Port Orange Real Estate : Short Sale News

One of the problems with Short-Sales has been having to deal with Second Liens. They wait to respond, ask for more money from first lien holder, or money from homeowner, and often want them to take line of credit to repay balance. They stall and often kill the first offer on a Short-Sale.

This is done with the knowledge that they will get no money if the home is foreclosed and they will have to sue the homeowner for balance. This, in turn, forces the homeowner to file bankruptcy.

"Why cause the delay and unneccessary hardship? Just make the decision and get on with it." This may be what U.S. Rep. Jerry McNerney, D-Calif. was thinking when he proposed The Fast Help for Homeowners Act.

By eliminating the delays, first liens may be more willing to negotiate with second lien holders. If nothing else, it will improve response time. The Act will give second liens on Federal Mortgages 45 days to respond, and on the 46th day will have to accept the deal.

If nothing else, this Act will make second lien holders respond faster.

If you are thinking of Buying or Selling in the Port Orange Area, contact us at Selling Daytona Homes. Use our site to look for homes in the Area and see what some of the Cities have to offer.


Source: “Evasive Second-Lien Holders Thwarting Short Sales,” HousingWire (July 25, 2012)