Blog

FOR IMMEDIATE RELEASE                          For more information, please contact:

Michael Collins, CDPE, SFR, BPOR
608-921-8536
Mike@RockRealtyWI.com

Local Agent Provides Alternatives for Homeowners Facing Foreclosure

Online report outlines alternatives to foreclosure for distressed homeowners in Dane & Rock County Wisconsin, including Janesville, Madison, Milton, Stoughton, Oregon, Monona, Edgerton, McFarland, Evansville, Verona, Fitchburg, Brooklyn & .

Janesville, WI – (3/19/2013) – Local CDPE-designated agent, Michael Collins of Rock Realty, has developed a website providing information describing several opportunities for homeowners to avoid the negative financial impact of foreclosure.

This community resource is available at www.WIShortSaleHomes.com and defines foreclosure alternatives including short sales, loan modifications, and forbearance.

“It’s a concern to me that so few in our community know their options when they start to fall behind on mortgage payments,” Collins said.  “If they act quickly and get informed, they can make informed decisions to find financial stability.”

Foreclosure alternatives such as short sales—which now make up over one-third of real estate closings across the nation—are an increasingly popular way for both homeowners and lenders to minimize their losses in this tough economy.

“More lenders are realizing that they can save money in a short sale versus a foreclosure, and are more likely than they were three years ago to approve a short sale offer.” Collins said.  “This is good news for homeowners because they now have more options than ever.”

The CDPE designation Michael Collins has acquired provides real estate professionals with specific understanding of the complex issues confronting distressed homeowners.  Through comprehensive training and experience, CDPE-designated agents are able to provide solutions for homeowners facing financial hardship in today’s market.

For more information about the CDPE Designation, visit www. CDPE.com

I have read several news and Blog pieces about 2012 being the bottom of the market and how the best time to purchase a home is now. In good conscious I cannot sit idly by without voicing my opinion.

The news and columnists have based their analysis on the low number of inventory currently on the market for sale and the fact that it is 22% less than this time last year. They further site a 30% increase in property searches on Realtor.com which is one of the top search websites where consumers make purchase decisions. The reporters further substantiate their point by stating that interest rates are the lowest they have been since the great depression. Well folks, I am here to let you in on a few things. I am a distressed property real estate broker and live in the numbers and happenings on the ground. Last year alone I personally closed $17 Million in real estate. More than three quarters of my sales were short sales and bank owned property sales. My job revolves around tracking properties that have defaulted on their mortgage payments and listing the property for sale before it ends up in foreclosure. When properties do end up going to foreclosure the banks also contacts me to sell the properties back into the marketplace as a bank owned property. This is also known as a REO (Real Estate Owned) property.

In dealing with the lenders on a daily basis I have the ability to see how many mortgages are current or behind in any part of California. The numbers are staggering! One in three properties in San Diego County is currently underwater (owe more than what the property is worth).
Many of you may have heard of the “Mortgage Debt Relief Act of 2007” which is set to expire at the end of 2012. This means that anyone wanting to do a short sale has until the end of this year to get it done to avoid the enormous tax and deficiency implications. As homeowners scramble to do short sales, the banks are absolutely inundated with files. Banks have increased their loss mitigation departments to handle the amount of short sale requests as the deadline draws near.

So to shed further light on the subject of a “recovery,” I would have to say that the reason there is a 22% decrease in inventory on the market for sale is due to the “Robo-signing” debacle which simply held up the foreclosure process for a few months. Furthermore, the lenders have started issuing three month extensions to foreclosure sale dates rather than the standard 30 day extensions. The numbers are artificially adjusted to modify the supply and demand ratio. Also, the news columnists have stated that the average nationwide sales price has started increasing and the market is recovering. This is not quite correct because the number of higher end distressed sales has dramatically increased. In other words, if 100 homes sell at $200K and 900 homes sell at $500K, the average home price may have increased.  However, what they are not saying is that the home that is currently selling at $500K was purchased in 2005 for $900K.  See how they are messing with the numbers. Just because the average nationwide sales price has increased, does not mean we are recovering.

So I would maybe agree that the lower end has reached the bottom whereas the middle and higher end have room to fall.  Far be it from me to state that 2012 is the “Big Housing Recovery.” New young families or recent college graduates will also add to the lower end recovery as they will need to purchase in this range.

The number of Baby Boomers now wanting to downsize will further hamper the prices of the middle and higher end as they add to the supply. There are currently 30 million Americans in this segment of the market.

The FED made an error in judgment a month ago when they stated interest rates would remain low through the end of 2014, which took away the immediate driving force to purchase now. If interest rates would remain low for an extended period of time, why would anyone be in a hurry to purchase when they know how much shadow inventory the lenders are sitting on?

As the world has become a global economy, few have shed light on the fact that China has begun their housing crisis with more than half the cities reporting huge decreases in home prices. This may have an influence on our economy further down the road as this may affect the cost of consumer goods locally.

Gas prices are at an all-time high and could further contribute to inflation and gyrations in the consumer price index.

Unemployment is still stubbornly above 8% and steam rises from the printing presses at the Fed.

I don’t know folks. Recovery 2012?  I am not so sure. And over the years I have learned that in the long run it pays to be honest rather than bending a situation for personal gain. There is a reason I am renting right now. Though the rents are higher, cash will soon be back on the thrown to be crowned King. Don’t be in any hurry to purchase unless you find a great deal.

This is my honest humble opinion.

Alternatives to Foreclosure in the Los Angeles Area

If you or someone you know in the Los Angeles area is having a difficult time with their home mortgage payments, it is especially important to know what the alternatives to foreclosure might be. Two of the most talked about alternatives are Loan Modification and Short Sale.

Loan Modification: The borrower works with their lender to change the terms of their mortgage loan. This is usually a change in the interest rate and your monthly mortgage payment for a period of time. Unfortunately, not everyone will qualify for a loan modification. Most homeowners will begin to make trial payments (temporary lowered monthly payments) to their lender while they are under review for a modification. Those who are fortunate may be offered a permanent loan modification. However, I have spoken to some people who have been on trial payments for a long while and unfortunately, the mortgage company will reject the loan modification. 

Short Sale: If the homeowner has tried for a loan modification and does not qualify, their lender will suggest a short sale of the home. Note, a short sale may still be attempted even if the homeowner does not try the loan modification first. You do not have to apply for a loan modification before a short sale. What is a short sale? When the owner of the home is having difficulty or may be in trouble with their mortgage payments in the near future and the balance is higher than the current market value of the property, the lender will be asked to take less than the amount that they are owed when the house sells. It is important that you work with someone that has experience with short sales because it is a different process than the tradtional real estate transaction. 

Feel free to contact me directly at 818-903-2040 to discuss alternatives to foreclosure in the Los Angeles area. 

Other areas served:

Agoura Hills, Arleta, Beverly Hills, Box Canyon, Burbank, Calabasas, , Canoga park, Canyon Country, Castaic, Chatsworth, Encino, Glendale, Granada Hills, Hidden Hills, Lake Balboa, Lakeview Terrace, Mission Hills, Newhall, North Hills, North Hollywood, Northridge, Pacoima, Panorama City, Pasadena, Porter Ranch, Reseda, San Fernando, Santa Clarita, Saugus, Sepulveda, Sherman Oaks, South Pasadena, Stevenson Ranch, Studio City, Sun Valley, Sylmar, Tarzana, Toluca Lake, Topanga, Universal City, Valencia, Valley Glen, Valley Village, Van Nuys, West Hills, West Hollywood, West Los Angeles, Westlake Village, Woodland Hills, Winnetka

Bell Canyon, Camarillo, Moorpark, Newbury Park, Oak Park, Oxnard, Simi Valley, Thousand Oaks, Ventura, Westlake Village

IF YOU DO NOT SEE YOUR AREA HERE, PLEASE CONTACT ME. THANK YOU

Experience with Lenders: Bank of America, Chase, Wells Fargo, GMAC, Citimortgage, Citibank, Litton, Aurora Loan, SPS, SLS, etc

source: http://activerain.com/blogsview/2626511/alternatives-to-foreclosure-in-the-los-angeles-area