FOR IMMEDIATE RELEASE
April 13th 2011 – John McGeough and Anthony Lamacchia of McGeough Lamacchia Realty traveled down to Washington, DC this past Monday and Tuesday to help educate policy makers on the benefits Short Sales are having on the market. McGeough Lamacchia Realty Inc. is a full service Real Estate company in Waltham Massachusetts currently specializing in Short Sales. They are the number one Short Sale listing office in Massachusetts per MLS and are on track to complete between 450-500 Short Sales in 2011 for distressed homeowners.
John and Anthony conducted meetings at Capitol Hill, the FDIC, the US Treasury, and at the National Association of Realtors. “We made it clear to all groups that if they truly want to decrease foreclosures and stabilize this market they need to force servicers and Government Sponsored Enterprises (GSE’s) to give Short Sales more attention”, said John McGeough.
The Home Affordable Foreclosure Alterative program was also a hot topic on the trip. “The HAFA program is the best program the government has put out since the beginning of this housing crisis”, stated Anthony Lamacchia. HAFA is a program that offers distressed homeowners $3,000 at closing in relocation assistance along with full debt forgiveness.
All parties seemed to be in agreement that loan modifications are not the solution for most distressed homeowners since they only provide temporary relief or no relief at all. “We were happy to hear that most now realize that loan modifications are not the solution for the majority of distressed homeowners, it is just too bad that it took two years for everyone to recognize that”, said Anthony Lamacchia. “The bottom line is that Lenders, GSE’s, Mortgage Insurance companies and the Government need to put more focus on Short Sales because they are in the best interest of all parties,” stated Anthony Lamacchia.
Mortgage Insurance companies were one of the most talked about challenges facing Short Sales. McGeough Lamacchia is deeply concerned that Mortgage Insurance companies are not doing enough to work with GSE’s and Lenders on Short Sales. “It seems that once Mortgage Insurance companies exceed their claim, in many cases, they do not care if the property is sold as a Short Sale or foreclosed on, which presents a major problem for the foreclosure crisis,” stated John McGeough.
Statistics continue to show the overwhelming increase in sale prices that Short Sales are having over foreclosures. McGeough Lamacchia prepared an analysis that utilized five sample markets to prove that exact point. Even with the limited data, the analysis clearly drove home their point that allowing distressed homeowners to opt for Short Sales over foreclosure would result in additional monies for lenders and GSE’s, while allowing homeowners the opportunity to maintain their dignity at a low point in their lives. The following is an excerpt from their report.
Based on their analysis of the 2010 data, the average dollars lost from Lender Owned properties sold compared to Short Sales is $49,655.20 per property. If as little as one-third of the 94,428 Lender Owned properties, or 31,161 properties, sold as Short Sales, based on the average selling price per property, the Lenders could gain an additional $1,547,305,687 in revenue. “Considering all of the political attention in our country over the debt and the budget, promoting Short Sales should be a high priority for all of our lawmakers in Washington. Let’s all remember that $1.5 Billion, for the most part, is taxpayer dollars that the Treasury is still having to give to Fannie and Freddie,” stated Anthony Lamacchia.
About McGeough Lamacchia
McGeough Lamacchia Realty, Inc. is a full service New England real estate agency, currently specializing in Short Sales. McGeough Lamacchia’s knowledge of the Short Sales process with lenders enables homeowners to find efficient and dignified solutions when selling their home. McGeough Lamacchia is based in Waltham, Massachusetts. To learn more, visit www.MLRealtyNE.com or www.ShortSaleNE.com.