Posted by Annalisa Burgos | July 10, 2009
In this week’s vlog, I talk to real estate broker and attorney Tara-Nicholle Nelson about how homeowners who are struggling to make their mortgage payments can get their loans modified and avoid foreclosure.
You’ve heard about extending the loan, converting an ARM to a fixed rate mortgage, and reducing the interest rate, but what about loan forgiveness? Will the lender write off all or part of your loan? Do you need to hire a company or can you work directly with your lender and do it yourself?
Get more tips and advice about the loan modification process:
Posted by Annalisa Burgos | June 24, 2009
Real estate auction company REDC (Real Estate Disposition Corp.) works with lenders to sell thousands of foreclosure properties at auctions throughout the country. And in this market, lenders need all the help they can get to unload this excess inventory, quickly and efficiently. Note: REDC auctions are for bank-owned homes or REOs, and are not the same as the public auction, which takes place at the local courthouse.
On June 7, more than 1,200 bargain hunters attended an REDC auction in New York City, where 113 bank-owned houses in the tri-state area were sold for a total of $10 million in sales.
Watch the video to see what it’s like to buy a bank-owned home at an auction.
AUCTION TIPS:
1) Research. Before you buy at a foreclosure auction, do your research. Print out the auction brochure (if there is one), note the open house dates for the properties you’re interested in and see them in person. You more than likely will have to buy “as-is” and you won’t be able to get a home inspection done. When you visit the homes, look out for these 10 red flags for homebuyers.
2) Crunch the numbers. Estimate how much you expect to spend on home improvements on top of the purchase price, which includes a premium the auction company charges each buyer. If you’re an investor, subtract those expenses from the income you expect to generate from the home (rent) and decide if it’s a smart investment.
3) Register and be prepared. Each auction has different requirements, but all of them require you to register and bring a cashier’s check or cash for the required earnest money deposit. Many transactions are cash-only, but some auctions will allow you to finance the purchase through a lender, so get pre-approved beforehand so you know what your maximum bid will be.
For more tips on how to buy a foreclosure, go to www.frontdoor.com/foreclosures.
Posted by Annalisa Burgos | June 19, 2009
I’m in Washington, D.C., for a conference of the National Association of Real Estate Editors and got to hear from some of the key players in the federal government’s housing recovery efforts, including Housing and Urban Development (HUD) Secretary Shaun Donovan, Federal Housing Finance Agency Director James Lockhart and some of the congressional representatives on the banking and housing committees. We heard a lot about the Obama administration’s refinance and loan modification programs as well as the massive overhaul of the financial regulatory system.
Some of the notable stats from Thursday’s speakers:
–40% of those displaced by the foreclosure crisis are renters.
–16 mortgage servicers are participating in the federal government’s loan mod program. They handle about 80% of all mortgages.
–So far, 200,000 loan mod offers have been made under the federal program.
–Potential source of real estate growth is the rental market in college towns. That’s because each coming year, we’ll see a record number of high school graduates.
–Another potential demographic shift is the growing population of non-traditional households (”traditional” meaning a married couple with children).
Check out this video of HUD Secretary Shaun Donovan talking about the mission of Obama’s proposed Consumer Financial Protection Agency, a new watchdog agency that would protect consumers from the kind of predatory lending practices that got us into the current mortgage mess and foreclosure crisis.
Posted by Annalisa Burgos | June 16, 2009
Despite its name, a short sale is by no means a “short” process. But unlike what you may have heard, getting a short sale approved by your lender is not as hard as you may think — if your real estate agent knows what they’re doing.
In order to orchestrate a successful short sale, you need a master negotiator, says Troy Huerta, short sale division leader at Coldwell Banker Residential Brokerage in San Diego. “Many agents forgot how to negotiate. There was no negotiating in the past. You would list a home at a ridiculous price and someone would pay it.”
Those days are long gone. Home values are falling. Unemployment is at 9.4 percent. And according to RealtyTrac, there were more than 321,000 foreclosure filings in May, 18 percent higher than a year earlier. That’s expected to get worse.
But there’s a way to help ease this flood of foreclosures, Huerta says. Do more short sales.
In the past, lenders have been reluctant to do short sales. And why would they? They stand to lose a LOT of money. But the reality today is that if a lender doesn’t do a short sale, it may get stuck with a property that is harder to sell or will sell for less than it could have gotten. (A buyer is more willing to buy a short sale in good condition than a bank-owned foreclosure that needs a lot of work.) Not to mention the cost of pursuing the foreclosure process.
Even Fannie Mae felt short sales could help reduce foreclosures. It launched a pilot program pre-approving short sales for homeowners in Phoenix and Orlando.
Now, lenders should be more motivated than ever to get these deals done — as part of President Obama’s economic stimulus plan, the federal government will pay lenders up to $1,000 for each completed short sale or accepted deed-in-lieu of foreclosure.
READ HUERTA’S TIPS FOR BUYING AND SELLING A SHORT SALE…
Posted by Annalisa Burgos | June 11, 2009
RealtyTrac’s May foreclosure report is out, and as usual, the news is grim. Foreclosure activity is up 18 percent from a year ago. Even worse, most real estate experts are warning us about “shadow foreclosure inventory” which is set to hit the market later this summer. Oh yeah and the unemployment rate is at 9.4 percent. So if you think we’ve hit the so-called “bottom,” think again.
The good news is that President Obama’s stimulus plan seems to be working. Lenders are now more willing to work with struggling homebuyers to refinance or modify their loans or negotiate short sales, in which a house is sold for less than what the borrower owes and a portion of the loan balance is forgiven by the lender. Why would they do this? Because the federal government is giving them money to do this, and besides, better to sell and write off the loss now than deal with the foreclosure process and try to sell a property in crappy condition. I spoke to a short sale expert for Coldwell Banker in San Diego, Troy Huerta, who has some great insight and advice on the subject. Stay tuned for my blog post on that.
Meanwhile, FrontDoor Insider and Freak Out Prevention Specialist Tara-Nicholle Nelson is spreading the word about her Drama-Free Real Estate Guide, which provides concrete solutions to some of the most common issues consumers are facing today. Just in time! Situations like losing your job and trying to make your mortgage payment. Or you got preapproved and suddenly your lender says “no money for you.” Yours truly will post a vlog later taking you behind the scenes of our media tour.
Posted by Annalisa Burgos | March 20, 2009
Happy first day of Spring! In celebration of the traditional kickoff to the busiest season for real estate (and this one will definitely be busy, what with interest rates as low as 4.3 percent!), FrontDoor.com is bringing you helpful tips to make the most of your homebuying and selling experience.
Sellers, we know this may be a challenging market, but the good news is that you have the potential to showcase your home to a large number of buyers who are out in force trying to take advantage of low interest rates. If your home is in great shape and priced competitively, you’ll have every buyer’s attention. You may even spark a bidding war. Get your home ready with our Staging Tips for Spring and be sure to visit FrontDoor’s Home Selling Guide for more tips and advice on selling in a buyer’s market.
Buyers, you’re in a wonderful position! There are great deals out there. But before you start looking for houses, call at least three lenders, compare rates and terms, and get a preapproval. It’ll help you determine how much house you can afford. Check out our Home Finance Guide for more tips and advice on shopping for a loan.
If you’ve never owned a home, check out FrontDoor’s First Time Homebuyer’s Guide. We’ve broken down the entire process in simple terms, complete with checklists and worksheets, so you’ll know exactly to expect. Did you know there are cities suited for first time homebuyers?
And buyers and sellers, consider going green in honor of spring. FrontDoor’s Green Real Estate Guide is chocked full of information on how to make affordable green updates and how to find a “green” home.
Happy house hunting and selling!
Subscribe to this blog
Friend us on Facebook
Follow us on Twitter