Calling the trustee is an important step in pursuing any pre-foreclosure or auction property, but it's not always the easiest or most enjoyable step because many trustees are not geared toward providing information to the general public.
A phone call to the trustee is important because it will help you confirm a property's status before you spend time and effort contacting the owner in pre-foreclosure, or drafting a cashier's check for the auction. But calling trustees can sometimes be frustrating and intimidating for a variety of reasons, including automated sales lines that don't recognize the trustee sale number you enter, or trustee representatives who don't have a lot of time or desire to answer your questions. But it's usually possible to get the information you need from the trustee if you follow these tips:
Be prepared
Make sure you have the trustee sale number (also called the trustee reference number), owner name and property address before you call. The trustee may request one or all of these.
Note: if any of the above information is missing, use the history of notices to try to find it. And still call the trustee even if you don't have all the information.
Be to the point
Don't give a longwinded explanation to the person who answers the phone. Simply say something like, "I'd like to check the status of a property in foreclosure." Trustees tend to respond better when you communicate that you know exactly what you're looking for and don't want to take up a lot of their valuable time.
Be polite
Stay polite even if a trustee doesn't seem eager to respond to your query (keep in mind they are limited in the amount of information they can legally divulge). If they ask for your interest in the property, just respond that you're a third party interested in possibly purchasing the property.
Be persistent
You may be transferred to several different people or even given several different numbers to call before you find the information you need.
Note: the trustee phone number is from public records, but it might not always be the direct number to the department that handles foreclosures.
Are you interested in purchasing a foreclosure? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Showing posts with label foreclosures. Show all posts
Showing posts with label foreclosures. Show all posts
Wednesday, June 29, 2011
Friday, March 18, 2011
5 Mortgage and Foreclosure Myths
Provided By Trulia
In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not. Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.
1. Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.
At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.
2. Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.
Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.
3. Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners. It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!
4. Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.
If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.
5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.
The US Treasury Department’s Hardest Hit Fund allocated $7.6 billion to the states listed below – all of which are now using some portion of these funds to offer up to $3,000 per month for up to 36 months in mortgage payment assistance to help unemployed homeowners avoid foreclosure. Contact the state agency listed below if you need this sort of help:
•Alabama: http://www.hardesthitalabama.com/
•Arizona: https://www.savemyhomeaz.gov/
•California: https://www.keepyourhomecalifornia.org/
•Florida: https://www.flhardesthithelp.org/
•Georgia: http://www.dca.state.ga.us/housing/homeownership/programs/hardesthitfund.asp
•Illinois: http://www.ihda.org/
•Indiana: http://www.877gethope.org/
•Kentucky: http://www.kyhousing.org/
•Michigan:http://www.michigan.gov/mshda/buyers/save_the_dream/helping+hardest+hit+homeowners++contact+your+mortgage+servicer+for+assistance
•Mississippi: http://www.mshomecorp.com/firstpage.htm
•Nevada: http://www.nahac.org/
•New Jersey: http://www.state.nj.us/dca/hmfa/home/foreclosure/homekeepers.html
•North Carolina: http://www.ncforeclosureprevention.gov/
•Ohio: http://www.savethedream.ohio.gov/
•Oregon: http://www.oregonhomeownerhelp.org/
•Rhode Island: http://www.hhfri.org/
•South Carolina: http://www.scmortgagehelp.com/
•Tennessee: http://www.thda.org/
•Washington D.C.: http://www.dchfa.org/
Do you have more mortgage and foreclosure questions? Give the experts a call at 972-772-7000 or email us at rockwall@kw.com.
In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not. Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.
1. Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.
At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.
2. Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.
Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.
3. Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners. It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!
4. Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.
If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.
5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.
The US Treasury Department’s Hardest Hit Fund allocated $7.6 billion to the states listed below – all of which are now using some portion of these funds to offer up to $3,000 per month for up to 36 months in mortgage payment assistance to help unemployed homeowners avoid foreclosure. Contact the state agency listed below if you need this sort of help:
•Alabama: http://www.hardesthitalabama.com/
•Arizona: https://www.savemyhomeaz.gov/
•California: https://www.keepyourhomecalifornia.org/
•Florida: https://www.flhardesthithelp.org/
•Georgia: http://www.dca.state.ga.us/housing/homeownership/programs/hardesthitfund.asp
•Illinois: http://www.ihda.org/
•Indiana: http://www.877gethope.org/
•Kentucky: http://www.kyhousing.org/
•Michigan:http://www.michigan.gov/mshda/buyers/save_the_dream/helping+hardest+hit+homeowners++contact+your+mortgage+servicer+for+assistance
•Mississippi: http://www.mshomecorp.com/firstpage.htm
•Nevada: http://www.nahac.org/
•New Jersey: http://www.state.nj.us/dca/hmfa/home/foreclosure/homekeepers.html
•North Carolina: http://www.ncforeclosureprevention.gov/
•Ohio: http://www.savethedream.ohio.gov/
•Oregon: http://www.oregonhomeownerhelp.org/
•Rhode Island: http://www.hhfri.org/
•South Carolina: http://www.scmortgagehelp.com/
•Tennessee: http://www.thda.org/
•Washington D.C.: http://www.dchfa.org/
Do you have more mortgage and foreclosure questions? Give the experts a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, February 2, 2011
8 Tips for REO Foreclosure Offers
Provided By About.com
Lots of savvy home buyers want to hit the jackpot and buy that REO foreclosure, many of which are often under-priced. When banks price REO foreclosures under the comparable sales, multiple offers are often the response. This means you could be up against stiff competition for that bank-owned home.
It's not unusual for some REO foreclosures in Sacramento to receive 15 or 20 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called "Highest and Final" offer. Sometimes the bank simply accepts the best offer at inception.
If you're wondering how you can make your REO offer shine above all the rest and be the winning offer, here are a few tips to help you select the right price and terms:
1) Get the Property History of that REO Foreclosure
Ask your buyer's agent to find out the bank's purchase price on the Trustee's Deed or Sheriff's Deed. Generally, it is noted on the document itself, which you can get from the tax rolls or a title company. Compare that price to the price the bank is asking.
Look at the amount of loans that were once secured to the property. Somewhere between the original mortgage balance(s) and the foreclosure sale price is the amount the bank will accept, if the home is under-priced.
2) Determine Comparable Sales for the REO Foreclosure
In many cases, the list price has little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price.
•Look at the last three months of comparable sales, a mini CMA, for that neighborhood to determine how much this REO foreclosure is worth. Try to use only those homes that most closely match the REO regarding square footage, number of bedrooms, baths, amenities and condition.
•Look at the pending sales. Ask your agent to call the listing agents of those pending sales to try to find out the accepted offer price. Some will share that information and some will not.
•Look at the active listings. Those are most likely the listings other buyers will use to formulate a price because they are the only homes those buyers actually tour.
3) Analyze Listing Agent's REO Sold
Most REO agents work for one or two banks. Some listing agents are exclusive listing agents for REOs, and they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings.
•Ask your buyer's agent to look up the listing agent in MLS.
•Run a search using that listing agent's name to find the last three to six months of that agent's listings.
•Pull the history of those listings to determine the list-price to sales-price ratio. If most of those listings are selling for, say, 5% over list price, then you may need to offer 6% over list price, and vice versa.
4) Ask About Number of Offers Received for that REO Foreclosure
If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.
If there are 20 offers, bear in mind that some of those offers might be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.
5) Submit Preapproval Letter
It goes without saying that you do not want a prequal letter. You want a preapproval letter. Get preapproved from your choice of lender in advance.
Moreover, get preapproved by the lender who owns the property. Do not expect to use this lender for your loan, but submit the prepproval letter from this lender, along with the letter from your own lender. Banks don't trust other lender preapprovals but trust their own departments.
6) Don't Ask the REO Bank to Pay for Repairs / Inspections
Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are problems found during a home inspection, renegotiate after your offer has been accepted.
7) Shorten the Inspection Period
If other buyers ask for 17 days, for example, to conduct inspections, and you ask for 10, you will be deemed the more serious buyer.
8) Offer to Split Fees wit the REO bank
Some banks will not pay transfer fees, for example. If the buyer offers to split those fees, the bank will feel more amenable to accepting the offer. Same thing for escrow fees.
Many banks negotiate discount fees for title insurance. If the bank will pay for the owner's policy, the ALTA policy might cost a bit more. But it's still a good idea to let the bank choose title if you want your offer accepted.
Consider the Appraisal Consequences
If you offer over list price, bear in mind that the appraisal will need to substantiate that price. If you find yourself dealing with a low appraisal, you have options, so don't despair. Remember, the bank will most likely run into this problem with the next buyer who obtains financing.
Are you interested in purchasing an REO? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Lots of savvy home buyers want to hit the jackpot and buy that REO foreclosure, many of which are often under-priced. When banks price REO foreclosures under the comparable sales, multiple offers are often the response. This means you could be up against stiff competition for that bank-owned home.
It's not unusual for some REO foreclosures in Sacramento to receive 15 or 20 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called "Highest and Final" offer. Sometimes the bank simply accepts the best offer at inception.
If you're wondering how you can make your REO offer shine above all the rest and be the winning offer, here are a few tips to help you select the right price and terms:
1) Get the Property History of that REO Foreclosure
Ask your buyer's agent to find out the bank's purchase price on the Trustee's Deed or Sheriff's Deed. Generally, it is noted on the document itself, which you can get from the tax rolls or a title company. Compare that price to the price the bank is asking.
Look at the amount of loans that were once secured to the property. Somewhere between the original mortgage balance(s) and the foreclosure sale price is the amount the bank will accept, if the home is under-priced.
2) Determine Comparable Sales for the REO Foreclosure
In many cases, the list price has little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price.
•Look at the last three months of comparable sales, a mini CMA, for that neighborhood to determine how much this REO foreclosure is worth. Try to use only those homes that most closely match the REO regarding square footage, number of bedrooms, baths, amenities and condition.
•Look at the pending sales. Ask your agent to call the listing agents of those pending sales to try to find out the accepted offer price. Some will share that information and some will not.
•Look at the active listings. Those are most likely the listings other buyers will use to formulate a price because they are the only homes those buyers actually tour.
3) Analyze Listing Agent's REO Sold
Most REO agents work for one or two banks. Some listing agents are exclusive listing agents for REOs, and they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings.
•Ask your buyer's agent to look up the listing agent in MLS.
•Run a search using that listing agent's name to find the last three to six months of that agent's listings.
•Pull the history of those listings to determine the list-price to sales-price ratio. If most of those listings are selling for, say, 5% over list price, then you may need to offer 6% over list price, and vice versa.
4) Ask About Number of Offers Received for that REO Foreclosure
If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.
If there are 20 offers, bear in mind that some of those offers might be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.
5) Submit Preapproval Letter
It goes without saying that you do not want a prequal letter. You want a preapproval letter. Get preapproved from your choice of lender in advance.
Moreover, get preapproved by the lender who owns the property. Do not expect to use this lender for your loan, but submit the prepproval letter from this lender, along with the letter from your own lender. Banks don't trust other lender preapprovals but trust their own departments.
6) Don't Ask the REO Bank to Pay for Repairs / Inspections
Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are problems found during a home inspection, renegotiate after your offer has been accepted.
7) Shorten the Inspection Period
If other buyers ask for 17 days, for example, to conduct inspections, and you ask for 10, you will be deemed the more serious buyer.
8) Offer to Split Fees wit the REO bank
Some banks will not pay transfer fees, for example. If the buyer offers to split those fees, the bank will feel more amenable to accepting the offer. Same thing for escrow fees.
Many banks negotiate discount fees for title insurance. If the bank will pay for the owner's policy, the ALTA policy might cost a bit more. But it's still a good idea to let the bank choose title if you want your offer accepted.
Consider the Appraisal Consequences
If you offer over list price, bear in mind that the appraisal will need to substantiate that price. If you find yourself dealing with a low appraisal, you have options, so don't despair. Remember, the bank will most likely run into this problem with the next buyer who obtains financing.
Are you interested in purchasing an REO? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, December 20, 2010
DFW January foreclosures fall 6%
Provided By Dallas Business Journal
The number of foreclosed Dallas-Fort Worth area homes up for auction in January is 6 percent lower than last year, according to Addison-based Foreclosure Listing Service.
In D-FW, 5,543 homes landed in the January 2011 foreclosure auction pool, down from 5,894 a year earlier.
While Foreclosure Listing Service recorded seven months of falling foreclosure postings in the past 9 months, the company's CEO George Roddy Sr. said the area is not out of the woods yet.
"D-FW residential foreclosure posting activity for January remained on the extreme high end in this foreclosure cycle," said Roddy in a statement. "Until a significant amount of workers begin to be re-employed, there is simply no reason for foreclosure postings to decline. Even re-employment in today's market does not assure that a family's bills will be paid because many workers are being hired at wages far lower than at their previous job."
Would you like to know about your foreclosure options, give us a call at 972-772-7000 or email us at rockwall@kw.com.
The number of foreclosed Dallas-Fort Worth area homes up for auction in January is 6 percent lower than last year, according to Addison-based Foreclosure Listing Service.
In D-FW, 5,543 homes landed in the January 2011 foreclosure auction pool, down from 5,894 a year earlier.
While Foreclosure Listing Service recorded seven months of falling foreclosure postings in the past 9 months, the company's CEO George Roddy Sr. said the area is not out of the woods yet.
"D-FW residential foreclosure posting activity for January remained on the extreme high end in this foreclosure cycle," said Roddy in a statement. "Until a significant amount of workers begin to be re-employed, there is simply no reason for foreclosure postings to decline. Even re-employment in today's market does not assure that a family's bills will be paid because many workers are being hired at wages far lower than at their previous job."
Would you like to know about your foreclosure options, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, September 13, 2010
Foreclosures' impact on kids and communities weighed
Published By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) -- Children could be prevented from realizing their potential in school and, eventually, the labor force as consequences from the problem of home foreclosures last for years, a Federal Reserve official said Thursday.
"A foreclosure is likely to mean not only a loss of home, but also a disruption in where, or whether, kids are in school," said Eric Rosengren, president of the Federal Reserve Bank of Boston, at a Fed conference in Washington about neighborhood stabilization. "Since foreclosure is often related to unemployment, marital stress, or physical ailments, the foreclosure is likely to make it difficult for even the most determined student to excel."
Rosengren added that he is encouraging staff to look at how children are affected by foreclosures. Read more about the conference.
Foreclosures may be a symptom of "broader problems" having effects on neighborhoods, such as high rates of unemployment and property crime, Rosengren said. He noted that higher foreclosure rates could exacerbate such problems.
"My own view is that too little focus has been on community problems because the focus has been more targeted to housing and foreclosures," Rosengren said.
Areas with high concentrations of real estate owned properties -- properties held on the books of banks typically after failing to sell at foreclosure auctions -- have also been associated with greater incidence of babies with low birth weight, higher high-school dropout rates and more frequent failures on statewide math tests.
States and the federal government may need to examine how to address the broader problems in these communities, Rosengren said, including "potentially looking at revenue sharing that provides a flexible way to address the fiscal gap faced by many of our hard-pressed communities."
Also speaking Thursday at the neighborhood stabilization event, Sandra Pianalto, president of the Cleveland Fed, said "decades of progress" have been wiped away in the past few years in many low-income communities.
'Collateral damage'
"The longer properties remain vacant, the more collateral damage is done to property values nearby, and it doesn't take long for neighborhoods to suffer from increased crime, arson, and blight," Pianalto said. "We are still far from a recovery in the housing markets in our region. The losses and hardship that our neighborhoods have experienced is staggering."
The housing-market collapse resulted from "a destructive cycle that feeds on itself," Pianalto said.
"In our region, mortgage delinquencies led to a high number of foreclosures, which led to an oversupply of housing, which led to home prices depreciating and borrowers and financial institutions taking on big losses," Pianalto said. "To break this cycle, a coordinated set of policies is needed to target multiple points of the breakdown in the housing market."
She said loan modifications alone won't be enough to address the housing crisis, noting that the main reason that most borrowers cite for needing assistance is income loss due to the weak economy.
"We have learned that numerous interventions are required to address the multiple causes and consequences of the foreclosure crisis, and we will continue to focus our outreach and analysis on understanding and contributing to solutions in real time," Pianalto said. "A healthy housing sector is critical both to the overall economy and to a sustainable economic recovery."
Facing foreclosure? There are other options, to learn what you can do to avoid foreclosure call us at 972-772-7000 or email us at rockwall@kw.com.
WASHINGTON (MarketWatch) -- Children could be prevented from realizing their potential in school and, eventually, the labor force as consequences from the problem of home foreclosures last for years, a Federal Reserve official said Thursday.
"A foreclosure is likely to mean not only a loss of home, but also a disruption in where, or whether, kids are in school," said Eric Rosengren, president of the Federal Reserve Bank of Boston, at a Fed conference in Washington about neighborhood stabilization. "Since foreclosure is often related to unemployment, marital stress, or physical ailments, the foreclosure is likely to make it difficult for even the most determined student to excel."
Rosengren added that he is encouraging staff to look at how children are affected by foreclosures. Read more about the conference.
Foreclosures may be a symptom of "broader problems" having effects on neighborhoods, such as high rates of unemployment and property crime, Rosengren said. He noted that higher foreclosure rates could exacerbate such problems.
"My own view is that too little focus has been on community problems because the focus has been more targeted to housing and foreclosures," Rosengren said.
Areas with high concentrations of real estate owned properties -- properties held on the books of banks typically after failing to sell at foreclosure auctions -- have also been associated with greater incidence of babies with low birth weight, higher high-school dropout rates and more frequent failures on statewide math tests.
States and the federal government may need to examine how to address the broader problems in these communities, Rosengren said, including "potentially looking at revenue sharing that provides a flexible way to address the fiscal gap faced by many of our hard-pressed communities."
Also speaking Thursday at the neighborhood stabilization event, Sandra Pianalto, president of the Cleveland Fed, said "decades of progress" have been wiped away in the past few years in many low-income communities.
'Collateral damage'
"The longer properties remain vacant, the more collateral damage is done to property values nearby, and it doesn't take long for neighborhoods to suffer from increased crime, arson, and blight," Pianalto said. "We are still far from a recovery in the housing markets in our region. The losses and hardship that our neighborhoods have experienced is staggering."
The housing-market collapse resulted from "a destructive cycle that feeds on itself," Pianalto said.
"In our region, mortgage delinquencies led to a high number of foreclosures, which led to an oversupply of housing, which led to home prices depreciating and borrowers and financial institutions taking on big losses," Pianalto said. "To break this cycle, a coordinated set of policies is needed to target multiple points of the breakdown in the housing market."
She said loan modifications alone won't be enough to address the housing crisis, noting that the main reason that most borrowers cite for needing assistance is income loss due to the weak economy.
"We have learned that numerous interventions are required to address the multiple causes and consequences of the foreclosure crisis, and we will continue to focus our outreach and analysis on understanding and contributing to solutions in real time," Pianalto said. "A healthy housing sector is critical both to the overall economy and to a sustainable economic recovery."
Facing foreclosure? There are other options, to learn what you can do to avoid foreclosure call us at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, August 18, 2010
Foreclosures in Texas DOWN
Provided By RECON
Source Forth Worth Star Telegram
Residential foreclosures last month were down 2.9 percent in Texas and 10 percent nationwide compared with a year ago, according to the latest data from RealtyTrac.
Some 11,727 postings were filed last month in Texas, which means one in every 819 housing units received a notice, RealtyTrac said.
Nationwide, 325,229 postings were filed, or one in every 397 housing units. Although it's a drop from a year ago, the number was up 3.6 percent from June, the firm said.
July was the 17th straight month that U.S. foreclosure postings topped 300,000, RealtyTrac CEO James Saccacio said.
Are you behind on your mortgage, don't foreclose! Call us at 972-772-7000 or email us at rockwall@kw.com.
Source Forth Worth Star Telegram
Residential foreclosures last month were down 2.9 percent in Texas and 10 percent nationwide compared with a year ago, according to the latest data from RealtyTrac.
Some 11,727 postings were filed last month in Texas, which means one in every 819 housing units received a notice, RealtyTrac said.
Nationwide, 325,229 postings were filed, or one in every 397 housing units. Although it's a drop from a year ago, the number was up 3.6 percent from June, the firm said.
July was the 17th straight month that U.S. foreclosure postings topped 300,000, RealtyTrac CEO James Saccacio said.
Are you behind on your mortgage, don't foreclose! Call us at 972-772-7000 or email us at rockwall@kw.com.
Monday, July 19, 2010
Underwater? Alternatives to Walking Away
Written By Broderick Perkins
Provided By Realty Times
Home owners who are "underwater" with their home loan and seek to come up for air by walking away from the debt, could still be gasping for relief years down the road.
There are occasions when walking away from your home -- and down the road to foreclosure -- is your only option, but seldom is it the best alternative.
Mortgages are "underwater" or "upside down" when the property experiences negative equity -- the mortgage is larger than the current value of the property. Negative equity is caused by a decline property value, an increase in mortgage debt or, most likely, both.
The consensus among experts is to consider the alternatives before abandoning your home, talk with your lender and seek counseling from a U.S. Department of Housing and Urban Affairs (HUD) certified counselor.
Don Bisenius, the head of Freddie Mac's home-loan guarantee business, recently asked borrowers to stick it out through the crisis.
Bisenius said foreclosures lead to degraded neighborhoods, more expensive mortgages and reduced home values.
"In the end, borrowers considering a strategic default should recognize the damaging impact their actions can have on others," he wrote.
The Obama Administration's frequently updated and strengthened multi-tiered MakingHomeAffordable.com program and other government efforts offer a good start with a host of options.
• Refinancing, turning in your existing mortgage for a new one, is perhaps the toughest option to accomplish. A refinance requires meeting stiff underwriting requirements -- an excellent credit report, a high credit score of 720 or more, documented career level income and little debt, for starters.
Federal programs, including the Federal Housing Administration's refinance effort, can be a good bet for those who haven't yet faced hardship and can qualify for a new loan.
• A mortgage modification reworks the terms of existing loans to get the payment down to a more affordable level. To add greater affordability, lenders lower the interest rate, lengthen the term of the loan or reduce the principal -- or do some combination of all three. Modifications can be used by qualified home owners who aren't yet struggling as well as those who are in a pinch.
• Short sales
Modifications and short sales can impact your credit, but not necessarily with the force of a foreclosure.
Bottom line, exploring all the options is a better first step than walking away.
I understand feeling financial pressure is difficult and embarrassing, but there is a point at which everyone has time to explore the options. In just about every case, that's much better than doing nothing at all. I strongly feel there is no reason for anyone to get a foreclosure" said Zdenka Mahan, a real estate agent with Intero Real Estate in Los Gatos.
Do you have questions about short sales, mortgage modifications or refinancing? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Realty Times
Home owners who are "underwater" with their home loan and seek to come up for air by walking away from the debt, could still be gasping for relief years down the road.
There are occasions when walking away from your home -- and down the road to foreclosure -- is your only option, but seldom is it the best alternative.
Mortgages are "underwater" or "upside down" when the property experiences negative equity -- the mortgage is larger than the current value of the property. Negative equity is caused by a decline property value, an increase in mortgage debt or, most likely, both.
The consensus among experts is to consider the alternatives before abandoning your home, talk with your lender and seek counseling from a U.S. Department of Housing and Urban Affairs (HUD) certified counselor.
Don Bisenius, the head of Freddie Mac's home-loan guarantee business, recently asked borrowers to stick it out through the crisis.
Bisenius said foreclosures lead to degraded neighborhoods, more expensive mortgages and reduced home values.
"In the end, borrowers considering a strategic default should recognize the damaging impact their actions can have on others," he wrote.
The Obama Administration's frequently updated and strengthened multi-tiered MakingHomeAffordable.com program and other government efforts offer a good start with a host of options.
• Refinancing, turning in your existing mortgage for a new one, is perhaps the toughest option to accomplish. A refinance requires meeting stiff underwriting requirements -- an excellent credit report, a high credit score of 720 or more, documented career level income and little debt, for starters.
Federal programs, including the Federal Housing Administration's refinance effort, can be a good bet for those who haven't yet faced hardship and can qualify for a new loan.
• A mortgage modification reworks the terms of existing loans to get the payment down to a more affordable level. To add greater affordability, lenders lower the interest rate, lengthen the term of the loan or reduce the principal -- or do some combination of all three. Modifications can be used by qualified home owners who aren't yet struggling as well as those who are in a pinch.
• Short sales
Modifications and short sales can impact your credit, but not necessarily with the force of a foreclosure.
Bottom line, exploring all the options is a better first step than walking away.
I understand feeling financial pressure is difficult and embarrassing, but there is a point at which everyone has time to explore the options. In just about every case, that's much better than doing nothing at all. I strongly feel there is no reason for anyone to get a foreclosure" said Zdenka Mahan, a real estate agent with Intero Real Estate in Los Gatos.
Do you have questions about short sales, mortgage modifications or refinancing? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, March 17, 2010
FORECLOSURE PREVENTION PLAN UNVEILED
Provided By RECON Real Estate Center Online News
Source New York Times/ Dallas Morning News
April 5th will mark the beginning of a new program by the Obama administration intended to end the foreclosure crisis — one that will pay homeowners to sell their homes.
The program will allow owners to sell their homes for less than they owe and give them cash to expedite the process.
Hundreds of thousands of delinquent borrowers will be encouraged to sell their houses through short sales, in which properties are sold for less than the balance of the mortgage.
The new program will give the servicing bank $1,000, and another $1,000 may go toward a second loan, if one exists. The distressed homeowners will also receive $1,500 in relocation assistance. To read more of this article click here.
Are you interested in learning more about the upcoming foreclosure program? Give us a call at (972) 772-7000 or send us an email at rockwall@kw.com.
Source New York Times/ Dallas Morning News
April 5th will mark the beginning of a new program by the Obama administration intended to end the foreclosure crisis — one that will pay homeowners to sell their homes.
The program will allow owners to sell their homes for less than they owe and give them cash to expedite the process.
Hundreds of thousands of delinquent borrowers will be encouraged to sell their houses through short sales, in which properties are sold for less than the balance of the mortgage.
The new program will give the servicing bank $1,000, and another $1,000 may go toward a second loan, if one exists. The distressed homeowners will also receive $1,500 in relocation assistance. To read more of this article click here.
Are you interested in learning more about the upcoming foreclosure program? Give us a call at (972) 772-7000 or send us an email at rockwall@kw.com.
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