Short Sale Avengers

Today’s governmental programs are focused on the symptoms not the disease as it relates to housing and the economy. The massive bailout funding thus far has been futile and only weakens the economy, both short and long term. These failed programs have not inspired the confidence of the American people!

My Plan is designed to immediately bring qualified buyers back into the marketplace and effectively remove 5 million houses from the market over the next 12 months at a core cost of approximately $70 billion! If the Plan is properly marketed and effectively executed in a timely fashion, it WILL WORK!

• Enlist the power of the Private Sector to “partner” with the government to solve the housing crisis (this is not a bailout, but a partnership, and something the entire country will welcome)
• For a limited period of time (12 month estimate) any qualified buyer of residential real estate will receive a below market, fixed-rate mortgage; including qualified “investors”
• The first one million to respond to the Plan by purchasing a piece of residential real estate get rewarded with the lowest interest rate of 3.5%; the next one million buyers will receive 3.75%; the next million buyers receive 4.0%; the next 4.25% and the final group of buyers receive 4.50%
• The government would “buy down” the interest rate (discount points) for each buyer. Based on the average sales price ($170,000), average down payment (10 percent) and today’s current interest rates (5.00 percent), it is estimated that it will cost $20,000 per sale in order to buy the rate down to 3.5% (1st million buyers cost $20 billion); $17,000 per sale to buy down the rate to 3.75% (2nd million buyers cost $17 billion); $14,000 per sale to buy down the rate to 4.00% (3rd million buyers cost $14 billion); $11,000 per sale to buy the rate down to 4.25% (4th million buyers cost $11 billion); and $8,000 per sale to buy the rate down to 4.50% (5th million buyers cost $8 billion)
• The core cost of the interest rate buy down Plan totals $70 billion and facilitates the purchase of 5 million houses! It is a fraction of the cost of bank bailouts & modification of existing mortgages!
• A huge & swift marketing campaign is essential to get the first buyers back out into the market. These buyers will get the best rates & prices! Other buyers will follow!
• Experienced Realtors and mortgage lenders are in place and trained to handle the surge in buyer activity; eliminating cost to government and taxpayers!
• Time is of the essence! If the Plan is delayed, the economy will deteriorate further and much lower interest rates would be required in the future in order to entice buyers back into the market. If we wait too long the Plan won’t work at all due to increased unemployment, fear and mounting credit damage!
• Investors will enter the market to receive positive “cash flow” from renting the property; they will in turn spend this cash on the property, pumping money back into the economy!
• Investors will not “flip” the house, as they would own a house with a coveted low-rate mortgage that generates cash. It most cases, investor purchased houses will not go back on the market for quite some time!
• A buyer of a house spends tens of thousands of dollars within the first 12 months of ownership on carpet, paint, decorating, repairs, landscaping, appliances, etc! This pumps money into the economy!
• The resulting sales activity will lessen inventory, firm up prices, dramatically slow foreclosures, put millions back to work and restore consumer confidence!
• Homeowners with existing mortgages will stop asking for bailout dollars to lessen their current mortgage balances once they realize the value of their house has stopped declining and is beginning to rise again!

Analogy: Picture the incredible Hoover Dam. Water is spewing through the Wall in multiple locations. The U.S. Government is scrambling to patch the leaks with an onslaught of expensive, wasteful bailout “programs”. These “programs” won’t hold; they are only temporary fixes! The water level continues to rise and puts more pressure against the Wall! If the pressure is not relieved at once, the Wall will soon collapse! The water against the Wall is the tsunami of foreclosures and rising tide of housing inventory. The Wall is the U.S. Economy!

The pressure against the Wall can only be relieved by stopping the foreclosures; and the foreclosures can be greatly reduced by lowering the current supply of houses; and the current supply of houses can be greatly reduced by providing substantially lower interest rates to qualified buyers! Now is the time for the U.S. Government to take action; because tomorrow may be too late!

The federal government has just unveiled a new website that enables homeowners to learn if they are eligible to participate in the $75 Billion “Making Home Affordable” loan modification and refinancing program.

The government’s site www.MakingHomeAffordable.gov provides information on how this program works and who is eligible for assistance. Below is a summary of the information that is needed in order to determine whether assistance will be available:

• First mortgage information (balance, payment amount, interest rate, etc)
• Second mortgage or home equity line of credit information
• Credit cards account balances and minimum monthly payments due
• Account balances and monthly payments on all your other debts such as student loans and car loans
• Your most recent income tax return
• Information on your savings and other assets
• Information on all monthly “gross” income of your household, including recent pay stubs
• A (hardship) letter describing circumstances that caused your income to drop or expenses to rise, if applicable (i.e. job loss, divorce, illness)

If you believe you may qualify for the new “Making Home Affordable” Program and are interested in the possibility of getting your current mortgage balance and/or monthly payment lowered, then contact our office today by email at jeff@scislow.com. Our appropriate Team Member will be in touch to assist you.

In addition, our Team is able to assist homeowners SELL their homes when the market value on their property has fallen below the current mortgage value and they no longer wish to remain in the property. In such cases, our experience in consummating a “Short Sale” on behalf of the homeowner has been exceptional. For owners who have fallen behind or can no longer keep up with mortgage payments, the Short Sale option is oftentimes the best solution; one which will enable the homeowner to sell and to Avoid Foreclosure.

We are able to assist homeowners anywhere in the nation with referrals to qualified Short Sale experts in their marketplaces. For those living in the Twin Cites of Minneapolis – St. Paul, Minnesota we are able to personally assist with the Short Sale of their home or investment property. Please contact us by email at jeff@scislow.com or attend one of our seminars for additional information.