Enterprise Realtors Blog » Arlington Short Sale Blog

Obama’s Plan for Homeowners: Know the Facts

Bill Ivey — Wed, 15 Feb 2012 16:00:48 +0000

“About 11 million Americans — roughly 1 in 4 with a mortgage — are underwater,” according to CoreLogic, a real estate data firm.

The Obama administration announced its latest plan to help troubled homeowners, enabling an estimated 3.5 million underwater mortgage holders to refinance at today’s historically-low interest rates.

However, experts speculate the proposal—which is expected to cost up to $10 billion and would be paid for by imposing a fee on major banks—could have a difficult time getting Congressional approval.

This proposal follows a string of government-initiated programs that have had mixed success, including the Making Homes Affordable Program a government program that claimed:

“There are a variety of MHA programs that may help homeowners having difficulty making mortgage payments. . . . Maybe your expenses have increased due to medical bills or you’re picking up the pieces after a separation or divorce. Maybe you’re trying to get by with less because your hours were cut or your business stumbled. In any case, it’s important to be proactive. MHA can help you get real help and real answers right now.”

Obama noted in a recent press conference that the MHA program had “fallen short of expectations.” The difference now is, Obama’s latest plan would assist borrowers with private (non-government backed) loans. Some of Obama’s comments include:

“I am sending Congress a plan that will give every responsible homeowner in America a chance to save about $3,000 a year on their mortgage by refinancing at historically low rates,” he told an audience in Falls Church, Va. “No more red tape. No more runaround from the banks.”

“I want to be clear: this plan, like the other actions we’ve taken, will not help the neighbors down the street who bought a house they couldn’t afford, then walked away and left a foreclosed home behind. It will not help those who bought multiple homes just to speculate and make a quick buck.”

Under the current proposal, to be eligible borrowers (about 11 million whose loans are backed by Fannie Mae and Freddie Mac, and about 3.5 million whose loans are privately held) must:

Have not missed a mortgage payment in the past six months, and have no more than one late payment in the six months prior;
Have a credit score of 580 or higher;
Have a current mortgage balance within loan limits for FHA-insured loans in their communities; and
The property must be their primary residence

It’s important to remember that this program would require Congressional approval, which may never happen.

Obama closed his proposal with this sobering fact, “No program or policy will solve all the problems in a multitrillion-dollar housing market. The heights the housing bubble reached before it burst were unsustainable. It will take time to fully recover. And it will require everyone to do their part.”

If you are on the edge, if you are facing foreclosure and desperate for help, don’t let the media talk of this proposal distract you from finding a real solution.

Related Articles:

Mortgage Relief Plan Aims at Refinancing – New York Times

Obama’s Mortgage Relief Plan Is Immediately Attacked By The Right-Wing Media – Media Matters

Helping Responsible Homeowners – Obama

More Foreclosures Predicted for 2012

Bill Ivey — Thu, 19 Jan 2012 20:23:47 +0000

As we embark on a new year, there is both good news and bad news on the foreclosure front.

The good news?

According to RealtyTrac’s Year-End 2011 U.S. Foreclosure Market Report™, total U.S. foreclosure activity and the foreclosure rate were both at their lowest annual level since 2007.

The bad news?

Foreclosure levels were artificially lowered due to delays following the robo-signing scandal. However, those delayed foreclosures will likely reappear in 2012.“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011,” said Brandon Moore, chief executive officer of RealtyTrac.

Fortunately, both the financial and government sectors are more committed than ever to finding alternatives to foreclosure, including short sales. In fact, Bank of America expects a 60-70% increase in short sale closings this year.

This news can also be viewed positively or negatively depending on the individual. Let’s consider the homeowner/potential seller, the home buyer, and the investor.

1. The Homeowner/potential seller

The person is not going to be excited to hear that foreclosures are on the rise. Why? Because he knows that the sell-price (even it is a foreclosure) of homes in his neighborhood effect the market value of his home. Hence, the more homes in his neighborhood that sell undervalue, the more likely his home will depreciate in market value. If you are confused on the difference between market and appraisal values, check out a previous article we wrote. Want to learn more about the market value of your home?

2. The Homebuyer

This is great news for this person, because now he has the choice of many homes at lower prices to choose from. He will most likely be able to get more house for his dollar in 2012 than he would have in 2011.

3. The Investor

This is good news and bad news for the investor. More foreclosures definitely means more opportunity to purchase properties that can be rented. But investors should always consider the supply and demand of rental properties in the area in which they plan to invest. A great deal is only a great deal if you can find a tenant for the property. Want more information about investing in Real Estate. Contact Ryan Tucker.

For those who are facing foreclosure in 2012, consider a short sale instead and contact Bill Ivey today.

Resolve to Face the Facts!

Bill Ivey — Wed, 11 Jan 2012 17:25:28 +0000

Since 2007, 8.9 million homes have been lost to foreclosure and millions more are headed in that direction.

As real estate professionals who have earned the Certified Distressed Property Expert (CDPE) designation, our mission is to ensure that you or anyone you care about does not add to that statistic.

The unfortunate fact is that so many homeowners who have played by the rules and never imagined that they could be facing foreclosure are now in a very tough situation. More than one in four homeowners owes more on their mortgage than their home is worth. On top of that staggering statistic is the fact that millions of homeowners are unemployed, or underemployed and falling further behind every month.

Sound familiar?

Rest assured you are not alone. If you feel that you are headed toward foreclosure, or if you are avoiding facing that fact, the sooner you reach out for help, the better your options.

As CDPE agents, we help distressed homeowners to work through every aspect of the denial and discouragement that accompanies a mortgage which is no longer manageable, and in the process, to move toward financial solvency. If you or someone you care about is ready to tip the scales back toward financial solvency, contact us today and let’s get started.

Bill and Cathy Ivey, CDPE Designated Agents

Enterprise Realtors, Inc.

6280 Chester St., Suite 101

Arlington, Tn. 38002

bivey@EnterpriseRealtors.com or civey@EnterpriseRealtors.com

Bill Ivey (857-3888) or Cathy Ivey (628-8445)

How do I find a Realtor who specializes in short sales?

Bill Ivey — Fri, 14 Oct 2011 18:06:03 +0000

Did you know that many agents turn down short sale listings because they are unfamiliar with the process. These transactions are much more difficult and complicated than your average real estate transaction, thus you need to find the right Realtor.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Because of the foreclosure process, you usually only have one chance at a short sale. If your first agent isn’t competent, then you risk losing your house to foreclosure. Then you have to wait another 5-7 years to buy your next house.

Ask the agent you are interviewing how they qualify to help you.

1. Do they have any special short sale training or designations?

Many agents have taken specialized training and education and they care about being up to date with the current trends in the market.

2. How much experience do they have selling short sales?

An agent who has closed a few short sales is a lot better prepared than an agent that has not. You want someone experienced working for you.

3. Who is your lender?

Ask the agent if they have closed any short sales with your lender. Every lender handles short sales a little bit differently. If your lender is an ABC Lender and the agent has experience with ABC Lender, then they already know the process. Your agent will be prepared because they are familiar with that lenders’ process.

4. How do they negotiate their short sales?

They may do the follow up themselves. Or, they may hire a competent title company or loss mitigation company to do it for them. Either way is fine. Just make sure the person handling your file is suited for the job. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at bivey@EnterpriseRealtors.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (901) 857-3888

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Arlington loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Article source: http://arlingtonshortsaleblog.com/2011/10/how-do-i-find-a-realtor-that-specializes-in-short-sales/

Foreclosures in the Memphis Area as of August 2011

JonMoultrie — Thu, 29 Sep 2011 15:32:26 +0000

According to Realty Trac statistics, in the month of August 2011 one in every 1070 homes in Shelby county received a foreclosure filing. That is 1,655 homes that were foreclosed last month.

That is a drop from previous months, as lenders are both running into delays and are taking more time to seek loan modification options and short sales in order to avoid foreclosing. Wherein, they lose a considerable amount of money. Some 1.7 million potential foreclosures are being held up, according real estate firm CoreLogic. Lenders are wary of foreclosures sitting on the market for months or years and depreciating in value due to negligence. Thus, they are motivated to find solutions for distressed home owners.

So unfortunately this drop in foreclosures does not mean the economy is on an upswing.

James J. Saccacio, chief executive officer of RealtyTrac, commented, “It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market. Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn’t appear to be the case.”

2011 Memphis Area Foreclosures:

January 631
February 649
March 451
April 301
May 233
June 321
July 335
August 307

While foreclosures are down in Memphis, they increased by 7% nationally. These filings include late-payment notices plus auction announcements and bank repossessions.

“The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems,” said Saccacio. “It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process.”

RealtyTrac estimates that there are at least million foreclosures that will be processed in 2012 rather than in 2011.

Many homeowners are nearly a year past due on a loan, which once you add in late fees, it becomes nearly impossible for them to avoid foreclosure.

What does this mean for sellers?

The market value of your home will be effected by any foreclosures sold in your neighborhood. Talk to your Real Estate Agent for more about this.

What does this mean for buyers?

There will be some great opportunities coming in the next year for house purchases, investments, etc.

Want information about avoiding foreclosure?

What Do Lenders Consider a Legitimate Hardship For a Short Sale?

Bill Ivey — Wed, 17 Aug 2011 18:25:20 +0000

If you are in a bind on your mortgage, go get a short sale, right?

Yes and no. Lenders offer short sales to individuals who are facing hardship, which means not everyone will qualify for a short sale. But what defines a legitimate hardship?

Can I get a short sale if I bought a new car and can’t afford to pay all of my bills? Can I get a short sale if I am going through a divorce? What if I am unemployed and am having trouble getting a job?

What qualifies as a a legitimate hardship?

I did some research on FHA short sales to clarify the question and help you determine if you would qualify for a short sale. Of course, without a hardship to prove, a home owner cannot short sale his home. But the good news is that if the FHA considers something a hardship, then it most lenders will likely agree.

FHA approved legitimate hardships for a short sale:

(Please mark all hardships that apply to you)

Death of Principal Mortgagor.

Illness of Principal Mortgagor.

Illness of Mortgagor’s Family Member. Extraordinary medical expenses are part of the equation.

Death of Mortgagor’s Family Member. Extraordinary expenses are part of the rational.

Marital Difficulties.

Reduction of income.

Excessive Obligations. No loss of income. (According to the FHA, “The delinquency is attributable to the mortgagors(s) having incurred excessive debts (either in a single instance or as a matter of habit) that prevent him or her from making payments on both those debts and the mortgage debt.”)

Job Transfer.

A Problem with the property such as poor quality construction, expensive repairs being needed, etc.

Inability to Rent Property.

Military Service where the person can’t afford their house because their paycheck won’t enable them to cover the payment.

Unemployment/Job Loss

Business failure.

High Energy Costs. (Your income and everything else stays the same, but your utility bill shoots through the roof. According to the FHA, “All other factors remained the same, but sharp increase in utility cost(s) deferred funds that would have been available for the mortgage payment or costs associated with the removal of environmental hazards in, or near the property.”)

Payment Adjustment. (The FHA states that, “Delinquency began after either increase in PMI for ARM mortgage or after escrow analysis where one or more escrow item increased, including the spreading of the amount needed to repay an escrow shortage over the next year.”)

Incarceration
If you selected at least one of the above hardships, then you will probably qualify for a short sale. Email me today to start looking at your options.

Contact Me Today

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Solving The Foreclosure Crisis One Home At A Time
*Our services have not been reviewed or endorsed by the government or your lender. We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor. This is not intended as legal, technical, or tax advice. The views expressed here are Bill Ivey’s personal views and do not reflect the views of Enterprise Realtors, Inc.

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Don’t Just Walk Away: The Downside to Strategic Default

Bill Ivey — Thu, 14 Jul 2011 15:19:58 +0000

In today’s economy, many people face the harsh reality that they cannot afford their home. Their hope – their dream to hold things together in spite of hardship – has proven futile and they must make a difficult decision. Choose to walk away (strategic default or voluntary foreclosure) or choose to short sale.

Let’s face it; neither of these scenarios is ideal. Ideal would be staying in your home, modifying your loan, and managing your mortgage payments.

But sometimes life isn't ideal.

One of the main reasons homeowners shy away from short sales is the fear of having to repay a deficiency. Some banks aggressively seek recourse or repayment for the deficient amount left over after the sell of the home. And in some cases, borrowers have to accept the deficiency and its repayment before the bank will approve the short sale.

In lieu of paying the deficiency, some homeowners consider strategic default and allowing their home to go into foreclosure. They think this is the better option and believe it absolves them of any responsibility to their loan. But that isn't the case.

Consider a few things that happen when a homeowner chooses strategic default:

The homeowner relegates the maintenance and condition of the home to the bank. While banks “winterize” foreclosed homes, they do very little to keep the home in showing condition. These neglected homes become eye-sores for the neighborhood and eventually sell significantly under market value. They also decrease the value of other homes in the neighborhood and further destabilize a struggling market.
When a home is bank-owned, that is public information. So buyers – knowing that a home is bank-owned – won’t be willing to pay as much. Buyers looking for a steal know that the first place to turn is bank-owned properties. When your home becomes the latest steal, some states such as Tennessee, allow the lender to sue for a deficiency judgment. The deficiency is determined the same as in a short sell – what you owe minus what the home sold for in comparison to fair market value – only this deficiency payment will be significantly more.
Strategic default could cost you as many as 150 points on your credit score. This will limit your ability to make future purchases. Additionally, your default will be recorded on your credit report and would be accessible to anyone running a soft credit check (e.g. future employers, landlords, etc.)

In most cases, a short sale is better for the homeowner. It allows the homeowner to maintain the property ensuring that it sells for top dollar, limits the deficiency, and has less of an impact on credit scores.

Need Help?

Want information about short sales?

Ask Bill a Question:

The best way to contact me is with the form below.

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Solving the Foreclosure Crisis One Home at a Time

Bill Ivey and Enterprise Realtors are not affiliated with the government. Our services have not been reviewed or endorsed by the government or your lender.

We do not recommend that you stop paying your mortgage; this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax adviser before making any decision. You have the option to reject a short sale if it does not meet your approval. If you decide not to go through with the short sale, then you do not have to pay us the commission.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

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Is My Hardship Legitimate For A Short Sale?

Bill Ivey — Tue, 21 Jun 2011 03:27:22 +0000

Is My Hardship Legitimate For A Short Sale?

Arlington TN – The Stop Foreclosure Institute recently received a question from Dan. Here was Dan’s Question.

“I recently purchased another home and tried to sell my former home. It isn’t selling and I can’t afford to make both payments. The home won’t rent for even 1/2 of the mortgage payment.

An agent told me the house is worth about $50K under the mortgage amount. Is it realistic for me to try the short sale? The only hardship created was when I decided to move to a larger home for family. Dan.”

Here was our answer to Dan’s Question.

Dan, I think you can short sale your house. Do you have a legitimate hardship?

I know you said you needed a larger house. However, if you also moved for a job transfer, then most lenders would consider that a legitimate hardship.

A hardship is not black and white. Some lenders would consider your situation a hardship. More often than not they will approve the short sale.

Others would not and won’t work with you on a short sale. In addition, the lender may not work with you until you have missed a payment or two.

Whether or not you miss a payment is your decision. You should weigh your options and decide whether or not you can live with the resulting credit damage.

Many lenders will work with you on a short sale even before you have missed a payment. If you were working with us, then we would help you. But, we would have the expectation that it would be a 6-12 month process.

Make sure that you work with a competent short sale agent. Look for someone that is a short sale expert. Ask them how many short sales they have sold.

Ask them if they have worked with your lender in the past. Then you will be able to judge whether they are qualified to help you.

Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at bivey@EnterpriseRealtors.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (901) 857-3888

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this!
Bill Ivey

Bill is a Real Estate Broker at Enterprise Realtors, Short Sales Realtor:

Phone: (901) 857-3888. bivey@EnterpriseRealtors.com.

Solving The Foreclosure Crisis One Home At A Time

View My homes for sale at www.cathyivey.com.

Bill Ivey specializes in loan modification assistance and short sales in Tennessee. (Arlington Loan Modification Help, Arlington Short Sales. Arlington Short Sale Realtor Arlington TN Short Sales. Arlington Realtor.)

Important Notice

Bill Ivey, Enterprise Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Bill Ivey’s personal views and do not reflect the views of Enterprise Realtors.

This information on Short Sales: Is My Hardship Legitimate For A Short Sale? is provided as a courtesy to our viewers to help them make informed decisions.

Article source: http://arlingtonshortsaleblog.com/2011/06/is-my-hardship-legitimate-for-a-short-sale/

I Want To Buy Another Home Right After A Short Sale

Bill Ivey — Tue, 21 Jun 2011 03:27:20 +0000

I Want To Buy Another Home Right After A Arlington Short Sale

Arlington TN – The biggest advantage a short sale has over a foreclosure is that you can buy your next home much sooner.

Here was our answer to Dan’s Question.

Under current lending guidelines, you can buy another home in 3 years after a short sale. After a foreclosure you have to wait 5-7 years in most cases.

(FHA’s current guidelines state that you can get an FHA loan immediately after a short sale, provided that you never missed a payment. If you were in default at the time of the short sale, then you have to wait 3 years before they will approve your loan.)

But, what if did miss a payment and you want to buy another home sooner than that?

There are loopholes in the Fair Credit Reporting Act. Remember, the law was written to protect consumers. It wasn’t written to protect the lenders!

You can use the law to your advantage to get a short sale removed from your credit history. Then, you can fix any other negatives on your credit report.

After that, your credit should be good enough to qualify to buy another home.

Here is why you can have the short sale removed from your credit report. The Fair Credit Report Act requires lenders do certain things before reporting negative credit.

If you lender misses any of these steps, then they are not allowed to post that item to your credit report. Don’t kid yourself; the lenders make mistakes like this all the time.

They are more concerned with getting paid than making sure every credit report is done perfectly. A good lawyer that specializes in this can help you.

They will know the intricacies of the law and help you get the short sale removed from your credit so you can buy another home.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (901) 857-3888

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this!
Bill Ivey

Bill is a Real Estate Broker at Enterprise Realtors, Short Sales Realtor:

Phone: (901) 857-3888. bivey@EnterpriseRealtors.com.

Solving The Foreclosure Crisis One Home At A Time

View My homes for sale at www.cathyivey.com.

Important Notice

The views expressed here are Bill Ivey’s personal views and do not reflect the views of Enterprise Realtors.

This information on I Want To Buy Another Home Right After A Short Sale is provided as a courtesy to our viewers to help them make informed decisions.

Article source: http://arlingtonshortsaleblog.com/2011/06/i-want-to-buy-another-home-right-after-a-short-sale/

How An Arlington Short Sale Helps Preserve Neighborhood Values

Bill Ivey — Wed, 15 Jun 2011 23:42:00 +0000

How An Arlington Short Sale Helps Preserve Neighborhood Values

Arlington TN – Yes, short sales actually help preserve home values in a neighborhood. Here is why.

Most people short sell their home while they are still living in the home. They are maintaining the home, mowing the yard, keeping the air conditioning on, etc.

Most bank owned properties are empty for 3-6 months, if not longer. No one maintains the home during that time period. Empty homes are easy targets for vandalism and thieves.

The grass and yard get overgrown. Pools deteriorate and the water turns green with algae.

In some Southern States, such as Florida, if a home is not air conditioned during the summer, then mold will grow on the walls inside.

In the Northern States, if a home is not heated during the winter, then pipes can ice up and break causing a lot of plumbing damage.

Even things as simple as sprinkler system can have problems when they aren’t used for 3-6 months. A sprinkler system contractor recently told us that if the system isn’t ran at least once a month, then it can have problems.

All these things added together cause bank owned homes to sell for much less than a short sale. That is why you should be proud that you are short selling your house.

You are doing a big part to help keep the housing market and your neighborhood. In addition, you are helping the entire economy because the housing market is such an important part of it.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (901) 857-3888

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this!
Bill Ivey

Bill is a Real Estate Broker at Enterprise Realtors, Arlington Short Sales Realtor:

Phone: (901) 857-3888. bivey@EnterpriseRealtors.com.

Solving The Foreclosure Crisis One Home At A Time

View My homes for sale at www.cathyivey.com.

Bill Ivey specializes in loan modification assistance and short sales in Arlington Tennessee. Arlington Loan Modification Help, Arlington Short Sales. Arlington Short Sale Realtor Arlington TN Short Sales. Arlington Realtor.

Important Notice

The views expressed here are Bill Ivey’s personal views and do not reflect the views of Enterprise Realtors.

This information on How An Arlington Short Sale Helps Preserve Neighborhood Values is provided as a courtesy to our viewers to help them make informed decisions.

Article source: http://arlingtonshortsaleblog.com/2011/06/how-an-arlington-short-sale-helps-preserve-neighborhood-values/