Are you and your family facing financial challenges and thinking about the possibility of foreclosure or a short sale? Before you head down that route, make sure you contact your lender to discuss a loan modification! Remember, they do not want to own your home.
Watch out for offers to help you save your house and avoid foreclosure!
If you decide that a short sale is right for your family, give me a call, and I can help you navigate the process, making it as easy as possible! You can reach me at 971.227.6871, and ask for Heather.
In addition to the common short sale questions, below are a few key points that most home owners may find useful.
1. 1/3 of all short sales will never close. Why? Some homeowners have too many assets, are not willing to contribute or they are unwilling to cooperate with the lender. If there is a junior lien-holder, they often times require a financial contribution in the form of cash at close or a note in the amount of 10% to 20%. (I recently got one of my short sales approved in which the lender asked the homeowner to hold a note for a small percentage of the deficiency amount. They offered her a 60 month note at 0%.) In addition, there may be H.O.A. liens, child support liens or tax liens that stand in the way of accomplishing a short sale. Most lenders will NOT pay delinquent H.O.A. dues. Therefore, I advise all of my sellers to reach a settlement with the home owner™s association BEFORE proceeding with a short sale. If you are attempting to obtain short sale approval, make sure you continue to pay your H.O.A. dues even if you can not afford your mortgage payment.
2. Often times you will receive a 1099-C which is a cancellation of debt. When filing your taxes, the deficiency amount on the 1099-C form must be claimed as income. Because you never paid the debt back, it is considered money that you gained. However, sometimes we can negotiate with the lender to settle the debt and consider it paid in full, even if you haven™t fully repaid them. If the lender agrees to settle the debt, we can also attempt to make sure that the lender doesn™t report the remaining amount you owe to the IRS. Unfortunately, I can not negotiate these terms until I have an approval which usually takes a few months. Once I receive the first approval letter, I will go back and attempt to negotiate credit reporting and IRS reporting with the lender. Once I have the final approval letter from the lender, I always always always advise my clients to consult his or her attorney AND tax professional before moving forward.
3. You do not always have to be delinquent on your mortgage payments in order to pursue a short sale. I just received an approval on a short sale I was processing for a client who had never been late on a payment. At this moment in time, it is difficult to obtain a short sale approval when the home owner is current on mortgage payments. However, short sale guidelines and regulations are shifting towards allowing short sale approvals in which the home owner is current. In the near future, you will start to see more and more short sale approvals where the home owner is current on payments.
4. Fannie Mae guidelines are strict when it comes to purchasing your next home. If you are planning on purchasing a new home in the next couple years, I would strongly advise you to pursue a short sale if you are facing foreclosure and a loan modification is not possible. Fannie Mae will give you access to every one of their loan products after 24 months if you pursue a short sale. If you experience a foreclosure, you will NOT be eligible for any Fannie Mae product for 5 years. Even after the 5 years, they will require you to have at least a 680 credit score and 10% down.
Commonly asked short sale questions:
· Can I still pursue a short sale if I pulled a Home Equity Line of Credit? Yes, but be prepared to pay cash at close or hold a note for at least 10%. H.E.L.O.C. lenders will usually always hold tight to a minimum of ten to twenty cents on the dollar.
· Does working a short sale stop the foreclosure process? Absolutely NOT! Lenders will not always postpone foreclosure proceedings.
· Does the Lender pay seller concessions? Most of the time, YES. However, if they refuse for some reason, the buyer must pay his or her own closing costs, pro-rations and prepaid items.
· Can I still pursue a short sale if I already worked out a loan mod with my lender? Of course, many loan modifications fail anyway. Mortgage servicers are highly motivated to avoid foreclosure.
· Once a short sale is approved, can the lender pursue me in the future? Possibly. Watch for recourse debt statements in the approval letter. If your realtor knows what they are doing, they will recommend that you have your attorney review the approval letter. This is critical. Many lenders will wait 3 or 4 years before they attempt to pursue you. They know that you will most likely be back on your feet and collectible by then. Take my advice, have your attorney and tax professional review the approval letter before proceeding with a short sale. DO NOT close until your attorney has reviewed your approval letter and you have consulted your tax professional.
I know there are many people still struggling financially, and need to look at options regarding their mortgage on their home. Below is a government website link that explains loan modifications, as well as helps you figure out whether or not you qualify for a loan modification (under The Making Homes Affordable plan). You can also connect with a housing counselor on the web site as well. Click here to visit the site.
If you have worked through a loan modification or exhausted all your options with your lender without any alternative, a short sale may be a good fit for you. A short sale allows you to avoid foreclosure, and minimizes the impact on your credit score. Often times many families can purchase a home again within 2 years or less.
Call to confidentially discuss your situation, 971-227-6871.
Permission to speak frankly home sellers? How many times a day to you think I talk to a potential seller who says, “I want to wait until Spring to list my home, it really looks its best in the Spring time…” If everyone is thinking the same thing, can you see the advantage to listing your home now before all the other homes hit the market? Think supply and demand!
Call today for a personal consultation and a detailed overview of home prices and activity in your area.
Portlanders, I noticed that I am running into more and more home buyers who are not aware of some of the phenomenal programs in our area for buying a home. This is an amazing time to buy a home – not just blowing smoke here! I was listening to a powerful speaker the other day who was reviewing interest rate trends since the early 1900s. The mortgage interests rates today, YES TODAY, are the BEST INTEREST RATES EVER, HISTORICAL LOWS. Let’s look at a couple scenarios…
Check out the average net worth of a homeowner vs a renter:
Okay, time to get off my soap box, and share some fantastic resources for home buyers.
100% FINANCING PROGRAMS
Key Bank, click here for details.
- Can buy a home with as little as $500
- Minimum FICO score is 620. This is also true for their FHA and VA loans
- Income limits do not apply in Target Areas
- If you are under the income limit you can you this program in any area
- No First Time Home-buyer Requirement
- No Mortgage Insurance
And, the coolest of the cool, is that each Key Community Mortgage is manually underwritten. Aha! A lender that realizes that a person, and their life, cannot simply be reduced to a three digit number and an underwriter guideline.
USDA, click here for details.
The loan will come directly from the Federal Government or from lenders who have been approved by the USDA and backed by the government.
- $0 Down
- Applies to areas outside of Portland Metro
- No Private Mortgage Insurance
- Terms are up to 30 years allowing you to lower monthly payments
- Lower income families and those with blemished credit can qualify, click to see if a home qualifies.
Proud Ground, click here for more information
In exchange for a reasonable purchase price (about $60,000 to $100,000 less than a market-rate home), homeowners ensure that future buyers also have a chance to own an affordable home by limiting the home’s appreciation. This way, owners enjoy increasing property values and the other rewards of home-ownership – and they gain equity – while passing the affordability on to the next owner.
The Portland Housing Center, click here for more info.
There is a plethora of great programs here, a couple to make note of, the Individual Development Account Program (IDA) and The Home Sweet Home Program. An IDA is a 3:1 one matching program, they help you grow your down payment. The Home Sweet Home program is a grant for down payment funds. Click here for an overview of ALL the resources available.
Clackamas County has a number of resources available as well, and the Oregon Bond also offers cash towards closing costs. Of course, many of the programs have income limitation or qualifications a buyer must meet, yet so worth taking the time to explore. Keep in mind I am not a loan officer or mortgage broker, I am a real estate agent, I merely wanted to get the word out there about these programs.
My role is help you nab a great deal, please call today so we can grow your personal wealth!
Heather Brymer – 971.227.6871.
Check out the predictions for 2011, Q1, Q2, Q3, and Q4 mortgage rates.
Don’t wait for prices to rise and interest rates to rise. The real estate market is offering the most affordable market ever. Call me to get started! I can help find rare 100% financing programs, and down payment assistance programs. For a complete snapshot of the Economic Outlook, click here.
November Residential Highlights
The Portland Metro area market continued to show decreases in activity in November. However, while closed sales were the lowest since February of this year, they decreased by only 1% from the previous month. Pending sales were also higher than November of the past two years. Closed sales were down 28.7%compared to November 2009, but pending sales were up 7.4%. New listings dipped down 1%. Comparing the previous month of October 2010 with November 2010 shows closed sales decreased from 1,292 to 1,279 (-1%). Additionally, pending sales fell from 1,632 to 1,426 (-12.6%), and new listings dropped from 3,119 to 2,437 (-20.7%). At the month™s rate of sales, the 13,103 active residential listings would last approximately 10.2 months. Inventory in November is the lowest it has been since June of this year.
Visit http://www.BrymerHomes.com for the complete report, and click on “CURRENT MARKET CONDITIONS.”
Wondering what your home is worth in today’s market? Make sure you request your free market analysis.
OPEN HOUSE TUES 12/14 FROM 11-1PM & SUN 12/19 FROM 1 TO 3PM
100% FINANCING FOR QUALIFIED BUYERS, CALL FOR DETAILS!
This newer home is located in a quiet, well maintained subdivision, more info coming soon for 19336 Auburn Dr. This area offers easy access to local restaurants, shops, & parks. This home offers the MOST SF FOR THE $$, and is THE best deal in the area. It is owned by an EASY to work with homeowner, none of that short sale madness and endless waiting!
This well maintained home is move-in ready with designer colors, new carpet, and siding. There is EVEN an A/C-no worries here! The open, smart floor plan is complete with vaulted ceilings and a roomy master suite. The kitchen is right off the dining and living areas, which is perfect for entertaining or relaxing with the family. This home backs to a protected green space, guaranteed view.
Would you like to search all home in Oregon City? Oregon City Homes For Sale
Thinking about selling? Find out what your home is worth in today’s market. Free Home Analysis
First Time Buyer? Make sure you request your FREE COPY OF YOUR FIRST HOME.
11: By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!
10: You can sell now for more money and we will provide for a delayed closing.
9: Even though your house will be on the market, you still have the option to restrict showing during the six or seven days around the Holidays!
8: January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, you need to be on the market during the Holidays to capture that market!
7: Some people must buy before the end of the year for tax reasons.
6: Buyers have more time to look for a home during the holidays than they do during a work week.
5: Buyers are more emotional during the Holidays, so they are more likely to pay your price.
4: Houses show better when decorated for the Holidays.
3: Since the supply of listings will DRAMATICALLY increase in January, there will be less demand for your particular home. Less demand means less money for you.
2: Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
And the Number One reason why you should list during the Holidays…
1: People who look for a home during the Holidays are serious buyers! You do want the serious buyers looking at your home, right?
Call today for a free, no obligation consultation.