Real Estate Really

RESPA Violation Alert

 
I personally have never had a lender or service provider ask or even suggest that a buyer should provide funds outside of closing that is not disclosed on the HUD.  However, I am noticing second lien holders becoming increasingly aggressive in their payoff requests and I've seen a marked increase in approval turn around times. 

Check out this article http://www.cnbc.com/id/34877347 from CNBC.  Understand it is a legal violation for any money to exchange hands that is not on your final HUD1 statement.   If any bank asks for this to be done it should be reported to RESPA authorities.  http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm

Is it time for you to buy real estate? You Betcha!

Thinking of buying real estate but still unsure?  Prices have already begun to rise slightly in our area, so take advantage of the home buyers tax credit while you can and get a home while the prices are still within your reach.

Visit msnbc.com for breaking news, world news, and news about the economy

Foreclosures and short sales are great deals right now.  Give me a call if you would like to discuss possibilities.

Foreclosure Avoidance Options

Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options available to residents for foreclosure are many, including but not limited to short sales. Following is a brief explanation of these solutions: Reinstatement A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender's approval and will 'reinstate' a mortgage up to the day before the final foreclosure sale. Forbearance or Repayment Plan A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe. Mortgage Modification A mortgage modificationinvolves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage. Rent the Property A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, can convert their property to a rental and use the rental income to pay the mortgage. Deed in Lieu of Foreclosure Also known as a 'friendly foreclosure,' a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property. Bankruptcy Many have considered and marketed bankruptcy as a 'foreclosure solution,' but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution. Refinance If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage. Servicemembers Civil Relief Act (military personnel only) If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief. Sell the Property Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area. Short Sale If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short salewith their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more. This represents only a summary of some of the solutions available to homeowners facing foreclosure. Locate a CDPE in your area for an evaluation of your individual situation, property value, and possible options. Understanding your options now could mean all the difference in the world. A CDPE can help.

 

Short On Equity

Image by Getty Images via Daylife

Short sales continue to rise in Northern Virginia, especially Prince William County and Loudon County.  There are several options to foreclosure, but for most homeowners a short sale is still the most viable option to the long term effects of a foreclosure on their credit record.  Click here for information and free reports on the Short Sale process.

Related articles by Zemanta

• Investors Flipping 'Their' Properties Back to Market (metrodcliving.com)
• In Short Sales What is a Deficiency Judgment versus the 1099? (activerain.com)
• Northern Virginia Inventory Drops to Under 4 Mos. Supply, in August (metrodcliving.com)
• Distressed Properties, the Issue that is Still Hanging (in the Cloud) (metrodcliving.com)
• Loan Modification and Short Sale Negation for Commercial and Residential (dealerdan.blogspot.com)

Are You Upside Down?

If you live in Northern Virginia, especially in counties west of the Washington Beltway, and,  you purchased a home prior to 2005-2006, the value of your home probably dropped 20-50% .  If you were one of the homeowners who put the minimum down payment of 0-10%, you are now upside down by 10%-40% of the home’s value.  If you purchased the home with an adjustable rate mortgage or teaser rate, you may be wishing to refinance your mortgage to a fixed rate so.

We keep hearing from the media that refinancing your home is a solution and possible remedy to foreclosure.  but there are problems with refinancing your property that nobody is discussing and in some cases, has resulted in foreclosure.  Its just not as easy or workable as you may think in today’s market.  Between appraisal issues, new lender requirements , debt-income ratio issues, and higher credit score requirements,  refinancing a property is virtually impossible and generally a property will end up as a short sale or worse, a foreclosure.  There are some ways around this, but it may require cash upfront. 

Life happens and there are worse things in life than being upside down on your mortgage.  But if you are, don't wait until the situation gets worse.  If you begin to default, call your servicer immediately and talk to them about your situation.  Then go and find a REALTOR who can help you sort out your options.