If your mortgage payments have become unaffordable, or you’ve recently taken a financial hit that will affect your ability to pay the mortgage, you probably have a lot on your mind. Your next financial moves will affect you for many years to come, so having a solid, informed plan can save you a lot of stress in the near and distant future.
Anyone who is facing foreclosure should understand exactly what its implications are, and what other options are available. If you are behind on mortgage payments and do not see a way to catch up, avoiding foreclosure can help you recover your finances more quickly. Short sales and deeds-in-lieu are two dignified alternatives that more and more homeowners are using to avoid the financial impact of foreclosure.
One incredibly important benefit of these foreclosure alternatives is their lesser impact on your credit score. “I have personally seen a short sale only lower credit scores by as little as 50 points, as opposed to the 250 to 300 point drop from a foreclosure,” said Alex Charfen, CEO of the Distressed Property Institute. Additionally, the credit effects of a short sale can be as brief as 12 to 18 months, whereas a foreclosure will typically impact your credit score for more than three years.
In today’s economy, banks and lenders are forced by market competition to make increasingly quick lending decisions, which means they must rely more heavily on credit scores to decide whether you will be approved for a loan, how much of a down payment will be required, what your interest rates will be, etc. Whether you eventually intend to buy a car or house, take out a loan or use a credit card, minimizing the damage to your credit score through a foreclosure alternative can benefit you in the long run.
Just because your current house is unaffordable doesn’t mean you should forget the idea of owning an affordable house in the near future. However, this possibility will hinge heavily on how you deal with your current mortgage.
A short sale is not specifically reported on credit histories. Foreclosure is reported for at least 10 years, which means that when future employers check your credit history, they will see the foreclosure as a negative on your report.
Beyond the credit benefits of a short sale, it is important to know that you may be eligible for $3,000 in borrower relocation assistance from the HAFA Program to complete a short sale or deed-in-lieu, which could help with moving costs and a more smooth transition into your future dwelling.
As you can see, a short sale may allow you to sidestep some of the damaging effects of foreclosure. There are multiple factors that influence your credit score, a crucial one being timely payments of your most recent bills. This means that if you can no longer afford your mortgage, it is important to act quickly. By successfully completing a short sale or deed-in-lieu, your credit score may be less damaged than in a foreclosure, which would allow you to recover more quickly and move on with your life. For that reason alone, you deserve to find out if a short sale will work for your situation.
Contact me today so that we can assess your situation and figure out your best possible options. As a CDPE-designated agent, I have been extensively trained in the full range of foreclosure alternatives for distressed homeowners, and I’m ready to help you get started on a path to a more stable tomorrow.
From Distressed Property Institute, LLC
Tuesday, July 6, 2010
Wednesday, June 30, 2010
What is a Short Sale? What is a Deed-in-Lieu? Do You Qualify for a short sale?
A short sale is when the lender agrees for the property to be sold at a price lower than the mortgage balance owed.
A deed-in-lieu is when the lender receives the house deed in place of the mortgage balance, although in some cases the lender will still pursue the homeowner for the leftover mortgage balance, which is called a deficiency judgment. A HAFA short sale or deed-inlieu prohibits the participating lender from pursuing a deficiency judgment.
Do You Qualify For A Short Sale?
Do you have .....
Find out more at http://www.abqdistressedhomeowners.com/
A deed-in-lieu is when the lender receives the house deed in place of the mortgage balance, although in some cases the lender will still pursue the homeowner for the leftover mortgage balance, which is called a deficiency judgment. A HAFA short sale or deed-inlieu prohibits the participating lender from pursuing a deficiency judgment.
Do You Qualify For A Short Sale?
Do you have .....
- Financial Hardship: severe illness, military service, insurance or tax increase, etc. (Ask me for full list of acceptable hardships)
- Monthly Shortfall: business failure, job loss, wage reduction, divorse, etc.
- Insolvency; you currently ower more money than you have, or you are about to reach that point.
Find out more at http://www.abqdistressedhomeowners.com/
There are dignified solutions to foreclosure
A lot of today’s struggling homeowners made all the right moves. They took a reasonable loan for an affordable mortgage, and were then hit by the unexpected: their employer cut benefits or laid them off due to the constricting economy; a surprise expense changed their budget plans; their financial investments took a turn for the worse; the list goes on.
These kinds of homeowner situations aren’t usually the ones we hear about, but they are everywhere. That’s why I am sharing the news with you about options that are available to distressed homeowners.
With the new Home Affordable Foreclosure Alternatives Program, or HAFA, you may be eligible for a $3,000 incentive to avoid foreclosure by pursuing a short sale or deed-in-lieu.
The first part of assessing someone’s current mortgage situation involves seeing whether they can modify their loan and lower payments to an affordable level. This route does work for some, but an important thing to understand is that mortgage modifications almost never lower the principle amount owed on the loan, only the interest.
This means that a mortgage modification will only help those homeowners who are just out of reach of making their payments, which is unfortunately not the case for most distressed homeowners. With a financial hardship as impactful as a job loss or a major drop in financial assets, tweaking the interest rate on your loan is usually not enough to make the mortgage affordable.
If we find that you are in a situation that would benefit from a mortgage modification, I can show you the best way to pursue this route. If not, then a short sale may be your best option, and HAFA makes that option even more appealing.
In addition to offering the $3,000 incentive for a successful short sale, hafa holds the lender to a set timeline so that the transaction doesn’t drag out unnecessarily. This lessens the chance of being foreclosed upon in the middle of the short sale process.
A select few lenders and mortgage servicers may not participate in the hafa program. But despite this, a lender almost always loses more money in a foreclosure than in a short sale or deed-in-lieu. If a lender is convinced that a homeowner has no way of paying the current mortgage, they will be concerned with salvaging as much of their investment as possible, so short sales are generally the best option for them as well.
If your lender is participating in HAFA, there is a set of criteria you must meet to be eligible for the program. To find out your eligibility and lender’s participation, please contact me.
As a CDPE-designated agent, I have been trained in the full range of options available to distressed homeowners. I can assess your situation, help you figure out your best options and help you move towards a solution.
I have invested myself in helping homeowners who are struggling with mortgage payments because I understand the unusually challenging times we are in, and I’m ready to help as many people as I possibly can.
These kinds of homeowner situations aren’t usually the ones we hear about, but they are everywhere. That’s why I am sharing the news with you about options that are available to distressed homeowners.
With the new Home Affordable Foreclosure Alternatives Program, or HAFA, you may be eligible for a $3,000 incentive to avoid foreclosure by pursuing a short sale or deed-in-lieu.
The first part of assessing someone’s current mortgage situation involves seeing whether they can modify their loan and lower payments to an affordable level. This route does work for some, but an important thing to understand is that mortgage modifications almost never lower the principle amount owed on the loan, only the interest.
This means that a mortgage modification will only help those homeowners who are just out of reach of making their payments, which is unfortunately not the case for most distressed homeowners. With a financial hardship as impactful as a job loss or a major drop in financial assets, tweaking the interest rate on your loan is usually not enough to make the mortgage affordable.
If we find that you are in a situation that would benefit from a mortgage modification, I can show you the best way to pursue this route. If not, then a short sale may be your best option, and HAFA makes that option even more appealing.
In addition to offering the $3,000 incentive for a successful short sale, hafa holds the lender to a set timeline so that the transaction doesn’t drag out unnecessarily. This lessens the chance of being foreclosed upon in the middle of the short sale process.
A select few lenders and mortgage servicers may not participate in the hafa program. But despite this, a lender almost always loses more money in a foreclosure than in a short sale or deed-in-lieu. If a lender is convinced that a homeowner has no way of paying the current mortgage, they will be concerned with salvaging as much of their investment as possible, so short sales are generally the best option for them as well.
If your lender is participating in HAFA, there is a set of criteria you must meet to be eligible for the program. To find out your eligibility and lender’s participation, please contact me.
As a CDPE-designated agent, I have been trained in the full range of options available to distressed homeowners. I can assess your situation, help you figure out your best options and help you move towards a solution.
I have invested myself in helping homeowners who are struggling with mortgage payments because I understand the unusually challenging times we are in, and I’m ready to help as many people as I possibly can.
Monday, February 18, 2008
All Real Estate News is Local
While the national newspapers and internet sites like to speak of the nation as a whole when talking about the real estate market, I believe that, like politics, all real estate is local. Yes Albuquerque has a lot of homes on the market, yet we are seeing a lot of homes sold.
I have prepared the following chart to show you price ranges in the Albuquerque Market that are selling, and how much inventory we currently have of the market. For this analysis of have looked at the market east of I-25 plus Downtown and the North Valley. The new home builder inventory and sales are not included in the analysis, with the few exceptions where they were listed in the Multiple Listing Service.
List Price..............Inventory..Avg Monthly Closings..Months of Inventory
0 to $200K...............548.......................132............................4
$200 to $300K........671.........................90.............................7
$300 to $400K........329.........................39.............................8
$400 to $500K........179.........................16...........................11
$500 to $700K........175.........................14...........................13
$700 to $900K .........96...........................5...........................19
$900 to $1200K........48...........................2...........................24
+1200K................... ..59...........................1...........................59
Reading this chart shows that the current inventory of homes below $200,000 should be totally sold in the next four months. Since the National Association of Realtors defines a Seller market as a market with less than 6 months of inventory – the Albuquerque market below $200,000 is definitely a SELLERS market.
The market between $200,000 and $400,000 is basically a neutral market, with a total inventory of 7 to 8 months. Above the $400,000 list price we are definitely in a BUYERS market.
Whether you are a Buyer or a Seller you need to understand which part of the market you are in, and not pay attention to the national news. Only though a clear understanding will you understand the value of your home, or the home you want to purchase. Specific analysis of very specific market will show you exactly where you stand whether buying or selling.
I have prepared the following chart to show you price ranges in the Albuquerque Market that are selling, and how much inventory we currently have of the market. For this analysis of have looked at the market east of I-25 plus Downtown and the North Valley. The new home builder inventory and sales are not included in the analysis, with the few exceptions where they were listed in the Multiple Listing Service.
List Price..............Inventory..Avg Monthly Closings..Months of Inventory
0 to $200K...............548.......................132............................4
$200 to $300K........671.........................90.............................7
$300 to $400K........329.........................39.............................8
$400 to $500K........179.........................16...........................11
$500 to $700K........175.........................14...........................13
$700 to $900K .........96...........................5...........................19
$900 to $1200K........48...........................2...........................24
+1200K................... ..59...........................1...........................59
Reading this chart shows that the current inventory of homes below $200,000 should be totally sold in the next four months. Since the National Association of Realtors defines a Seller market as a market with less than 6 months of inventory – the Albuquerque market below $200,000 is definitely a SELLERS market.
The market between $200,000 and $400,000 is basically a neutral market, with a total inventory of 7 to 8 months. Above the $400,000 list price we are definitely in a BUYERS market.
Whether you are a Buyer or a Seller you need to understand which part of the market you are in, and not pay attention to the national news. Only though a clear understanding will you understand the value of your home, or the home you want to purchase. Specific analysis of very specific market will show you exactly where you stand whether buying or selling.
Tuesday, January 29, 2008
What it takes to sell on house in today's market.
Hi, This is Carol Skees of RE/MAX Elite in Albuquerque, NM, and I am a member of the Institute of Luxury Home Marketing.
There are currently about 6,700 homes on the market in the Albuquerque area, and a bunch of these houses have been on the market for a long time. If you want to sell your homes, and not just keep it picture perfect every minutes of the day, here is a list of must do’s.
Make your home feel like the most welcoming house on the block so buyers fall in love as soon as they open the front door. You need a “Wow” factor within the first 5 seconds.
Remove all the clutter from the house and yards. If you don’t want to have the item in your new home, now is the time to get rid of it. Pack up and store anything you won’t need until you are in your next home, for example store your Christmas decorations if you are putting you home on the market is March. Rent a storage unit, and put the items you packed in the storage unit. Garages need to look spacious too, so don’t clutter the garage, clean it up. Closets should make the homebuyer thing “there is room to put my clothes in here”.
Clean the houses thoroughly, including windows, exterior, interior walls, floors, and vigas (if you have them) everything needs to shine. Stainless steel sinks can be made to shine it just takes a lot of elbow grease, appliances need to be clean (inside and out) and be free of fingerprints. Clean carpets and make sure there are no remaining spots or odors. Cleanup the yard, and add some pretty flowers at the front door, if time of year allows.
Have a home inspector review the property and prepare a report, I personally use HouseMasters in Albuquerque because they do a thorough job. Better to know what repairs are needed (and make them) before you are dealing with a purchase offer. A top-notch inspection gives you a clear picture of the condition of your home.
Have the house staged to show off the best features of the home. People want to see how the home will look. Think about how you feel when you walk into a model home verses an empty home – the same house can look very different. The home stager will make suggestions including perhaps storing some of your pieces and renting some other pieces.
Establish a market price based on strategic market position and the homes that sold in the last six months. Do you rely on a competitive market analysis that strictly prices your home like the other homes on the market in your area. If you want to sell your home, it needs to be strategically price to sell – remember you don’t want to have to keep your home in perfect condition for six months or maybe a year --- you want to sell it and move to your new home.
Hire a professional to market your home. A Realtor, on average, will save you 9% on the sell of your home. Have the Realtor provide professional pictures and a virtual tour that reflect the best parts of your home.
There are currently about 6,700 homes on the market in the Albuquerque area, and a bunch of these houses have been on the market for a long time. If you want to sell your homes, and not just keep it picture perfect every minutes of the day, here is a list of must do’s.
Make your home feel like the most welcoming house on the block so buyers fall in love as soon as they open the front door. You need a “Wow” factor within the first 5 seconds.
Remove all the clutter from the house and yards. If you don’t want to have the item in your new home, now is the time to get rid of it. Pack up and store anything you won’t need until you are in your next home, for example store your Christmas decorations if you are putting you home on the market is March. Rent a storage unit, and put the items you packed in the storage unit. Garages need to look spacious too, so don’t clutter the garage, clean it up. Closets should make the homebuyer thing “there is room to put my clothes in here”.
Clean the houses thoroughly, including windows, exterior, interior walls, floors, and vigas (if you have them) everything needs to shine. Stainless steel sinks can be made to shine it just takes a lot of elbow grease, appliances need to be clean (inside and out) and be free of fingerprints. Clean carpets and make sure there are no remaining spots or odors. Cleanup the yard, and add some pretty flowers at the front door, if time of year allows.
Have a home inspector review the property and prepare a report, I personally use HouseMasters in Albuquerque because they do a thorough job. Better to know what repairs are needed (and make them) before you are dealing with a purchase offer. A top-notch inspection gives you a clear picture of the condition of your home.
Have the house staged to show off the best features of the home. People want to see how the home will look. Think about how you feel when you walk into a model home verses an empty home – the same house can look very different. The home stager will make suggestions including perhaps storing some of your pieces and renting some other pieces.
Establish a market price based on strategic market position and the homes that sold in the last six months. Do you rely on a competitive market analysis that strictly prices your home like the other homes on the market in your area. If you want to sell your home, it needs to be strategically price to sell – remember you don’t want to have to keep your home in perfect condition for six months or maybe a year --- you want to sell it and move to your new home.
Hire a professional to market your home. A Realtor, on average, will save you 9% on the sell of your home. Have the Realtor provide professional pictures and a virtual tour that reflect the best parts of your home.
Friday, January 4, 2008
Should Rentors buy a Home in Albuquerque Now
Hi, this is Carol Skees of REMAX Elite in Albuquerque, New Mexico, and today I would like to talk about a announcement I received from David Ehrlich of Nations Home Funding
Other than tax deductibility of interest and property taxes and no capital gains tax* on sale, there are a couple of factors that make January and February a good time for someone who is currently renting but thinking about becoming a homeowner to get off the fence and just do it.
The first is that there is a reasonable, but not an extreme, number of resale and new homes available on the market in the price range that is most attractive for people that are currently renting. Inventory is dropping, but we are not approaching the lack of inventory that we saw a couple of years ago. There is a good selection of homes is almost all areas.
Second, and probably the most important for Rentors is that Freddie Mac has announced that they will begin charging additional fees on March 1, 2008 for loans that have downpayments of less than 30% and credit scores under 680. The position many, if not most, people are in. Now, come on, what rentor buying a $200,000 house has $60,000 laying around waiting to put down? …. or would want to tie up that much money in their house? Plus 680 is a good credit score, especially for someone who hasn’t purchased a home before, or maybe hasn’t had a long credit history.
After March 1, 2008 paying more points at closing, or to pay an higher interest rate on your loan that is between one half and three quarters higher will be your only option. So if you are thinking about moving out of your rental unit and purchasing a home, townhome or condo, now is the time to do it.
If you would like an analysis of the tax savings, mortgage payments, monthly investment amount and your overall housing expenses under different levels of appreciation in the Albuquerque housing market, please call me ,Carol Skees of REMAX Elite, at 505-350-0911.
*see tax attorney for limits/rules
Other than tax deductibility of interest and property taxes and no capital gains tax* on sale, there are a couple of factors that make January and February a good time for someone who is currently renting but thinking about becoming a homeowner to get off the fence and just do it.
The first is that there is a reasonable, but not an extreme, number of resale and new homes available on the market in the price range that is most attractive for people that are currently renting. Inventory is dropping, but we are not approaching the lack of inventory that we saw a couple of years ago. There is a good selection of homes is almost all areas.
Second, and probably the most important for Rentors is that Freddie Mac has announced that they will begin charging additional fees on March 1, 2008 for loans that have downpayments of less than 30% and credit scores under 680. The position many, if not most, people are in. Now, come on, what rentor buying a $200,000 house has $60,000 laying around waiting to put down? …. or would want to tie up that much money in their house? Plus 680 is a good credit score, especially for someone who hasn’t purchased a home before, or maybe hasn’t had a long credit history.
After March 1, 2008 paying more points at closing, or to pay an higher interest rate on your loan that is between one half and three quarters higher will be your only option. So if you are thinking about moving out of your rental unit and purchasing a home, townhome or condo, now is the time to do it.
If you would like an analysis of the tax savings, mortgage payments, monthly investment amount and your overall housing expenses under different levels of appreciation in the Albuquerque housing market, please call me ,Carol Skees of REMAX Elite, at 505-350-0911.
*see tax attorney for limits/rules
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