On Monday the U.S. Treasury announced new guidelines to streamline short sales and help families facing forclosure. With my special training as a Certified Distressed Property Expert  I can help families avoid foreclosure and get back on the track to financial stability.  

 

At first glance, the foreclosure and distressed property sales are an appealing opportuntity and yes, at times they can offer the homebuyer or real estate investor a  real value.  Be careful, however, because buying a distressed property has many hidden challenges and is not always a wise choice for the novice homebuyer.  Remember, these homes are on the market as a distressed sale for one reason…the current owner is not able to keep up with payments or must sell at a discount because of a change in job or personal hardship.  That said, many of these homes have fallen into disrepair, are often abandoned or vandalized and may have outstanding title or tax liens in place.  If you’re thinking about buying a distressed propery consider the advice of  the Wall Street Journal .  Whether you’re up to the challenge of owning a distressed property or just searching for a good value in today’s real estate market start your home search here and contact me at RE/MAX Partners in Andover for a free homebuyer consultation.

   Today in the United States there are more and more homeowners facing the devastating financial challenge of foreclosure. Andover, MA and the surrounding communities are not immune from the national housing market crisis.   While single family homes are still selling in Andover, 4.3% fewer homes have been sold this year compared to last year. Market data also shows a nearly 10% decline in the median sales price of a single family home in Andover. Sales of condominiums in Andover have been even slower.  Market reports show a 32% decline in the number of condominium units sold along with a 29% decline in the median sales price.  

 If you're facing a financial hardship or are at risk for foreclosure on your home in Andover, consider the following alternatives.

1. Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale.
2. Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option.
3. Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications.
4. Short Sale:  Contact me your Certified Distressed Property Expert to negotiate the sale of your home. In many cases the mortgage company will allow a short sale which includes all realtor and legal fees.

For more information on ways to avoid foreclosure go to the HUD website.  To find out the current value of your home go to MyHomeValueToday.

With the large number of foreclosures that are occurring all over the United States, people should know the many options they have to avoid one. Here are additional options (Part II.) for foreclosure:  

• Rent the Property: If your mortgage payment is low enough that market rent will cover it, this option will allow you to keep your property indefinitely.  
• Deed In Lieu Of Foreclosure: Sometimes known as a “friendly foreclosure”, because it allows the homeowner to return the property to the lender. It does require lender approval, and the homeowner must vacate the property.
• Bankruptcy: If the homeowner has non-mortgage debts whose payments are causing them to fall short of paying their mortgage, a personal bankruptcy will eliminate these debts. Bankruptcy can be very costly.
• Refinance: If homeowner has sufficient equity in the home and their credit is still good, a refinance is a possibility. In some cases it may lower payments, but it is an expensive process.
• Service members Civil Relief Act (Military Personnel Only): If a an active member of the military is experiencing financial distress, they could qualify for lower payments on all their consumer debt as well as mortgage payments.

Facing a foreclosure is stressful enough...but you may be eligible for one of these solutions.  I can help you put together a team of professionals with the experience and expertise to help.  For a confidential, no obligation consultation, contact me at RE/MAX Partners in Andover.

Today in the United States there are more and more homeowners facing the devastating financial challenge of foreclosure. Many times it can be avoided. Here are some options (Part I.) for foreclosure, along with a short explanation of each.   Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale. Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option. Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications. Before losing your home to foreclosure seek the advice of a trusted professional. There are alternatives and I have some tools available which may help.  For a confidential, free consultation, contact me at RE/MAX Partners in Andover, MA.  Together we can explore some alternatives.

If you’re worried that you may be facing foreclosure on your home, there may be a solution for you. Very few realtors have the experience and knowledge to help distressed homeowners through the the complicated maze of procedures, strategies, and yes, paperwork to help the bank help you, the homeowner.  I have the expertise and certification it takes to help homeowners avoid foreclosure whenever possible. Remember that time is critical and the longer you wait the more difficult it will be to avoid foreclosure.  Here are 5 important reasons to avoid foreclosure!

1. The homeowner will ALWAYS have to disclose a foreclosure on a mortgage application.

2.  Credit scores will be lowered by 300+ points affecting the borrowers ability to get car, apartment, credit card and other financing.

3.  A foreclosure is one credit report item that is almost impossible to be “repaired.”

4.  Military and government clearance could be at risk with a foreclosure.

5.  Many employers run credit reports for prospective employers and foreclosure is one of the top items that may put a potential new hire in jeopardy.

If you are worried about a foreclosure on your home, contact me at RE/MAX Partners in Andover, MA for a confidential and complimentary consultation.

   Market research shows that more than half of the homeowners who are struggling to meet their monthly mortgage payments never contact their bank to investigate possible foreclosure prevention options.  Yet many lenders are willing and able to work out payment or modified loan options with the mortgagee.  If you're concerned about your home loan and need more information about how you might discuss foreclosure-prevention options with your bank, remember you are not alone and their is help available.  Contact me at REMAX Partners in Andover to arrange a confidential, no obligation consultation with a real estate professional who can help. Some key points on Obama’s foreclosure-prevention plan:  Loan terms may be modified by reducing payments for distressed borrowers

• Refinancing for those current on payments, but have little or no equity in their home
• Plan starts right away and is strictly for primary residences that are not vacant or condemned
• Call your loan servicer for help to see if you qualify
• There are no fees for this type of loan modification 
• To be eligible, your loan must be owned or guaranteed by a government-backed mortgage company such as Fannie Mae or Freddie Mac
• Modification plan ends on December 31st of 2012
• Loans can be modified one time only

More information is available at financialstability.gov

For anyone facing a foreclosure life can become extremely stressful, as there are so many new issues that you will be faced with. In this time of change and uncertainty, there are actually people out there that are preying on others going into foreclosure. Scam artists are coming out of the woodwork and are offering homeowners facing foreclosure a “deal” to renegotiate their loans for a fee. What people need to know is that in many states it is illegal for a person to ask homeowners for an upfront payment to renegotiate a mortgage - unless the Department of Real Estate holds record of them meeting license and registration requirements. You can verify this information and also check to make sure that your real estate broker and attorneys have valid licenses at www.dre.ca.gov. Always be skeptical and remember to never give anyone money in advance of any services they are offering. There are many non-profit groups that offer legal aid for free of charge to homeowners that are having trouble making their monthly payments. See more information at this avoiding mortgage foreclosure website. Statistics show that almost 57% of homeowners facing foreclosure do not contact their bank or a realtor to try to ask for assistance in negiotiating agreement with the lender.  If you or someone you know is experiencing difficulty making mortgage payments, you are not alone. Contact me at RE/MAX Partners  in Andover to schedule a free, no obligation consultation.  I can help you explore possible solutions.