Comments on: Interesting Article from the St. Louis Association of Realtors http://blog.shortsalewealth.com/interestingarticle/ A straightforward, realistic approach to building wealth through short sale real estate investing. Fri, 11 Nov 2011 18:14:32 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Cory Boatright http://blog.shortsalewealth.com/interestingarticle/comment-page-1/#comment-130 Cory Boatright Tue, 21 Apr 2009 05:33:45 +0000 http://blog.shortsalewealth.com/?p=393#comment-130 Hey Bro, It doesn't surprise me one bit. I agree with Brian. This is postponing the inevitable for most loan modifications. In fact, it really gives many homeowners more of a free ride to not make anymore payments. I believe the number is around 80% of all loan modifications created never even make their first payment. This is great news for short sale investors. The banks are going to be liquidating properties even faster with the foreclosure moratoriums lifted. This year is going to be epic for short sales. It isn't a question of "if" it's "when" and get ready because the floodgates are opening. Remember... be a servant, Cory Boatright Loss Mitigation Specialist Hey Bro,

It doesn’t surprise me one bit. I agree with Brian. This is postponing the inevitable for most loan modifications. In fact, it really gives many homeowners more of a free ride to not make anymore payments. I believe the number is around 80% of all loan modifications created never even make their first payment. This is great news for short sale investors. The banks are going to be liquidating properties even faster with the foreclosure moratoriums lifted. This year is going to be epic for short sales. It isn’t a question of “if” it’s “when” and get ready because the floodgates are opening.

Remember… be a servant,

Cory Boatright
Loss Mitigation Specialist

]]> By: Brian Kurtz http://blog.shortsalewealth.com/interestingarticle/comment-page-1/#comment-129 Brian Kurtz Mon, 20 Apr 2009 20:38:11 +0000 http://blog.shortsalewealth.com/?p=393#comment-129 That letter is just smoke and mirrors. Did you notice how they snuck the " along with the suspension of foreclosures that began November 26" part in there? It was the foreclosure SUSPENSION that brought foreclosures down significantly, not loan mods. That suspension kicked in Nov 26th too...if they had flipped that switch on Oct 1st you'd have had a 50% reduction in foreclosures for the quarter. Bad news for homeowners is that with the suspension lifted a flood of homes are pouring into the foreclosures process again. Also, the signs are showing that more than 1/2 of all loan mods are going to go back into default in the near future. A loan mod is like putting a band-aid over a shotgun wound. There are two solutions to this problem right now: 1) Create Jobs - it doesn't matter if you cut everyones rate to 4% on their mortgage. If people have no job they don't pay anything on the mortgage...at all. 2) Lift Loan Limits for Investors - plenty of investors would buy up 100 properties right now if they could get unlimited mortgages with 10% or less down. Rents are NOT down. The properties WILL cashflow and there won't be the risk that they'll all go back into default again like some people crow about. If standard investors can just buy houses without playing private money games, business line of credit games, or running around to 40 local banks hoping that they can find one that will lend to them out of portfolio then we'd see some fast changes. Banks! Keep blocking the investors from buying and watch as this wildfire continues to burn down the values of all the homes you currently have (or will have) in your inventory in 2009-2010. That letter is just smoke and mirrors.

Did you notice how they snuck the ” along with the suspension of foreclosures that began November 26″ part in there?

It was the foreclosure SUSPENSION that brought foreclosures down significantly, not loan mods. That suspension kicked in Nov 26th too…if they had flipped that switch on Oct 1st you’d have had a 50% reduction in foreclosures for the quarter.

Bad news for homeowners is that with the suspension lifted a flood of homes are pouring into the foreclosures process again. Also, the signs are showing that more than 1/2 of all loan mods are going to go back into default in the near future. A loan mod is like putting a band-aid over a shotgun wound.

There are two solutions to this problem right now:

1) Create Jobs – it doesn’t matter if you cut everyones rate to 4% on their mortgage. If people have no job they don’t pay anything on the mortgage…at all.

2) Lift Loan Limits for Investors – plenty of investors would buy up 100 properties right now if they could get unlimited mortgages with 10% or less down. Rents are NOT down. The properties WILL cashflow and there won’t be the risk that they’ll all go back into default again like some people crow about.

If standard investors can just buy houses without playing private money games, business line of credit games, or running around to 40 local banks hoping that they can find one that will lend to them out of portfolio then we’d see some fast changes.

Banks! Keep blocking the investors from buying and watch as this wildfire continues to burn down the values of all the homes you currently have (or will have) in your inventory in 2009-2010.

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