(PRWEB) April 11, 2012
Coming off of 2011 and continuing through the very first quarter of 2012, we, at the Peak Corporate Network entities (http://www.peakcorp.com) have noticed some trends develop in the actual estate market. A single is that mortgage loan modifications are down. Hope Now, a loan modification customer advocacy organization says that permanent loan modifications were down 40% in 2011 from the earlier year.

According to Eli Tene, co-founder, Managing Director and Principal of the Peak entities, This is not surprising to us. We told the Treasury Department 3 years ago, when loan modification applications have been becoming launched, that they wouldnt work due to the fact people would nonetheless owe a substantial quantity of debt. Loan modifications are a band-aid that dont remedy the problem they just postpone the inevitable foreclosure, unless the property goes to short sale.

Tene continued, The recently-improved, government-sponsored HAFA plan, with alterations going into effect on June 1st, indicates that the government has also began to see the worth in short sales. Even though the government will continue to market loan modifications, the alterations to HAFA signal that officials most likely know that the accurate resolution to the actual estate epidemic have been experiencing is brief sales. Tene went on to say, The alterations to HAFA short sale transactions set to take impact are definitely a blessing to distressed homeowners. Naturally, there is a limit to what the government can do to assist men and women keep in their residences if they cant afford them. If individuals in modification nonetheless owe between thirty to fifty % more than the value of their homes, defaulting in the future is inevitable. That becoming the case, liquidating house by means of a short sale is proper. In this situation, adjustments in governmental applications that contain lender incentives, occupancy requirement modifications and provisions for residence owners who are present on their mortgage payments to aid facilitate a short sale as an alternative of a foreclosure, seem to be movement in the correct direction to influence a good shift in the true estate landscape.

Tene explained, We believe the remedy to the genuine estate issue in America is that folks who cant afford to keep in their residences require to sell them, and if a brief sale is essential, so be it. As it now appears that this idea is prepared to be entertained, the situation of lenders pursing foreclosures in full force even though individuals are trying to short sell their properties nonetheless wants to be addressed. We think the next step is for states to initiate laws forbidding lenders to foreclose while a quick sale transaction is in location.

Tene concluded, By means of a short sale, owners are attempting to come clean and settle their debt. If a lender is continuing to foreclose even though the short sale process is underway, and the owner has a second mortgage with a deficiency, the problem doesnt end with the foreclosure on the owners record it also signifies he has a deficiency balance to contend with for years to come. With a deficiency in play, the government need to say to the lender you need to do almost everything in your power to settle the debt and not foreclose. Maybe broadening HAFA guidelines to consist of deficiencies will be the subsequent trend we surely hope so.

As a major authority in the genuine estate industry, The Peak Corporate Network entities offer a full array of comprehensive real estate solutions nationwide including brokerage services, mortgage financing, loan servicing, escrow services, short sale solutions, foreclosure processing and 1031 exchange solutions. For a lot more information, check out http://www.peakcorp.com

The Peak Corporate Network is a brand that represents a group of connected separate legal entities, each offering its unique set of actual estate services.