Hi Everyone,
Here’s the follow up from class last Friday.
Here is the link to the FICO website showing the components of a person’s credit score.
Here is the link to the Chapman website. Laura from class mentioned that this is good source for research but I don’t see their research department linked from the home page. Laura, can you post a link in the comment box for us? Thank you.
Here is the website I read as a launching pad for education about finance, the economy, and the housing criss. Look at the posts just from today! You can see that by reading this website each day, you will be able to stay on top of what’s going on now and what’s coming our way soon (problems in the commercial real estate sector.)
There was a question asked about condo sales.
Q: If an entire condo complex is sold pre-foreclosure, is that counted as one sale or do all the units count as single sales in the statistics?
A: I’ve put out a couple of emails on this and have yet to hear back from any of my sources. I’ll update this blog post if I get an answer. I also posted this as a forum question over on Seattle Bubble.
I received a phone call during class from a local attorney who had an update on short sales. Here are my notes from that phone conversation:
There’s been a change in policy at Bank of America/Countrywide regarding the way they will be analyzing short sales for approval. He believes other banks will follow and this policy change will lead to many homes just going into foreclosure.
BOA will be selling off the homeowner’s debt from the short sale to 3rd party collection agencies.
Most attorneys who are representing sellers of short sales get this waived but if homeowner doesn’t have an attorney looking at everything, this might slide by some homeowners and become a liability issue for Realtors and agents.
If BOA holds the second mortgage, (and the first is selling short) BOA will not approve a short sale on their second unless BOA receives 5% of what’s owed on the second at closing.
On a first mortgage, If the balance received by BOA is under 85% of what’s owed, BOA is not forgiving the debt.
This attorney tells me that he believes other banks will follow what BOA is doing, leading homeowners to just let the house go back to the bank instead of risking the above with a short sale.
It’s worth mentioning again that all short selling homeowners should have their own attorney reviewing all documents prior to closing. Here’s my attorney referral list.
Finally, I attached the Math worksheet from class to your email.
Thanks for an interesting class and I hope you all had a great weekend.