NEW YORK CNNMoney — Just as the housing market began to collapse near the end of 2007, a real estate agent in Bridgeport, Conn. asked Regions Bank if it would accept a $102,375 bid on a home that was underwater on its mortgage.

via CNN MONEY

According to the CoreLogic study, 65% of short sales that are resold within six months for profits of 40% or higher are “suspicious” — with a significant possibility the lender accepted a low payoff. Most of these transactions go undetected by the banks being defrauded, but some lead to prosecutions and convictions.

via latimes.com.

CitiMortgage, the mortgage servicing arm of Citigroup is paying borrowers an average $12,000 after completing a short sale this year.

via HousingWire.

Bank of America completed more short sales than it unloaded previously foreclosed homes every month for the last year and a half

via bubbleinfo.com.

According to the CoreLogic study, 65% of short sales that are resold within six months for profits of 40% or higher are “suspicious” — with a significant possibility the lender accepted a low payoff. Most of these transactions go undetected by the banks being defrauded, but some lead to prosecutions and convictions.

via latimes.com.

Everyone always discusses the grand irony of short sales. That is, we wait and wait and wait for the bank or the negotiator (or processor) at the bank to finally get to our file. Then, all of a sudden, they want something. They cannot find the listing contract; they do not like a signature; they want updated bank statements. Whatever it is, the bank wants it and wants it now!

via biggerpockets .

About 60 per cent of the 4.2m borrowers were up to date with their payments. The rest were at least three months past due, Mr Laughlin said.

via | bubbleinfo.com.

When homeowners are unable to pay their mortgage, there are basically a few options that the banks have. First, they can foreclose on the home – take back the home which is the collateral for the loan they made. Second, since so many of todays homeowners are “underwater” on their mortgages – owing more than the value of their home, and are unable to pay, banks could write down the value of the outstanding loan, since the collateral isnt worth as much as the loan is anyway, in an effort to keep the homeowner in the home and eventually recoup the market value of the home. A third solution is allow a “short sale” where the homeowner sells the house for less than they owe on the mortgage – ie, they sell the house for $200k and the banks takes that money instead of the $250k thats owed on the mortgage.

via Seeking Alpha.

ill Joyce starts every short-sale journey with “The Speech.”

In a what’s-ahead warning to homebuyers, the Roseville real estate broker promises something resembling burning deserts, howling winds and crops destroyed by hail. Buyers will be tested and tortured, he tells them. They will endure privations beyond all expectations.

And then they might fail.

via – Modbee.com.

Real estate brokers who have long complained about the time it takes to complete a short sale now have two U.S. congressmen in their corner who are sponsoring a bill that would require lenders to respond to consumer short sale requests within 45 days.

Lenders have been pushing more short sales as the industry recognizes them as a viable alternative to foreclosure. Short sales in the U.S. have tripled since 2008, according to data analyzer CoreLogic.

via bubbleinfo.com.