Tipping the Scales Toward Foreclosure?

Resolve to Face the Facts!

Since 2007, 8.9 million homes have been lost to foreclosure and millions more are headed in that direction.

As a real estate professional who has earned the CertifiedDistressed Property Expert (CDPE) designation, my mission is to ensure that you or anyone you care about does not add to that statistic.

The unfortunate fact is that so many homeowners who have played by the rules and never imagined that they could be facing foreclosure are now in a very tough situation.

More than one in four homeowners owes more on their mortgage than their home is worth. On top of that staggering statistic is the fact that millions of homeowners are unemployed, or underemployed and falling further behind every month.

Sound familiar? Rest assured you are not alone. 

If you feel that you are headed toward foreclosure, or if you are avoiding facing that fact, the sooner you reach out for help, the better your options.

As a CDPE agent, I help distressed homeowners to work through every aspect of the denial and discouragement that accompanies a mortgage which is no longer manageable, and in the process, to move toward financial solvency.

If you or someone you care about is ready to tip the scales back toward financial solvency, contact me today and let’s get started.

Rob Sales
Prudential Southeast Coastal Properties
Associate Broker, CDPE Advance,
DPP, REO Specialist, CIAS
912-655-7674

Real Homeowner Story #3: A Miracle in the Form of a Red Envelope

For homeowners who are in danger of losing their home to foreclosure, it is common to feel like you are alone and that there is no one to help. This simply isn’t true. There are real people who have been in the same situation who have found solutions. Take, for example, Punipuao W. of Hawaii.

Punipuao found herself struggling to keep her home after her husband passed away.  “With only my income, I was no longer able to make my monthly mortgage payment,” she said. Faced with the prospect of losing the home she and her husband had bought together, she began looking for alternatives to help her keep the home.

 She pleaded with the bank for relief, “but their responses gave me little information and even less hope.”

 The prospect of losing the home she and her husband had shared for over 20 years was difficult. “I was so distraught,” she said. “I did not know where to turn.

 “Then, one day, my miracle came through a red envelope in the mail.”

In the envelope was a note from a local real estate agent with the Certified Distressed Property Expert designation (or CDPE). This designation meant that the agent was trained specifically to help people like Punipuao. She called the agent.

“About four hours after I made the call, he was at my door offering help. I told him my story.” In merely two days, she received a call from the bank saying that the president of the bank was reviewing her file. “That was a good sign,” she said.

A few days after that, Punipuao had been approved for a trial loan modification. “There were many tears of gratitude at the miracle that came to me in the form of my agent. I thank god for sending me that miracle.”

Punipuao’s story is just one of many. I have a report entitled “From Foreclosure to Freedom” which tells other stories of real homeowners who faced foreclosure and found relief. Download the report, read the stories, and then contact me for a free, confidential consultation.

Rob Sales
Smart Short Sales-Providing Dignified Solutions

CDPE Advance, DPP, REO Specialist, CIAS
912-655-7674

Prudential Southeast Coastal Properties - Savannah, GA   Associate Broker

 

 

 

 

 

Prudential Great Smokys Realty - Sylva, NC      Broker 

Real Homeowner Stories #2: A Fresh Start

For homeowners who are in danger of losing their home to foreclosure, it is common to feel like you are all alone and that there is no one who can help. This simply isn’t true. There are real people who have been in the same situation who have found solutions. Take, for example, Dan and Jessica M. of Grand Blanc Township, Michigan.

For Dan and Jessica, their homeownership dream always involved building a house on a piece of land. “We build a house on half an acre,” said Dan.

 In order to achieve their dream, they stretched a little beyond what they were comfortable with by getting two adjustable rate mortgages, a common practice at the time. “The introductory rates were 8.5% and 11.5%, but our lender said, ‘Don’t worry, you can refinance after two years.’”

 For a while, they were getting by. Then, a couple of things happened. “We had our first child, and soon afterward, Jessica lost her job,” said Dan. “Soon, bills started piling up.”

Because they believed they’d be able to refinance, they started paying their bills on credit cards. “We hung on for the full two years hoping we could refinance at a lower interest rate, but when the time came, our lender said no because our home’s appreciation was too low.”

 Dan and Jessica needed help. A friend referred them to a real estate agent who was a Certified Distressed Property Expert®. The agent answered their questions. Most importantly, the agent explained the difference between a foreclosure and a short sale. In a short sale, the bank agrees to allow the home to be sold for less than the amount due on the loan.

 “With this information, we were able to decide that a short sale was our best option.”

 It was a stressful process, but the agent helped them tremendously. She even kept a potential buyer from walking when the process was taking longer than expected. “Honestly, if it weren’t for her, the buyer would have left and we’d have been stuck.”

 Dan and Jessica’s story is just one of many. I have a report entitled “From Foreclosure to Freedom” which tells other stories of real homeowners who faced foreclosure and found relief. Download the report, read the stories, and then contact me for a free, confidential consultation.

 

Rob Sales
Smart Short Sales-Providing Dignified Solutions

CDPE Advance, DPP, REO Specialist, CIAS
912-655-7674

Prudential Southeast Coastal Properties - Savannah, GA   Associate Broker

 

 

 

 

 

Prudential Great Smokys Realty - Sylva, NC      Broker 

Real Homeowner Stories: It All Started with a Miscommunication

For homeowners who are in danger of losing their home to foreclosure, it is common to feel like they are alone and that no one can help. This simply isn’t true. There are real people who have been in the same situation who have found solutions. Take Lian S. of Lakewood Ohio, for example.

For Lian, her financial troubles began with a miscommunication.

Lian and her husband had just had triplets who were born extremely premature. “I was on bed rest months before they were born and they had to remain in the hospital for four months afterwards.

Despite the difficulties, they were still making their payments. “We had never been late on our mortgage since purchasing the house. Then I called my lender to push back our payment date a week or two to better align with our earning schedule,” she said.

The bank went even further, offering them a trial loan modification to help lessen their payments. “We were placed in the trial program while they processed our application for the program,” said Lian.

Unfortunately, a mixup with the paperwork at the bank caused some issues. Even though the loan modification department was processing their application, all the collections department knew was that they were making payments for less than they owed. “We were getting collections calls, but our bank told us to ignore them.”

 Then, the worst-case scenario happened. After months of processing, the bank told them that they didn’t qualify for the loan modification and that they would have to come up with the $12,000 they missed on their original payments.

 “We couldn’t come up with the money,” she said. “At that point, we realized that even though we loved this house, we’ll unfortunately need to move out.”

They had done their research and knew that a short sale was probably their best option. They sought out an agent who was knowledgeable about short sales. The agent, a CDPE®, got the foreclosure proceedings halted immediately. “She was an expert in the field of short sales and knew all the ins and outs,” said Lian.

The agent sold the house and Lian and her husband feel grateful. “We try and look at the positives,” she said. “We got out of the shadow of the bank and foreclosure, and we have three healthy children. Beyond this, we just let the negative roll off of our backs.”

Lian’s story is just one of many. I have a report entitled “From Foreclosure to Freedom” which tells other stories of real homeowners who faced foreclosure and found relief. Download the report, read the stories, and then contact me for a free, confidential consultation.

Rob Sales
Smart Short Sales-Providing Dignified Solutions

CDPE Advance, DPP, REO Specialist, CIAS
912-655-7674

Prudential Southeast Coastal Properties - Savannah, GA   Associate Broker

 

 

 

 

 

Prudential Great Smokys Realty - Sylva, NC      Broker 

 

   

5 Ways to Beat Foreclosure!

In the news, there is talk of a housing recovery. Experts feel more optimistic about the state of housing industry in America. However, if you or someone you know is one of the millions of homeowners who is stuck with a home on which you owe more than the property is worth, the feeling of helplessness can be overwhelming and frustrating.

 

Many people don’t realize that just because they are in danger of losing their home to foreclosure doesn’t mean they have to wait around for it to happen. With help, they can take matters into their own hands.

 

YOU HAVE OPTIONS!

 

As a Certified Distressed Property Expert (CDPE), I make it my business to know all of the ins-and-outs of the options available for people who are in danger of losing their homes and help them meet challenges head-on.

1. Reinstatement

Was the reason you missed your payments temporary and now the issue has been resolved? If you can make a one-time payment that includes all missed payments, legal fees and late fees, you are eligible to be reinstated back into your loan agreement.

2. Mortgage Modification

In some cases, you may be eligible to modify your loan in a way that reduces principle or lowers payments. Some of these programs vary from bank to bank, but there are also government-sponsored programs that are available to help homeowners in distress

 

3. Refinance

 

If you have enough equity in your home, refinancing may help you get back to more affordable payments. This will be determined by whether or not you are current on your loan, how much the property is worth and your credit.

 

4. Bankruptcy

In some cases, bankruptcy is an option. It may stop foreclosure and allow you to reorganize your debt. The stoppage is only temporary, however, and if you are still unable to make payments after the bankruptcy, the foreclosure will go through. It also makes a property much more difficult to sell.

5. Short Sale

You sell your property for less than it is worth and the bank, realizing that some money is better than no money at all, agrees to release you from your obligation to the remainder of the loan. In some cases, you are able to walk away from the loan clear of any obligation.

For more information regarding your options, contact me!

Rob Sales

Smart Short Sales-Providing Dignified Solutions
CDPE Advance, DPP, REO Specialist, CIAS
912-655-7674

Prudential Southeast Coastal Properties - Savannah, GA   Associate Broker

 

 

 

 

 

Prudential Great Smokys Realty - Sylva, NC      Broker 

 

 

 

Why Homeowners are in the Driver's Seat

 

There are a number of trends affecting today’s market in dramatic ways. Historically low interest rates are driving more and more people to buy homes, but there are not enough homes on the market to meet that demand. The result is that prices are increasing at an incredible rate.

This puts homeowners in an incredible position because you have something that people want! Not only that, but these trends are unlikely to continue at their current pace they for much longer. I want you to have all the details about your situation so that you can make the most informed decision.

If you have been waiting to sell your home, especially if you or someone you know is having difficulty with their mortgage, it is time for you to start exploring your options because your home may be worth significantly more than you realize. The important thing is to know where you stand.

Do you know what your home is worth today? What are homes in the area selling for? These are all questions to which the answers have changed significantly in the last few months, and knowing your specific situation will help you make more informed choices.  I have a report which explains in detail why prices have gone up and why your home might be worth more than you think! The report is entitled “What They Didn’t Say: The Truth About Your Home and What Big Media Hasn’t Told You,” and I believe you’ll be surprised by when you download and read the report. Once you are done, contact me today for a free market analysis.

Rob Sales

Smart Short Sales-Providing Dignified Solutions
CDPE Advance, DPP, REO Specialist, CIAS
912-655-7674

Prudential Southeast Coastal Properties - Savannah, GA
Associate Broker

Prudential Great Smokys Realty - Sylva, NC
Broker

   

More Housing Investment Trend News

From CNBC, Diana Olick reports latest real estate investment trends.  I am a Certified Investor Agent Specialist (CIAS)  and can provide you with the tools and information whether you are looking to avoid foreclosure, or investing in the housing market.  Foreclosure sales are on the rise and investors are waiting to pounce on the opportunity.  Contact me for more information.

 

New Housing Barons Widen Their Sights and Bets

 Published: Thursday, 2 May 2013 | 10:16 AM ET

By: Diana Olick CNBC Real Estate Reporter

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Hedge Funds As Landlords

Thursday, 2 May 2013 | 11:25 AM ET

Hedge fund managers are shifting strategies to make more money on foreclosures, reports CNBC's Diana Olick.

As home prices rise, there are fewer bargains in single family homes, but not fewer investors. Their ranks and property portfolios continue to grow. Last month Five Ten Capital, a Piedmont, California-based asset manager, inked a one hundred million dollar deal with Deutsche Bank to open a new fund to buy and manage single family rental homes, expanding Five Ten's range to Texas and Missouri.
"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.

Unlike the "flippers" of the last decade, today's investors in single family homes have a longer-term strategy. They buy largely with cash and seem intent on growing their portfolios, rather than recycling them. While some credit these bulk buyers with saving the housing market, they seem uneasy with that characterization.
(Read More: Map: Tracking the US Real Estate Recovery)
"I think investor activity has accelerated the recovery, but I don't think investor activity is responsible for the recovery," said Rick Sharga of Carrington Mortgage Holdings, a Connecticut-based group that invests in distressed homes and distressed mortgages. "If all 10 billion dollars of investor-announced funding had been spent last year, what percentage of the $1.7 trillion in mortgages written would that have accounted for? It's a rounding error really."
But these investors did help to clean up much of the distress created by the housing crash, especially in the hardest-hit markets, like Phoenix, Las Vegas and parts of California. Investors still accounted for 53 percent of home purchases in Las Vegas in March, according to DataQuick. Multi-home buyers bought 647 homes in the Las Vegas area in March, which amounts to 14.4 percent of all homes sold—a 20 percent increase from March of 2012.
There had been concern that as home prices rose, these investors would dump their homes back onto the market, and reverse the recovery. That is not the strategy, at least not yet.
"Investors aren't going to dump a lot of properties into a market and run the risk of losing money or devaluating the rest of their portfolios," noted Sharga.
They may not be selling, but some are changing their strategies, as they search for higher yields.
"We're not buying a lot [of homes] right now. We think the market is a little bit too frothy. We're very, very particular about our model and what we will buy," Sharga said. "We've been very active in the non-performing loan market. We'll look at other trades that don't have same kind of high-volume competition that artificially drives up some of those prices."

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Find personalized rates: Bankrate.com

Los Angeles-based Colony Capital, which boasts approximately ten thousand single-family rental homes in its portfolio, had centered its investments largely in the Southwest and West, but is now shifting to other markets.
(Read More: US Pending Home Sales Tick Upward in March)
"In terms of our mix, less is going to Arizona and California today," said Justin Chang a principal at Colony. "Our mix is increasing on east coast, Georgia, Florida, we're active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio."
Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.
"On home building, there's a lot of chatter about that. We are in some conversations with builders," explained Chang, who admits the economics have not been compelling yet. "Over time you'll see more and more of these transactions, and we may do one as well."
Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called "Mom and Pop" landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.
"If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant," said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. "We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes."
(Read More: Next Boom? 'Spec' Homes Are Back)
There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.
Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.
"If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it's going to take longer for that to recover," said Bloemker. "We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors."
—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC—CNBC's Stephanie Dhue contributed to this story
Questions? Comments? RealtyCheck@cnbc.com

5 Most Dangerous Mortgage Relief Scams

Since the beginning of the housing crisis in 2008, millions of homeowners have found themselves owing more on their mortgage than the home is worth. For homeowners in this circumstance, there is a lot to worry about. They not only have to worry about losing their homes, but they are also susceptible to fraud.

Unfortunately, the mortgage crisis has opened the door for fraudsters to take advantage of homeowners in distress. This is more common than most people realize because much of the fraud is well disguised and can seem legitimate.

For people in this situation, the best way to avoid the most common types of Mortgage Relief Fraud is by consulting professionals who are specifically trained to deal with distressed homeowners. If you or some­one you know is in this situation, don’t be the next victim.

From Interthinx Mortgage Fraud Report from Q4 2012:

The top 5 states for mortgage fraud in 2012 were:

NEVADA

ARIZONA

FLORIDA

NEW JERSEY

CALIFORNIA

• The state with the lowest amount of mortgage fraud in 2012 was Kansas
• The metropolitan area with the most mortgage fraud in 2012 was Cape Coral-Fort Myers, FL.
• California experienced the greatest decline in mortgage fraud reports in 2012v.
• All 50 states reported some incident of mortgage fraud in 2012

There are 5 common ways that con artists and scammers will try to take advantage of you.

Learn about these so that you will know what to watch out for:

 

#1 CHARGING YOU UPFRONT

One of the most important things that distressed homeowners need to remember is that they should never be asked to pay anything up front. Period. In fact, the only people who should ever ask you to pay any money at all is the lender that owns your mortgage or servicer who collects for the lender. Even a real estate agent will only make money off the commission that comes after a sale is com- plete. If someone asks you to pay them money to help you out of your situation, be very suspicious.

#2  GUARANTEES

No one can guarantee to save you from your mortgage troubles. While there are more solutions today than ever before, avoiding foreclosure is still a difficult process. A qualified agent can give you advice and help you through your options, but if someone guarantees you success, chances are they are trying to take advantage of you.

#3 CHARITY OR GOVERNMENT AFFILIATION

While there are housing relief charities that exist, a common fraud tactic is for the con artist to pre- sent themselves as a non-profit or a representative of the government. They will also use seals and government names to make them seem more legitimate. Be leery of anyone approaches you like this and speak to your lender before you take any action.

 #4 ASKING YOU TO TRANSFER YOUR DEED

Under no circumstances should you transfer the deed to your property to anyone but the bank that owns your mortgage. Some people will ask you to do this under the promise that they will save the property. The problem is that once you sign the deed over, you forfeit all legal rights to the property.

 
#5 ADVISING YOU TO STOP CONTACTING YOUR LENDER

In any circumstance, your lender will ultimately make the decision as to what housing relief options you will be eligible for. When scam artists ask you to stop contacting your lender, they are doing so specifically so that you will be uninformed and forced to rely on them. Never cut off contact with your lender. Not only will you be uninformed, it will actually make it more difficult to come up with any solution at all.

 

It can seem daunting, but despite the fact that there are people who may seek to take advantage of homeowners in this circumstance, the situation isn’t hopeless! The fact is that there have never been more options for distressed homeowners than there are today. The banks and the government have been aggressive in creating alternatives for homeowners in danger of losing their homes.

 

One of the most common options is a short sale. This is when the bank agrees to allow the home to be sold for less than the amount owed on the mortgage. Banks have become increasingly willing to take this option because the amount of money the home sells for is typically greater in a short sale than at a foreclosure auction.

 

For homeowners, a short sale is often the best solu­tion because it can be much better for their credit than a foreclosure and many times they can walk away from the home without the financial burdens that will make it difficult for them to move on.

 

As a Certified Distressed Property Expert, or CDPE, I have been specifically trained to help homeowners learn what the best solution for them is, and I can also help them avoid the common scams above. It is my mission to help as many homeowners as possible.

Rob Sales

Smart Short Sales-Providing Dignified Solutions Prudential Southeast Coastal Properties
Associate Broker, CDPE Advance,
DPP, REO Specialist, CIAS
912-655-7674