Displaying blog entries 11-17 of 17
Whether you’re buying or selling, it’s important to choose representation that meets your needs in the transaction. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Here’s how to clean up your credit so you get the least-expensive home loan possible. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
News releases in recent weeks have increasingly unearthed irregularities in the foreclosure process, disclosures which have far-reaching effects on first time and move-up buyers of Chester County real estate, those in the process of foreclosure, the real estate market, and the economy in general. In reaction to these reports, Ally Financial, JP Morgan, PNC, Morgan Chase, and Bank of America have temporarily halted all action on foreclosures, and nearly half of the states have issued a foreclosure moratorium.
The National Association of Realtors (NAR) has long urged lenders to seek resolution to distressed properties through modification and short sales rather than through foreclosure, stating that “These options are far better” and that they involve less risk of irregularities caused by the impact of dealing with such a high volume of foreclosures and heavy demands by lenders for speedy processing, In a recent letter to various federal agencies, the NAR expressed both concern for the rights of borrowers and the buyers of Chester County real estate and the hope that the foreclosure review will proceed expeditiously.
Reacting to a demand by some for a national moratorium (which many feel is inevitable), the White House called for caution in taking such a step and acknowledged that there are valid foreclosures with proper documentation that should go forward. White House spokesman David Axelrod also placed some of the responsibility for the “title wave” on government-run Freddie Mac and Fannie Mae, stating that “…if they had slowed down their loan purchases using internal controls, many of these problems would not have occurred.”
So what does all this mean for the purchaser or would-be buyer of Chester County real estate? In all probability, closings and contract purchases on distressed properties will not take place until all moratoriums have been lifted. It also means that foreclosures already in process will be held up and that some bank-owned listings will be removed from the market. Some “experts” say that those who have already purchased a foreclosed home will not have problems because of the legal finality of foreclosure sales, while others worry that that the moratoriums will bring most mortgage closings to a halt. All seem to agree, however, that properties which do have clear mortgage documentation will demand a premium price in what will be smaller supply of homes from which to choose.
Obviously there is no imminent solution to the current foreclosure fiasco, and the wise and prudent buyer would do well to follow the situation carefully, proceed cautiously, and seek professional advice before making a commitment.
In our present economic situation, many people are currently facing the loss of their homes. However, because foreclosure is expensive for lenders, mortgage insurers, and investors, the FHA, HUD, Freddie Mac, Fannie Mae, and private companies are being required to work with borrowers who are experiencing money problems. As a result, lenders do have workout options to help you keep your Chester County home. Warning: Do not mistakenly assume that your mortgage situation will correct itself; you must take the steps suggested below to avoid, or at least forestall, foreclosure.
1. ACT NOW! Time is of the essence. Do not ignore letters or calls from your lender. If you do, chances are that action to foreclose will begin quickly.
2. CONTACT YOUR LENDER: When you reach the lender, you should be prepared to provide him/her with your account number; a brief explanation of your circumstances; income documents or evidence of unemployment, public assistance, or business losses; and a list of your household expenses. Ask about a reduced interest rate, refinancing, lengthening the term of the loan, and a repayment plan for missed payments. In all probability, the lender will mail you a loan workout package. It is important that you complete and return these forms quickly.
3. DO RESEARCH; Reread your loan documents to determine what is said about unpaid mortgage payments. Learn about specific foreclosure laws in your state Get in touch with the government housing office where you live.
4. CONSIDER SELLING: Lenders will most likely suspend foreclosure proceedings while your Chester County home is on the market and possibly even eliminate mortgage payments during this time. Explore a short sale. If the market value of your house is less than you owe, your lender may consider taking the sale proceeds and forgiving the rest of the debt. Or you might give your deed to the lender in return for the loan balance being cancelled. Check with an attorney or housing counselor before taking these actions.
5. BEWARE OF SCAMS! Avoid “foreclosure prevention” companies who offer to negotiate with your lender, will cost you thousands of dollars, and may even “rescue” your home away from you. Do not sign anything from these firms!
6. SET PRIORITIES: Pay the mortgage on your Chester County home before paying credit card debts, doctor bills, or the like. Can you sell a second car or other assets? Could you take a second job to ease the situation? Your lender needs to know that you are serious about trying to find a solution to your financial problems and are willing to make sacrifices to do so.
7. EXPLORE ALL OPTIONS:
a. Get legitimate help. Contact a HUD approved housing counselor (1-800-569-3287) or 1-888-995-HOPE) for free or low-cost guidance. Help is also available from the National Foundation of Credit Counselors (1-866-557-2227). Also, check with your local bar association or a neighborhood legal services program for pro bono legal representation.
b. Look into government benefits such as fuel assistance, food stamps, or property tax abatements to help you through this difficult period.
It is important that you be both aware and proactive in your fight to keep your Chester County home!
Fannie Mae has announced it will pay up to 3.5% of closing costs for Chestar County home buyers or an equivalent amount for new appliances on purchases of foreclosed properties in its inventory.
Prices on foreclosed properties are often thousands below market value. Add to this savings getting closing costs paid or getting new appliances and buying a foreclosure becomes an even better deal. Add the home buyer tax credit and buying a foreclosed home becomes a no brainer.
Interested in buying a foreclosed home? We are glad to provide you with a list of foreclosures and guide you though the home buying process. Contact us today!
Scott Darling Earns Prestigious Designation to Help
Homeowners in Danger of Foreclosure
Scott Darling of RE/MAX Action Associates in Exton, PA has earned the prestigious Certified Distressed Property Expert® (CDPE) designation, having completed extensive training in foreclosure avoidance, with a particular emphasis on short sales. At a time when millions of homeowners are struggling with the possibility of foreclosure, the skills and education accumulated by Darling will help benefit Chester County area 
residents and communities.
Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
Today, more than 13 percent of homeowners are delinquent on their mortgage or in the foreclosure process. This is occurring across all price ranges, and the fastest-growing category of homes in foreclosure is the luxury home market.
“The CDPE designation has been invaluable as I work with homeowners and lenders on complicated short sales,” said Darling. “It is so rewarding to be able to help families save their homes from foreclosure.”
Alex Charfen, co-founder and CEO of the Distressed Property Institute in Austin, Texas, said that agents such as Darling with the CDPE Designation have valuable perspective on the market, and training in short sales that can offer homeowners real alternatives to foreclosure, which can be devastating to credit ratings.
“These experts better understand market conditions than the average agent, and can help sellers through the complications of foreclosure avoidance,” he said.
The Distressed Property Institute provides live and online courses to train real estate professionals how to help homeowners in distress, with a particular emphasis on handling short sales.
“Our goal is to help as many homeowners as possible, by educating as many real estate professionals as possible,” Charfen said. “Darling has demonstrated a commitment to the struggling homeowners, and will provide much-needed assistance in stabilizing the community.”
Are you or someone you know behind on mortgage payments? Don't delay! Contact Scott for a personal consultation. He may be able to help you save your home and your family!
Displaying blog entries 11-17 of 17
