Terri Parrish, David Fann, Sandy Borowiec, Jeff Broadbridge, Van Coley, Beverly Femia, Whitney Leonard, Cecilia Litvak and Polly Floyd with CENTURY 21 Sweyer & Associates have earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction.  REALTORS^® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS^® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR^® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS^® are required to take one core course and three Webinars.

If you’re facing foreclosure, there are options. Contact us in confidence today via email or by calling 1-800-848-0021 to speak to one of our Short Sales and Foreclosure Resource certified agents. We’d be happy to talk with you about your options no matter what stage of the foreclosure process you are in.Similar Posts:

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If you’re a homeowner that is facing foreclosure, I don’t have to tell you how scary and emotional your experience may be. Many fears may occupy your mind no matter what stage of foreclosure you may be in. It’s important to know what options may be available to you. Acting quickly can work to your advantage.

Here are two tips to help you if you are currently in negotiations with your lender.

Lenders can make it tough to get to the right people. The folks you want to talk to are in the “loss mitigation” department. But many lenders don’t routinely route borrowers to that department until they’ve missed several payments. Until then, you might be dealing with the lender’s collections department, which typically offers one option: Pay up now. If you’re serious about keeping your home, you may have to really push to get to right people.

You have to be able to make the payments. If you agree to a lender’s “workout” or “loan modification” solution and then fail to make the agreed-upon payments, you’ll be in a world of hurt as there will most likely be less options the next time around.

9 steps to getting out of this mess

Make a budget. Sketch out a spending plan for the next several months, including expected income and expenses. See what costs you can trim to free up as much money as possible for home payments. You may need to pay the minimums, or even less, on other debts. In certain very limited circumstances — such as when you are absolutely sure your financial hardship will be short-lived — it may make sense to skip payments on some bills so you can pay your mortgage. Read “How to not pay your bills” to learn about the consequences that may follow. Another option: borrowing money from friends or family, or tapping retirement funds. Do the latter only if you’re convinced you can make future payments; you don’t want to drain your retirement funds if you’re only going to end up losing the house.

Consider getting help. Legitimate credit counseling services, those associated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies, typically have housing counselors that can help you evaluate your options. Or you can find a housing counseling agency approved by the Housing and Urban Development Department by calling (800) 569-4287. If you have a Veterans Administration loan, you can call (800) 827-1000 to get a referral to a financial counselor.

Check your refinance options. If you have equity in your home, your credit rating is relatively intact and your lender hasn’t yet filed a notice of default, you may be able to get another loan with more affordable payments. An experienced mortgage broker, such as our preferred lender Alpha Mortgage, can let you know your options. Be cautious about jumping into another risky loan, though: adjustable, interest-only or “option” mortgages might just put off the day of reckoning and you could find yourself facing even higher payments down the road.

Be realistic. Many times people struggle to hang on to a house that they simply can’t afford when they’d be far better off without it. It’s far better to sell a home while you still have equity and some semblance of a credit score than to have it taken away in foreclosure. Contact one of our Real Estate Experts if selling your home is an option you’d like to explore.

Get organized. If you are going to try for a loan modification, you’ll need to prepare a small mound of documentation. The lender will specify what it wants, but typically you’ll need to supply the details of your financial situation, a budget, documentation of your hardship (a letter from your doctor explaining an income-reducing illness, for example, or your layoff notice from your employer) and a “hardship letter” that outlines, in heart-rending detail, the circumstances that led you to fall behind and the improved prospects that will allow you to get your financial life back on track. You may also want (or be required) to provide a market analysis of your house to document how much equity you have in your home. Request a free Home Market Analysis from one of our Real Estate Experts.

If a loan modification or refinance isn’t possible or feasible, your options come down to these:

Sell the house. If you have enough equity in your home to allow you to pay off your mortgage in full, after deducting any real estate agent commissions, then a quick sale is usually your best option. You’ll preserve what’s left of your credit score and your equity, leaving you in a much better position should you want to buy another home in the future. If you’re ready to sell, we can help.

Offer a deed in lieu of foreclosure. If you can’t sell the house for what you owe, but you’re not deeply “upside down” on your mortgage, this may be an option: you propose handing over the deed to your home and your lender agrees to release you from your mortgage. This usually keeps you from having to pay any deficit that might be owed on the property, while the lender avoids further legal costs related to a foreclosure.

Lenders can’t be forced to accept a deed, however. Typically, lenders require that the borrower make a really good effort to sell the home first and show that their delinquency was due to “unavoidable hardship” before they’ll agree to a deed in lieu of foreclosure.

Negotiate a short sale. If you owe substantially more on your home than it’s worth, you may be able to get the lender to accept less than it is owed by negotiating a “short sale.” You essentially sell the house for whatever you can get, and the lender agrees to accept the proceeds and not go after you for the deficit.

A short sale can further damage your credit scores, often showing up as a “settlement” that indicates you paid less than you owed. You may also face an IRS bill on the unpaid debt, which is generally considered income to you. A skilled negotiator may be able to avoid these consequences or at least minimize them, so you may want to consider getting an experienced attorney’s help. We have Real Estate Experts that are experienced in short sales and short sale negotiations. Let us know how we can help.

Allow the foreclosure to proceed. This is generally the worst choice. In some states and in some circumstances, the lender can even go after you in court for any deficit between what the house eventually sells for and what you owe. An attorney or housing counselor can let you know if that’s a possibility. Even if the worst happens, though, the damage to your financial life needn’t be permanent. If your situation improves, you may be able to get another mortgage, at a reasonable interest rate, within a few years.

If you’re facing foreclosure, know that you are not alone. One of our Real Estate Experts would be happy to meet with you privately to discuss your situation, your options, and explain how we can help you during this difficult time. Contact us at (910) 256-0021, (800) 848-0021, or email us for more information.

*Article adapted from this article at MSN Money Central.

For all things real estate, visit Century21Sweyer.com.Similar Posts:

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The buzz word in real estate today is foreclosures. It’s discussed in the news and at the water cooler, and many buyers are taking advantage of the deals found on the market due to the rise in foreclosures. If you’re considering a foreclosure or bank-owned purchase, the first step is educating yourself about foreclosures and the foreclosure buying process.

1- Understand the Foreclosure Process

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. It begins when a borrower/owner defaults on loan payments and the lender files a public default notice or a lis pendens (Latin for “lawsuit pending”), depending on the state.

Ultimately, the foreclosure process can end one of four ways:

• The borrower/owner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure
• The borrower/owner sells the property to a third party during pre-foreclosure, allowing the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history
• A third party buys the property at a public auction at the end of the pre-foreclosure period
• The lender takes ownership of the property, usually with the intent to re-sell. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction.

Read the Advantages and Disadvantages of Buying a Foreclosure.

2- Choose the Foreclosure Stage You’re Comforable With

There are different stages in the foreclosure process, and each stage offers unique advantages and disadvantages for the buyer. For instance, some buyers prefer buying bank-owned properties because they’re uncomfortable dealing with distressed homeowners.

Read more about the three bargain-buying opportunities:

• How to Buy a Pre-Foreclosure House
• How to Buy a House at Public Auction
• How to Buy a Bank-Owned Property (REO)

Read The Three Faces of Foreclosure Buying.

3- Contact a Real Estate Agent

If you’re a first-time homebuyer and you’ve never purchased a home, let alone a foreclosure property, a good real estate agent can be a helpful resource and guide you through the process of buying a foreclosure and drawing up a purchase agreement. Make sure they know your priorities. 

Find a CENTURY 21 Sweyer & Associates’ Real Estate Expert here.

4- Find Foreclosure Properties

The easiest way to find foreclosures is to view our online foreclosure property list or work with an agent. Our foreclosure list is updated every Monday morning. You can also look for notices of defaults and auctions in public records and local newspapers.

5- Check the Property Liens

A lien is a legal claim on a property by a lender or other entity that is owed money by the owner of the property. In addition to the outstanding mortgage balance, buyers need to be aware of other liens, which can drive up the purchase price. Examples include outstanding property taxes and unpaid repairs or remodeling done by a contractor. For tips on how to check liens, read how to check property liens.

6- Do the Math

Calculate how much you’ll need to sink into the property, outside of mortgage and tax payments. Necessary renovations, upgrades and other expenses can pile up and eat into your profit margin.

Use the return on investment calculator to determine your potential IRR (internal rate of return) on a property.

7- Research the Local State Foreclosure Laws

California and Texas, for example, follow non-judicial foreclosure process, which means that lenders are not required to go to court or file a lawsuit to repossess a home. Other states like New York and Florida require the lender to sue the borrower and get a court order to sell the property.

Click here to view the North Carolina state foreclosure laws.

8- Find Financing

Whether you use cash, a home equity line of credit, resources from other investors or mortgage products, secure the money for your purchase in advance. Sellers only want to work with serious buyers who are ready to buy quickly. You could miss an opportunity if you don’t have your financing in place.

• Determine how much you can afford. How much you can afford depends on the amount of cash you have on hand and the amount a lender is willing to loan you based on your credit rating, income and other factors. Use this calculator to see if you can afford the property.
• There are two rules of thumb:
  • You can afford a home that is up to 2.5 times your annual gross income
  • Your monthly principal and interest payments should equal one-fourth of your gross pay, or one-third of your take-home pay
• Try our mortgage calculator.
• Work with a lender who understands the foreclosure process, and can guide you through certain steps, such as ensuring that a property is FHA-compliant. Our preferred lender, Alpha Mortgage, can help.

9- Know Who to Contact and How to Approach the Owner

Depending on the property status, the seller will be the owner in default, the trustee (the person or party who is filing the paperwork to initiate and carry out the foreclosure), or the foreclosing lender.

Pre-Foreclosure Properties

During this stage, you’ll need to deal directly with the homeowner, who may or may not know that their home is being foreclosed. Homeowners in foreclosure are also under a lot of stress, making it difficult to negotiate a mutually beneficial deal. There may be very little time to complete a transaction, so be very careful during this period. For tips, read working with distressed homeowners.

Once you work out a deal with the homeowner, you have to convince the lender to do a short sale.
(Our Real Estate Experts have access to short sale properties listed in the MLS. Contact us for more information. )

If all goes well, the owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history, and you can realize discounts of 20 percent to 40 percent below market value.

Read How to Buy a Pre-Foreclosure Property.

Properties to be Auctioned

Before the auction, try working out a last-minute deal with the owner in default. Usually a property is scheduled for auction just a few weeks before the auction occurs, so move quickly if you want to contact the owner.

Auctions can be postponed or canceled anytime, so contact the trustee or attorney to confirm the auction details after you first locate the property and on the day before the property is scheduled for auction.

Read How to Buy a House at a Foreclosure Auction.

Bank-Owned Properties

During this stage, a lender now owns the property and sells it to recover the unpaid loan amount. The lender typically clears the title for any buyer. You may not get a steep discount, unless the bank is motivated to sell because of high inventories of REO (Real Estate Owned) properties.

Typically, a lender hands off its list of bank-owned properties to a real estate broker that lists it on the MLS. In these cases, contact the listing agent directly. If the house is not listed, contact the lender and ask for the REO department, bank-owned homes department or asset management department.

Read How to Buy a Bank-Owned Property (REO).

Government-Owned Properties

Many homebuyers get government-guaranteed financing. When homes that were bought with loans guaranteed by the Federal Housing Administration (FHA) or Department of Veterans Affairs (VA) go into foreclosure, they are repossessed by the government and then put up for sale by brokers that work for the government. Buyers who are interested in purchasing government-owned foreclosures need to use government-registered brokers to write the purchase agreement.

Many government-owned properties are already listed with a real estate agent. If you can’t find contact information for the listing agent, contact the government agency or a local real estate broker who specializes in REOs.

10- Make an Offer

Usually the offer amount is somewhere below the market value but above the total outstanding liens and estimated repair costs. If the property is a pre-foreclosure or bank-owned, you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search.

If the property is selling at auction, you will need to make your offer, or bid, at the auction. In many states, bidders are required to pay in cash in the form of a cashier’s check at the auction. You probably won’t be able to conduct a full inspection and title search when you buy at an auction, so it’s important to do careful research beforehand.

Our Real Estate Experts can help you weigh the pros and cons of a foreclosure purchase and guide you through the transaction. Let us know how we can help.

*Article adapted from http://www.frontdoor.com/Buy/Foreclosure-Guide-for-Homebuyers/1020.

Jeff Sweyer is the Owner and General Manager for CENTURY® 21 Sweyer & Associates. For all things real estate, visit Century21Sweyer.com.Similar Posts:

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