Category Archives for "For Sellers"
Short Sale information for Sellers
Short Sale information for Sellers
Here are some tips from the Federal Housing Authority on how to “Save Your Home”
Help! I Can’t Make My Mortgage Payment.
What Should I Do?
1. Contact your lender right away. You can find a contact number on your mortgage statement. When you call, be prepared to explain:
-Why you are unable to make your payment.
-Whether the problem is temporary or permanent.
-Details about your income, expenses, and other assets like cash in the bank.
2. If you are uncomfortable talking to your lender, a HUD-approved housing counseling agency can help you understand your options. These services are free of charge.
3. Open all of the mail you receive from your lender. It contains valuable information about repayment options. Later mail may have important legal notices. Failing to read the mail will not be an excuse in foreclosure court!
4. Look for ways to increase the amount you have available to make your mortgage payments. Can you cancel cable TV, pack lunches, or get a part-time job? While these actions may not replace all of your lost income, they send a strong message to your lender that you are serious about keeping your home.
What Options Will Help Me Keep My Home?
If you want to keep your home and your income problem is temporary, talk to your lendera bout these FHA workout plans. While these options listed here are for borrowers with FHA-insured loans, most lenders offer similar workout plans designed to help you keep your home.
Special Forbearance. Your lender may provide for a temporary reduction or suspension of your payments to allow you time to overcome the problem that reduced your income.
Mortgage Modification. A modification is a permanent change to your loan through which the overdue payments may be added to your loan balance, the interest rate may be changed or the number of years you have to pay off the loan may be extended.
Partial Claim. This is a one-time loan from the FHA insurance fund to bring your mortgage current. The loan is interest free and does not need to be repaid until you pay off your first motgage or sell your house. However, if you have a conventional loan, ask your lender if they offer an “advance claim”.
FHA-Home Affordable Modification Program (FHA-HAMP). This option combines an enhanced partial claim with a loan modification. Under the FHA-HAMP, the partial claim loan from FHA will not only include any amounts necessary to bring your mortgage current but may also include an amount to reduce your loan by up to 30%.
What Options Do I Have If I Can’t Keep My Home?
Pre-Foreclosure Sale. With your lender’s permission you can offer your house for sale and sell it at fair market value even if the amount you receive from the sale is less than the amount you owe.
Deed-in-Lieu of Foreclosure. As a last resort, you may be able to voluntarily give your property back to your lender. If you leave the property clean and undamaged you may be eligible to receive relocation expenses.
FOR IMMEDIATE RELEASE
Nancy Braun, Owner & Broker-In-Charge
Local Real Estate Brokerage Uses Foreclosures to ‘Pay It Forward’
Showcase Realty partners with the national REO4Kids effort to raise money for children’s charities through the sale of REO properties.
CHARLOTTE, NC (October 18, 2010) – Nancy Braun, Owner and Broker of Showcase Realty, LLC, has recently teamed up with REO4Kids to become one of the few brokerages across the US donating $100 to children’s charities per REO Asset she sells. In 2009 Nancy’s group donated over $200,000 and expects to donate more than $250,000 in 2010. Because foreclosures affect inner city kids more than anyone else, the group has elected to help the Boys and Girls Club of America as well as Make-a-Wish. Showcase also donates to No Paws Left Behind to help the animal victims of this foreclosure crisis.
The recent partnership of Showcase Realty with REO4Kids is not only raising money for deserving charities but also shining a positive light onto the unfortunate situation that is home foreclosure.
“This is a huge opportunity for Showcase Realty to ‘Pay it Forward’. We want to hold the torch and lead the way for other agents and brokerages to use real estate as a way to give back to their local communities as well as the larger national community in this time of economic need,” says Braun.
Braun, who has been a successful real estate agent for14 years, opened Showcase Realty in 2008. In addition to General Brokerage, the firm launched foreclosure and short sale divisions to address the surge of foreclosures, short sales and distressed properties in the real estate market.
Visit CharlotteREOBroker.com or REO4Kids.com for more information. To find out more about current REO homes Showcase Realty has to offer send an email to firstname.lastname@example.org
If you owe more than your house is worth and can’t afford your payments, you might be able to sell it for less than you owe — without having to pay the lender the difference.
If you can no longer make your mortgage payments and your home is now worth less than you owe on it, foreclosure may not be your only option.
A short sale, in real-estate terms, is the sale of a house for less than what the owner still owes on the mortgage. If the lender agrees to a short sale, the rest of the homeowner’s debt typically is forgiven. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process.
While there are some significant negative consequences to a short sale, an ever-increasing number of properties are being advertised with that label.
Short sale: Win-win-win situation
The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here’s how:
The seller gets out of the mortgage liability without facing bankruptcy.
The buyer gets the home at a reduced price.
The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.
While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit from the process, too.
“The lender benefits by not having to go through the protracted process of foreclosing on the borrower and then having to put the property on the market and go through the whole marketing process,” says Stuart Wilson, a real-estate agent with Paragon Real Estate in San Francisco.
A market saturated with foreclosures can cost lenders billions — and as much as $50,000 per foreclosure — according to a study by the congressional Joint Economic Committee.
A buyer’s dream
For a buyer, a short sale is a boon since he or she is getting a property at a reduced price. However, the process of waiting for a lender to decide whether to agree to a short sale can make a lengthy home-buying process longer and more arduous.
Wilson, who has represented both buyers and sellers in short-sale deals, advises working with an agent who’s familiar with short sales.
He also suggests that buyers looking to negotiate a short-sale deal come armed with enough documentation to convince the lender that settling for the lower price is the best option.
The following is a list titled “10 Tips for a Successful Short Sale” created by Bank of America. For the full list, click here.
To speak with a licensed real estate agent who specializes in Short Sales, Contact Showcase Realty, LLC anytime!
Bailout watchdogs on Wednesday raised a red flag over the Obama administration’s program for helping homeowners avoid foreclosure, saying the multibillion-dollar fund is not working and the Treasury Department refuses to fix it.
Warning that the inefficiencies could hold the economy back, the officials told a Senate panel that changes should be made and that Treasury needs to come clean. One official called the program “one of the greatest failures in transparency and accountability” in the $700 billion bailout.
A $50 billion fund was carved out of the Wall Street bailout for the mortgage program. The housing market being a root cause of the 2008 economic crisis, the money was pitched as a way to help millions of homeowners avoid foreclosure and get the economy back on track.
But a fraction of that money, $248 million, has been spent.
Elizabeth Warren, chairwoman of the congressional TARP Oversight Panel, said that for every one family that wins a permanent mortgage modification, “10 more have been moved out through foreclosure.”
“This is a program that’s just — it’s behind the curve,” she told the panel on Wednesday.
Special inspector general for the financial bailouts Neil Barofsky said the program has not “put an appreciable dent in foreclosure filings” during the Senate Finance Committee hearing on the $700 billion bank bailout. He also said the Treasury Department has ignored earlier demands that it set clearer goals for the program. A Treasury official said Wednesday that the bailout program has had “a major effect on the ability of people to stay in their homes.” The official argued that before the program was launched, it was not designed to prevent all foreclosures and not designed to help investors or speculators — or those with vacation homes or million-dollar homes.
More foreclosures could force down home prices and further hurt the ailing housing industry.
Part of the problem with the Home Affordable Modification Program has been that plenty of homeowners are being accepted into a trial period, but relatively few are having their loan changes made permanent. Warren said just 165,000 have moved into permanent modifications with help from the TARP program, though more than that have advanced through a similar program administered by Fannie Mae and Freddie Mac.
Barofsky said Treasury is giving mortgage companies too much leeway to decide which homeowners will qualify for a program to reduce the principal balance of their mortgages.
The program relies on voluntary cooperation from mortgage companies, Warren said. She said many of the mortgage debt collectors make more money when they foreclose than they do when helping homeowners.
“We can’t have a program in which, in effect, we put incentives on the table paid for by the taxpayers to say, ‘Please do the right thing here,'” she said. “We have a crisis, and the consequences of not having cooperation from the servicers … (is) felt by this entire economy . We need a program with far more urgency and some real teeth in it.”
Article contributed by Fox News