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A financial hardship letter is written by a homeowner who is attempting to negotiate with their respective lender(s). The purpose of the financial hardship letter is to be apart of the packet a homeowner will submit to their respective lender(s).
It is an explanation for late/missed payments or how paying for the mortgage is becoming a problem. Uncontrollable events are a good reason (not financial mismanagement).
Acceptable hardships include:
1. Loss of Life: Borrower or co-borrower.
2. Loss of Marriage, with proof.
3. Loss of Health, sickness.
4. Involuntary loss of income.
The importance of the financial hardship letter is for the lender(s) to be aware of the circumstances which are faced by their borrower. It is one of the most important documents that will be submitted with the packet sent to the bank while negotiating with them.
For more information on financial hardship letters, visit www.financehardshipletter.com.
(c) Copyright, 2009 www.shortsales.tommcgiveron.com
By Thomas McGiveron, Licensed Salesperson
Coldwell Banker Matherson
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Time and time again, I have people calling me or emailing me about foreclosed homes. I reply to alot of posts on trulia.com, where home buyers and sellers can ask questions about real estate and I find alot of people asking about foreclosures. So what’s all the hub-bub about anyhow? Are foreclosed homes a good buy or not?
I’ll provide an example. In Deer Park, there is a very nice colonial, priced at $319,000. It is a foreclosure, which means that it is bank-owned. Please note that a foreclosure is an “as-is” sale, where the bank is making no representations and is not going to do anything to rectify any problems with the property, whatsoever.
Now this nice colonial for $319,000 compares with other colonials in the area and they are priced in the upper $380,000 to $450,000. That’s a big difference.
But let’s take a closer look. This is where I like to really help potential buyers get the full picture. Now, at $319,000, this house, without getting into too many details, needs about $40,000 worth of work…that we can see. This doesn’t include any c/o (certificate of occupancy) issues or unseen problems with plumbing or heating systems.
If the asking price is $319,000 and we assume that we can purchase the property at $300,000, with the additional $40,000, plus another $15,000 just to be safe, this would put the total cost at $355,000. Since we assumed a $19,000 negotiable range on this foreclosure, lets apply that to a “normal” house for sale at $380,000. So a “normal” colonial, with only minor updates needed, would cost $361,000, assuming the negotiable price range of $19,000 (same as the foreclosure).
That’s a difference of $6000.
I am not trying to discourage any buyers from considering a foreclosure purchase. Not at all. However, the majority of foreclosure listings are still priced along with the rest of the market. When all is said and done, a foreclosure may not be any different from your average regular listing.
A number of issues should be understood by any buyer who considers purchasing a foreclosed property. Should you have any questions, please feel free to leave a comment or contact me directly at 631.831.9048.
(c) Copyright, 2009 www.tommcgiveron.com
By Thomas McGiveron, Licensed Salesperson
Long Island Short Sales Listing: 16 Lockwood, Bay Shore, New York
Great Investment Property Or Starter Home. Cape Features 4 Bedrooms, 2 Baths, 2 Kitchens, and a 2 Car Garage. Priced At $234,126 $214,126 [PRICE REDUCED]. Call for details. Buyer using services of qualified attorney who specializes in short sale negotiations. Contact me at Coldwell Banker Matherson, 631.587.1700, Ext. 51.
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