An article about a recent survey from Trulia.com and RealtyTrac released today really shows people are not getting the help they need or they do not understand how to solve their foreclosure problems.
Points of interest:
1. 59% would not strategic default or leave the keys and walk. Shows there are still a large number... 41% would consider walking away...that's nearly half.
2. 69% would opt for loan modification but it shows only 10% actually are successful to loan modification. How many still fall behind after they modify. Not good, so only 10/100, sounds like the odds are against you or the loan modification requirement are not realistically meeting the needs of those applying. It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble, which only will result to a larger number of foreclosed homes on the market.
3. Only 5% see Short Sales as an alternative. I find that alarming. Not because I am a Realtor and make money from the sale of the homes, but the fact that people still are uninformed about the benefits. If only 10% can get a loan modification that means that 90% are going to foreclosure unless they short sale. It shows that the education and incentives for short sales are not reaching the homeowner.
I always tell my clients that the biggest mistake they make in these times is shutting down. This is a natural reaction to being in financial distress and loosing their home. Not thinking that things will get better will mean that short term decisions, like letting the home go to foreclosure, may seem easier than going through the hassle of selling. "Why help the bank...they do not want to help me!" My answer is things will get better and this ball & chain of foreclosure will follow you around for years on your credit. Making and effort to short sell will allow you to buy a home again, earlier. The incentive right now do not seem like much but waiting another 2-3 years until you qualify for a loan may seem like forever. Banks are penalizing homeowners that leave it go to foreclosure.
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
I am sure like most of us, myself included, are happy for the break from the "all at once" deadline rush to get under contract to receive the tax credit. My local market was swamped with people buying, and sometimes over paying for homes because so many offers where being written. It appears that the general public needs a "whats in for me" incentive and a deadline to get them off the fence to buy houses. I do believe that the tax incentive, for all its good and bad attributes, did help people over the fear of a "decline after purchase" risk. The tax incentive covered their downside risk in their minds. I think both first time and existing homes owner were brought into the market because of the tax incentive. Now I have seen a significant drop off in property inquires, and showing requests. That is an indication of future business. This drop of in prime marketing season, I think, is a reflection that the tax incentive is over. Many of us experienced the drop off between the extension and the last deadline in November 2009 until March 2010.
In addition I am surprised, buy discussions with other agents, and there lack of knowledge of the double underwriting that is coming down the road for lending. My buyers that are working with Wells Fargo in the past weeks have expressed absolute frustration over the process of loan underwriting. They are constantly being asked for more information, more detail. This along with the lack of the tax credit, yikes!
It my my real world opinion is we are not even remotely out of the woods until this option arm reset is gone and behind us and the "perceived" economy gets back on track and people get back to work. Short sales and foreclosures are still on the rise here.
What I am curious about is real world agents feedback on how they feel about the market future without market incentives. I would like other agents to chime in on there opinion if the market will suffer without real estate tax credit.
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
I think this is a great easy too understand video about HAFA and how it affects consumers. Take a look...
Did you know there was a $3,000 stay in property bonus for you the homeowner if you qualify?
Have questions or need help, I give you honest answers....
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
Another interesting experience with B of A. At least you can talk with someone faster these days but after talking with three different people, I found out the can not process the offer through equator. Ironically the person could not email or fax the documents. So if you are doing a B of A FHA short sale, you need their specific forms...I had to google the forms and you will find the PDF online. Here's the link to the form they are legal size.
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
Dave Liniger, RE/MAX International Chairman and Co-Founder, recently urged government and economic leaders to push lenders to release foreclosures to help speed their short sale processing so the housing market can recover. Liniger made his comments as a featured speaker at the Five Star Government Forum in Washington D.C. The Forum brought government and industry leaders together to share ideas for building stability in the nation's housing market.
A proactive approach and current information is the only way to get things moving. Buyers can be very unfamiliar with the process of short sale, but for banks, this is the best avenue to clear these properties. Foreclosure is much more expensive, and it does stigmitize the property. In addition, the buyers excitment for the home decreases as time goes by, unless they are "Getting a Hell of a Deal", otherwise why take in the risk of "as is" homes and waiting and waiting.
I experience it everyday, the frustration of someone who is not familiar with the local market, taking forever to decide if an offer is good or not. They also base their decision on BPO's or apprasials that track past sales, but if the market is declining...those may not be accurate. Don't get me wrong, the bank needs to protect themselves from low values and fraud. Banks need to staff up with qualified people and move these processes to a more resonable time frame. The general public that is familiar with process are ready to buy, but many are reluctant to make offers because the time for approval is to long.
Come on, lets go...the option arm reset storm is coming and lenders need to get there acts togather, and stop beating up on their sales force, we are the front lines for them.
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
A new article published 2/12/2010 states that mortgage companies need to give incentives to people to stay in they home and not walk away or strategically default.
Upside down property values are leaving nearly 25% of homeowners owing more on their mortgage than the home is worth, and many are getting advised or may find it tempting to walk away even if they are financially able to keep making their mortgage payments. The idea of this may be easier or less stressful if they “strategic default” to get out from under the debt completely or to force the servicer’s hand for a loan modification. It is growing concern within the mortgage industry, and I struggle with this everyday dealing with short sales, as a CDPE, and the communication breakdowns with stressed out sellers.
In the article, the Loan Value Group LLC (LVG), is proposing it is time to pay current borrowers to stay in their homes. The company is introducing a new program this past week to help lenders and servicer identify borrowers at risk of walking away and implement an incentive program in which the homeowner receives a monetary rewards, "bailout", if they stay in the home, remain current on their payments, and do not change the terms of the original mortgage note or reducing principal. The Responsible Homeowner Reward (RH Reward) program was developed on a foundation of behavioral economics and employs patent-pending technology developed by LVG.
According to the Loan Value Group, there are more than 10 million homes in the United States with substantial negative equity, representing nearly $2 trillion of mortgage debt, WOW!
This is not a proposed program the article says it is going to be implemented by a largest investors in consumer and mortgage debt in the United States. The client, who requested anonymity while they roll-out the program, has purchased and sold over $5 billion of debt since 2008. Hum, wonder who that is :)
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
This is a must see! Home has been completely redone. New kitchen w/updated cabinets, granite counters, ceramic floors brand new appliances, new bath w/cermamics, updated electrical, windows, light fixtures, carpet, fresh paint, refinished hardwood flrs, just move in. Laundry on 1st floor off back entrance, new garage doors. Home backs up to Douglas Park close to downtown. Large trees. Open stairway.
Features List
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Equal Housing Opportunity.
24/7 Real Estate, LLC :
2835 W College Ave, -
Appleton
WI
54914
: 920-284-8508
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
A new article in Wisconsin Real Estate magazine January 2010, we are starting to reach our historical median norms for Wisconsin. While these are market and price range specific, it appears that home price have fallen back close to a normal range. In our local area of Appleton, Neenah, the Fox Valley and NE Wisconsin, I have seen this happen, but most experts locally say a 3-5 % reduction is still out potentially there in the median market price range.
I think the price downward slide from "Sub Prime" lending has slowed. In contrast, the effect of "Option Arms" is not over and really has yet to begin. Statistics from Amherst Securities states these types of loans will not peak until January 2012. In Conventional loans Q4 data shows nearly 10% are behind by at least one payment and Sub Prime is nearly 40%. Wow! The largest growing sector is 1 million+ dollar properties because tight lending policies have limit funding for these homes. In a nutshell, we will continue dealing with foreclosures and short sales values affecting the retail market.
On the positive note, the federal tax credit is helping demand. Home Affordable Modification Program (HAMP) programs may make a dent...but this is program is based on helping people that are struggling with but still making payments on underwater house values. HAMP does not appear to be designed to help those behind on their payments. FHA has eased lending policies, and their 90 day flipping rules.
About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.
I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.
I write about real estate topics specific to foreclosure, short sales and mortgage trends. I try to inform readers how this relates to them and how it may affect their buying and selling of real estate.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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