MN Shortsale

Homepath.com is Fannie’s Foreclosure Portal

Fannie Mae posts their foreclosured properties with a Realtor of their choice and also on http://www.HomePath.com.  What is cool about a Homepath property is that many times they will qualify for Homepath loans (requiring only 3% down) and no appraisal.  They also have a homepath Renovation loan.  There is a program called FirstLook, which allows certain selected developers and non profits to purchase these homes for rehabilitation first, so you might loose a home that is really a good deal. Still, don’t let this deter you.  I recently sold a home in Brooklyn Center that was a HomePath property.  It was pretty nice, just a little dirty. Because it was in very good shape, we were able to use FHA financing.  I’ve found that FHA financing is cheaper than Homepath with a minimum down payment.  We’ll have to see if that changes in the future.

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Short Sale Tips for Buyers

By Robin Husney

If you are in the market to purchase a home, you may want to consider buying a short sale. If you are not under any pressure to sell your current home, don’t have a time frame to move into another home and have good credit, you are the perfect homebuyer for short sales.

When a homeowner owes more money than their home is worth and needs to sell their home before succumbing to a foreclosure or because of a job change, the home can be sold through a short sale. This benefits the lender because they won’t have to go through the time, effort and money to put the home through the foreclosure process and it helps the homebuyer out because they are then able to put their home up for sale. This can only be done when the lender agrees to allow the home to be sold for less than is owed on the mortgage.

- Don’t let the name fool you. Short sales are typically anything but “short”. They can take several months to finalize. Because of that, you may want to continue looking at other homes while the short sale process is underway.

- While the buyer and seller determine the sale price, the bank makes the final decision on whether the price is acceptable or not. So, even if you and the seller agree on a price, the bank can come back and say “no”.

- Submit a realistic offer. Unlike traditional sales, submitting a low offer is not recommended. You can pretty much expect that a bank will reject a low offer right away. In fact, even a reasonable offer may not be accepted right away. By submitting an offer for what you legitimately want to pay for a home is the best thing to do on a short sale.

- Check out the neighborhood comps. Your REALTOR® can help you with this. You will be able to submit an appropriate offer if you know what other homes in the area are selling for.

- Homes are sold “as is”. While banks need to repair and clean up homes they are selling in foreclosure, a short sale isn’t held to those same rules.

- Banks make the rules. It’s up to the bank as to what they will accept as a downpayment, whether an offer is good enough for them, etc. There are no “rules” set in place for short sales. It really is up to the bank’s discretion.

It’s always a good idea to hire a specialist to help you with your short sale needs. They will work on your behalf to make sure that things run as smoothly as possible.

Robin Husney
Allen Tate Realtors
Charlotte, NC
704-517-6370 * http://www.robinhusney.com

Article Source: http://EzineArticles.com/?expert=Robin_Husney
http://EzineArticles.com/?Short-Sale-Tips-for-Buyers&id=4926498

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Selling Your Home Quickly in Today’s Real Estate Climate

By Adrian Hargray

Selling a home quickly in today’s economy has proven to be a tough thing to do. Nowadays you find homes on the real estate market for longer than 30 days and it can literally take months for it to sell. If this is the scenario for you and your home, then you will learn some home selling tips in this article that will prove to be beneficial to you.

To sell your home fast, you should never over complicate the process of doing so. You will want to renovate and repair your home accordingly so that it can show in the best favor to your guests. Make it a point to highlight the best features of your home so that potential buyers can understand it instantly.

Before putting it up for sale, make sure that necessary repairs have been made and that it is designed to sell. The interior of your home is important, but it’s also important that you fix up the exterior of your home also. When potential buyers arrive at your home, you want them to view your home in the most favorable light, therefore you should do your best to liven up the curb appeal of your home.

When fixing up and preparing your home for sale, you have 2 choices. You can either do it yourself or you can hire professionals to do it for you. If you do the work yourself, then you will be saving alot of money as opposed to if you hired professionals. But one thing that you should take note of is that if you’re not specialized to repair your house, the work that you do may be compromised by quality.

If you hire professionals, at least you know that the quality of the home won’t be an issue. The only thing that will be an issue is the money that you spend on the professionals. 8 times out of 10, the cost of hiring professionals is well worth it – so you should keep this in mind.

If you do hire professionals, one thing that you will want to do is hire a team to work on the interior of your home. Nothing can make you profitable faster than a team of professional designers. They will help to stage your home properly for the sale and will de-clutter your home so that it is as appealing as possible.

While your design team is fixing up the interior of your home, you should probably hire an organizer to organize your home. Your organizer should go through all areas of your home and make sure that loose baggage has been removed. If you don’t have the money to hire an organizer, then you should consider doing it yourself. Buyers like to see more space, so the more space you have the better.

After professionals have renovated your home and you have organized it, it’s time to sell. You should take high-quality photos of your home or hire a photographer to do it for you. You want to take pictures of your kitchen, bathroom, dining area, and the exterior of your home for potential buyers to see. If you do it yourself, you may want to invest in a crisp, high definition camera that can take excellent photos of your home.

When it comes to real estate and selling your home, all of these tips and ideas are pivotal. Be sure to use them in your real estate business so that you can start selling homes right away.

FOR MORE INFO: Learn real estate selling tips you can use to earn money in real estate. To learn more, visit the following website for more details: http://www.instant-downloadz.com/insiderrealestate.html

Article Source: http://EzineArticles.com/?expert=Adrian_Hargray
http://EzineArticles.com/?Selling-Your-Home-Quickly-in-Todays-Real-Estate-Climate&id=4944389

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Check Out Energy Rebates

EnergyStar.gov –  Check Out Energy Rebates

This is a government site that offers lots of energy saving tips as well as explains what energy saving grants or credits might be available.

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Foreclosure Trends Newsletter

Here is the latest issue of my foreclosure trends newsletter.  As you can see, the trend is not our friend, in the sense that the housing market has not recovered.  Until jobs come back and people are employed and feel safe in their employment, they will tend to avoid making a committment.

ForeclosureTrends.pdf

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Twin Cities Foreclosure Trends-From our MLS & Realty Trac

Besides the board of realtor sites:  http://theThing.mplsrealtor.com and market data posted elsewhere at http://www.MplsRealtor.com I have a subscription to Realty Trac.  My subscription gives me additional data about foreclosures and trends within certain zip codes.  This is in addition to my daily subscription to Finance & Commerce (a business newspaper that prints all the foreclosure information as well as very timely articles regarding the business community).  If you are looking for someone who has experience and access to information about distressed sales, we need to be working together.  Whether buyer or seller-I can help you understand the market we are in and the options and opportunities available to you.  Give me call today.

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Real Estate Information

These are a couple of my newsletters that have a ton of valuable information. Go check them out.

Foreclosure Market Trends Newsletter
http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=131bd355-1b69-4bd1-99cd-2f0c9a936810

Real Estate Cyber Space Tips
http://www.REcyber.com/cybertips/r11627

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Anyone Can Do a Short Sale

By Anthony Teagardin

Yes, it’s true, anyone really CAN do a short sale. But, the real question for any REALTOR considering taking on this challenge is “Why would you want to?”

As a Realtor, surely by now you’ve become aware of the awesome potential of pre-foreclosure short sales in the current real estate market. With newspaper articles, internet blogs, and even such heavy-hitters as CNN and CBS touting the benefits of short sales, it’s nearly impossible to go a day without hearing some new claim about how to capitalize on this great opportunity. In fact, if you’re like most Real Estate Agents and Brokers, you’re currently being hit daily with e-mails and flyers promoting 1 to 3 day “Seminars” which promise to teach you how “anyone” can learn the “secrets” of doing a short sale. Perhaps you’ve even taken the bait and, like countless other agents looking for an edge, you’ve decided to shell out the hundreds and, in some cases, thousands of dollars to learn the short sale business from a self-proclaimed “guru”.

Again, I ask, “Why?”

Have you ever really sat down and considered “what is the return on my investment for all the time and effort it takes to do a short sale?” Or better yet, “am I really growing my business or am I just spinning my wheels?” And perhaps most importantly of all, “am I really the most qualified person to help my homeowners who need a short sale?”

Let’s face it, the PROCESS of negotiating a short sale is really quite simple on the surface, and if all goes well, “anyone” really can negotiate a short payoff with a lender. In fact, after you handle a few transactions, you might even get very good at negotiating a deal with the banks. Yet, if you’ve tried your hand at short sales, then you know that, after all the flowery promises of the guru’s fade away, that’s where the rubber meets the road and that’s when you are left to fend for yourself – battling against a bureaucratic process that is different with every lender and which can become so frustrating that you just want to quit. If you’ve been through it, then you know that the short sale process can take months. You might question whether it’s by design or ineptitude when the banks’ default and loss mitigation departments seem to be toying with you: keeping you and your homeowner stressed out and jumping through hoops the entire time. Did your paperwork get lost? (aagh!) Were your phone calls not returned? (how rude!) Did they find your paperwork (hooray!), only to be lose it again (oh no!). Yes, the list goes on and on, and if you’ve tried your hand at short sales, then it’s likely you have a few “war stories” of your own! Surely you’ve experienced the unpleasantness of when your homeowner becomes unhappy with the process – thus causing you, the agent, even more stress. Hopefully, you have NOT been a party to the worst of cases – in which the agent may be sued by the homeowner if the process fails despite your best efforts! Do you even know how to protect yourself from this disaster?

In the end, you are likely forced to face the question “Just what is my grand reward IF I’m successful in obtaining a bank approval letter for the short sale?” Yes, this question is so vital for the real estate agent to understand, that I’ll state it again a different way, “What’s in it for me?” You already know the answer, yet you may not want to admit it. The fact of the matter is that if you as the realtor are successful in negotiating a short sale, if you spend the 50-100 extra hours of your time to do everything that is required to obtain a short payoff Approval Letter, and if you finally complete a closing for a short sale, then your payoff is… a Real Estate Commission! (Or in many cases a REDUCED commission!). Yes, if you’ve “done short sales”, then you well know that for all those dozens of hours of additional time spent, your reward is…a pay cut! A pay cut? Yes, it’s true, when you do short sales, it’s very likely that the bank will only approve you for a reduced commission (a pay cut). And that’s when you’ll finally learn the “REAL SECRET” of short sales for Realtors (the one the guru’s don’t tell you): more work for less pay! That’s what Realtors get from doing short sales.

So I ask you, does that sound like an effective strategy towards growing your business?

For some readers, the above scenario may seem alarmingly familiar. For others, the process may sound scary. Yet, all is not lost. You can indeed capitalize on the amazing opportunities that short sales have to offer. There is a better way – a solution to the short sale rat race. Did you know that some agents have broken the code to pre-foreclosure sales success? Would YOU like to know their secret? Would it benefit you to know how you can get involved in the short sale process and get paid the same amount that you would get paid if you did it on your owns? Would you like to know how this secret can actually save you time and effort, and free you up to do what you do best? It’s really not a “secret” at all. It’s just common sense!

So what is the real SOLUTION to effective realtor-driven short sales? It’s simple: OUTSOURCE the short sale NEGOTIATIONS portion of your growing portfolio of pre-foreclosure listings. Think about it for a minute and you’ll realize that outsourcing negotiations truly represents a win-win-win for you as the agent, for your homeowner clients, for the banks, and even for your final buyers. But how do you go about outsourcing? The answer is to utilize a company that specializes in building, submitting, and negotiating short sales and take advantage of the Relationship Leverage which they have built with lenders.

These so called “Loss Mitigation” specialists are now representing a new concept in pre-foreclosure sales. After all, the banks have Loss Mitigation Negotiators working on their end; so why shouldn’t you have such a specialist on your team as well? By working with one of these negotiation specialists, you’ll be free to act as the real estate agent, while your Loss Mitigation Service Company will handle ALL aspects of Short Sale Processing. It’s important to know that these “Short Sale” companies are not Real Estate companies, so there is no need to fear losing the listing. In addition, the Loss Mitigation organization will likely get paid their service fee from the lender’s sale proceeds, so you also won’t have to worry about losing your commission either. Yes, there are many benefits to outsourcing your negotiations to a professional, but besides saving yourself all the time and headaches of trying to manage the process on your own, one of the best things you’ll experience is that you’ll be free again to concentrate on earning your commissions by doing what YOU do best: marketing, showing, and ultimately SELLING your client’s home. And when this occurs, when you can actually give your homeowner clients a fresh start and a way to escape the pressures of mortgage default and potential foreclosure or bankruptcy, that’s when you’ll realize the true worth of this “secret”. That’s when it will become clear that you as the real estate agent and your loss mitigation specialist actually share a symbiotic relationship — where you both can thrive, even as you save banks money, get great deals for buyers, and of course provide a new beginning to your homeowner clients!

So how do you get in touch with a Loss Mitigation Service Company?

Well, the good news is that the list of companies performing these functions for agents and homeowners continues to grow monthly, and just about every state will soon have companies standing by to help you! Nonetheless, it’s not all a bed of roses; prudence demands due diligence and therefore you should exercise caution when seeking a company to handle their short sales because there are a few scams being run. In the October, 2007 issue of Florida Realtor magazine, a number of “foreclosure scams” are detailed in the article “Whose Behind the Smiling Face?” Among them:

1) “…groups of investors calling themselves a ‘Trust Company’…ask the homeowner to quitclaim their home’s deed to the trust, saying they will negotiate a short sale.” Unfortunately, some of these groups never do. Instead, “the trust pays off the loan amount at less than the full amount without negotiating with the lender or getting the lender’s approval, so the lender goes after the seller for the difference even though they no longer own the home.” (An ethical company is when that, IF they use a trust, it is only AFTER they obtain an Approval Letter from ALL lien-holders and the trust is not activated until the actual closing occurs in which the homeowner actually sells their property. Utilization of a trust prior to closing is merely a way for an investor to gain control of your homeowner clients and only serves to place your homeowners at the mercy of the investor. It is the author’s opinion that land trusts are not necessary prior to obtaining an Approval Letter).

2) Another scam involves the “sale of the home to a straw buyer, who would borrow against the home’s value and pocket the money. The original owners were told their payments were brought up to date, allowed to stay in the home, and were promised that they’d be able to buy it back from the investor.” Only to later learn that “the home’s equity was gone and [they were thus now] unable to afford to buy it.” (While a pre-foreclosure short sale and owner-leaseback can indeed be an effective way to avoid foreclosure and give your homeowners the ability to save their home, unfortunately all too often such arrangements are fraught with fraud. If you or your homeowners are approached by such an offer, be sure get everything in writing (especially the terms of the lease and future resale!). Have a real estate attorney review it and thus protect yourself and your clients. This can work, but you must ensure that the investor group you are working with is both fair and ethical. Do your research first!).

Sadly, these are just two of the “foreclosure scams” being run today which are plaguing the industry and giving short sales a bad name.

So, how can you choose the right company?

Here are some tips that might help you when choosing a Loss Mitigation Firm to partner with:

1) Ensure that the sole service of the company is Loss Mitigation.

2) See if they have a referral network of other professionals they work with.

3) Where does the company’s focus lie? Are they just in it for money for themselves (or) are they focused on helping those who really need their help? An ethical company will have the desire to make YOU as the realtor a “Hero to your homeowners.” And most importantly of all, the primary mission of the company will be to save homeowners from foreclosure and get a fresh start in life.

4) Ask the company if there are any other alternatives besides a short sale. An ethical company will help you explore other foreclosure-stopping alternatives besides just a short sale. (Since these other alternatives likely do NOT involve that company – and thus won’t provide an income stream for them – if the company overlooks telling you about these other options, you might want to steer clear).

5) Does the company require your homeowner to deed their house to a trust? If so, why? When? And who will be in control of the trust?

6) Will the company let you and your homeowner see the HUD? Will they tell you exactly how much they stand to make or will they tell you “it depends.” (An ethical company will disclose all fees in advance, will put everything in writing, and will let both you and your homeowners examine all short sale documents at any time).

7) How will the company keep you informed during the long process? Will they give you a way to track your file’s progress as it progresses?

Will the company fight for your homeowner to get a Waiver of Deficiency or Satisfaction of Mortgage? If the homeowner’s lenders don’t agree to such a request, then your homeowner could end up still owing the difference between the short sale proceeds and the balance of the mortgage(s). The result, your homeowner really didn’t benefit from the short sale at all!. (An ethical company will make it the purchase contract contingent upon all lien-holders agreeing to provide a Waiver or Satisfaction. Yes, it will make the loss mitigations more difficult for them, but to do anything less would be a disservice to the homeowner).

9) What kind of guarantee of success will the company give you? The fact of the matter is that there is NO GUARANTEE. No company is 100% successful at completing every short sale and if someone tells you they are ALWAYS successful, then you should really question them as to how that is possible. The national industry average for short sale acceptance is 30-75%. If the company you approach provides a higher or lower figure than that, they may not be telling you the truth. (An ethical company will admit that there are no guarantees. And a better one will tell you WHY sometimes deals don’t work out and what they are doing differently to continually improve. The market constantly changes, your loss mitigation company must be able to adapt to the ever-changing lender requirements).

10) Examine the company’s website. It’s hard for a tiger to hide his stripes. When you look at their website, it will become pretty evident where their focus lies. If they are really about helping others, the site will be more focused on providing information and solutions versus just about making money.

11) Ask your gut. When you talk to the company’s representatives, how do they make you feel? Trust your instincts. You’ll know when you’re dealing with a scammer or when you’re dealing with a potential valuable partner.

These are just a few of the questions you might ask, if you interview a company to handle your Loss Mitigation negotiations. No matter who you work with, hopefully you now understand that while it’s true that “Anyone can do a short sale,” it’s the smart realtors who don’t “do short sales” on their own, but instead add a Negotiations Specialist to their team to “do” it for them!

Anthony Teagardin is a Loss Mitigation Negotiator for Genesis Property Solutions, LLC (GPS). No matter where you are at in the country, GPS would like the opportunity to try to help you help your clients. For more information on the benefits of working with GPS, including a full disclosure of their costs and services, please visit [http://www.HelpMeGPS.ORG] or google “sell foreclosures gps”. Give GPS a call and let GPS guide you to a new beginning!

Anthony Teagardin is a Loss Mitigation Negotiator for Genesis Property Solutions, LLC (GPS). No matter where you are at in the country, GPS would like the opportunity to try to help you help your clients. For more information on the benefits of working with GPS, including a full disclosure of their costs and services, please visit [http://www.HelpMeGPS.ORG] or google “sell foreclosures gps”. Give GPS a call and let GPS guide you to a new beginning!

Article Source: http://EzineArticles.com/?expert=Anthony_Teagardin
http://EzineArticles.com/?Anyone-Can-Do-a-Short-Sale&id=758415

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Understanding HAFA-What Is It & How It Works

This explains what the HAFA is and how it might work for you. This might work for people that are in distress and would like to try and avoid a foreclosure. Here is a link for additional information http://www.CDPE.com/hafa I work with homeowners who need help at this difficult time-let me know what I can do for you.

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Outstanding Video-An Inspiration To All-Be The Best You Can Be!

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Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

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The Short Sale Process For A Seller

This ppt. will explain the basics involved in a short sale. Today, lenders are starting to put in place systems that will make the short sale process work smoother. This presentation covers what is generally involved.

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Grant Available In MN For Foreclosed Homeowners

I’ve just learned of a grant of up to $3500 that is available for people who have lost their home to a foreclosure and need some cash to help with the transition of moving on. This is only available to metro area residents in the Twin Cities. The Target Foundation put up most of the funds and all monies are available on a first come-first served basis and is for relocation assistance. Go to

http://www.Hocmn.org

to learn more. On a national basis, visit

http://foreclosure-response.org

for more information on options and programs.

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http://www.ShortSaleSecrets.org

Would you like more reports and the ability to take a quick survey to see which program you MIGHT be eligible for? Visit the site above and get some more information. The price is right-free. Get all the information you can so you can make the right decision for yourself and your family

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HAFA Is Here & NOW- Additional Assistance On Getting Short Sales Completed

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FHA ALLOWS Short Sale

Many people mistakenly think short sales can’t or won’t be done on FHA insured loans.  THIS IS NOT TRUE
Here is the link to the HUD pdf which outlines their current program guidelines:  http://www.hud.gov/offices/hsg/sfh/nsc/rep/pfsfact.pdf If you are in Minnesota and your home is within the 7 county metro area around the Twin Cities, we can help you list your home and do a short sale.

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How A FEW Are Profiting HUGELY From A Government Sweetheart Deal

If you haven’t been getting much success with a modification and wonder why-maybe this video will help explain things.  As an agent who works really hard to keep people in their homes FIRST, I found this very upsetting.  I can tell you many many people who would have stayed in their homes, albeit at a reduced payment if they had some payment relief.  Instead, lenders foreclosed or forced a short sale and ultimately lost a lot more than the interest differential.  It is sad to think that even one family might have had to leave their home because of a profit incentive that encourages it.  Here is the video:  http://www.thinkbigworksmall.com/mypage/archive/1/29027

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What Happens When They Come For YOU

While this posts title is just a play on the TV show COPS, it is possible that if you sell a home short or have a foreclosure that results in a loss, that the lender could pursue a deficiency judgement.  In MN, they are doing this more often.  The LAST thing I am giving anyone is tax or legal advice.  Just be aware of the fact in MN, lenders can choose how they foreclosure.  A judicial foreclosure can result in pursuing a deficiency vs a foreclosure by advertisement.  There are resources like http://www.HOCM.org which provide Minnesota consumers with information and possibly assistance with trying to figure out options and repercussions.  Research the Mortgage Tax Forgiveness Act of 2007, extended in 2009 until the end of 2012.  Also call the IRS at 1800-829-1040 or visit them online at IRS.gov

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Items Necessary to Submit a Short Sale Package

Just because you owe more than your home is worth does not mean that you will be eligible to do a short sale.  The key is being able to show that you qualify based on a acceptable hardship.  The lender needs you to explain your situation in a hardship letter.  With that, there are items they will need.  These items include the following:  A financial statement showing what your current assets are and what your expenses happen to be, A couple of recent paystubs if you are employed that show your year to date income, all pages of your bank statements, your two most recent signed tax returns, asset statements like 401K & IRA’s, and a list of any other liens that encumber the property title such as back real estate taxes, second mortgages, third mortgages, and IRS tax liens that are recorded against title.

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I recently read an article about the banks pursuing judgements after a short sale or foreclosure. The Minnesota home ownership center is FANTASTIC. They have lots of great information. Here is the link to their article: Minnesota Home Ownership Center: Sued – After A Foreclosure

I recently read an article about the banks pursuing judgements after a short sale or foreclosure. The Minnesota home ownership center is FANTASTIC. They have lots of great information. Here is the link to their article:
Minnesota Home Ownership Center: Sued – After A Foreclosure

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Open Source Documents-Unbelievable Resources-Find YOUR topic of Interest

If you’ve never visited http://www.Archive.org, you are missing a wonderful site.  From this site, you will find many resources that are out of copyright and you can download and use them as you wish.  You will find all the classics and some fun things as well.  Just for fun, I have the download of a book called “Little Gardens” which is a book about setting up a garden on a city lot.  This is just one of the MANY fun things you’ll find.  You can download and watch old music, movies, and cartoons as well.  Plan to spend some time on the site should you decide to visit, as it is very cool.  Click here to download the book Little Gardens

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FHA Loss Mitigation Options For Those With FHA Loans

Here is the latest FHA Mortgagee letter that explains what options are available for people in default with their FHA mortgage. There are options, you need to explore them if you are in danger of losing your home.

FHA Loss Mitigation

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Sell Your Home Faster-Learn The Home Selling Secrets Of Successful Sellers

Here is a special report that outlines over 450 ideas on how to sell your home faster.  This report is just one of the many home buyer, home seller, and investor reports that I can make available to you.  Read this report and call me to arrange a time to see how I can help.  Download Now

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Homeowners Assistance Program-Department Of Defense

http://hap.usace.army.mil/ Look at this-From the website:

The Department of Defense (DOD) is proud to offer the Homeowners Assistance Program (HAP) to eligible service members and federal civilian, including non-appropriated fund, employees. The program is authorized by law, and administered by the US Army Corps of Engineers (USACE) to assist eligible homeowners who face financial loss when selling their primary residence homes in areas where real estate values have declined because of a base closure or realignment announcement.

The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily expands the HAP to assist service members and DOD employees who are wounded, injured or become ill when deployed, surviving spouses of service members or DOD employees killed or died of wounds while deployed, service member and civilian employees assigned to BRAC 05 organizations, and service members required to permanently relocate during the home mortgage crisis.

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Real Estate Investing-Everything You Need To Know!

I came across this e-book and I wanted to share it with you.  I thought the information was useful, the rolodex link in the back of the book with investor resources was incredible.  I think you will enjoy it-it is a pretty light read.  If you get all fired up and want to start looking for property, just give me a call.

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Making Home Affordable

Recently the government published an update to what had come out earlier in the year.  This new report shows what is being done to help homeowners sell their home or make an arrangement with their lender.  Download the report at this link.  This should make the process of coming up with a solution that much easier, now that they have defined the guidelines better.

http://www.treas.gov/press/releases/docs/05142009FactSheet-MakingHomesAffordable.pdf

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Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure

This is FANTASTIC NEWS!!!  FINALLY, they are establishing minimum requirements on resolving the short sale procedural process.  Here is the link to the government news release:

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

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RECENT News Release: Legal Service Plans Can Benefit Homeowners Facing Foreclosure

Pre-paid legal recently had a news release that explains how their service may benefit homeowners who are in distress and facing a foreclosure. We sell the PPD Pre-Paid Legal service plan at our website https://www.prepaidlegal.com/Multisite/Multisite?site=hub&assoc=mazzara You probably want to look at the family plans unless you are a small business. You can visit the site, watch the video, and learn more. I not only sell the plan, I am also a user of the plan. I think PPD is great based on my own personal experience. I have called upon them to answer questions and they have been of assistance over the years. If you have questions that aren’t answered online, call me.

Read the news release here:
http://www.prnewswire.com/news-releases/legal-service-plans-can-benefit-homeowners-facing-foreclosure-70452157.html

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Extension And Expansion Of Home Buyer Credit-4/30/2010

A Big WOW!!  The credit has been expanded to include homeowners who have owned their home for the past 5 years. No longer do you need to be a first time buyer.  The dollar limit is $8000 for first time buyers and $6500 for move up buyers.  This GREAT news.  Combine this with 50 year lows in interest rates, and you’d be crazy not to consider making a move.  If you feel secure in your job, think hard about buying  home at this time.  We can help you make the right move. Visit this site-which is from the National Association Of Home Builders  http://www.federalhousingtaxcredit.com/faq2.php This site give you all the rules and regulations as they now apply.

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Why Foreclosure Is Often Preferred By The Loan Servicer Instead Of Offering A Loan Modification

Have you ever wondered why a foreclosure occurs when a better solution might have been a modification?  Would you like to read the facts and figures and see how mortgages are bundled, sold and serviced?  You will soon see it is isn’t pretty, we are in the midst of a crisis, and it is likely to get worse before it gets better.  That being said, you can probably guess why-it’s about the money.  It is a little more complex than that-the report is 60 pages-but is explains the incentive and disincentives that are at conflict within the mortgage market today.  Once you understand how all the pieces go together, you can see that something “different” needs to be done.  I am a strong free market believer, but in this case, the government needs to have a mandate and rule that is guided towards keeping people in their homes.  Left to current industry solutions, the mortgage mess will continue to play out and get worse.  If you click on the link below, you will find the free report from the National Consumer Law Center.

http://www.consumerlaw.org/issues/mortgage_servicing/content/Servicer-Report1009.pdf

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Home Buyer Tax Credit Information Update

It’s now official!! The tax credit has been extended and expanded. YOU NEED TO HURRY! You now have until the end of April 2010. The following summary of the credit is provided by the National Association Of Realtors. The following two documents cover the changes in the new law. Now get out there and buy a home!!

NAR FAQ: Homebuyer Tax Credit Changes
NAR Issue Brief: Homebuyer Tax Credit Changes

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Minnesota Real Estate Newsletter Gives Access To Great Computer & Life Tips

I maintain a number of real estate sites, blogs, and newsletters. One newsletter that provides a number of computer tips to help you function better with a computer is http://www.REcyber.com/cybertips/r11627 The site is full of cyber space tricks and great places to visit. We have link to this site on the list of MN Real Estate links, but I wanted to highlight this particular newsletter because it different from what most agents provide. From this newsletter, you can also access all the back issues-from 2001 and beyond. It is really quite a useful resource-spend some time there if you have a chance.

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Buy A Minnesota Investment Property With Confidence

RE/MAX has put together a “how to guide” on how to buy investment property. Since knowledge is power, get the guide and brush up. It’s your money-get the information you need to become a successful Minnesota investment property investor.

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What Would You Do If You Can’t Make Your House Payment?

This question confronts millions of people-daily. Unfortunately, people often don’t know what to do, so they do nothing, until it’s too late to consider anything other than foreclosure. When is the last time you did nothing and had your problem solved miraculously by itself? It just doesn’t happen. YOU must take action. Foreclosure MIGHT be the only option. BUT, IT MIGHT NOT!! You owe it yourself to find out what other solutions exist. Please print out the PDF and share it with someone who might be asking themselves how they are going to solve their problem. If you or someone you love are a homeowner in trouble- within Minnesota and the Twin Cities area specifically- I might be able to help.

Click Here for the PDF file.

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National Mortgage Default Statistics

This information takes us through Q2.  What it doesn’t show is the number of option arms and other “prime” type mortgag arms that are re-setting over the next years.  It starts the fall of 09 and increases through 2011.  The next shoe to drop will be in larger homes with “prime” loans.  The solution to the problem is steady employment and job creation.

See National Mortgage Default Statistics

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Minnesota Short Sale Seller’s Guide

Do you owe more than your home is worth?   Do you need to sell your home but can’t bring the cash difference to a closing.  If you have a hardship, you may qualify for a  short sale.  Learn what happens during a short sale and see if you are a candidate.

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Minnesota Foreclosure Data

Here is a report on foreclosures throughout the state of MN.  This is a great report that shows foreclosure data in each of the respective counties. Click below.

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Learn the different impact between a short sale vs foreclosure

Sometimes, a short sale will be viewed more favorably during underwriting a new loan. A foreclosure will generally have a longer lasting negative affect. This short report give you some things to think about. Of course, things are always subject to change.

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Minnesota Short Sale Buyer’s Guide

Are you considering buying a property that is being marketed as a short sale?  If so, why not get this guide today.  It it free and useful.  Once you understand the process, you will know what to expect.  One of the biggest problems I see in the marketplace is people not willing to get the knowledge upfront and then expecting a different outcome.  Don’t let a short sale be a frustrating experience.

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Find out if your home has a Freddie Mac or Fannie Mae Loan

Fannie Mae Lookup
http://www.loanlookup.fanniemae.com/loanlookup

Freddie Mac Loan Lookup
https://www.ww3.freddiemac.com/corporate

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National Foreclosure & Homeowner Resources

The Home Affordable Refinance Program
http://www.MakingHomeAffordable.gov

HOPE Now

http://www.HopeNow.com

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Minnesota Homeowners In Foreclosure

One of the best places to get more information is at http://www.Hocmn.org Please visit their site and download their informational PDF’s explaining the foreclosure procedure in Minnesota.

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Bad Credit Mortgage Options

Today you will find that many people are dealing with bad credit. It has been so easy to get credit in past years, and it’s easy to get in over your head. With the current financial crisis, there are many people finding themselves having severe problems. If you need to purchase a home and you have bad credit, then you may be wondering how you can purchase a home. Well, there are some bad credit mortgage options out there that you can consider. With FHA loans, credit restoration, flexible underwriting, and other great credit solutions, there should be a way for you to get the loan that you need to purchase a home of your own, even if you do have less than perfect credit.

Sub Prime Lenders

You will find that there are lenders out there that offer flexible underwriting and who are willing to give mortgages to people who have credit that is less than perfect. These mortgages are usually known as sub prime mortgages. You’ll definitely find that it is much harder to get a mortgage when you have bad credit. However, there are still some options out there today.

After Bankruptcy

If you deal with bankruptcy, more than likely your credit is going to be pretty bad. This is a big credit problem. However, if you do show that you can work on paying them back, you may be able to get FHA financing available in a chapter 13 after 12 months of on time payments. This allows even people who have gone through bankruptcy to work on things so they can get one of the FHA loans that are available, even though their credit may not be very good yet.

Reestablishing Your Credit

Before you are able to get the mortgage that you need, in some cases you may end up needing to reestablish credit before this is possible. There are a variety of things that you can do for credit restoration. This can help to restore and improve your credit so you have better luck finding the financing that you need for your home. There are definitely a variety of different approaches that can be taken to repair and reestablish your credit.

First of all you will want to check out your credit report. Make sure that any problems are removed if they are mistakes. You’ll have to contact the credit reporting agency in order to do this. This can definitely help to improve your credit. Errors are pretty easy to fix up. However, if there are other problems, then you may need to work harder on restoring your credit.

Paying bills on time and working to pay off high interest debt can be a huge help as well. Work on getting out of as much debt as you can. If you are having problems meeting your bills, then consider getting involved in debt consolidation or in credit counseling. Many times you’ll be able to lower interest rates or even the amount that you have to pay. Also, taking out a consolidation loan may be able to help you get your debt under control so you can work on making your credit better.

Getting a Bad Credit Mortgage

In some cases you may still be able to get that mortgage, even with bad credit. However, one thing you need to consider is the price of a mortgage when you have bad credit. You’ll find that people with bad credit usually end up paying interest rates that are much higher. Sometimes there may be origination fees that you’ll end up having to pay as well. This will depend on the points on the loan. If you have one point on the loan, then you’ll have to pay one percentage of the loan. However, those who have very bad credit can pay all the way up to 4-5 points on a loan, which means up to 4-5% of the loan that you need to take out. In some cases a hard money loan may be an option to consider as well. However, it can cost thousands just to even get that loan in the first place.

The Best Option

While you may want to go ahead and take out a mortgage, even with bad credit, you may be better off to wait a bit and work on finding credit solutions that will help you improve your credit score. You can definitely save a whole lot of money if you improve your credit. This way you’ll have more options when you need a mortgage and the mortgage won’t be as costly for you as well. There is less chance of being taken advantage of when you can go with a mortgage for people with good credit. So, if you can wait a bit, take the time to reestablish your credit. Then you’ll have more options and a better chance of getting the mortgage that you need for a home.

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Loan Modifications – What are They?

For those that are facing huge payments on their mortgages or even those that are possibly facing foreclosure, often a good loan modification can save the day. Many people today are crying out to the government “Lower my payment” or “reduce my loan principal.” The government is hearing this over and over again. Well, there are more and more programs available that can drop my interest rate and allow lower payments that are more affordable. If you are not really sure what loan modifications are and how they work, here is a closer look at this process.

What is a Loan Modification

First of all, you may be wondering what exactly a loan modification is. Well, basically this is simply a change in at least one of the terms on a home loan, but it can include more than one of the terms. This allows this loan to be reinstated and will bring down the payment of the loan so that it is more affordable for the home owner. Even if they are in loan forbearance, often getting a loan modification to help is an option.
Late Charges – Are They Included

If you are dealing with late charges on your loan, you may be wondering if the loan modification is going to include the late charges. When the loan is worked out, usually the late charges that have been built up should be waived by the company that is in charge of the loan. However, each company is a bit different and every loan is a bit different. It’s a good idea to ask for a breakdown as well as some descriptions of the penalties and fees that your lender is giving you.

New Government Programs Help

Today there are some new government programs and they are designed to help out in this area. In fact, billions of dollars are being given to lenders so that they can work out the loans that they have with their borrowers. This is basically an incentive to get lenders to work with borrowers that are qualified to give them a break and a modification of their loan. This will help them to be able to pay their loan each month. Also, those who pay on time may be able to get a credit to the loan balance that they are carrying when they continue to pay on time.

Do You Qualify?

So, you may be wondering how you can qualify for a loan modification on your home loan. Well, first of all, you will need to be able to show that you can make the payment that will be modified. You should be able to show your income and your finances to the lending company to show that you can pay that amount and will be able to pay them in the future as well. If you can show that you will be able to pay a lower payment and continue to pay it, then more than likely you will be qualified for this modification to your home loan.

Hardship Situations

There are hardship situations to be considered as well. Every person has problems that may have made them get behind on their payments. However, some of the reasons for modification that a lender will consider include military service, death of a co owner, loss of income, divorce, illness, and even job relocation. You will need to have a good hardship letter in the application for modification if you are going to be able to successfully get the loan modifications that you want and need.

Can You Stop Foreclosure with Loan Modifications?

Yes, you can help to stop foreclosure with loan modifications. In fact, that is actually the entire goal of these modifications. The market is really suffering with all the foreclosures that are occurring. So, it’s important that foreclosures are avoided if at all possible. The loan modification is designed to help people get their loans current and to stop the process of foreclosure.

Do it Yourself vs. Having Professional Help

You can decide to go through the loan modification process on your own or you may want to have some professional help with this. If you feel that you can deal with your lender on your own, then you may want to try doing this yourself. However, if you are not comfortable, then you may want to have some legal help. Just remember that you probably will have to pay quite a bit in fees for these services.

Getting Started

If you want to get started, it’s a good idea to learn all that you can about loan modification. Then consider getting in contact with the loss mitigation department of your lender or contact a good loan modification company. They can help you to get the process going if you do qualify for loan modifications.

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The Short Sale As An Option To Avoid Foreclosure

With the housing market in the worst slump that it has seen in years, and fewer and fewer buyers out there, you may find that you are in a position where you are unable to make your payments.  With foreclosure looming large, and so many people who have already fallen prey to it, it is easy to feel as though you have no options available to you, but the truth is just the opposite.  When you are in a place where you are going to lose your home, you will find that there are things that you can do to soften the blow.  One of the best things that you can do for yourself when you are in a place where you are facing foreclosure, looking into a short sale might be one of the most important things that you can do.

To really understand what a short sale can do for you, you need to understand what a foreclosure is and what is happening to your property.  A foreclosure is essentially the process where a lender goes through legal channels and terminates your right of redemption.  In many cases, this can only happen when a payment has been missed, though the payment missed may not even be a mortgage payment. Other payments that may be missed include local taxes and even home owner’s association fees.  In some states, you may be given a chance to make the payment, but if the payment cannot be made, the home will usually go to auction.

Along with the issue of losing your home, you will also find that going through the process of foreclosure is one that can have severe consequences for you.  For instance, you will find that going through a foreclosure will cut your credit by 300 points, which is the heaviest hit that your credit can take!  In addition to this, this is a fact that you will need to disclose in future mortgage applications and even in some job applications.  Furthermore, you will also find that you will be ineligible for any government insured loan for between five and seven years.  This is something that can make a great deal of difference to any plans that you have for your future.

When you think about all of these consequences, you will find that one of the solutions that presents itself is a short sale.  At the most basic level, a short sale is a situation where the lender will agree to accept less money than the amount that is owed against the home, for the most part because there insufficient equity that would result from selling and paying the costs of the sale.  In most cases, you will find that a lender is only willing to negotiate for a short sale when there has been financial hardship that has prevented you from paying and monthly shortfalls that come out to being a financial handicap towards paying.  You should also keep in mind that when you try to negotiate a short sale that you should not have liquid assets that can be tapped for repayment.

With all of that in mind, what advantages does a short sale give?  After all, you will still be losing your home, and your credit rating will still dip.  The truth of the matter is that a short sale may very well be the best way out of a bad situation. The first advantage, which can be the one that makes all the difference, is the fact that a short sale can make you eligible for a home sale much sooner.  You may find that you will be able to get a new home again in as little as two years.  You will also find that when you have a short sale on your records, as opposed to a foreclosure, that you will be able to qualify for a government insured loan again in roughly two years.

Second, you will find that while it is true that your credit will suffer from having a short sale on your record, it will also be easier to recover in the long run.  When you have a short sale, you will risk having your credit slashed by two hundred to three hundred points.  This is just as bad as having a foreclosure, but what you may not realize is that you can recover from this set back a lot easier.  In fact, many people manage to recover from having a short sale simply by keeping one or two credit cards and keeping them current.

Take some time to consider how best to proceed with a short sale.  For example, you will find that the sooner you get proceedings for one under way, the more likely it is that you are going to be able to get your lender to see things your way and allow the short sale.  Remember that the lending institution is not under an obligation to allow a short sale, and in many ways, this is something that can be quite difficult for them to work with.  Make sure that you apply for one before you miss a payment.  Look ahead at your finances and make sure that you consider what your options are going to be and what you can do to make the best out of what can be a very bad situation.

Many people look into the aid of a trained short sale negotiator to help them.  Having a professional on your side can be a huge advantage, and at the end of the day, this can make all the difference.

Take some time to really consider what your options are going to be.  You already know that you do not want to go into a foreclosure, but what can you do to make sure that you are going to be getting the results that you need?  Consider a short sale and see where this significantly more forgiving option can take you.

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Looking at Short Sales and Understanding Your Options

With the economy in the shape that it is in and with foreclosures happening left and right, you need to be in a position where you know what is going on with your finances and what it might be doing to your ability to pay your mortgage.  A foreclosure is very close to being a homeowner’s worst nightmare, but even when losing your house is inevitable, you will find that there are choices that you can make that will cushion the fall.  Consider what your options are going to be and really take some time to research what your choices are.  Foreclosure is not necessarily the only choice that you have, and by making sure that you are educated on the subject, you will find that it is much easier to get the results that will see you towards recovery sooner.

In the first place, consider what your options are when it comes to a short sale.  Essentially, when you do a short sale, you are selling your home for the remainder of the amount of the mortgage.  It can be quite hard to get the lender to agree to this sort of loan because they will often end up losing money on it.   Do not assume that this is a possibility unless you have been talking with your lender and being open and clear on the communication that is going back and forth between you.  Take some time and really consider how your relationship with your lender is, and remember that the earlier you initiate proceedings, the easier it will be to get this kind of loan.  Essentially, you are asking the bank or lending institution to take a lower pay off.

While doing this can stop the foreclosure, keep in mind that it is not an ideal situation.  You will discover that you will still end up losing your home and your credit score will still sink around three hundred points.  On the other hand, you will be able to qualify for a government secured loan much more quickly than you would have been if you were dealing with a foreclosure and you will be able to maintain a great deal more control over the procedure.  The decision to go ahead with a short sale is something that many people have to think about, but if you want a mortgage foreclosure canceled, this may be just what you need to do.

A short sale is something that may be discussed when you are dealing with an upside down loan.  With an upside down loan, you will find yourself in the awful position of owing more on a property than it is properly worth. Though it seems counter-intuitive, you’ll find that there are a number of ways that this might happen.  The most common way that people find themselves in upside down loans today is due to the faltering housing market.  More and more people are realizing that they have loans on houses that would sell for a great deal less money than when they bought them.  If you find yourself in this situation, a short sale might be your only option when it comes to getting a mortgage foreclosure canceled.

Remember that there are many qualifications that need to met before you can get a short sale.  The first and best thing that you can do to make sure that you have a better chance of getting one is to talk with your lender right away.  As soon as you are sure that you are going to be missing a payment, call your lender to talk about the options that you have.  Remember that when you are dealing with the lender that you are essentially asking them to take a loss.  You may need to pitch it in such a way as to tell them that the loss that they are going to be taking this way is still less than the loss that they would be taking otherwise.  It is not a pleasant conversation to have, but in many ways, it is a necessary one.

Be aware that when you are applying for the possibility of a short loan that you need to consider being able to write a hardship letter.  Essentially, a hardship letter presents your situation to them in a blunt and straightforward and lets them know a little bit about what you are gong through. It should be honest and it should tell them all the details that they need.  You are using this letter to let them know that the situation that you have encountered is beyond your control.  Things that may be included may be the loss of a job, a death the family, or an illness that has caused problems in your life.  When writing this letter, make sure that you do not fall into the trap of complaining about the company that has loaned you the money or how they have made your situation worse.

If you are looking into applying for a short loan, you may also find that it would work in your favor to get to get a third party on your side.  To this end, you may wish to consult with a representative of the Homeowners Preservation Foundation or HOPE NOW, which are two non-profit agencies that can give you the counseling that you need to get you through this difficult time.  They may be able to provide you with advice that you were not aware or resources that you did not know were available.

Consider what your options and make sure that you do not fall into the trap of thinking that you have no choice at all.

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What Is A Loan Forbearance?

Debt is a scary thing to work with, and many people find that when they are facing that they might freeze up. They think about how it might affect them, and any co-signers on the loan that they have taken out and before they know it, things can snowball out of hand. The important thing to do is to not allow it to build up and build up until drastic action is taken. Before the situation explodes, make sure that you research your options and figure out what you have in front of you. One thing that many people who are in debt will look into is a forbearance, and it is something that can help you out a great deal. No matter what kind of debt that you are looking at, you will find that learning more about a forbearance can give you a new lead into figuring out what your options might be.

Essentially, a forbearance, whether it is a student loan forbearance or a home loan forbearance, is essentially something that can come into play when you are facing problems due to unforeseen circumstances. For example, you may find that you have unexpected medical bills that you need to pay or you may discover that there is a financial setback that needs to be dealt with. There are many things that can happen that make a forbearance necessary, and because of this, you will find that you need to think about how you can plan around them.

When you are in a situation where you might be in default of a payment you will find that meeting with the bank or lending institution to talk about a forbearance might be exactly what you need to do in order to get some breathing room. Basically, what happens in a forbearance is that the lender will delay their right to start punitive measures or to levy fees and other charges as long as you can catch up to the payment schedule within a certain amount of time. In some cases, a forbearance might be for a very short amount of time, but in other places, you may find that it can give you a lot of time to work with. You will also talk with the lending institution to work on a payment plan that will help you move ahead.

When you are considering a forbearance, make sure that you take some time and really consider what your alternatives are. Remember that a forbearance is something that can really only be effective if the setback on payment is temporary and minor. You will still need to pay back the same amount and oftentimes at the same rate. However, if the situation that you are in is one that falls within these parameters, you will find that a forbearance might be precisely perfect for you. They can last as long as a year, and you will find that if you are suffering from medical issues or even the lack of a job, they can allow you to get back on your feet.

If you are in a place where you are looking at foreclosure, especially, you will find that forbearance is something that you need to take a look at. In the course of foreclosure prevention options, you will soon realize that forbearance should be one of your top options and one of the strongest possibilities that you need to consider. If the only other options is going to be foreclosing, you will discover that starting up the procedures for getting a forbearance should be started at once.

What do you need to know when you are looking to get into a mortgage forbearance agreement? In the first place, you will find that you are looking at a process that should be begun as soon as possible. There are many different things that need to be taken care of and you will find that the sooner you can tell the lending institution about it, the higher the chances are going to be that you will receive it. When you want to stop a foreclosure, you will find that generally, the earlier you begin proceedings, the more you can be accommodated. Remember that the bank or the lending institution is not your enemy and that at the end of the day, they would much rather get the money from you than be forced to foreclose on the house and most likely take a loss.

When you are preparing to ask for a forbearance, make sure that you are prepared to write a hardship letter. Essentially, a hardship letter will explain your situation and provide documentation of what you have been going through. Make sure that you are as thorough as you can be in the letter and really consider what your options are going to be when it comes to getting it to the bank as soon as possible. Remember that this letter will be seen by many loan officers and that it should give as much information on your situation as possible.

Remember that when you are looking at moving forward in a way that will let you avoid foreclosure that you are going to need to look into many different prevention options. Consider what your options are. Ideally, you’ll find that you are in a place where you are going to be able to get back on your feet relatively fast, and if so, a forbearance is going to be precisely what you are looking for.

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