Bend Oregon bank foreclosures seem to be a hot commodity these days. They are selling at a rate of almost one per day. There are currently 105 bank owned homes in Bend for sale through the Central Oregon Multiple Listing Service. There have been 50 bank foreclosures sold in the last 60 days and there are currently 58 pending sales that should close within the next 30 days or so.

These numbers represent homes in the Bend area only. They do not include town homes, condominiums, and bare land, commercial or industrial property. Foreclosures nation wide are up 30% over a year ago according to the Bend Bulletin. Bank foreclosures will not stop soon but I think we will be seeing a decreasing number of them for sale. Several of the major lenders have temporarily halted all foreclosures.

The 58 pending sales are not included in the 105 that are listed for sale! The homes sold in the last 60 days averaged 87 “days of the market.” Days on the market can be misleading because there’s usually 30-45 days between the time a listing goes pending and it closes. So most bank owned homes are in escrow and off the market in less than 60 days from the time they hit the market.

Two bank owned homes just went pending on Awbrey Butte, one of Bend’s most desirable residential neighborhoods. One sold in less than a week. The other was on the market for several months. The good properties that are priced right sell quickly. The last 3 offers I wrote on foreclosures had multiple offers on them. The banks on the average are taking 95.6% of list price. Some are selling over list price where there are multiple offers and the list price is low.

One thing that is confusing buyers in our real estate market in Bend is short sales. A short sale is a property that is listed for sale at a price that is below what the seller owes the bank. All short sales are subject to lender approval. Short sale listings are misleading because some of them are listed at an unrealistic price which is below market. There is no way a lender will allow a sale and take huge loss on a sale that is under current market values.

If you are looking to buy a home my advice is to avoid short sales and concentrate on bank foreclosures. You can get tied up in a short sale for up to six months. An offer is made and accepted by the seller. Then it is submitted to the lender. The lenders can take months only to come back with a counter offer that is unacceptable. Some lenders will not take any offer because the seller has too much income and too many assets to justify the short sale.

Another avenue to buy a bank foreclosure is at an auction. However, as far as I can tell real estate auctions in Bend Oregon are not that great of a deal for buyers. I recently attended an auction of one lender’s foreclosures in SE Bend. There were six properties up for auction. The bank had a “reserve” on all of these homes. If they didn’t get their price they wouldn’t sell. Not all the homes sold.

One of my clients had his eye on one of these homes. All the homes were supposed to be open for viewing 2 hours prior to the start of the auction which was held at a different location. My client waited until 30 minutes before the auction and the house he was interested in was still locked up. He never got to see the inside.

The home in question had previously been listed for sale by the bank in the Central Oregon MLS for 208 days. It was listed for $172,000 and did not sell. The listing expired and the home was put up for auction. It ended up selling for $160,000 plus a 5% premium which put the sales price at $168,000! I’m sure if someone had offered $165,000 while it was listed the bank would have taken that offer. My point is that auctions aren’t that good of a deal for buyers.

After a notice of default is filed there is eventually a foreclosure auction on the court house steps held by the local sheriff. However, 99% of the time these homes go to the lender in 1st lien position. It’s usually a waste of time to attend these auctions. One good reason not to buy these homes is that you do not have an opportunity to see inside or have any type of inspection.

The Central Oregon Multiple Listing Service receives the bulk of all bank owned homes as soon as they are put on the market. These listings as a general rule are priced very well. Sometimes they are as low as 50% of the sales price a couple of years ago. There is some good money to be made today in Bend Oregon by buying bank foreclosed properties.

Jim Johnson has lived in Bend Oregon since 1981. He is a Certified Residential Specialist and specializes in the sale of quality homes, REO properties and bank owned homes. Call 541-389-4511 or see his web site http://www.bendoregonrealestateexpert.com BEND OREGON REAL ESTATE http://www.bendoregonrealestateexpert.com/reo-bank-owned-foreclosed-homes-bend-oregon.html

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Foreclosure petitions hit highest level in a year

Foreclosure petitions, the first step in the Massachusetts foreclosure process, hit their highest number in more than a year last month, and foreclosures …   Read More…

Downpayment on Your Dream

The Program is part of the County's federally funded Neighborhood Stabilization Program (NSP) to stabilize neighborhoods hit hard by foreclosures. …   Read More…

Freddie CEO: Mortgage forbearance is preferable to foreclosure

In an exclusive one-on-one with HousingWire, Freddie Mac CEO Charles E. Haldeman Jr. (pictured), said that foreclosure is the least …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

With the record foreclosure rates, many homeowners are able to see the tragedy coming. Once they know they will lose a job, or a medical crisis suddenly hits, it is just a matter of time before the mortgage payment is missed, and homeowners know it. But, what happens if you are just renting your home and the landlord falls behind on the bills?

In this case, you may not find out until long after the fact that there is a problem, especially if the owners do not say anything. They may, of course, finally inform you of the foreclosure problem when the sheriff sale is approaching, but this may give you only a small amount of time to find a new place to move. And how much time do you have, exactly?

If you are renting a property that you have recently found out is in foreclosure, you need to find out what part of the foreclosure process the house is in, and determine if there is a redemption period after the sheriff sale.

Unfortunately, because of their limited rights to the property, renters have fewer options available to them to stop foreclosure before the process goes all the way through. Thus, they have to rely on the landlords much more than they would probably like.

Find out from the owners if a sheriff sale has been scheduled yet with the county. The county courthouse or sheriffs office will also have this information. Knowing the foreclosure auction date will give you a good estimate of when the landlords will no longer be the owners of the house. The sheriff sale transfers ownership of the property to the purchaser at the auction, which is usually the foreclosing bank itself who buys the property back.

After knowing when the sheriff sale will take place, look up your state foreclosure laws to find out if there is a redemption period after the sale. If there is no redemption, then you have to move out soon after the foreclosure auction, or you will be evicted. In fact, the eviction may take place within as little as two weeks after the sale. It is possible to negotiate with the lender for more time, but there is no guarantee to be given extra time to move out.

However, if there is a redemption period, you can stay living in the house until after the period is over. This is a length of time guaranteed by state law for homeowners to keep possession of the house and attempt to pay off the amount owed or sell the property outright. So the bank can not evict you until after the period is over, no matter how much they would like to do so.

In some cases, after the foreclosure the bank will offer to give you (or the landlords if they are still in the picture) a thousand dollars or so just to move out. This is called a “cash for keys” deal, and the amount offered will not be very much. Banks do it as a sign of good faith, and as an attempt to persuade homeowners to leave the property in good condition without destroying anything or stealing all of the copper pipes to sell for moving expenses, or ripping out the water heater and furnace.

But how long you have depends on how much time has already expired and what the state foreclosure laws have to say. One of these pieces of information can be obtained from the landlord or through county officials, and the other is freely available online on any number of foreclosure websites, as well as official state websites which will have the exact language of the foreclosure laws.

Nick writes for the Foreclosure Fish website, which educates both homeowners and tenants about what options they have when facing the loss of their homes due to foreclosure. The site contains hundreds of articles and blog entries, discussing various methods of saving a home, from selling to avoid foreclosure, to putting together a mortgage modification, or filing bankruptcy. Visit the site and download your free copy of an e-book explaining how foreclosure works and how it can be stopped: http://www.foreclosurefish.com/

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Technorati Tags: Foreclosures, Portland Foreclosures

A growing problem seems to be that many tenants find that the house or apartment building they are renting is going into foreclosure, due to the inability of the owner to continue paying the mortgage. The tenants are arguably in an even worse situation than the homeowners themselves at this point, because they have no control over the process of finding a solution that will stop foreclosure and allow them to remain in the home. They are also bound by the lease agreement, and risk the negative consequences of breaking the contract before its term has expired. However, there are a number of suggestions for tenants in this situation who are concerned with helping the landlord keep the property or just securing their own living arrangements beyond the foreclosure.

The actual sequence of events will, of course, depend on what happens throughout the foreclosure process, which is determined by the state foreclosure laws. Just because the property is in foreclosure, though, does not automatically mean the homeowner has lost the property yet. In other words, it may be hasty to give up hope and begin moving out right away. Any tenant in the building will want to discuss the pending foreclosure with the landlord as soon as possible, though, to determine what the problem is and if there is any way to save the home and avoid the foreclosure process entirely.

If the homeowners have a plan to stop foreclosure, the tenants may begin the process of looking for new places to move to, but holding them as backup plans, rather than immediately moving out. In the event that the owners can not save the property, then the tenants will have to determine how much longer they have until the foreclosure process is over, and if there is a redemption period after the sheriff sale, in order to plan their moving out of the property. This time period is another aspect determined by state foreclosure laws, and tenants should also seek out independent foreclosure advice to educate themselves on what may happen to them throughout the process, as well as their rights once ownership of the property transfers after the sheriff sale.

In most cases, once the sheriff sale has been conducted, the homeowners and the tenants will no longer be able to remain in the property. This is because the new owner, which is usually the foreclosing bank, will initiate the eviction process in the local courts and request possession of the house. If the tenants do not know how much longer they may have to keep living in the property after foreclosure, they can call the county sheriffs department to find out if and when the foreclosure auction took place, and if there is an eviction date scheduled yet. The sheriffs office will conduct the eviction, so they will know if the court has ordered it yet.

However, in a small minority of cases, the lender’s attorneys will take over collecting rent payments from the tenants. The renters would receive a letter from the lawyers office informing them of their responsibility to continue paying the lease as agreed and that payments will now be made out to their office. However, this is a much less common result than the bank simply asking for possession of the property and beginning the process of evicting any remaining tenants or homeowners.

Tenants who are experiencing their own foreclosure crisis are best served by discussing the matter with the current owners of the property and examining what options are available to prevent the loss of the home and stop foreclosure. However, renters in this situation should also keep a backup plan in the event that the house is sold at sheriff sale and ownership is transferred, resulting in the beginning of the eviction process. It is unfortunate, but true, that plans to save a home from foreclosure often fall through at the last minute, especially if the homeowners are relying on a magical foreclosure loan or other option that is equally difficult to qualify for. Tenants should gather as much foreclosure information as they can and begin the process of planning for their future no matter what happens with the current property in foreclosure.

The ForeclosureFish.com website has been designed to provide homeowners with free, relevant foreclosure help and resources that they can use to put together a plan to save their homes on their own. With hundreds of pages of free advice and education, foreclosure victims are encouraged to avoid foreclosure and take back control of their financial lives. With simple explanations of every way to stop the foreclosure process, including forbearance agreements and deed in lieu of foreclosure, homeowners will gain a deep understanding of how foreclosure works. Visit the site today to download a foreclosure e-book that explains the fundamentals of the foreclosure process and search through reference materials designed to help you save your home today: http://www.foreclosurefish.com/

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Mad rantings about politics, evolution, and microbiology

… the country's fourth-largest home loan lender, that it had violated legal rules in its rush to file many foreclosures as quickly as possible. …   Read More…

Bank of America's foreclosure tricks

The irresponsible foreclosure practices of banks have been in the headlines. Employees of both GMAC and JPMorgan Chase (JPM) have admitted to signing off on …   Read More…

BELANS v. BANK OF AMERICA, N.A.

Moreover, we have repeatedly affirmed orders confirming nonjudicial foreclosures sales where a consolidated hearing was held to confirm sales of multiple …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

Cash for keys is a procedure which involves with current foreclosure procedure and this is very popular in the society. Normally most homeowners like this cash for keys procedures as they are getting some money for their own property before the property get foreclosed.

If you are a home owner who wish to get in to cash for keys option, then you must first negotiate with your bank or the financial institute. After negotiation of the terms and the agreement, both parties can get in to this cash for keys procedure and you will be able to get some money in to your hand before the home foreclosed.

However the bank or any other financial institute will not offer you the full payment before the foreclosure process and it is recommended to get in to an agreement with regard to the payment methods. Also it is always recommended to research the market according to the property which going to be foreclosed and you will be able to make the best offer accordingly. Otherwise you will be losing your property for a very cheap price than the current market value of the property.

Once you complete these market watches and the other procedures of cash for keys procedure, then you can ask for some professional support on the procedure and it will ease the process accordingly. Also it will make you more comfortable on the deal as you are getting the required support from the professionals in the relevant industry.

However you must always keep in mind that, most financial institutes of Banks will not agree for this cash for keys procedure on the initial stage. The reason is this cash for keys can make some loses for the banks or the financial institutes and they are trying to avoid the situation accordingly. Anyway if you managed to get in to cash for keys agreement, then it will be the best chance for a home owner whose property is listed for foreclosure.

Anyway as a result of this cash for keys procedure, most mortgage owners can get some relief from the financial issues as they are getting some reasonable money for their own property before it gets foreclosed. And they can spend this money in order to buy or rent another property according to their day to day needs and activities. So it will be a support for the banks as they don’t have to spend time to send these people away from foreclosed properties.

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Kevin Simpson, has been working on ForeclosureDataOnline.com studying the foreclosures market, helping buyers on the finer points of foreclosed homes for sale. Try to visit ForeclosureDataOnline.com and begin your foreclosures by state search.

—–

Kevin Simpson, GM Sales & Marketing, ForeclosureDataOnline.com

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Technorati Tags: Foreclosures, Portland Foreclosures

Most people are not able to buy real estate with cash. They finance the purchase through a loan from a lender (bank). The bank is called a mortgagee and the borrower is the mortgagor. The lender has to secure the repayment of the debt. The lender creates a mortgage.

What is a mortgage? Mortgage is a security instrument should the borrower fail to meet the obligations of the promissory note (payment schedule). It is not the debt itself.

What is a lien? A lien is a public notification for a financial interest in registered property. It is a legal claim against a recorded asset (not necessarily real estate).

Both are considered encumbrances on the title to the property. Very often these terms are used interchangeably.

Do you know which lien comes first? Remember this rule: first in time – first in place (but still after the property taxes).

1. Property taxes are always first. The government is the first landowner. Your lender knows it. Hence, even when you do not pay your mortgage payments and your escrow account is short to cover the property taxes due; the bank steps in and pays the taxes for you. This way they protect their investment.

2. Your first mortgage is a second priority lien. As I said, your lender knows it. In Florida, for example, at a tax deed sale, a property can be bought for the taxes owed. All mortgages are wiped out.

3. Any other mortgages after the first mortgage are called junior mortgages. Your second mortgage is a third priority lien. In case of a foreclosure sale, all junior mortgages are completely wiped out. If a junior mortgage wants to protect their investment, they have to assume the senior mortgages.

4. Are there any other liens that can be put on the property? Yes.

a) City or County Liens (water bill not paid, services provided not paid)

b) IRS liens (federal taxes not paid)

c) State liens (state taxes not paid)

d) Mechanics liens (services provided on the house not paid)

e) Other (Medical bills or credit card bills not paid). If it is your primary residence you can file a notice of homestead (check your state statutes) for removal of those liens.

How does this information serve you?

1. Do not be afraid that a credit card can do something to your house.

2. The second mortgage, in case of a short sale, can be negotiated (rule of thumb – 10%). Otherwise, they get nothing.

3. All other liens can be negotiated. Some of them fall off (IRS lien falls off 120 days after the sale)

4. Do not ever pay your second mortgage if delinquent on the first.

5. Do not ever pay your credit card bills if delinquent on your mortgages.

6. Your lender will pay the property taxes for you.

7. If you do not have a mortgage, pay your property taxes. Otherwise, it may cost you.

And now I want to invite you to claim your free instant access to a bonus chapter of my new foreclosure report on how to handle each phase of the foreclosure process.
Go and claim it right now http://www.DebtAid101.com

from Margarita Slavkov – the foreclosure solutions expert.

http://www.DebtAid101.com

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Decoding the countless housing reports

RealtyTrac measures the number of foreclosures, which still looks ominous in Phoenix. One in 165 homes is in foreclosure. Arizona foreclosures account for …   Read More…

Local foreclosures higher

Real estate industry data provider CoreLogic said Tuesday that its compilations show a rise in Scranton/Wilkes-Barre area residential property foreclosures …   Read More…

Repossession hell: 6 extremely 'wrongful' foreclosures

In July, Grodensky was shocked to learn that the house was in foreclosure and that the title had been transferred to a government-backed lender. …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

There seems to be more and more encouraging news about the economy. In most areas prices are starting to increase, interest rates are hovering around 5%, and unemployment is on the decline. New home builders are seeing a rise in base prices but continue to struggle with the competition of distressed property values.

The National Association of Home Builders states that builder confidence decreased by 2 index points in March 2010. Builder confidence is measured by a point system. 50 points or higher means a positive outlook, while less than 50 points means a negative outlook on economic recovery. In January 2010, the builder confidence level was 15. It has not been above the 50 point threshold since April 2006.

Home builders continue to be under pressure due to the brutal competition they have with foreclosures. The rate of foreclosures is declining but the volume of foreclosures is still ahead of 2009 numbers.

This scenario continues to be good news for the buyer. Foreclosures in and around surrounding new home communities are bringing down appraisals on new homes. The uncertainty of foreclosure competition, the slow growth of job creation, and the expiration of several current government programs are still major concerns to the home building industry. The builder confidence index is also lowering share prices with some top home builders.

Many home builders are offering some great incentives to buyers. There are some very attractive deals on builder specs or inventory homes. The builder spec and inventory homes are usually ready to move into within 30-45 days. This is like the speed of light compared to a short sale home. On a new home the buyer can feel more comfortable that the home will close escrow as scheduled. Usually on a short sale home the close of escrow always goes down to the wire and usually closes late.

Another advantage for buying a new home is the buyer does not have to worry about the cost of repairs. Many of the short sale homes and bank owned homes are sold “As Is”. These homes in many instances require paint, new carpet, roof repairs, etc. New home warranties from the builder take the worry out of buying, in stark contrast to the As-Is condition of short-sale or bank-owned home.

There are both pros and cons to consider when buying either a new- build home or a pre-owned home. The sales price of the pre-owned home may be so attractive the buyer cannot resist taking advantage of the seller’s predicament. Buyers who are more interested in choosing their own upgrades, lots, and receiving several years of full builder warranties will continue to go the way of the new build home.

For more information on Phoenix Real Estate or Tucson Real Estate, please visit Real Estate Homes, LLC where you can search for all new and resale homes for sale in the current market.

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Technorati Tags: Foreclosures, Portland Foreclosures

Foreclosure auctions are the modern way of disposing or selling homes. The activity also makes up for a proper venue where home buyers and sellers meet up, interact and exchange ideas. They are really fun and exciting at the same time.

When homes are repossessed and sold at foreclosure auctions, sometime people find them more appealing and more convenient to buy.

During foreclosure auctions, potential home buyers are also given the opportunity to choose from a wider array of asset and homes for sale. Thus, they are given the free hand to decide and choose the particular type and style they want and prefer.

Here are some tips on how the transaction for buying homes at foreclosure auctions could be made more bearable, convenient and reliable:

1. Inspect the overall appearance of the house. Roam around and look for any defects, shortcomings or ruins that may entitle you for significant discounts. While doing so, do not take your eyesight off the tag price.

2. Inspect the garden and the accompanying equipment and devices and see for yourself if they justify the tag price.

3. Seek the help of a broker and agent. They could give you enough advice in assessing the asset for purchase. Be sure to know how and how much you would pay for commissions. Otherwise, just get on without them.

4. Bid. Haggle. Offer tenders at reasonable prices. Be sure not to over price the home, or you’ll regret it later.

5. Arrange for the payment terms. Some auctioneers accept installment based payments. However, for such conditions, premiums are also imposed. The payments can be made cash, through checks or other safe and efficient mode. Consider your options.

Buying homes at foreclosure auctions would never be tiring if you would passion to the activity. If you love homes, and you like appreciating styles and concepts, then go there and explore options and ideas. Keep you eyes on the prices, though.

For listings of dirt cheap repossessed homes, please visit http://www.real-estate-foreclosed-home.info/

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What You Should Do Before Buying Las Vegas Foreclosures

If you are looking for fabulous homes, nice towering townhouses and posh penthouses, then Las Vegas foreclosures is definitely for you. …   Read More…

Foreclosure rates slowly rise in Lynn

LYNN – Lynn home foreclosure rates are climbing at a much slower pace than an alarming statewide increase, …   Read More…

How Large is the Shadow Inventory of Homes?

A new report estimates that the “shadow inventory” of potential foreclosures and other distressed sales will peak this year at 4.7 million …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

If a homeowner defaults on their mortgage the lender usually forecloses on the home and the homeowner loses it. What happens to the renters who pay their rent every month but live in homes whose owner has not been paying the mortgage?

If you are a renter in a home or apartment building that is being foreclosed upon you are likely to be evicted. Do you have the right to stay? Not likely. Will the lender who holds the mortgage be able to evict you if you choose to stay? Yes.

If you have a lease how can that lease be thrown out? It’s a contract; shouldn’t the new owner be required to fulfill the contract?

Each state may vary but it is likely your lease can be canceled for two reasons. The first may be due to a clause in most leases that cancels it in the event of a foreclosure. The second is a part of property law called “first in time is first in right.” That means that if you rent a residence which is subject to a mortgage, the mortgage holder’s interest in the property is senior to your interest because it was entered into first.

Apartment building owners are usually required by their lender to include the foreclosure clause in their leases. Lenders require this clause because it helps protect from an unnecessary risk. If a building is foreclosed on, the lender must sell it to recoup the loan. Lenders believe that at a foreclosure sale an empty building will sell for more than one that is occupied by tenants. If the value of a foreclosed property drops it may hinder the restorative effect a foreclosure is supposed to provide. This may leave the borrower “under water,” still owing even though the property has been sold.

Because many tenants of foreclosed buildings are helpless during a foreclosure, Congress may soon change the law. The Mortgage Reform and Anti-Predatory Lending Act of 2007 will force new owners of foreclosed properties to honor existing leases. The bill has been passed by the House of Representatives and is currently being discussed in the Senate Banking Committee.

The Congress may also soon pass other legislation that will indirectly help those who rent. The bill will enable troubled homeowners to get new mortgages. The bill is being debated in the House Financial Services Committee and will allow the Federal Housing Administration to loan up to $300 billion to distressed homeowners. If passed, it is likely that most of this money will not go to owners of multi-unit buildings or to people who bought second homes for the purposes of renting them. But it will still benefit renters.

Investors in second properties naturally have their own home as their priority. If they can only make one mortgage payment they will pay the mortgage for the home they live in. If the bill is passed some of those homeowners who will benefit will also own second homes that they rent. If their monthly payments become lower they are more likely to be able to keep their second mortgages current as well. Thus a trickle down affect will help those who rent.

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Technorati Tags: Foreclosures, Portland Foreclosures

This occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission. The seller is unwilling or unable to cover the difference.

Some — although by no means all — short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.

Other sellers simply don’t understand that if they have assets, such as stocks or a high-salaried job, a lender is not going to let them just walk away from a short sale without signing a note to repay what they owe.

How do I know it’s short?

A CMA will be your first indicator, but you also need to ask the seller what their outstanding debt is and calculate the cost associated with a sale — from transfer taxes to your commission. This will give you an estimate of the net proceeds that will be realized, often called the net sheet. This information can then be entered into a HUD-1 Settlement Statement to calculate out the final, negative result at closing. Some lenders also have their own forms.

Check with the title company and the lender to get exact figures on closing costs and loan balances and to find out what procedures they have in place. If they can afford it, sellers should also consider getting a home inspection to determine what repairs are needed on a home and how this might affect its value.

Who do I and the seller need to talk to about the problem?

If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale. In addition, you may also need approval from the entity that holds the pool of loans if the mortgage has been securitized.

The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second, or junior, mortgage that has to absorb most of the loss.

Opinions differ, but most experts suggest that you let the lender involved know as soon as possible of the potential short sale. Others say you should wait until you have an offer because you’ll get no action until then. “Without a viable purchase offer, your deal won’t be considered by mortgagees,” says Margot Cole-Murphy, broker with RE/MAX Equity Group, Portland, Ore.

Tip: Be sure you contact the bank’s loss mitigation department, which will be the group to decide whether to accept a short sale, rather than the collection or customer service department, which is only interested in recouping past due loan payments. Finding the decision maker is often one of the biggest initial challenges in a short sales.

What information will the bank need to decide whether to accept a short sale?

The sellers’ submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker’s price opinion showing your estimate of value.

In addition, the sellers should submit a “hardship letter,” explaining the circumstances that make it impossible for them to pay the full amount of the loan. The seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered, say most interviewees.

Thanks to programs such as those proposed by Fannie Mae and Freddie Mac to assist subprime borrowers, many lenders are more willing to offer loan modification options. This option can extend the term of the loan, add on delinquent payments to the loan principal, and/or reduce the interest rate to make the loan more manageable for the home owner.

Another option is a repayment plan that requires home owners to increase their monthly payments until the loan is current. It may be possible to refinance an adjustable rate loan with a Federal Housing Authority or conventional fixed loan. Note that lenders will not postpone a foreclosure just because a property is listed, although they may postpone if you have a reasonable offer in the works.

How should I price a short sale property?

In general, most short sale experts say to price the property at or near fair market value, although a few will begin with the total payoff amount owned by the seller. How frequently prices are dropped will depend in part on whether the property is in preforeclosure. Most banks have a formula for what percentage under market value they will accept, say interviewees. Figures cited vary from 8 percent under to almost 20 percent under.Most lenders will want to get a broker’s price opinion or even an appraisal to see what the property is worth before you and seller set a list price. One way to help ensure that the bank’s estimate of value is realistic is to offer comps of recent sales — both traditional and REO.

What and how should I disclose about the short-sale property to prospective buyers?

Opinions vary on this topic, although most experts favor disclosing that a property is a short sale in the comments section of the MLS listing. Others suggest waiting to disclose the need for lender approval of the sale until a buyer is ready to make an offer.

How long does it take to complete a short sale?

Although response times vary from lender to lender, it can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. That’s why it’s critical that buyers and their representative understand and accept that time frame before they make an offer.

An addendum to the California Association of REALTORS purchase contract includes a provision allowing either party to cancel a short-sale contract within a set period if the seller hasn’t gotten the deal approved, says White. Properties with securitized loans (which are the majority these days) may require a longer time to get an approval of a short sale because of the possible need for approval from the entity holding the pool of securities.

What can the seller and I do to make a short sale more attractive to a lender?

Getting a lender to approve a short sale is primarily a question of economics. You have to provide hard numbers to show that the amount of money a bank will realize on the short sale is better than the amount it may recoup from foreclosing on the property and selling the property as an REO.

A 2002 study by Craig Focardi of the Tower Group estimated that the entire cost of a foreclosure was $58,759 and took 18 months. Other factors that can influence a bank’s decision include the liability risk it assumes by owning the property after foreclosures, the money tied up during the holding period for a foreclosure and REO resale, additional costs associated with an REO such as attorneys’ fees, and the additional reserves it will need if REOs rise in the bank’s portfolio.

However, to avoid unnecessary costs, buyers should wait on having a home inspection and an appraisal for the loan until after the bank has accepted the short sale proposition, such as a lost job or high medical bills from an illness may also have an influence.

What are the seller’s options if a short sale is rejected by the lender?

There are a variety of reasons a bank will reject a short sale — from too low a price to too many files on the loss mitigator’s desk. You can look for another buyer or even try resubmitting the same contract. Banks don’t want to take properties back in foreclosure, so they are going to do everything they can to make it work. You also need to prepare your seller in advance for the possibility of foreclosure if a short sale fails.

What financial or credit liabilities will a seller have as a result of a short sale?

Many lenders ask sellers to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due.

It’s particularly important to understand this distinction if you work in states such as California that have a nonrecourse mortgage. In such states, the lender cannot pursue a deficiency judgment against a seller for any deficiencies after a property is foreclosed. Because of this distinction, sellers who are already in default on a mortgage and do not have the resources to pay off a separate promissory note after a short sale might be better off letting the lender foreclose, he says. If you are working in a state in which mortgage loans are nonrecourse, be sure and alert your seller-clients to this distinction.

What tax liabilities will a seller have as a result of a short sale?

One often overlooked aspect of short sales is that a seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency (either in bankruptcy or with debts exceeding assets) will not have to pay taxes on the forgiven amount.

Tip: The U.S. House of Representatives has introduced the Mortgage Cancellation Tax Relief Act (H.R. 1876), which would eliminate taxes on any debt forgiven on a principal residence through either short sale or foreclosure. The NATIONAL ASSOCIATION OF REALTORS has been working to support this bill.

What compensation will I receive as the real estate salesperson or broker in a short sale?

Banks are going to want you to discount your commission. It’s the first place they’ll look to save on closing costs. Rates offered can vary, but are typically 1 percent to 2 percent below averages in the market. More lenders now seem willing to pay a full commission on sales.

Where can I find clients if I’m interested in specializing in short sales?

Word of mouth remains the biggest source of new business, experts say, but you can also promote your services to individuals attending credit counseling classes (now required prior to filing bankruptcy), to people who receive state notices of loan defaults, and to home owners named on lists of ARMs that will be resetting in the next few months. To find buyer clients, creativity is a plus.

Tip: FSBOs are another good source since many upside-down sellers think they can’t afford to pay a commission and so try to sell on their own. Many don’t realize that in a short sale, the lender pays the broker’s commissions.

Are short sales for me?

With many more adjustable rate mortgages ready to reset to higher loan amounts in the next couple of years, short sales represent a growing sector of the market. However, because sales are time consuming, they aren’t for everyone. I always say that if you’re going to succeed in short sales, you need the 3 Ps — patience, persistence, and problem solving.

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Rick Saroukhanian of http://www.RealEstateInvestorsLife.com is an active nationwide real estate investor and certified appraiser. He has been investing in foreclosure and preforeclosure real estate for the past 18 years.

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Foreclosure Gaffs May Further Roil the Market

By Prudential Northeast Properties | Sep 29, 2010 Uncovering deficiencies in the foreclosure process could potentially have serious implications for the …   Read More…

New Foreclosures Down, Mortgage Performance Steady

New foreclosures initiated in the second quarter of the year were at their lowest rate since the final months of 2008, according to a new government report …   Read More…

New foreclosure prevention dollars available to aid jobless and financially …

The program is designed to help homeowners who are struggling financially, are at risk of default, or are already in the midst of foreclosure. …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

With incredibly low sale prices, interest rates hitting 5%, the lowest in decades, and Congress expected to set aside $50-$100 billion to help homeowners, we’re optimistic about the Sedona market in 2009. Here are some facts to consider:

Homes Sold: In 2008 a total of 302 homes sold in Sedona compared with 350 in 2007 for a decline of 14%. Though the market did slip some, it slipped at a rate lower than what we saw at the beginning of the downturn and at rate lower than in other markets in Arizona.

Inventory moved slightly lower suggesting some stability. There were 595 active listings in December 2008 compared with 606 in December 2007. The 595 active listings represent a 22-month supply. At the height of the Sedona market, the monthly supply was 3.5 months, a big difference. This over-supply has brought prices down, luring a significant number of home buyers back into the market.

The average price of homes sold in 2008 dropped to $522,000 from $593,000 in 2007. A more accurate measure is the price per square foot which in 2008 was $245 compared with $278 in 2007. At its peak in 2006 it was $311. The average price square foot for the 4th quarter of 2008 was $228.

Foreclosures and Short Sales. As Sedona is home to many upscale retirees and second homebuyers, it is less prone to speculation and sub-prime loans or unscrupulous lenders. Nevertheless, it has its share. As of January 2009, 76 out of 595 active listings were foreclosures or short sales (13%).

As Foreclosures Rise, More Sellers and Lenders Consider Short-Selling

What is a short sale? A short sale is a sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. A short sale may or may not involve a property in foreclosure. Some lenders do not require seller to be behind in mortgage payments in order to qualify, however, most do.

Buyers who can find a short-sale can get a good deal. The advantages of buying a property through a short sale include buying at a discounted price and buying a house where the sellers are still motivated to sell the home and may take care of it until it is sold.

Should you go the Short Sale route and find a home, and the seller agrees to your offer, your agent will need to send it to the lender for approval along with the numerous required documentation. You will not have a deal until the lender OKs it, The whole process can take as long as 90 days or more.

If you bid too low, the Lender will sit on your application for weeks or months in hopes of getting a better offer, so working with a realtor who knows the Sedona market is crucial. The lender pays the realtor’s commission and in some cases the buyer may be asked to pay part of it. Typically, the lender will not bear the cost of items that are usually paid for by sellers, and the lender will agree only to sell the property, if the buyer agrees to buy it in “as is” condition.

Even though the home is sold “as is”, the buyer is entitled to do home inspections and can cancel if the home doesn’t pass inspection.

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http://www.limotterealtor.com/

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Technorati Tags: Foreclosures, Portland Foreclosures

The American dream is to own your own home and be your own boss. You’ve probably dreamed many dreams like this. Many of us have high hopes, but never seem to attain them. A foreclosure home can not only be the home you always wanted, but it can also be an investment, and a way to make a living. A foreclosure home is much easier to get into as usually the finance company needs to sell it quickly. With real estate value increasing all the time, many people are using this opportunity to invest in their future and turn a profit. This article will talk about how to make a foreclosure home an investment gain.

A home that someone has purchased and then for some unfortunate reason at a later date, has not been able to make the payments on, will become a foreclosure home.

The bank takes it back, because they couldn’t pay for it. These aren’t necessarily newer financed homes. The person who purchased the home could have owned it for a number of years and had quite an investment in it. This type of foreclosure home can be quite a deal to purchase. Banks are in the loaning business, not the real estate business so they need to get rid of a foreclosure home. Many times banks will sell a foreclosure home for less than what it is worth. If you are looking for an investment, you could buy one of these homes and already gain a profit just in its value.

Real estate has sky rocketed in the past years, so if you could buy a foreclosure home for less than it is worth, you not only could have equity in it, but you could rent it out and let the renters make your payments. How easy is that. Once you have purchased a foreclosure home that has equity in it already, you can buy another foreclosure home, using the equity as collateral for your next down payment without any money out of your pocket.

A foreclosure home is pretty easy to get financed as the lender wants to get rid of it. It is costing them money as it sits. In looking for a foreclosure home that is selling for less than its value, most of the time, you can get financed without any money down. You can use the equity gain as the down payment. If the foreclosure home requires some repairs in order to pass financing, you can do the work and apply that as the down payment. In fixing it up, you’ve gained value in the home.

There are many listings to search for a foreclosure home and there are many foreclosure homes on the market. You’ll be amazed. No matter whether you keep the foreclosure home to live in, rent out, or resell, you just made an easy profit. Just think of the possibilities if you repeated the process over and over. A foreclosure home could be the dream you have been waiting for.

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If you need more Forclosure Help then quickly head over to http://foreclosure-help-now.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more foreclosure home information .

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NJ To Receive $112 Million In Federal Funds For Anti-Foreclosure Initiatives

TRENTON– The Christie Administration announced last week that New Jersey will receive $112 million in federal funding for anti-foreclosure assistance to …   Read More…

Foreclosure mistake leaves woman locked out

The headlines are rampant with stories of foreclosures, but there's one in the Valley that shouldn't have happened. Cory Miller tells 3TV she came home to …   Read More…

Foreclosures so far this year exceed '09 rate

Foreclosures continued to mount in August as new housing data released yesterday provided more evidence that the state's housing crisis …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

A recent New York Times article exposed the grave pitfalls consumers are facing, lured by debt consolidation companies that advertise aggressively. The pitch is simple: “Don’t file bankruptcy. Instead, pay money to the debt negotiation company, which negotiates lower payments or lump sum settlements.” The problem is that it is never so easy. The debt settlement industry is raking in money. The New York Times observes that the industry is “So lucrative, that an industry trade association, the United States Organizations for Bankruptcy Alternatives, recently convened [in Palm Springs, Florida], in the oceanfront confines of the Four Seasons Resort, to forge deals and plot strategy.” However, after the debt consolidation company takes its cut of the consumer’s money, the consumer is rarely in a better position, and often has to file bankruptcy anyway.

These companies go by many names, including debt consolidation, debt negotiation, and debt elimination companies. The most common tactic these debt consolidation companies is to instruct the consumer to allow their bills to go into default. Instead of paying the creditors, the consumer is told to pay the money to the the debt settlement company. The debt negotiation company takes a percentage of the money paid in – often as high as 15% to 20%. Then the debt settlement company contacts the creditors and attempts to negotiate a lower payment, or a settlement that is for a small percentage of the full debt.

In the past, it may have been possible to construct such a house of cards. But creditors have become savvy, and more aggressive. If the creditor waits until the debt negotiator has settled with the other creditors, then there may be a larger pot of available funds, and the debt settlement company may have to agree to a higher amount to get the last settling creditor into the house of cards. Or, the creditor may not settle at all, causing the house of cards to collapse entirely. By this time, the consumer is in default on all of their bills, has paid exorbitant fees to the debt elimination company, and is still deep in debt. They are looking at filing for bankruptcy after all.

By contrast, bankruptcy can be a line drawn in the sand. The consumer pays a fee for a qualified bankruptcy attorney to file their bankruptcy petition and schedules. By law, all of the creditors must immediately stop all collection efforts, including calls, letters, and lawsuits. Foreclosures are halted. Garnishments stop. The bankruptcy court judge decides which of the debts are dischargeable, and what money and property the debtor is entitled to keep. After the judge issues a discharge order, the discharged debts are gone forever.

Although the bankruptcy is a significant impact on a consumer’s credit report, all of the impact is felt at one time. The bankruptcy judgment will be off of the consumer’s credit report within ten years. After about two years of paying bills on time, a consumer will typically qualify for credit on regular terms. By contrast, using the debt consolidators and debt settlement companies may result in lawsuits and collections for years down the road.

As the New York Times reports, there really is no question about the value of the services of these companies. It is a bad deal for consumers. Bankruptcy is a serious decision with long lasting consequences. But it marks a definite line in the sand from which a consumer can discharge most or all of their debts, start over from scratch, and get a fresh start.

Justin M. Baxter, Attorney at Law

Baxter & Baxter, LLP
1101 Broadway Street, Suite 213, Vancouver, Washington 98660
(360) 574-5239
Vancouver WA Bankruptcy

Baxter & Baxter, LLP,
8835 SW Canyon Lane, Suite 130, Portland, Oregon 97225
(503) 297-9031
Portland Oregon Bankruptcy

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Technorati Tags: Foreclosures, Portland Foreclosures

Current Housing Market Status:

In the last 3 or 4 years, a large number of homeowners have been trying to complete a “loan workout” with their current mortgage lender to lower the interest rate and improve the terms of their loan. Many lenders have chosen not to accept any new terms, rather, let the property go into foreclosure.

Because lenders have an overwhelming number of properties in foreclosure, they are starting to accept loan modifications via their loss mitigation departments. The time is ripe for consumers (who own homes) to take action and request that their loans be modified towards better terms and a lower interest rate they can afford, if they have high interest rate sub-prime loans or are at risk for foreclosure.

Since, the rate of foreclosures is increasing, everyday, the federal government, congress and the president have approved and signed a new bill which will allow homeowners to take advantage of a new “FHA – Hope for Homeowners Program” designed to save more than 400,000 homeowners from foreclosure. This program will go “live” on October 1st, 2008.

The new FHA loan program will assist homeowners who are currently in foreclosure, close to foreclosure or those who have high interest rate mortgage loans like those called sub-prime loans. The program is different than a loan modification in several ways.

The following is a bulleted layout of the deference’s between completing a loan modification and getting approved to do a FHA -Hope for Homeowners program.

Loan Modification:

1. You can recast your current loan into different terms, with the hope to benefit from a lower interest rate, which is fixed rather than an adjustable interest rate.

2. The costs of the loan modification are rolled on the “back-end” of the loan, which will increase the amount of money you owe.

3. The loss mitigation department may choose to keep the amount (that you own on your loan) higher than your current home value. Or they may choose to lower that amount, some, but not as much as it could be to make your new payment comfortable in the long term. This could mean that you may be in financial jeopardy, in the future.

4. It’s a fact, what cause your current lender to be interested in keeping your loan on their books are the servicing rights. They make money servicing your loan over the term of the amortization schedule. The problem is that many lenders have filed for bankruptcy or just got out of the business (due to poor credits markets) and the servicing rights have been sold to other investors. This often causes a strain, since; the servicer does not actually have your loan documents at their facility, so they rely on others to get your original loan information to them for review. This process can cause the loan modification workout to be slow, in many cases. Timing is very important, since, homeowners are not knowledgeable in the process and they often wait to late to get the loan modification process started. It is important to communicate with your current lender and get the loan modification process stated, months before your home goes to foreclosure sale.

5. If your request for a loan modification is rejected, you may want to try it again in a few months, since; some lenders don’t document the loan modification attempt you made. They are often motivated by changes in the housing market and their intent changes as more and more loans go into default. It does not hurt to try again. It is smart to work with a loan modification specialist, a seasoned loan officer or an attorney who specializes in real estate, mortgage lending and loan modifications. They understand how to speak to loss mitigation department, personnel and can get a general idea of the mood and trends of your lenders loss mitigation department.

6. Many loan modification specialist work together with attorney firms to get the loss mitigation departments to act in a timely manner. Those same attorney firms work with the loan modification specialist to make sure the original loan documents are not fraud ridden. This is a good approach, yet it can cost the homeowner additional money, since both the loan modification specialist and the attorney need to be paid for their services.

7. Homeowners are required to pay the loan modification specialists and attorneys for the services, provided. Many homeowners think that the cost will be included in the new loan amount, but this is not the case. Logically, lenders are already loosing money when they agree to modify the loan terms and conditions for the homeowner, so, you can bet that they will not agree to “package” the costs of doing the loan modification into the new loan. That cost is paid by the homeowner, directly to the loan modification specialist and/or the attorney. The cost can range between $995.00 and $, 5000.00; as an average. Many loan modification specialist, senior loan officers and attorney firms can work out a payment plan, yet, many require at least 1/2 upfront before they start the loan workout. Understand, there is no guarantee that your loan modification or loan workout will be accepted. You will still have to pay your representation your agreed amount. A large percentage of loan modifications and workouts are accepted. So, it’s a good bet, since, most people do not want to loose their homes to foreclosure.

8. Loss mitigation representatives, (most often) do not require you to pay for a new appraisal. Instead, they have your representative provide census track data, a BPO (broker price opinion) or a print out of valuation from title company market sales data. 9. If you are in foreclosure and costs have been incurred from posting your foreclosure sales data, attorney fees, title costs or other costs; you could be liable for those costs, if our current lender requires it (as a requirement to the loan modification).

10. Loss mitigation departments may choose to approve you for a new loan which is (another adjustable or tiered -fixed loan). Be careful. Do your homework or “talk-it-over” with your representation.

FHA- Hope for Homeowners Program:

1. The federal housing administration (FHA) has required that all homeowners who become approved for this program accept a 30 year fixed rate program. No other loan types will be accepted. You can only qualify for this program.

2. FHA will loan up to 90% of the current value of your property. This means that if you purchased your property for a higher purchase price and currently have a loan amount higher than what the value of the property is presently, you can become approved to do a loan amount at 90% of what your current house is worth.

3. If you have more than a 1st trust deed lien (subordinate liens) on your property and your property value has severely, diminished; your current lenders may take the loss when you get approved under the “Hope for Homeowners Program”. Usually, the subordinate lenders loose, unless they purchase the primary lien. Most do not purchase the 1st trust deed lien. So, the subordinate lender takes a loose on their investment.

4. FHA’s goal is to keep as many homeowners in their homes. They understand that it would be better to do a loan for a homeowner rather than have that property go into foreclosure, be place into the retail real estate marketplace, causing a further degrading of the housing market.

5. The FHA underwriting guidelines are currently more liberal than any other loan guidelines in the current market. FHA is more forgiving in their approach to mortgage lending.

6. The FHA underwriting guidelines have not been disclosed. As October, 1st, 2008 approaches, lenders, processors and underwriters will have a more clear idea as to what is required to get a loan approval.

7. Homeowners will (probably) be required to pay for a new FHA appraisal, as a condition for loan approval and closing. Underwriting guidelines will determine if this is true. The average costs for an FHA appraisal is ranges, $300 – $450.

8. Income to debt ratios will be determined and posted in the underwriting guidelines. Consult your loan modification specialist or loan officer.

9. The loan servicing companies that service, sub-prime loans will (probably) be more inclined to accept a loan modification, since they will want to transfer the lien to FHA, rather than keep it on their books. They have taken huge losses and have an overwhelming desire to get rid if their current problems. Have patience with these lenders, since, they do not keep your actual loan documents at their facilities. They will have to request them. Many loss mitigation personnel are stressed and will want to make a determination as to your file, fast. This is an advantage to you! Work closely with your loan officer to get the items needed for loan submission.

10. If you live in a heavily populated area like Los Angeles, Orange County, San Francisco, Seattle, Portland, Denver, Miami, etc., you will more than likely have a higher percentage of success with a loss mitigation department. This is because there are more homes in foreclosure in concentrated housing areas.

11. Even though we have not seen the FHA underwriter guidelines, (since they have not been delivered to the underwriters) they will be available on or before October, 1st, 2008. We can expect that the guidelines will probably focus on a person ability to make the new housing payment and not the persons credit score. We call this “ability to pay”!

12. If you’re, FHA -”Hope for Homeowners Program” loan application is accepted by FHA; your current lender will still have to accept the condition which FHA places on the loan. This means that your current lender may to take a loss in equity by accepting the FHA loan buyout, offered.

13. The good news is that your current lender (already) understands that they will take a loss in equity, if the property goes into foreclosure. If they don’t accept the FHA buyout, they may have to place your foreclosed property into the retail sales marketplace. This means that they may have to pay a Realtor up to 6% commission, wait for the property to be purchased, incur additional holding cost, pay a gardener, electricity and water bills. All the while, they realize that the property will probably be reduced in value even more as additional foreclosure properties come on to the marketplace. This is not a rosy situation for them, so, most will realize that it would be better to sell the loan to FHA and take less of a financial loss.

14. The main benefit to your current lender in accepting the terms of a FHA buyout is that under the FHA guidelines, they can benefit from a portion of any equity gain in the property for up to 5 years, at the time FHA buys the loan. If the homeowner chooses to sell the home within the 5 year period after the close of the new FHA loan; the lender can participate in a percentage of any equity gain. This single condition will cause many lenders to accept the FHA loan buyout. Ask your loan officer for information regarding lender participation in an equity gains.

15. Many lenders are fully; “FHA approved lenders” and will require that your loan be recast within the FHA loan department of your current lender. Therefore, ask your loan officer if your current lender (note holder) is FHA licensed. This will save you time and headaches, since; many loan officers will try to do the loan on your behalf without determining if your current lender wants the new FHA loan on their own books. This may be a condition for an FHA loan approval, by your current lender. If our current lender is already an approved lender, they might as well sell the loan to FHA, direct, correct?

16. Third party cost like, attorney fees, loss mitigation fees, foreclosure posting fees, etc., will be absorbed by your current lender under the FHA – Hope for Homeowners Program. You will not incur these fees under the program. The lender will take this loss, too.

17. As part of the Foreclosure Prevention Act of 2008, 1st time homebuyers are encouraged to purchase homes between April, 2008 and July 2009. They can receive up to $7500 dollars in tax credits from the federal government. This program has been established to speed up the housing recovery by getting people to purchase homes. Additionally, it will cause home sellers to purchase homes, as well, since they are often “move up” buyers. This program is part of the overall attempt to correct the bad housing market.

18. Credit Score vs. Your Ability to Make the Payment: These two factors will be outlined in the underwriting guidelines. I would expect that the ability to pay will override the credit score issue, since, most people having problems making their housing payments, already, have degraded credit scores. Consult your loan officer for details.

Summary:

Loan Modification:

Consumers, now have several options to preserve home ownership. If one option does not work try the other. Remember, time is of the essence, so act promptly to give your self time to use one or both options.

1. Loan modification is a good option for many, if your have proper representation and get a favorable deal. 2. You will have to pay the costs for this type of loan modification. 3. You will not have to pay for an appraisal, in most cases.

Visit this site for more information: http://www.LoanModificationContacts.com

FHA – Hope for Homeowners Program:

1. This program may be a better deal for you, if your lender is no longer in business (sub-prime lenders and prime lenders). It can still be a great benefit to you if your lender is still in business and wants to remove some bad assets from their books (understanding) you might become one of those bad assets. Your loan officer can provide this information for you.

2. Since, FHA will go to 90% of the current value of your property; you can be the real winner. This simple fact means that you will have a better opportunity to qualify under a 30 year fixed loan and your housing payment will be more affordable, then what you are currently paying.

3. You will most likely, be required to pay for an appraisal. Ask your loan officer about this, since; the underwriting guidelines have not come out, yet.

4. You may or may not have to pay for the closing cost to procure the loan. It has not been determined, who actually pays for the closing costs. It will be in the underwriting guidelines, when they come out. Ask your loan officer.

5. Credit Score vs. Ability to Pay: Underwriting guidelines will determine these two factors. FHA underwriters will probably be more forgiving and weight their approval on your ability to make the monthly housing payment. We will have to wait for the underwriting guidelines. Ask your loan officer about these two factors.

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Author: Steve Linnin
A Real Estate and Mortgage Broker for over 23 years. An educator and Trainer to loan officers and real estate agents. An on-going trainer and educator of real estate agents and loan officers.

http://www.linnin.info

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Sharing Risk dot Org blog: Dubai update, Islamic finance …

Tamweel has also begun foreclosures on properties owned by people who have left the Emirate and they say in cases where people are still in the Emirate, they are trying to "find a resolution which is satisfactory to both". … Blake Goud: Portland, Oregon, United States: As the principal of Sharing Risk dot Org, I am an expert researcher on Islamic finance as well as a freelance journalist with a monthly column in Business Islamica magazine and the US correspondent for …

Foreclosure crisis creates emotional townhall | The Oregon Politico

PORTLAND- A room full of impassioned arguments and frustrated people was the scene at Tuesday night's town hall at the St. John's Community Center. Focusing on the foreclosure crisis, the town hall was hosted by State Representative …

portland or foreclosure listings

… hopfeed_link_font_hover_color="#3300FF"; hopfeed_background_color="#FFFFFF"; hopfeed_keywords="portland OR or OR foreclosure OR listings"; hopfeed_path="http://dur911.hopfeed.com"; hopfeed_link_target="_blank";

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

Foreclosures Hurting Spy Community

Since the country's housing market plunged off a cliff two years ago, "debt resulting from job losses and home foreclosures …   Read More…

The downside of buying foreclosures

You buy the property at the foreclosure auction which is held at the county courthouse. Homeowners who are not able to remain current on their mortgage will …   Read More…

Sen. Duff: Foreclosures, short sales no longer subject to real estate …

By Senator Duff's office Hartford – Beginning this Thursday, homeowners facing foreclosure or short sale of their property will no longer be subject to the …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

Technorati Tags: Foreclosures, Portland Foreclosures

Hey Readers! I’ve been comin across some crazy stuff the past few days from a few different blogs around the web which I just had to share with you. Check em out below…

Portland Bank Owned Homes: 101 Foreclosures listed today in the …

Usually the listings are low… I am shocked. 101 REOs today! CLICK HERE Seemed there were excess listings in Tigard & Beaverton…. the west side of Portland is definitely not immune. The gradual increase in foreclosures is a reminder [. …

Avoid Foreclosure Portland: This Can Save Your Credit | Chandler …

Here is a tip: Use GOOGLE to find buyers and avoid foreclosure! Ask 1a room full of Realtors this important question: What is the #1 factor why short sales.

Foreclosures Jump 25 Percent in August

The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday. In all, banks repossessed 95364 …

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

Jackson: The fight begins in Detroit

High unemployment rates, foreclosures and increased poverty for those who once identified themselves as middle class have the Rev. …   Read More…

UAW launches protest of Chase over foreclosures, RJ Reynolds ties

Detroit — UAW President Bob King on Friday urged JPMorgan Chase to "wake up" and "do the right thing" and halt foreclosures in Michigan and aid farm …   Read More…

Fed-Up Stockton Homeowners Seek Foreclosure Help from HUD

STOCKTON, Calif—Four of the 10 US cities with the highest rates of home foreclosures are in California's Central Valley, with the city of Stockton ranking …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

Technorati Tags: Foreclosures, Portland Foreclosures

Tenants are often some of the last people to find out the house they are renting is going into foreclosure. The landlord often withholds this information, fearing that, if the renters knew of the pending legal action against the property, they would stop paying rent, and the landlord would not have this money to rely on if he is attempting to save the home or just use the money to move on with his family’s life after the process has ended. In all honesty, the tenants are still bound to the terms of the lease as long as the landlord still owns the home, and a pending foreclosure would not alter that fact. If the homeowners are unable to find a solution, though, it may be in the tenants’ best interest to attempt purchasing the house, either before or after the process has gone through. This may allow them to make the jump from renter to owner, and avoid having to move out of a house that will soon be evicted by the county sheriff.

The first question that homeowners usually have is whom should they buy the property from. They can make an offer to the landlord now, but the owners may want the full market value of the property, in order to pay off the loan in full and use as much of the proceeds as possible to begin recovering from the foreclosure. Of course, they may be willing to give a good deal to the tenants, who are helping them out of the difficult situation, and this humanitarian motive to purchase the home before the sheriff sale should be considered by the renters. However, if the landlord demands full market value, and is unwilling to work with the tenants, assuming an “all or nothing” attitude, another approach may result in a better deal for the potential home buyers.

In this case, where the landlord is unwilling to sell the home for less than full price, thereby giving the tenants a good deal for helping stop the foreclosure process, it may be wiser to wait until after the county-conducted auction when the landlord is no longer the legal owner of the property. He will no longer be able to negotiate a sale on a property he no longer has any interest in. It may be better for the potential buyers to work with the bank after the sheriff sale to get a better price. There are good and bad points about this approach, though, both of which must be taken into account before moving forward with this option.

First, the bad. The tenants absolutely must contact the bank before the sheriff sale or very, very soon after in order to tell the lender they are interested in purchasing the home and that they are currently living there as tenants of the previous owner. During the entire foreclosure process, they should try and save up for a down payment and get qualified for a loan as soon as possible, so they can prove to the bank that they are serious about buying the house, working towards that goal, and not just trying to avoid getting evicted. The bank will have to inspect the house and have it appraised before they accept any offer, of course, so the tenants can expect the mortgage company to send out a Realtor or appraiser to get an accurate value.

This is assuming the bank buys the property back at the foreclosure auction, of course. This happens almost all of the time, but there is a chance a third party interested in the home will purchase the house and want to move in or hold it as an investment. They may be understanding of the renter’s situation and willing to sell the property they just purchased for market value, but then the renter’s potential great deal will turn into buying a house for full price. This is an outside chance, but worth mentioning, as it can put the renters back in the same bargaining position they were in with the landlord demanding full price to sell the property to stop the process.

Now for the good aspects of purchasing a home after the sheriff sale The first is the fact that the mortgage company will be willing to sell quick and for a small gain on what they purchase it for at the auction. The tenants need to find out what the selling price was at the sale and what the true market value of the property is currently estimated to be. This will help them determine how much to offer the bank, although a wise bet would be to offer an amount somewhere in the middle of the auction price and the market value and back up the offer with a contract and qualification letter. If the offer is not made with a valid contract and some proof of being qualified for a loan, the bank will not take the entire offer seriously, as there is no documentation to persuade them to hold off on the eviction process.

As long as the bank knows that the potential buyers are working on getting the home and can document the mortgage process as it goes along, they will be willing to hold off on the eviction process for a reasonable length of time. They will not want to pay to evict someone through the court system if the current tenants are trying to buy the house. However, they will not wait forever for the loan to go through, and a closing date should be sought after as quickly as possible. Every minor delay or setback can cause the bank to change its mind, decide not to extend the contract, and pursue the process of forcefully removing the occupants and list the property on the open market. Time is of the essence in this situation.

Finding out that one is renting a home in the middle of the foreclosure process is often quite worrying to tenants. Although they are not legally released from the obligation to pay rent to the landlord for as long as he is the owner of the property, foreclosing banks will be quite sympathetic to renters in this situation. As long as the tenants become aware of the situation with some time to spare, they may be able to get the funds together to quality to purchase the home and avoid being evicted. They may also have the opportunity to help out the landlord by assisting in the effort to avoid foreclosure and purchase the property before the sheriff sale. If this is not possible, even greater deals may await after the county auction has taken place. Although being a tenant in this type of situation can seem like one of the most distressing situation to find oneself in, the tenants themselves can turn it into a win-win situation.

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The ForeclosureFish.com website provides homeowners with information and resources designed to help them avoid foreclosure on their own. Hundreds of pages of articles, blog entries, and reference materials educate foreclosure victims on ways they can save their homes, including forbearance agreements, short sales, and bankruptcy, among many others. Visit the website today to begin researching how the foreclosure process works and how it can be prevented: http://www.foreclosurefish.com/

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Remedy For Foreclosures Has Economists Divided

Foreclosures continue to rack up — they hit a record high last month. And home construction remains near a 50-year low. Some analysts say the government …   Read More…

The end of equity culture

… stagnant incomes and soaring foreclosures; and the 'flash crash' bolstering the belief that the stock market has turned into a casino. …   Read More…

Foreclosure and land redevelopment are hot topics at the Governor's Conference …

The event comes as New Jersey faces 30-year highs in foreclosure filings, with people unable to afford their home payments, stretched to the brink. …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

Technorati Tags: Foreclosures, Portland Foreclosures

Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…

County tops list of foreclosures due to taxes

But that's par for the course considering the county has the greatest rate of property foreclosures in the region, which also includes Clinton, Branch, …   Read More…

How Underwater Homeowners Can Use Bank Fraud Crisis to Their Advantage

Oppenheim Law spotlights how the recent bank errors are leaving foreclosures in question. The issue has broad consequences for the millions of buyers of …   Read More…

Some Landlords More Lenient On Credit Histories

Some landlords have eased their credit standards to allow people with credit blemishes from foreclosures to rent apartments — a practice …   Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

Once the realm of only seasoned real estate investors, the interest in purchasing foreclosed properties has fanned out to a growing number of ordinary home buyers. As the sub-prime lending fiasco continues to push homes into foreclosure and news stories appear everywhere about the record number of them hitting the market, many prospective home buyers are eyeing these properties as a way to get a lot of house for little money.

There seems to be a big misunderstanding by the public, however, about the value of homes that have been foreclosed. People tend to think that a foreclosed home presents a bargain, especially those who are looking for real estate investment property. They think that they can buy a foreclosure cheap, do a little fixing up, and sell it for a hefty profit or rent it out or even keep it for their own home, expecting to reap instant equity. Well, it doesn’t work out that way very often.

Out here in the trenches of real estate, I have been seeing an increase in foreclosed homes dumped on the market and the number of people looking for such homes who are expecting to purchase one for pennies on the dollar. I have home buyer clients who specifically want to evaluate only foreclosures or HUD homes, those offered by the government, usually by a bidding process, because they want a house that they can buy cheaply and work on it while living in it. As it turns out, most end up buying a conventional home once I show them a couple foreclosures and they begin to understand what they are up against.

Banks are not stupid. They know the value of real property and are not about to give it away. It’s an asset to them, not a liability. When they have to sell a home that they have repossessed, they offer it at market value, not necessarily for what is owed on the house. The first thing they do is send a certified real estate appraiser to the property to determine a fair market price based on comparable homes sold in the area and any defects that may be present in the home. Whatever figure the appraiser comes up with is what the house will be priced at. And it isn’t cheap.

It is true that many foreclosures are priced lower than seemingly comparable homes in a given area, but they are almost always in very poor condition, sometimes requiring extensive repairs. And this is where the danger comes in. Foreclosed properties are sold “as is”, meaning that when you buy the house, you have to take it in it’s present condition, the way you see it. You can have a home inspection, but you can’t ask the bank to make any repairs to defects found or credit any money back for such repairs. Once you have a contract, you can’t get out of it because you discovered a major defect and the bank refuses to correct it.

If you do your homework, however, and are smart about the whole thing, there are bargains to be found from time to time. Since you never know what a property’s true condition is by a cursory inspection, it makes sense to hire a home inspector before you submit a purchase offer. That way you will know what repairs need to be made and you can then find out the cost to make repairs and easily determine if the asking price of the house is worth the repair expense. A lot depends upon if you are going to live in the house yourself or if you are going to flip it or rent it. A foreclosure is much more risky if it is purchased for investment purposes than to live in.

The more thoroughly the house is inspected and the neighborhood and market researched, the easier it is to make a decision on whether a particular foreclosed home is right for you. Remember, when a house has been vacant for a long time without regular maintenance, which is often the case, even a home inspector can miss damage that is not apparent, but may be lurking behind walls and floors. Leaking water, vermin activity, and rot can occur in areas not visible to even the most thorough inspection without tearing out walls. These latent defects can manifest themselves at anytime and cause extensive damage.

Consider also that many foreclosed homes were neglected by the previous owners, adding to the possibility of unforeseen problems. I see this out here in the field all the time. If you are determined to buy a foreclosed or HUD home, do your homework. Work with a competent real estate agent and know the real estate market, the condition of the property, and the cost to make repairs. No matter what your objectives for buying a foreclosure are, get the facts. That bargain property could turn into your worst nightmare. The old adage of “Buyer Beware” certainly holds true when it comes to buying foreclosed property.

I could tell you horror stories. Stay tuned. I may relate a few in future articles here. You can get some helpful information on the subject for free at one of my favorite real estate websites, [http://www.virginiarealestatenetwork.com/]

There are going to be more foreclosed homes coming on the market over ensuing months and there will be some excellent pickings if you know how to spot and properly evaluate them. Move fast when you do find one. You’re not the only one eyeing that property. Ciao for now,

Bernie Rosellen, Your Agent In The Field

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Bernie Rosellen is a Virginia licensed Realtor. He works with both home buyers and home sellers and specializes in the Richmond, VA and surrounding areas. Besides actively practicing real estate, Bernie writes real estate articles as “Your Agent In The Field”™ from the perspective of being out in the neighborhoods and in the trenches of real estate. You can find out more about him and the real estate market in central Virginia at his website http://www.TheRosellenTeam.com

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Technorati Tags: Foreclosures, Portland Foreclosures