Question by Phil B.: Can we have a savings account if we are trying to short sale our home?
We cashed in our retirement funds in an effort to stay afloat. Instead its turning to be just a bandaid for the problem. people consulting us have said that we should stop paying our mortgage . Our lender wont work with us till we are deliquent. We have listed the home, and wish to save some money but, can we have a savings account if we are planning to short sale the home?

Best answer:

Answer by glenn
i have seen a lot of people be able to keep their retirement accounts but not savings accounts. And those consultants are right. The mortgage companies only agree to a short sale if they think it is in their best interest- so if you are not behind in your payments they are not normally interested in talking a bout a short sale.

What do you think? Answer below!

Question by Jeff S: I want to charge clients a fee for short sales. I have access to funding through investors?

http://www.reiclub.com/forums/index.php?board=29;action=display;threadid=13356

The company name is reifortunes.com and they are offering 2% on flipping properties. I would like to be in the middle and make a fee from seller to investor who also wants to flip.

Best answer:

Answer by I Buy And Sell Houses
Not sure what your question is.

If the question is how much to charge for facilitating short sales, are you prepared for all the time and effort it takes to do so? There are a couple of different models out there. A lot of them use a fee of $ 3,000-$ 5,000.

The link you provided to reiclub is an old thread about a real estate “guru” and whether his course is any good. It doesn’t appear related to serving as a intermediary in short sales.

The group reifortunates may or may not be legit. There are plenty of “dash for cash” companies out there that simply lend money for same day closing. This group appears to be more of a multi-level marketing set-up. I’ve gotten a number of pre-approval letters from different cash groups without paying at all.

If all you want to do is make a fee from a seller to an investor, then become a wholesaler. That’s simple and doesn’t cost anything.

Hope that helps.

Give your answer to this question below!

Question by RM: In a short sale are my retirement funds safe from the banks?

Best answer:

Answer by Nelson
You should see http://www.ehelpp.com/
it will be helpful in resolving your problem.keep using answers.yahoo.com

Add your own answer in the comments!

Question by Tony: Does anyone know the rates and points charged by the people from the “Financial Health Coach” on short sales?
They state on their cd’s that they will fund a short sale only if you are a “student ” from one of their seminars. But I hear that they try to sell you on the coaching for 20K !..Does anyone know if signing up for coaching is also required to qualify for the funding?

Best answer:

Answer by kemperk
know what SCAM means?
unethical?
immoral?

stay far away from anyone who
requires you to attend seminars
in order to perform or finance
a short sale.

AND; short sales are almost impossible now with mortgage money
harder to get…..and buyers demand
lower prices.

Give your answer to this question below!

Funding Deals Fast Like A Real Estate Heavyweight

Short selling is an arbitrage strategy exercised by short sellers when they believe that a security price will decline. Short sellers borrow the shares of a company, sell them and buy them back at a lower price. Naked short selling is exercised when short sellers sell a company?s shares without having borrowed them first and they look for an offsetting position in the underlying asset after the sale.

The Securities and Exchange Commission (SEC) decided to reinstate the uptick rule that was withdrawn in June 2007 to ensure orderly markets. For many, this removal was the reason that initiated the downward trend in security prices causing extreme volatility in the stock markets and contributing to the credit crisis. The original rule ensured that short sales occurred at higher price than the previous sale, i.e. on an uptick, keeping out short sellers from exacerbating the downward momentum of security prices. However, with its removal, bears were allowed to find their way to overvalued stocks.

The reinstate of a modified version of the original uptick rule considers five alternative methodologies to find an answer to the stock market imperfections.

(1) Proposed Uptick Rule suggests – like the original rule – that short sellers are not allowed to trade until a stock ticks at a price higher than the previous trading price.

(2) Proposed Modified Uptick Rule suggests that short sellers are allowed to trade at a price lower than the previous trading price if the price is higher than the national best bid.

(3) Proposed Circuit-Breaker Halt Rule suggests that, if there is a 10 percent decline in the price of a particular security, short selling for this security is banned for the remainder of the day.

(4) Proposed Circuit-Breaker Uptick Rule suggests that, if there is a 10 percent decline in the price of a particular security, a short sale price test is imposed based on the last sale price of the security for the remainder of the day.

(5) Proposed Circuit Breaker Modified Uptick Rule suggests that, if there is a 10 percent decline in the price of a particular security, a short sale price test is imposed based on the national best bid of the security for the remainder of the day.

The reinstate of the uptick rule is an anti-fraud measure that limits short selling by preventing the acceleration of downward momentum. Short selling is largely exercised by investment banks and hedge funds, mainly attracting institutional investors, who are experienced in riding the market when they estimate that a security is overvalued. This explains the reasonable belief that the modified version of the uptick rule can have an effect on stock prices providing protection against abusive short selling.

Besides, historical data show that upside volatility is more controlled than downside volatility when the uptick rule is enacted. Looking at the daily and weekly closing prices of S&P 500 over a period of 25 years one can observe that negative percentage changes are more likely to occur than positive percentage changes. An extreme percentage change of greater than 5 percent occurs more often on the downside than on the upside on a daily basis. Weekly, a percentage of 10 percent occurs almost twice as often on the downside than on the upside.

Conclusively, the reinstate of the uptick rule will help offset the extreme sell off patterns observed in stock market downturns and the effects of upside and downside volatility as a smoothing mechanism to the downside. The uptick rule can also help offsetting the effects of hedge funds that create a bandwagon effect when expecting extreme profitability.

The Long-Short Fund, which is still a baby in terms of the overall market, appears to be a rising star that could potentially be the saving grace of investors. Since its inception it has attracted billions of dollars in investments. That, by the way, is actually part of the fund’s overall strategy because it’s important to have knowledgeable and experienced investors. Due to asset allocation the volatility of the fund is reduced and performance is improved. The Long-Short Fund is not a fund that relies on NASDAQ or the S&P 500 to be successful. Instead, it’s a fund in a class of its own working to offer its investors consistent returns. It is believed the long short fund investment model will become wildly successful and explode in both popularity and growth over the next decade. The strategy used by the Long-Short Fund is not market neutral, although it might sound that way at first to newcomers. It is in fact a fund that includes both short and long positions to provide a balance to the investment and to reduce the risk of loss. The goal is to have your long and short positions make money regardless of market direction. The investments will be diversified and include many sectors. The exposure of the fund on the short side will be quite low while exposure on the long side will be higher. Nevertheless, the long and short stocks will work together to provide returns despite the market conditions. The Long Short Fund strategy is to limit short sale losses to 10% and to 20% on longs. Annually, the fund’s goal is to return 20%. In a market that appears to continue its volatility over the coming decades investments like the Long Short Fund could be just the right medicine for investors.

If you take a look at most of our rural areas you will be amazed to see just how many farm lands have run down

Most investors purchase stocks at a low price and they expect their return from an increase in value. However, if investors believe that a stock is overvalued and want to take advantage of an expected decline in price, they may sell the stock short.

Homeowners seeking relief from overwhelming mortgage payments may be able to get help from President Obama’s stimulus package. There may be three options to avoid foreclosure available to you that you hadn’t thought of: Refinancing, loan modification, or short sale.

If your home mortgage has become almost impossible to afford each month, or if you have already begun to fall behind in payments, you may be able to get assistance under President Obama’s stimulus package. You may be able to avoid foreclosure by one of three options.

There are 75 billion dollars worth of funds available to help struggling homeowners and stop the nationwide home foreclosure crisis. If you qualify, here are the three options that are available: straight refinancing, loan modification, and if those are not feasible, short sale.

The first option is for homeowners who are not yet falling behind in their payments. This plan allows for refinancing at current low interest rates. This plan is only available to those who owe less than 105% of the home’s current market value. Also, if you have a second mortgage, that lender also must sign on to the transaction.

The second option available is a loan modification plan that offers homeowners who qualify a reduction in interest rates, extended loan terms and some deferral on principal! The idea is to achieve a monthly mortgage payment that is below 31% of gross income each month. Second mortgages now qualify for loan modification with 1 or 2% interest rates and sometimes complete loan forgiveness. This is a once in a lifetime opportunity and you can only apply once! There is only a window of time when this will be available. If you don’t qualify for the straight refinancing because you owe too much or have fallen behind already in monthly payments, loan modification may be the perfect solution to your financial problems.

The Department of Treasury is encouraging lenders to complete these loan modifications by financially rewarding them for completed modifications. Borrowers are also to be rewarded financially for maintaining these new payments up to date for the next six years. Be sure and become knowledgeable about the requirements and options before applying. You want to be sure and do it right the first time, since there are no second chances.

The third option, if refinancing and loan modification is not an option for you, is short sale or deed in lieu of foreclosure. The property is sold at a price that could be less than the amount owed. The government is paying each lender $1,000.00 for allowing a short sale, and if it is unsuccessful, the homeowner can turn over the home without foreclosure and also receive financial relocation help.

Refinancing, Loan Modification, and Short Sale are three options available to most homeowners through the stimulus package. Since incentives are given to lenders, they are often more receptive than not to a loan modification request. The government is encouraging your lender to work with you to avoid borrowers working with loan modification companies who charge exorbitant fees to help you. Check out all your options, and see what your lender can do to relieve your financial burden. Do your homework before you contact them, but be aware that not everyone will qualify. Start now and get your financial future turned around while the opportunities are available.