Wednesday, November 25, 2009

Avoid Foreclosure

Looking at these statistics helps to understand the current housing market in our country. If you are behind on your mortage payments, or just know that you soon will be, call me. I have the experience to help you determine the best options available. It may be a loan modification, deed in lieu or short sale. I can help you make an informed decision. 706-296-4395

Mortgage Deliquencies - National Numbers
Distressed Property Institute, LLC ©2009

Quarter 3 - 2009
All Mortgages:
4.38% in Foreclosure 9.94% in Default (30+ days late) 14.32% Total
Prime Mortgages:
3.20% in Foreclosure 6.94% in Default (30+ days late) 10.14% Total
Subprime Mortgages:
15.35% in Foreclosure 26.66% in Default (30+ days late) 42.01% Total
FHA Mortgages:
3.32% in Foreclosure 15.04% in Default (30+ days late) 18.36% in Default
VA Mortgages:
2.29% in Foreclosure 8.47% in Default (30+ days late) 10.76% Total in Default
Mortgage Bankers Association
National Deliquency Survey
Based on 44,000,000 mortgages - Non -Seasonally Adjusted
Underemployment Rate
According to the U.S. Bureau of Labor Statistics, the seasonally adjusted underemployment rate,
(comprised of the total unemployed plus all marginally attached workers, plus total employed parttime
for economic reasons) for October 2009 was 17.5%.
Unemployment Rate
According to the U.S. Bureau of Labor Statistics, the seasonally adjusted unemployment rate for
October 2009 was 10.2%. The highest rate ever recorded by the Bureau was 10.8% in Nov/Dec 1982.
CDPE Member Survey:
• Since becoming a CDPE, the average time for agents to complete a short sale transaction
decreased by 49%.
• On average, CDPEs are able to keep homeowners in their homes more than twice as often
as losing properties to foreclosure.

Saturday, March 28, 2009

Short Sale

The current economy has cause many people to have loans that they can't afford to repay. The banks are not usually willing to continue with the loan if they are not getting the monthly payments.

I have been working with a company for about a year now that sends me on assignments to visit with homeowners that are behind on their payments. This has given me some excellent experience in dealing with mortgage companies. The process is like this--

Most people are hesitant to talk with me at first but when they realize I really am there to help, they seem to appreciate the help I am offering. We discuss their situation and what caused them to get behind on the mortgage. I get a financial form filled out showing their income and expenses. Together, we call the mortgage company to see if we can get a loan modification based on their financial situation. Sometimes this takes a few days and other times, the company will let us know right away. If I need to follow up with the mortgage company, I ask the owner to sign an authorization form to give me permission to discuss their account.

If the owner has no income to make the payments, we can put the house on the market at a price that will cause the house to sell. I do extensive research to determine an appropriate list price then start the marketing process. Once we get an offer, I submit several documents to the mortgage company, including the financial statement, proof of income, a hardship letter from the owner (borrower), the purchase offer, comparable listings and sales for the area and an estimate of funds that the lender will receive.

After everything is submitted, it can take up to 4 months to get approval for the sale to go through. If the foreclosure notice goes in the newspaper, we can have foreclosure postponed to allow for the short sale approval.

This is an excellent option for owners that can't make the payment. The bank elimiates the time and expense of foreclosure, the buyer gets a good deal on a house that is usually in better shape than a foreclosed home, and the owner typically has a negative impact on his credit score for 18-24 months -- much better than a foreclosure.

Friday, February 27, 2009

Homeowner Afordability

The new stimulus package addresses homeowners that owe more on their mortgage than the home is worth. Also, changes in income that have affected a homeowners ability to stay current on their mortgage payments have been addressed. According to the article by the National Association of Realtors 3-4 million homeowners will be helped. The $75 Billion Homeowner Stability Initiative will reach up to 3 to 4 Million at-risk homeowners and would require lenders to lower interest rates and possibly reduce principal loan balances. The federal government will subsidize the lenders and offer incentives to lenders and homeowners for paying the modified loan payments on time. Here is a chart from the New York Times showing conditions that will be changed to allow more homeowners to get assistance.

Monday, February 02, 2009

Foreclosure Relief

It seems that everyday we are hearing more and more news about the economy and the uncertainty of the housing market. If you are behind on your mortgage payments, this is an excellent time to negotiate with your lender. The banks don't want your house. They will try to work out a repayment plan but you must be able to show that you can pay the monthly payment. Unfortunately, many times, the circumstances that caused homeowners to fall behind on the payment is a loss of job, medical conditions, divorce, or other problems that can't be resolved immediately.

If you are in this position and don't see a way out, call us. We have helped many homeowners to negotiate payment plans or modify their current mortgage. The solution depends on your current situation.

We have heard that as much as 50% of the homeowners that get foreclosed have never contacted their mortgage company to work out a solution. It is distressing to feel that you can't overcome the problem, so many people just try to ignore it.

A foreclosure will take about 5 years to come off your credit report, but a short sale only affects your credit for about 2 years. Either way, you'll have to move. If you can start to work toward the future, planning a new start in a couple of years, that is certainly a better option than foreclosure.

Don't give up without at least knowing the options. Call me at 706-296-4395. I have experience in negotiating with the lenders and have all the forms that need to be completed to process a short sale.

The banks can be very difficult to deal with, especially when you're in a desperate situation. I am willing to help negotiation your current loan at no charge. If we decide that a short sale is your best option, there is still no charge to you. The real estate commission is negotiated with the bank after we get an offer on your home. A short sale means that the bank agrees to accept less than is owed on the mortgage.

Thursday, January 01, 2009

Short Sale vs. Foreclosure

If you are behind on your mortgage payments, you may be able to work out a new payment plan with your mortgage company. If you no longer have income to support the mortgage payment, you may be getting close to foreclosure... There are other options to consider. A short sale is when the lender agrees to accept less than the amount owed on the loan as payoff for the loan. This will still hurt your credit but not nearly as severely as a foreclosure.

Each short sale is reviewed individually. The amount a bank is willing to accept is based on many factors, including the appraised value of the home, real estate conditions in the area, the amount of the loan, and the homeowners current financial situation.

Once an offer is submitted, along with several other documents, it can take as long as 60 days for approval. With the signed purchase contract, the lender will require a hardship letter from the homeowner, bank statements or check stubs to document income, and a preliminary HUD-1 (settlement statement showing net amount to the lender). Each lender is different so other information may be required.

After receiving the completed package, the lender will order an appraisal. That will be reviewed within a couple of weeks along with the offer. At this point, a counter offer may be made by the lender. Other terms may be negotiated with the homeowner at this time. Once an agreement has been made, including additional lienholders, the lender and/or its investors/insurers will give a decision within a week.

This process can be slow but may be well worth it to avoid foreclosure. Call if you have any questions - Jerri 706-296-4395