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Will The New FHA Short Sale Guidelines Cause The  loan Modification Business to Become Extinct ?

by James A. Gage

One of the many exciting avenues of income within the Independent Arbitration Business is negotiating loan modifications/forbearance on individuals facing foreclosure.

The Federal Housing Authority is shouting from the roof tops the following media release:

 New FHA Guidelines Make Short Sales Easier than Ever!

“As if increased minimum wage laws and ultra-low interest rates weren't good enough, short sale investors will be downright delirious to learn about changes to FHA laws set to begin in 2009. On December 24th, 2008 the Department of Housing and Urban Development (HUD) released "Mortgage Letter 2008-43"....despite the inconspicuous title, this is a powerful boon to every short sale investor in the nation.”

The FHA would like us to believe that they are a more user friendly organization and are committed to helping the short sale real estate investor. I guess that may be exciting if you are an investor looking to take on pre-foreclosed properties, but that does nothing to help the individuals who want to save and stay in their homes.

So if anything this will motivate homeowners to engage our negotiating skills to save and keep them in their homes. They will now be overwhelmed by real estate investors trying to convince them to hand over their homes to them in the short sale process. Now don’t get me wrong I too am a real estate investor, using the profits I make off my successful negotiating practice to invest in pre-foreclosures, lease options and probate real estate; however not every home owner who has become delinquent must sell or lose their homes.

Most individuals have fallen behind due to the lose of a job, illness or divorce; cash flow is usually a short term problem and they are able to get back on track with the help of a trained professional negotiate – that’s where we come in! As you can plainly see these new guidelines will only help us, rather then hurt our practices.

As I pointed out at the beginning of this article negotiating with banks and mortgage companies for individuals is just another revenue stream you can bring into your own Independent Arbitration Practice, for a full overview of the business click here Business Overview .

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