We just got back from a huge Asset Managers Conference in Fort Worth, Texas where we were actually featured speakers. Our topic: Don’t be afraid of FHA because it now allows “As Is” purchases, and because we control the appraisal process. We also touted “HomePath” financing for Fannie Mae owned foreclosures.
One of the things we found interesting is that the Asset Managers themselves reserve hotel rooms under pseudonyms at these conferences to avoid being accosted by the 5,000 real estate agents in attendance.
Second, we learned that legislation is on the horizon to help streamline the short-sale process. The asset managers mentioned that lenders typically eat about 55% of a loan amount if a property goes to foreclosure, but lenders only eat about 30 to 35% on average in a short sale situation. In light of this, it is not rational for lenders to be so resistant to short sales. The pending legislation is intended to provide rules with respect to how fast lenders must respond to requests for short sales. And, the legislation will also address how much different lien holders can reasonably expect to receive in a short sale situation, depending on the relative value of a property.
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