Article: Editorial Giddy Delinquency

http://realtytimes.com/rtpages/20091202_delinquency.htm

I am attending Desiree Montgomery's 2 day short sale class to obtain my "Master Short Sale Certification (MSSC). To get the certification you have to complete a short sale transaction for both a buyer and seller before being awarded this designation. I find this interesting as the larger more nationally recognized designation - CDPE (Certified Distressed Property Expert) designation does not require this. Would the average home buyer/seller know the difference. How can you label yourself an "Expert" when you have not even completed a short sale transaction. With all the legal and tax implications involved with short sales I find this designation somewhat irresponsible and misleading to the public.

Moving on. In this class Desiree has been in direct communication with the state commissioner and other mover and shakers of the real estate world. In accordance with this article, she is hearing we still have another 7 years minimum to get out of this mess. Now I do not mean to be a Debbie Downer but again, being a realist, it is our job to stay on top of information for the benefit of our clients. Everyone and their brother wants to invest in a property under $150k, but the luxury market is getting slammed due to lack of readily available financing. Most want 20% down. Who wants to put 20% down when prices are predicted to decline further. From a banks point of view, why do they want to lend on such a large amount knowing the asset will be upside down in a year. Life happens. Divorce, Relocation, Death....Life does not stop because homes are upside down on value.

This article only further confirms that we have a way to go.

Do not even get me started on the knowledge that some banks have voluntarily paid for mortgage insurance on high risk properties on the back end of the loan. (By the Way, Arizona now has a 99% risk factor for gaining mortgage insurance. It was 93% last year). Even as homeowners are trying to do the right thing and short sale their home to cut the banks loses, banks are requiring the seller to still contribute funds to release the lien even though they are fully covered by the insurance.....and not to mention discounting our commission...... and still reporting a 1099 unearned income to IRS (for seller) even though the loss was paid by insurance. Whoa.........! I can not recommend this class enough. What an eye opener. If there is one thing I can take away from today's class is that every homeowner should consider tax AND legal counsel before considering a short sale. In some cases, foreclosure and/or bankruptcy MAY be a better option. Do not trust or believe anything you hear on the street especially those whose Uncle's Friend's Girlfriend just did it/went through it/considering it. Everyone's situation IS different.

:)