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Distressed Property HELP!!

by Doug & Gwen Campbell at Sun Bay Associates

The current market is in such disarray and so may people are in trouble, we decided to post this on the Sun Bay blog.  In today's real estate market, about 1 in 10 people are in some stage of foreclosure, whether it is a late payment, or 2 or 3, or the bank has served papers on them as a precursor to actual foreclosure and auction of their homes.  Or they know someone who is.  According to the St. Petersburg Times, 51% of the homes in the Tampa Bay area have mortgages that are greater than the current value of the home, today, in 2009.  In September, lenders filed 4,586 new foreclosure lawsuits against Tampa Bay homeowners and the banks auctioned or repossessed another 2,100 homes.  This is a familiar story month after month in the Tampa Bay area and many other parts of the country as well.

Because of this, I have earned the credential of Certified Distressed Property Expert and have the knowledge and expertise to help many people who are having these issues.  If you know anyone who is behind on their mortgage, or anticipates being behind, have them go to my website, www.sunbaystopsforeclosure.com, that specializes in educating people about distressed property with up-to-date and accurate information.  There is no cost or obligation to them to check it out.  And if they do decide they need help, there will be no fees.  We will consult with them to help them find the best possible resolution for their distressed property, from a loan modification to short sale and several other avenues to help avoid going to foreclosure.

I want to help, and in many cases I can help. 

Certified Distressed Property Expert

by Doug & Gwen Campbell at Sun Bay Associates

DOUG CAMPBELL EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE

 

Doug Campbell of Keller Williams Realty, Palm Harbor, has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

 

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

 

In the Tampa Bay area, nearly half of all homes for sale are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

 

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Campbell. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

 

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Doug Campbell with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

 

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

 

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

For more information, contact Doug directly at 727-741-4189 or by email at [email protected].

Foreclosures-Record New Highs

by Doug & Gwen Campbell at Sun Bay Associates

Recently, RealtyTrac, the leading online marketplace for foreclosure properties, in its April U.S. Foreclosure Market Report, said that foreclosure filings were at 342,038 properties in the US during the month of April.  One in every 374 U.S. housing units received a foreclosure filing in April, the highest monthly foreclosure rate posted since RealtyTrac began issuing it report in January 2005.

James Saccacio, CEO of RealtyTrac, said this April was slightly above the previous month, setting another record high.  Much of this activity is in the early stages of foreclosure, while bank repossessions, or REOs, were down to the lowest level since March 2008.  Mr. Saccacio suggested that this means the banks are beginning to initiate foreclosure on loans that had been delayed by legislative and industry moratoria.  It also means that later this year we can expect to see a spike in REOs as loans move through the foreclosure process in the next few months.

Unfortunately, Florida had a 37 percent month over month increase in foreclosure activity and this boosted the Florida foreclosure rate to the second highest among the states in April. One in every 135 Florida housing units received a foreclosure filing in April.  This is more than 2.7 times the national average.  The total Florida foreclosure activity is up 75 percent from April 2008.

Despite all the doom and gloom, this is definitely a buyer's market in Florida.  Mortgage rates are at record lows, for at least a generation, of as low as 4.75%.  There is the first time homebuyer tax credit of up to $8,000.  And there is a lot of housing available at very low prices.  The banks are lending to qualified buyers.  For first time homebuyers, there may never be a better time to buy the home that just two years ago seemed totally out of reach.

Bank of America revises short sale policy

by Doug & Gwen Campbell at Sun Bay Associates

One of the nation's biggest mortgage lenders, Bank of America, has said it is loosening its policies on short sales.  This announcement came as a response to the U.S. Treasury Department'sannouncement last week that is would increase incentives for lenders to work out short sale deals.  With the number of short sales in Florida and especially the Tampa Bay real estate market, this is a very good step in the right direction to reduce the number of houses on the market that are subject to foreclosure.

David Sunline, a Bank of America real estate management executive, says this action is a boon to banks because it provides guidance when there are multiple liens, which is a potentially litigious issue for lenders.

In the past, the bank followed Fannie Mae's policy of giving second lien holders about 10 percent of the second mortgage in a short sale.  Now, when it holds the second lien, BofA will accept 5 percent of the net proceeds of the short sale, Sunline says.  When BofA is the first lien holder, it will offer 5 percent to the holder of the second lien.

Mr. Sunline says homeowners considering short sales should contact the bank within five days of getting an offer on the home and expect its cooperation as long as the offer is within the range of other sales in the area and the borrower can demonstrate financial hardship.

Article Source: The New York Times.  Bob Tedeschi.  5/15/2009

Deed in Lieu of Foreclosure

by Doug & Gwen Campbell at Sun Bay Associates

Basically, a deed in lieu of foreclosure is the action a homeowner takes to give his/her house back to the lender in exchange for being forgiven the debt of the mortgage.  When considering a deed in lieu, be sure that the lender will accept it, and get the acceptance in writing.  As part of the written agreement, have the lender agree to forgive any amount that is not covered when the house is later sold by the lender.  Some experts believe that a deed in lieu looks better on a credit report than a foreclosure. 

 

From a lenders perspective, this is an act of last resort because banks really do not want property that needs to be maintained and hopefully resold.  The banks really want cash so they can continue to issue loans. Some lenders require that the house be placed on the market for at least three months in a good faith effort to sell it.  Many lenders will not consider a deed in lieu if there are other liens on the property. 

 

Another issue to cover in detail with the lender is to see how the lender will deal with the outstanding balance due.  Will the debt be forgiven or will the lender provide, in writing, assurance that it will not sue the homeowner for the balance at a later date.  Some lenders will keep the mortgage and not cancel the debt until the property is resold.  Be sure you know all the details of any agreement concerning the mortgage, your debt and what the lender is, in fact, agreeing to.

 

A short sale is preferable to a deed in lieu because in a short sale, the bank has agreed to forgive the difference between the sales price of the home and the amount owed to the bank, and the property is sold outright, freeing the homeowner from further obligation to the bank.  A short sale also frees up funds for the bank to lend instead of having to manage a piece of real estate.

 

As with short sales, it is wise to determine the impact a deed in lieu may have on your tax obligations before entering into any agreement.

 

For legal advice, consult a real estate attorney in your area. 

 

To learn more about short sales or other solutions to your real estate issues, visit www.EquityOptionsGroup.com or visit www.YourHouseOptions.com.

 

Remember, you have options.

 

Call Gwen at 727-939-1515 or Doug at 727-741-4189.

Or email [email protected] or [email protected]

Short Sales Explanation

by Doug & Gwen Campbell at Sun Bay Associates

Last time we talked about the merits of a short sale vs. a forebearance of mortgage.  Today we will go into the short sale process a bit.

 

The short sale option is something that most borrowers do not know about and many realtors do not want to deal with because of the length of time to complete such a transaction.  Under the best of situations, a short sale can take three months to complete and it is not unusual for a short sale to drag on for five or six months before closing. 

 

In the past, a bank would require that the borrower/homeowner, be behind by several months before even considering a short sale.  However, due to the changing market and the simply overwhelming number of houses in pre-foreclosure or outright foreclosure, some banks are accepting a short sale transaction before the homeowner is actually in arrears.  There are several items that must be provided to the bank to get a short sale approved.  Among these items are the previous two years tax returns, pay stubs for the past 2-3 months, bank statements for the past 2-3 months, a financial worksheet showing all assets and liabilities, including monthly payments, all sources of income and more.

 

A key advantage to a short sale, especially when considering foreclosure, is that a short sale might not tarnish your credit rating, where a foreclosure can affect your credit rating for seven years or much longer.

 

There are short sale specialists available to guide you through the process.  It may take 3 to six months or even longer, depending on the bank, but the time and effort may be worth it for the homeowner whose alternative is foreclosure.  To learn more about if a short sale is the right option for you, contact a reliable realtor and ask for a review.  If you want to get a jump start and find out if a short sale may be the option for you, go to www.YourHouseOptions.com.  Your inquiry will be handled with the utmost respect and integrity.

 

Next time we will address a deed in lieu of foreclosure.

 

Remember, there are always options.  Foreclosure does not have to be the only way out of a temporary financial difficulty.

Merits of forebearance vs. a short sale

by Doug & Gwen Campbell at Sun Bay Associates

 

Last time we talked about the forebearance of mortgage agreement.  Today we will briefly address the merits of forebearance compared to a short sale.  For specifics, be sure to consult a real estate attorney in your area.

 

The biggest benefit to a forebearance agreement is the postponement of the monthly mortgage payment and the potential to keep the house if all agreed payments can be made.  However, if the borrower cannot make the agreed payments, and repay the delinquent balance within two years (or the agreed time frame) the house will still go into foreclosure.  Also, interest continues to accrue on the outstanding loan during the forebearance period.

 

The main benefit of a short sale is having the bank agree to settle the mortgage for less than the amount owed.  This may even preserve the borrower-homeowner’s credit rating.  The greatest disadvantage to a short sale is that because it is dependent on the bank to approve acceptance of an offer for less than the amount owed on the mortgage, this process may take months.  The borrower’s credit rating may be negatively affected, but usually for two years or less as compared to seven years or longer for a foreclosure.

 

Next time, we will address the short sale process in a bit more detail..

 

Remember, there are options to foreclosure.  To learn more about a short sale, visit www.YourHouseOptions.com.

 

 

 

Forebearance of Mortgage Agreement

by Doug & Gwen Campbell at Sun Bay Associates

Forebearance agreement

 

Previously, we talked about different options to avoid foreclosure on a mortgage.  Today we will address a forebearance of mortgage agreement.  This is not a definitive discussion and we strongly suggest you consult with an expert in your area. 

 

A forebearance agreement is only one of several ways to avoid foreclosure.  It is simply an agreement between the bank and the borrower or homeowner to delay payment of the monthly payment for a specified amount of time.  The borrower usually has to be able to make a payment of at least 50% of the delinquent amount and can pay back the full amount due within two years.  If there is a lot of equity in the house, the borrower might be able to refinance the house to cover the amount due.  Refinancing could salvage the house, but is very likely to result in a much higher interest rate on the new mortgage.  The higher interest rate may be worth it to save the equity in the house.  Of course, if there is little or no equity in the house, refinancing is not likely.

 

Unfortunately, national statistics show that it is very likely that the borrower/homeowner who has fallen behind on the present mortgage is going to default on the new note within just a few months to a year.

 

Next time, we will address the relative merits of seeking a forebearance agreement or going with the short sale option.  To learn more about the short sale option to avoid foreclosure, visit www.YourHouseOptions.com.

Displaying blog entries 11-18 of 18

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Photo of Gwen and  Doug Campbell - The Campbell Team Real Estate
Gwen and Doug Campbell - The Campbell Team
at Keller Williams Realty
30522 US Hwy 19N, Suite 107 S
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908