, not willing to buy new short sale listings (they will still buy pre-approved short sales that can be closed in 30-45 days with a reasonable degree of certainty) since there is no guarantee that they will be able to close by 6/30/2010 (the expiration of the tax credit). Therefore, the only way to sell these short sale listings is to lower the price. These increasingly lower priced short sale and pre-foreclosure listings will put downward pressure on new construction and other retail priced listings.

The next phase of the great real estate meltdown is beginning to unfold as I predicted it would over 1 year ago (see my blog post from 11/2009 for a detailed breakdown of the drivers of the real estate market: Our Phony Real Estate Market). Unfortunately, the tax credit was nothing more than a temporary band-aid solution (really a gimmick) that will ultimately result in the tax credit buyers ending up in foreclosure at a very high rate since they are underwater the moment of closing (most put little to nothing down and have very little cash reserves) and will be even more so as the market declines. The buyers who purchased short sales and foreclosures as substantial discounts will likely be fine. That is why I only sell those types of properties. Unfortunately, home buyers who purchased new construction or other retail priced listings will be in trouble in the next few years. The main problem is that the entire US economy was built on debt. Consumer spending, which was 70%+/- of the entire US economy, was built largely on consumer debt (think credit cards, home equity loans, HELOC’s, personal loans, etc.). Without this debt there can be little to no growth in consumer spending, and by extension, little to no growth in the US economy, until personal incomes increase at least enough to pay down current debt and still leave enough to spend more. Given that unemployment still hovers near 10% (the real number is about 16%) this will not happen anytime soon. It is just a matter of simple accounting. In addition to the end of the tax credit buyer ear there is the Option ARM foreclosure wave coming. As a result, there will lots of foreclosures and short sales over the next 5-10 years.

Short Sale and Foreclosure Help and Assistance for Real Estate Investors, Home Builders and Developers in Nashville TN and Middle TN. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee real estate investor, home builder, condo developer or real estate developer who cannot pay the property/project mortgage payments (due to the poor economy, adverse financing conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), have already defaulted on the mortgage, or are already in foreclosure, or owe more than the property/project is worth, please contact me to discuss your options including a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/project). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (property owners, real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Springfield TN, Gallatin TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

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Housing Prices Declining Again

Housing Prices Declining Again

According to this Real Estate Economy Watch article, Fear Seen Driving Prices Lower than Last 20 Years, the housing markets in most US cities “will see prices fall below the lowest levels of the last 20 years” according to the House Price Forecast from University Financial Associates (UFA) in Ann Arbor Michigan.

The article quotes Dennis Capozza, the Dykema Professor of Business Administration in the Ross School of Business at the University of Michigan, and a founding principal of UFA, as saying the “Detroit metro was the canary in the coal mine this cycle, with falling house prices arriving earlier than in other metros. Other metros that have already or will soon converge to pre-bubble real prices include Las Vegas, Phoenix, the inland California metros and many south Florida metros.”

Overall, the UFA’s forecast “would take the national median price of a home in most markets below $101,000, the national median in 1990, according to the Census Bureau.” This prediction comes after other recent data which shows that housing prices are headed downward again. This will result in more short sales and foreclosures as underwater homeowners and real estate investors walk away from their upside down (i.e. negative equity) homes and properties.

Short Sale and Foreclosure Help and Assistance for Real Estate Investors, Home Builders and Developers in Nashville TN and Middle TN. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee real estate investor, home builder, condo developer or real estate developer who cannot pay the property/project mortgage payments (due to the poor economy, adverse financing conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), have already defaulted on the mortgage, or are already in foreclosure, or owe more than the property/project is worth, please contact me to discuss your options including a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/project). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (property owners, real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Springfield TN, Gallatin TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

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Commercial Real Estate Loan Defaults Will Sink Big Banks

I have read many articles that are stating facts that the mainstream media is not covering.  The most important one is that commercial real estate loans are defaulting at an alarming rate.  While the mainstream media continues to debate whether or not the residential housing bust has reached it bottom they continue to ignore the greater problem of bad commercial real estate loans.  My prediction is that the commercial real estate loan defaults will finish the bank killing that the residential bubble bursting started.  I believe that most, if not all, of the major national banks (think Wachovia, Bank of America, Wells Fargo, etc.) will need to be nationalized within 12 months.

The expected massive bank failures will further curtail lending (including home mortgages) and result in further softening of home prices, particularly in over-built areas of the US.