Archive for the ‘Short sales’ category

A New Government Short Sale Program

March 14, 2010

Another new relief plan is around the corner, courtesy of the federal government. Its purpose is to assist homeowners who can’t afford their mortgage payment or obtain a loan modification. The new plan is called the Home Affordable Foreclosure Alternative, and is intended to help homeowners into a short sale or deed in lieu and avoid foreclosure.

One incentive is that once a home owner is approved under the plan they will receive $1,500 in relocation money from the government.

To qualify a homeowner’s mortgage is required be in or near default. The house must be a principal residence. Any second lien must be paid off or negotiated away, so the title will be clean.

The plan is expected to start April 5, 2010, and end Dec. 31, 2012.

To find out what is going on in Hoboken real estate market, please go to Hoboken Homes.      

There may be many people who are struggling to pay their mortgage but you may be one of many who are eligible for the new Home Buyer Credits. Please go to tax credit information for more details. This opportunity could help change your life for the better.

Allow me to help you explore the many wonderful opportunities to purchase a home in Hoboken. Whether it be a lovely condo, brownstone, Classic Victorian or anything in between; I guarantee you there is a home for you. Please contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey

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A Resource to Help with Short Sale Problems

March 1, 2010

The National Association of REALTORS® has created new resources to assist REALTORS® and consumers navigate the short sale process and help homeowners on the verge of foreclosure.

The new program will provide REALTORS® with the resources they need to navigate short sale transactions, and provide access to helpful government programs designed for home owners facing the process of a short sale.

On April 5, 2010, the U.S. government will implement the Home Affordable Foreclosure Alternatives Program (HAFA). Part of the Home Affordable Modification Program, HAFA was created to assist home owners who are unable to keep their home under HAMP. Certain requirements must be met for a homeowner to participate. There will also be incentive payments for homeowners and servicers.

NAR has released a brochure about the Home Affordable Foreclosure Alternatives Program, as well as  additional online resources.

There may be many people who are struggling to pay their mortgage but you may be one of many who are eligible for the new Home Buyer Credits. Please go to tax credit information for more details. This opportunity could help change your life for the better.

Allow me to help you explore the many wonderful opportunities to purchase a home in Hoboken. Whether it be a lovely condo, brownstone, Classic Victorian or anything in between; I guarantee you there is a home for you. Please contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at eddie@InvestHoboken.com or 201-344-2886.

Can Short Sales Really be Shortened

December 14, 2009

Another attempt is being made by the U.S. Treasury to prevent more foreclosures by trying to speed up the short sale process.

Short sales are when a bank agrees to let a homeowner sell a house for less that is owed. Short sales could cut lenders’ losses and will not damage a person’s credit as much as a foreclosure. According to the National Association of Realtors, there have been about half a million short sales, or 10 percent of total sales.

The program is scheduled to begin on April 5, 2010.

New guidelines require lenders to decide within 10 days if they will accept a short sale request. Currently, the biggest problem with short sales is that it has been six months or more for the lender to approve an offer.

One of the key elements of the new short-sale guidelines is that lenders have to approve the minimum asking price before the house goes on the market.

Troubled homeowners can attempt to get help through the Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP).

Here’s a quick look at the requirements for a homeowner to qualify for the short-sale program:

  • The loan was made before Jan. 1, 2009 and is less than $729,750.
  • The homeowner is delinquent on the loan or is likely to default.
  • The homeowner’s monthly mortgage payment exceeds 31 percent of his or her gross monthly income.

If you are struggling to pay their mortgage and are facing a future of uncertainty, a short sale of your home may be the best answer to your dilemma. A short sale is a good way to save your credit and give you the opportunity to continue on with your life without going through the heartache of a possible foreclosure of your home. Please contact Eddie Perez, Broker-REALTOR, CDPE. As a CDPE, I can help you through any housing related crisis. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at eddie@InvestHoboken.com or 201-344-2886.

Uniform Short Sales Guidelines are Coming

October 16, 2009

Fortunately, it appears that things could first-time-buyer-puzzlebe improving for short sales.

The recent U.S. Treasury announcement stated that it would be providing more incentives for borrowers and mortgage services to pursue short sales and other foreclosure alternatives.

The incentives and process guidelines are part of a larger program called Making Home Affordable, which is in place to help homeowners avoid losing their home.

This past May, the Treasury proposed that lenders would receive a $1,000 for allowing the owner of a house to sell for less than the amount owed on a mortgage, and than accept the proceeds as full repayment. This also applies to the deed-in-lieu transaction, where a lender would receive $1,000 when the deed is transferred to the lender in place of going through a costly foreclosure.

In addition, borrowers who agree to short sales or deed-in-lieu deals can receive up to $1,500 in closing costs. The Treasury also said it will pay second lien holders up to $1,000 to relinquish their claims in such transactions.

Source: http://www.reuters.com/article/GCA-Housing/idUSTRE5916X220091002

For more great information go to First Time Home Buyers Are Leading The Way.

To find out all the benefits and options for preventing foreclosure, contact Eddie Perez, Broker-REALTOR, CDPE or Anoir Redouane, REALTOR, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at eddie@InvestHoboken.com or 201-344-2886.

Is A Short Sale For You?

August 17, 2009

Desperate homeowners across the country are finding that getting a short house4salesale approved can take six months or longer, and in many cases, these deals collapse due to a variety of complications. Knowing how to approach a short sale will increase your chance of success.

A short sale occurs when a mortgage holder agrees to accept less than the balance due on a home because of a financial hardship. Many homeowners owe more than their home’s value and are facing foreclosure, so they’re racing against the clock to get a short sale approved.

Following is a list of important details to remember if you would like to purchase a short sale property:

Short Sale Tips For Buyers

  1. Be patient and flexible with the settlement date, short sales can take from 45 to 60 days or more.
  2. Have an alternate plan in place in case the short sale is never approved.
  3. Homes in better condition are more likely to receive Federal Housing Administration appraisal approval.
  4. Agents need to consistently communicate with buyers, sellers and the lender in a short sale to make sure everyone can come to an agreement on the terms.
  5. Work closely with lawyers who have good access and relations with the lender in order to expedite a short sale, especially the title transfer and the release of any liens on the property. The last thing a first-time buyer needs is to deal with the unpaid debts of the previous owner.
  6. Make sure to get an inspection. Homeowners who have been struggling to pay their bills are likely to have deferred important maintenance on their home. While adding a fresh coat of paint is a minor job for first-time homeowners, repairing the roof or replacing the furnace are expensive propositions that may be a budget breaker for the household. A home inspector can evaluate the systems and appliances and provide an estimate of when things might need to be replaced.
  7. Pay careful attention to the details of the contract. When the sellers are in financial distress, there is a greater likelihood of items being removed from the home or damage occurring during their move.

If  you have the right team in place including your real estate attorney and a Certified Distressed Property Expert certified REALTOR®, increases your chances of purchasing a short sale property. To really get a good idea of what a CDPE can do for you click on the following link  What Is a Certified Distressed Property Expert (CDPE)?  To find out all the benefits and options of purchasing a short sale, contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at 201-344 -2886 or at eddie@InvestHoboken.com.

Is a Short Sale Better than Foreclosure?

July 20, 2009

Losing your home to foreclosure due to an inability to keep up pictRSI_8877with your monthly mortgage payments is one of life’s most unpleasant experiences. It is also an event that keeps on affecting you long after your home is history by devastating your credit score. Regrettably, most people cannot be 100% sure that they will remain safe from foreclosure because they can’t foresee the unexpected. Occurrences such as serious illness, a major accident, divorce or job loss can happen to anyone. So it’s a good idea to understand the available alternatives should the worst occur.

 

The inevitable result of a foreclosure is the lender taking your house. Not only will you lose your house, but the lender can get a judgment against you for the arrearages you owe plus his costs for the foreclosure action. If that isn’t enough, your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.

A short sale is a popular option for homeowners mired down with financial problems. In this case, you would sell your home for less than what you owe your lender; the biggest problem you will face is getting your lender to agree to a short sale. In many situations, they will not. Experts advise pursuing this option the minute you realize that you are falling behind in your payments and most likely won’t be able to catch up. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to discuss a short sale.

While a short sale will save you from foreclosure, it will also have a negative effect on your credit score, frequently lowering it by as much as 200 points. This can be overcome more quickly than the black mark of a foreclosure, especially if you manage to retain one or two credit cards and keep them current.

If  you have the right team in place including your real estate attorney and a Certified Distressed Property Expert certified REALTOR®, reduces your chances of foreclosure. To really get a good idea of what a CDPE can do for you click on the following link  What Is a Certified Distressed Property Expert (CDPE)?  To find out all the benefits and options of purchasing a forecloure, contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at 201-344-2886 or at eddie@InvestHoboken.com or Prevent Foreclosure.

Short Sale vs. Deed-In-Lieu

June 13, 2009

Homeowners facing foreclosure often have the option of selecting a For-Sale-Sign-2short sale or a deed-in-lieu of foreclosure as a possible solution to their financial difficulties. But are they? Which is the best choice? Like most alternatives, both have their upsides and their downsides. Understanding these options is the only way to make a truly informed decision.

When you decide to use a short sale to prevent foreclosure, you should understand that the sale must have the lender’s approval and that lenders don’t always agree. What the lender is doing when he accepts, is permitting you to sell your home for less than you owe him and taking the loss himself. If he does go along with the short sale, it will relieve you of the burden as well as the cost, emotional strain and embarrassment of a messy foreclosure procedure. On the upside, a short sale is far less destructive to your credit rating than a foreclosure, as it is supposed to be listed as a “settled debt” on your credit report. However, it is still harmful to your credit score and can reduce it by 200 points or more.

On the downside, the lender could always go after you to collect the difference between the short sale price and what you owed him by getting a deficiency judgment against you. However, more often than not, this doesn’t happen simply because he knows that there is no money to recover and that he will have to pay all the costs of the legal action.

A deed-in-lieu of foreclosure is when you give your home back to your lender, take your losses and thereby prevent the foreclosure. Lenders will frequently accept this because it is a less expensive and time consuming process for him than a full foreclosure action. The upside is that a deed-in- lieu is a faster solution than a short sale and that it is more likely to be acceptable to the lender. The ramifications to your credit score are about the same as the short sale.

On the downside, if the lender eventually sells the home for a price that doesn’t pay off the original mortgage amount, he can get a deficiency judgment and try to collect it from you. Once again, however, he knows that you can’t get blood out of a stone and probably won’t proceed if there doesn’t appear to be any money to recover.

The sooner you act on either a short sale or a deed-in-lieu the better. Once the foreclosure process is activated, you will not be in a strong position to negotiate with your lender because payment arrearages, interest and penalties have piled up. He can hold you financially responsible for his losses and seek a deficiency judgment that will appear on your credit report even if you don’t have the money to pay it. In either case, however, avoiding foreclosure is always a better choice in terms of the effect on your credit.

Recently, there have been revisions made to President Obama’s  Making Home Affordable program that will make a short sale or a deed-in-lieu a less complicated process.

For the most up-to-date information regarding Hoboken Short Sales, please go to Help With Short Sales.

If you find yourself falling behind on your payments, I may be able to help you.  For foreclosure advice or personal assistance finding your new Hoboken home, visit our website at Your Home for Real Estate.