FINALLY, A NOTE ON MORTGAGE DEBT AND SHORT SALES

There was a great article in USA Today that reported that mortgage debt is falling at a record pace.  Attributed to low interest, mainly, and also refinancing, and frankly, defaults, have freed up more than $100 billion.  To put this in perspective-- it's comparable to all unemployment benefits for one year or this year's Social Security payroll tax cut.  Nicolas Carroll, a journalist on consumer finance had this to say, "This is a form of economic stimulus that goes to Main Street rather than Wall Street."  Homeowners have trimmed interest payments alone by 11% -- or $67 billion a year.  Remember what was said earlier about getting a loan.  This includes refinancing to better your interest rate or your terms.  You could qualify.  A final note on short sales.  They should be called long sales, on that we can all agree.  The banks are very fussy and make buyers and the sellers go to great lengths to successfully close these transactions.  Often times you are dealing with a second and third lender who must also agree to the terms of the sale and make requests for partial payment.  They are the most difficult of the 3 types of sales mentioned in the "numbers" paragraph.  Do your homework, do everything the lender asks, and make sure you have help.  Maybe a lot of help... See you next month.