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Monday, June 18, 2012
604 Barclay Walk, Cherry Hill, NJ 08034 Presented by Team Clyde RE/MAX Connection
207 Roosevelt Blvd Berlin, NJ 08009
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Thursday, June 7, 2012
4 ways distressed homeowners can start fresh
Mood of the Market
Clearly, thankfully, the market is looking up. Way up, actually.
In many markets including Berlin and Voorhees, tales of multiple offers and a dearth of homes vis-à-vis the numbers of buyers who want them are becoming commonplace. Now, many analysts point to the banks' intentional decision to keep many foreclosures off the market as artificially driving this demand.
But if you're a seller in Berlin or Voorhees in today's market, the dynamics underlying the demand are much less important than the fact that your chances of getting your home sold at a good price are better than they have been in a long, long time.
The news for buyers is not all bad, either: For the first time in a long while, buyers are not faced with the double-edged sword prospect of buying into a declining market; appraisals are coming in at the agreed-upon purchase price; and mortgage rates are still uber-low (fingers-crossed).
But with all this fresh market optimism, there is an ugly elephant in our collective room, which is that many, many homeowners and former homeowners are still dealing with the lingering remnants of the subprime market mess and the real estate recession. Many are still upside down, still struggling to make the too-high payments on loans left over from the last peak of the market or trying to recover financially and otherwise from a recession-era foreclosure or short sale.
For those folks -- a huge, if silent, number -- here are four routes to a fresh slate:
1. Sell. Fact is, the vast majority of underwater homeowners who could stay put did. Walking away was very much the exception and not the rule. The result? There are hundreds of thousands of homeowners out there with homes that lost value during the recession who are still holding on to subprime loans that have long since reset. While these loans' rates tend to be low, if you had a short-term, interest-only, adjustable-rate mortgage in 2005 or 2006, chances are good that your payment actually increased steeply when you were required to begin paying the principal.
For sellers who have scrimped and saved, taken on second jobs, rented out rooms or allowed important expenses like property taxes or other bills to go unpaid in order to make a too-high mortgage payment, the current market dynamics may present a good opportunity to divest of an unsustainable mortgage obligation by selling or even short-selling the place.
Buyers are out en masse and prices are on the rise, meaning that you might not be as upside down as you were last year or the year before. Banks are moving short sales through much more quickly and efficiently than in years' past (though never as quickly or efficiently as we'd hope).
The income tax exemption on debt forgiven through a short sale is still valid through the end of this year (an extension is probable, but by no means guaranteed).
If you know or believe that your current home is simply too expensive for you to afford with financial integrity, and there is no end in sight, talk with a local agent and a tax professional about how you might be able to get a clean slate by selling the home.
2. Settle old seconds and HELOCs. If you lost a home to foreclosure in a nonrecourse state and you had a second mortgage or home equity line of credit, it's entirely possible that your second is still a lingering debt. (Your first mortgage can foreclose and repossess the home, leaving the second mortgagor holding nothing but paper.) Many second-mortgage holders are not actively collecting on these loans, but they simply stay on your credit reports and eventually rear their ugly heads when the time comes for you to try to qualify for a car or a mortgage.
Some recommend bankruptcy as an expedient way of extinguishing these loans for little or nothing, but the blemish bankruptcy leaves on your credit may defeat the purpose of getting rid of the old loan in the first place. I've been talking with some of these banks and servicers, and many of the banks will settle these unsecured second mortgages or home equity lines of credit for as low as 10 or 20 percent of the outstanding balance.
Contact the servicer of your former home's second or HELOC to discuss a settlement. Again, the taxes you would normally pay on the forgiven debt will be exempt through the end of this year, for most borrowers, so if you can settle this soon, it's in your best interest to do so. If you don't know what bank or servicer even manages this loan (many are sold and resold), check your credit report and seeing who is reporting the debt, if anyone, or take out your old documents with the loan number and researching the trail starting with your original servicer.
3. Check your credit reports and dispute expired derogatories. It might be hard to believe, but the first foreclosures from the last real estate recession began happening circa 2005-2006, so they are set to be timing off of credit reports right about now. If you had an early-recession foreclosure or short sale, check your credit reports now to ensure that they are being reported correctly, or not at all, if the seven-year expiration time frame has run. In fact, even if your short sale or foreclosure was not that early, it may make sense to pull your credit reports and understand how things are being reported and the impact these items are having on your credit score. You might be surprised, in one direction or the other.
4. Refinance and lock in low rates. If you lost value in your home during the recession, it might have been nearly impossible to refinance it to take advantage of lower rates and bring your payment down. With sales prices on the upswing and rates still low, though, you may have a new opportunity to refinance a "bad" loan and lock it in a today's uber-low rates.
Clearly, thankfully, the market is looking up. Way up, actually.
In many markets including Berlin and Voorhees, tales of multiple offers and a dearth of homes vis-à-vis the numbers of buyers who want them are becoming commonplace. Now, many analysts point to the banks' intentional decision to keep many foreclosures off the market as artificially driving this demand.
But if you're a seller in Berlin or Voorhees in today's market, the dynamics underlying the demand are much less important than the fact that your chances of getting your home sold at a good price are better than they have been in a long, long time.
The news for buyers is not all bad, either: For the first time in a long while, buyers are not faced with the double-edged sword prospect of buying into a declining market; appraisals are coming in at the agreed-upon purchase price; and mortgage rates are still uber-low (fingers-crossed).
But with all this fresh market optimism, there is an ugly elephant in our collective room, which is that many, many homeowners and former homeowners are still dealing with the lingering remnants of the subprime market mess and the real estate recession. Many are still upside down, still struggling to make the too-high payments on loans left over from the last peak of the market or trying to recover financially and otherwise from a recession-era foreclosure or short sale.
For those folks -- a huge, if silent, number -- here are four routes to a fresh slate:
1. Sell. Fact is, the vast majority of underwater homeowners who could stay put did. Walking away was very much the exception and not the rule. The result? There are hundreds of thousands of homeowners out there with homes that lost value during the recession who are still holding on to subprime loans that have long since reset. While these loans' rates tend to be low, if you had a short-term, interest-only, adjustable-rate mortgage in 2005 or 2006, chances are good that your payment actually increased steeply when you were required to begin paying the principal.
For sellers who have scrimped and saved, taken on second jobs, rented out rooms or allowed important expenses like property taxes or other bills to go unpaid in order to make a too-high mortgage payment, the current market dynamics may present a good opportunity to divest of an unsustainable mortgage obligation by selling or even short-selling the place.
Buyers are out en masse and prices are on the rise, meaning that you might not be as upside down as you were last year or the year before. Banks are moving short sales through much more quickly and efficiently than in years' past (though never as quickly or efficiently as we'd hope).
The income tax exemption on debt forgiven through a short sale is still valid through the end of this year (an extension is probable, but by no means guaranteed).
If you know or believe that your current home is simply too expensive for you to afford with financial integrity, and there is no end in sight, talk with a local agent and a tax professional about how you might be able to get a clean slate by selling the home.
2. Settle old seconds and HELOCs. If you lost a home to foreclosure in a nonrecourse state and you had a second mortgage or home equity line of credit, it's entirely possible that your second is still a lingering debt. (Your first mortgage can foreclose and repossess the home, leaving the second mortgagor holding nothing but paper.) Many second-mortgage holders are not actively collecting on these loans, but they simply stay on your credit reports and eventually rear their ugly heads when the time comes for you to try to qualify for a car or a mortgage.
Some recommend bankruptcy as an expedient way of extinguishing these loans for little or nothing, but the blemish bankruptcy leaves on your credit may defeat the purpose of getting rid of the old loan in the first place. I've been talking with some of these banks and servicers, and many of the banks will settle these unsecured second mortgages or home equity lines of credit for as low as 10 or 20 percent of the outstanding balance.
Contact the servicer of your former home's second or HELOC to discuss a settlement. Again, the taxes you would normally pay on the forgiven debt will be exempt through the end of this year, for most borrowers, so if you can settle this soon, it's in your best interest to do so. If you don't know what bank or servicer even manages this loan (many are sold and resold), check your credit report and seeing who is reporting the debt, if anyone, or take out your old documents with the loan number and researching the trail starting with your original servicer.
3. Check your credit reports and dispute expired derogatories. It might be hard to believe, but the first foreclosures from the last real estate recession began happening circa 2005-2006, so they are set to be timing off of credit reports right about now. If you had an early-recession foreclosure or short sale, check your credit reports now to ensure that they are being reported correctly, or not at all, if the seven-year expiration time frame has run. In fact, even if your short sale or foreclosure was not that early, it may make sense to pull your credit reports and understand how things are being reported and the impact these items are having on your credit score. You might be surprised, in one direction or the other.
4. Refinance and lock in low rates. If you lost value in your home during the recession, it might have been nearly impossible to refinance it to take advantage of lower rates and bring your payment down. With sales prices on the upswing and rates still low, though, you may have a new opportunity to refinance a "bad" loan and lock it in a today's uber-low rates.
Saturday, June 2, 2012
207 Roosevelt Blvd, berlin NJ 08009...Open House....Presented by Team Clyde RE/MAX Connection
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Sunday, May 27, 2012
Remembering on Memorial Day and Showing Gratitude to those that made the ultimate Sacrifice
As we stand here looking
At the flags upon these graves
Know these flags represent
A few of the true American brave
They fought for their Country
As man has through all of time
Except that these soldiers lying here
Fought for your country and mine
As we all are gathered here
To pay them our respect
Let's pass this word to others
It's what they would expect
I'm sure that they would do it
If it were me or you
To show we did not die in vein
But for the red, white and blue.
Let's pass on to our children
And to those who never knew
What these soldiers died for
It's the least we can do
Let's not forget their families
Great pain they had to bear
Losing a son, father or husband
They need to know we still care
No matter which war was fought
On the day that they died
I stand here looking at these flags
Filled with American pride.
So as the bugler plays out Taps
With its sweet and eerie sound
Pray for these soldiers lying here
In this sacred, hallowed ground.
Take home with you a sense of pride
You were here Memorial Day.
Celebrating the way Americans should
On this solemnest of days.
At the flags upon these graves
Know these flags represent
A few of the true American brave
They fought for their Country
As man has through all of time
Except that these soldiers lying here
Fought for your country and mine
As we all are gathered here
To pay them our respect
Let's pass this word to others
It's what they would expect
I'm sure that they would do it
If it were me or you
To show we did not die in vein
But for the red, white and blue.
Let's pass on to our children
And to those who never knew
What these soldiers died for
It's the least we can do
Let's not forget their families
Great pain they had to bear
Losing a son, father or husband
They need to know we still care
No matter which war was fought
On the day that they died
I stand here looking at these flags
Filled with American pride.
So as the bugler plays out Taps
With its sweet and eerie sound
Pray for these soldiers lying here
In this sacred, hallowed ground.
Take home with you a sense of pride
You were here Memorial Day.
Celebrating the way Americans should
On this solemnest of days.
Saturday, May 26, 2012
Do You Owe More Than Your Camden County Home Is Worth?.
As a HAFA Specialist My Team is the leading resource for Home Affordable Foreclosure Alternatives education and assistance.
Homes Affordable Foreclosure Alternatives (HAFA) is a new federal program that makes it easier for homeowners who owe more than their home is worth in today’s market or are unable to keep their homes. With a traditional short sale, properties take a lot of time to sell and close, making it very difficult to plan for your family's future and increasing the level of stress in an already difficult situation.
The availability of the new HAFA program means easier sales and faster closings while removing mortgage liability because HAFA simplifies and streamlines the process for doing a short sale or deed-in-lieu, by providing a standard process flow, minimum performance timeframes and standard lender forms and documentation. It also mandates full release from mortgage debt for the seller.
As a HAFA Specialist I have been able to assist numerous homeowners and their families take advantage of this program with full release of all mortgage liabilities, reducing credit impact and allowing a second chance at homeownership much quicker!
Why is HAFA the right choice if you qualify?
- Provides you with $3000 dollars at close for relocation expenses
- Gives you an upfront release value to sell the home
- Gives you a min of 120 days and max of 360 days to sell the home
- 10 business day approvals once a contract has been submitted for a approval
- Permanent relief of all future liabilities associated with the loan from the Lender or Servicer
- No Promissory Notes or funds required at close from the Borrower (i.e., seller)
- No Deficiency Judgments
- Mandatory Foreclosure Postponement
- Decrease Borrowers time to re-establish credit and get a second chance at homeownership more quickly
Why should you work with a HAFA Specialist?
- As a HAFA Specialist I:
- Know who is eligible and who is not!
- Understand the current U.S. distressed housing market
- Have in-depth knowledge of the U.S. Treasury's HAFA program.
- Know how Fannie Mae and Freddie Mac's HAFA programs work.
- Have access to short sale evaluation tools for listing consults
- Get HAFA program and Servicer updates as they occur
- Have all the latest HAFA documents for the process
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