A Great Lender Helps From Start to Finish, Especially in a Short Sale
One of the very first steps in the home buying process is determining how a Buyer will pay for their new home. Not only must a Buyer determine much they can afford, but how an offer must be structured–whether closing costs must be paid by a Seller, gift funds will be used for a down payment, how much of a down payment will be paid, and so on. Having a great lender as part of the Buying team is critical, but especially so with short sale purchases. It can be difficult for a lender to help a Buyer determine exactly how much they might need to close the sale. A good faith estimate on the front... [Read more...]
Short Sales and 2012
By all indications, it appears that 2012 will be a year with even more short sale listings … and closings than 2011. Some of the major banks have embraced the idea that short sales can be a bit more profitable than letting houses sit for months on end and then ultimately end up in foreclosure. With the number of real estate transactions on the upswing here in the Auburn, WA, south King County, and Pierce County areas, it only makes sense that we’ll also see more short sale transactions. Around the water cooler, I’m hearing that some real estate brokers are fed up with the lengthy and time... [Read more...]
Mediation?–Yes, You’re Entitled!!
Yesterday I posted information about what to do as soon as you fall behind in your mortgage payments. As a second step in the foreclosure process in Washington State, the Foreclosure Fairness Act stipulates that if your loan is through one of the big banks, after receiving notice that a Notice of Default has been filed, you’re entitled to have your situation formally addressed through Mediation. The purpose of Mediation is to determine whether there is any alternative to bank foreclosure of your property. Ideally, the outcome of mediation might allow you to restructure your loan, save your home,... [Read more...]
Just Open the Mail!
In Washington State, folks that get behind on their house payments have options as described in the Foreclosure Fairness Act. The Act prescribes a series of steps to which a homeowner is entitled prior to any auction of their home. One of the first steps a lender must take for a home in Washington is to send a letter to the homeowner describing their options – the first of which is the right to request an informal meeting with the lender before a Notice of Default is filed. But here’s the thing … the homeowner has to make the request within 30 days from the date of the options letter. So... [Read more...]
Fix the Housing Market = Fix the Economy
I know … I’m often considered naive in my “political” opinions. Probably rightly so most of the time. After all, I’m just a hard-workin’ self-employed real estate broker out here in south King County, home of the working folks. Most of us go to work every day doing whatever it is that needs to be done and worrying about how to make our next house payment. Like many folks, I’ve watched my house values erode drastically over the last couple of years. Perceptually, that fall in value seems to be speeding up .. or perhaps it’s just that now we’re... [Read more...]
Facing a Foreclosure or Short Sale?
The Washington State attorney general’s office recently released three videos that explain your rights and options should you be facing a foreclosure or short sale of your home. As an active Realtor®, I frequently receive phone calls from people that are already behind on their payments, or feel as though they will soon be in trouble with their mortgage. Sometimes, the call is from someone that is trying to get out from under a home that has lost significant value and is now worth far less than what they owe. Each of these types of calls requires a knowledgeable response and action. Sometimes... [Read more...]
Foreclosure Statistics – Auburn, WA
I was directed to a Web site this morning called Foreclosure Radar. Like most sites of this sort, its aim is to get real estate agents to subscribe to their service (for a fee) with referrals to be directed from the site back to the fee-paying agents. I typically avoid these sorts of things as fee-paid referrals up front can be a huge out-of-pocket expense with little or no return. However, Foreclosure Radar does offer some interesting charts and graphs for foreclosure data. Interesting enough that I thought I’d post them here and then watch the stats for a couple of months to see how they... [Read more...]
Dear Bank — Can I buy my own short sale house?
Dear Bank President: See here’s the thing. Like much, if not MOST, of the country, the value of my house has dropped substantially. So has my income, but I’m STILL WORKING! Of course my income is now only about 2/3rds of what it was when I bought my house because I had to take a cut in pay to keep my job. But I’m STILL WORKING and I’ve never missed a payment. I’ve now built up all of my credit cards to their limit and raided almost 100% of my 401k so that I can make my mortgage payments, yet I’ve NEVER missed a payment. But the ratio between my mortgage and... [Read more...]
HURRY! — JP Morgan Chase — Strugging Homeowner Event TODAY
Buried deep in the newspaper yesterday was an announcement that JPMorganChase Bank is holding an event TODAY, September 30th, for homeowners struggling to make their house payments for Chase and EMC mortgages. Being held from 11am – 5pm at the Chase Homeownership Center, 16400 Southcenter Parkway, Suite 200 in Tukwila, homeowners should bring their most recent tax returns, W-2s, monthly bank statements, pay stubs and proof of tax, insurance, and homeowner association payments. HURRY! Be Sociable, Share! Tweet
The Business of Short Sales in Auburn, WA
Short sales are a huge part of our area’s current listing inventory and sales statistics. They’re difficult transactions and time consuming. They require specialized knowledge and dedication to the task in order to be successful. They also require impeccable business practices and an adherence to the highest of ethical standards. The business of real estate … and more specifically at this current time, the business of short sales affects everyone. Not just current homeowners, but home buyers, home sellers, renters. Everyone. We all are touched by housing prices, banking practices... [Read more...]
Auburn Sales Activity for August 2010
Just in time for the start of school, 55 sales closed with Auburn addresses during the month of August, 2010. Here’s the breakdown: Residential Sales are Single Family Homes, Manufactured homes are those within parks, not on private land. Of those closed 39 single family home sales, 14 were bank owned, while 6 more were short sales. A couple other interesting facts: Prices for single family homes ranged from a low of $112,500 to a high of $737,900 — and that high priced home had been on the market for a total of 728 days! Of the total 55 closed sales, 14 of them (25%!!) had... [Read more...]
Help for Underwater Homeowners?
http://www.flickr.com/photos/thetruthabout/4041556932/ Almost everyone I talk with these days is … as I am … backwards on their home loan-to-value ratios. Many of us bought our homes in the early 2000′s and then even refinanced them or added home equity loans somewhere in the 2005-2007 days, bringing our total home loan indebtedness to a number that is now out-of-whack with today’s home prices. These values were reasonable at the time, but, of course, with the falling real estate values, it’s become impossible to refinance the house to take advantage of today’s... [Read more...]
What is a Deed-in-Lieu?
No foreclosure! A Deed-in-Lieu of Foreclosure is a process where the lender agrees to take the deed to your home rather than pursue a foreclosure action against you for nonpayment of your loan. This option is easiest where there is only one mortgage, and where there are no other liens. Depending on your lender, a payment might be offered to the holder of a second mortgage or home equity loan, but that lienholder must also agree. Further, if you have yet additional liens against your home, such as tax or utility liens, your bank will likely not even consider this option. Your bank wants your home... [Read more...]
Sometimes a Short Sale is Just NOT the Right Answer!
I like to consider myself a resource for sellers who are considering their options. Should they pursue a short sale? Should they just walk away? Should they just try to hang on no matter what? Recently I had an opportunity to meet with a wonderful couple that were truly truly trying to do “the right thing,” as they phrased it. We met for a couple of hours while they showed me around their home. Their pride was obvious. This house was their baby. They’d improved and lovingly planted almost every inch of the yard … and the inside was eat off the floor clean. Every room was... [Read more...]
Is a Loan Modification for Me?
A number of considerations should be made when you are either in trouble already with your current mortgage, or anticipate that you might be soon. One excellent option might be a loan modification, which is designed to reduce the amount of your mortgage payment to no more than 31% of your gross income. Unfortunately as of this time, it appears that most loan modifications are unsuccessful, with something less than 5% of all applicants successfully completing the loan modification program being reported by some analysts. However, don’t be deterred! Perhaps you’ll be able to complete ... [Read more...]
