Zombie Foreclosures, Yet Another Reason For A Santa Maria Short Sale

PiercedCNN Money recently reported on the subject of “zombie foreclosures.”  For a short sale agent, this is a familiar subject indeed.  Not every homeowner waits around to the bitter end of their dispute with their lender to move out of their home and move on.  For some, when the bank calls to say that they are proceeding with foreclosure, they simply pack up and move on.  Unfortunately, as we know, the banks don’t always mean what they say, and they definitely have a problem with doing what they say.  That problem even extends to foreclosure where one would think that banks would take swift action to take back an asset after the usual pattern of pushing around borrowers and denying decent loan modification alternatives.  However, that is not always the case.

There are a significant amount of homes in limbo.  Some refer to this as the “shadow inventory” which comprises homes taken back in foreclosure, or homes drifting in some stage of incomplete foreclosure.  It’s been going on for years, with experts predicting an onslaught of housing inventory that would further decimate housing values.  We haven’t seen that yet, and of course, right now so many areas in California are reporting a housing resale inventory shortage!

While these zombie foreclosures remain in limbo, so do the owners.  And during that time they remain responsible for HOA dues, property taxes and insurance on properties.  And of course, if that property is vacant, it may not be possible to even obtain insurance.  Borrower’s credit also continues to be hit over and over with late payment after late payment that drags on and on.  I’ve had more than a few people who end up in my office with this type of problem, and a short sale can be the best way to take control of the bank’s process and force them to deal with the asset now.  This enables the borrower a quicker path to recovery as the sooner the short sale is complete, the sooner they can begin to rebuild their credit.

Before deciding whether a short sale of your home is right for you, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, IndyMac, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing,  HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, Fannie Mae, Freddie Mac,  and others.  

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Tni LeBlanc and Mint properties are not affiliated or endorsed by any lender.

Copyright ©2013 Tni LeBlanc *Zombie Foreclosures, Yet Another Reason For A Santa Maria Short Sale*

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