Alternatives (5)

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 & .

CDPEReflectionLogoJanesville, 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

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
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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.

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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.

 

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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

Sara Mehrpouyan, CDPE

818-903-2040

Dre#01712757

Rodeo Realty

Los Angeles Real Estate - Los Angeles, Ca Foreclosure & Short Sale Realtor Specialist

www.Short-Sale-Vs-Foreclosure-Help.com

 

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

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Last year I predicted that Palo Alto will see more short sales in the future. Well, the future is now so what is happening? There are currently 2 short sales on the market, 5 in escrow, and 6 closed in the last year. This isn't a huge number, but certainly more than we saw in the early part of the century. There's a lot of chatter in the media about how the government is giving banks and homeowners incentives for short sales, and how banks save money by allowing short sales, but does that help the typical Palo Alto underwater seller?

The short answer is no. There is not a lot of help for owners with jumbo mortgages.

The long answer is maybe not.

shortsale-home.jpg
Here is what I have learned in the last year. It may not be the whole picture, as this world of what happens at the banks, hedge funds, and mortgage insurance companies is not transparent--but I have been involved in short sales and have studied them a lot.

If you are one of the few owners who has one loan then the chances of a successful short sale are much higher. The bank will lose less money than with a foreclosure and will be more inclined to approve your sale. This is assuming you have a verifiable hardship. However, even people with only one loan may run into road blocks if the bank has investors who own pieces of that loan,( frequently hedge funds) and if they don't feel the offer on the house is good enough for them they may derail the sale.

Ok, so what if you have 2 loans, but they are both with the same bank. Again, this is usually easier than some of the other scenarios, but not a guarantee. The bank may be willing, but the investors may not be.

Third scenario, you have 2 loans with 2 different banks. First bank offers second bank 3-10K to allow short sale. The theory is second bank will get nothing if there is a foreclosure. Second bank can have 3 reactions.

1. Co-operate because they get nothing if there is a foreclosure.
2. Play hardball because they know the first bank will lose more money if they foreclose.
3. Not cooperate because they have insurance on the second loan and will get more money if the first bank forecloses and they get paid 25% of their loan from the insurance company as opposed to the 1-5% they are being offered by the first lien holder. In this scenario the first bank is probably not losing too much because borrower has very little equity to begin with since they borrowed on a second or equity line.

4th scenario: In addition to a first and second loan there are other liens against the house including tax or business or personal loan liens. In this case a short sale is almost impossible to accomplish and it is not worth anyone’s time.

So as you can see this is a complicated process and not for the faint at heart. Since many of the loans on Palo Alto homes are jumbo, there are a lot of hedge fund managers out there making decisions about markets in which they may not have enough information. Added to that is the growing resentment against borrowers who are opting for a strategic default or foreclosure because the asset (their home) has depreciated so much they don't feel it is a good investment strategy to hold onto it.

It will be very interesting to see how many attempted short sales actually go through in the next year.
Marcy Moyer
Keller Williams Realty
650-619-9285 Twitter

*photo courtesy of South Florida Short Sales
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I have heard it said that FEAR is the great motivator.

My experience has been that fear can cause homeowners to become professional AVOIDERS. Dodge the phone, leave the mail unopened, don't answer the door. And, I totally understand that fear and motivation to stick your head in the sand. I have been in financial trouble, and even faced foreclosure. When my daughter was born and needed a lengthy ICU stay, I thought it would bankrupt my family. We had massive medical debt and no income while we cared for her. I was terrified. For a while, I even avoided.

What I learned through that experience is that knowledge is power. Taking some control and using the tools available to you in a crises can change the course of your fate. It can also help you fight the demons of depression and guilt. I believe it down to my core. I've seen it work.

Since that time, I have helped people avoid foreclosure.

IT'S THE PERFECT MARRIAGE OF MY 11 YEARS EXPERIENCE AND A HEART FOR PEOPLE WHOSE LIVES HAVE TAKEN A DETOUR!

There are several options available to homeowners when you have faced the 4 D'S (as I call them):

Death
Divorce
Disability (medical or otherwise)
Dumb Boss (loss of job)

If you are behind on your mortgage, or can see that you will be, there are tools and laws in your favor. Don't face foreclosure on your own. Don't bury your head in the sand. I can show you at least two options that are better than being evicted. My services are paid for by the bank, and it's my job to help you eliminate some of the debt that can rob you of your joy for life. In fact, 1/2 of Kansas City homeowners can even sell AFTER foreclosure, frequently taking some equity with them, since Kansas is a Redemption state.

How can Short Sales be made easier?

(1) Each lender should have a team whose job it is to review the Short Sale packages as they arrive, and send ONE fax which shows any missing items within 72 hours of receipt. The homeowner would then have 48 hours to rectify the missing item(s). If you doddle, you have to resubmit.
(2) Acceptance into a short sale program should HALT THE FORECLOSURE PROCESS for 90 days, minimum, while the home is aggressively marketed.
(3) An appraisal (or series of interior BPO's) should be ordered at the outset, establishing fair market value upfront, and allowing the marketing to be done at a price which will actually get accepted by the bank.
(4) Time from accepted contract to closing should be no more than 45 days. This allows normal retail buyers to be included in the sales--rather than going on to the next house--and giving investors an upper hand.
(5) Banks must commit to paying a fair and reasonable commission. Otherwise, agents have very little motivation to invest 80--200 hours in a single transaction.
(6) Banks and agents should SHARE a weekly e-mail update, showing what progress has been made and any changes in the status.
(7) Agents should receive intensive training in Short Sales before attempting to take on the system.
(8) Homeowners and agents involved in Short Sales should invest in Yoga, Bible Study or Hypnosis for relaxation and patience. Even a Smash Room!

THE FHA PRE-FORECLOSURE PROCESS WORKS GREAT AND FOLLOWS MANY OF THESE GUIDELINES!!

Some banks have already initiated programs like this, knowing that Short Sales are going to be around for awhile. Contact me if you have questions.

Don't give up or avoid. Fight!
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