Register Real Estate Advisors

AUSTIN (Austin Business Journal) – RealtyTrac’s annual foreclosure report, released yesterday, revealed Texas metro rates to be under the national average of 2.21 percent.

 Austin and Round Rock area foreclosure rates increased 39.5 percent between 2008 and 2009. About 1.25 percent of all housing units, or one in every 80 homes, foreclosed last year, and 8,002 homeowners filed. This was an increase of 54.6 percent from 2007. Of the 203 metros ranked nationwide for foreclosures, the area was ranked 117th.

 Dallas–Fort Worth ranked 94th with a 1.5 percent foreclosure rate, and Houston was 111th with 1.3 percent of its area homes foreclosed upon. San Antonio ranked 109th in RealtyTrac’s report, with a 1.31 percent foreclosure rate.

Due to the massive amount of short sales and foreclosures in the Houston area I have acquired my CDPE – Certified Distressed Property Expert Designation.  This new designation has taught me the short sale process and how to get the deal closed.  It is the designation that banks require for Realtors to work on their distressed and foreclosure properties.  If you or someone you know is behind on their mortgage please choose a Realtor that holds this designation.  I enjoy helping homeowners learn how to avoid foreclosure and helping them sale their properties before they are foreclosed on.

Built in 2002, this home is the perfect floorplan for any buyer.  It is a one story open floorplan built to suit.  It includes a gas or wood burning fireplace, a brick patio and huge wooden deck for entertaining.  This home has beautiful wood floors, tile, gas stove, built in microwave, wood blinds, professional landscaping, separate tub and shower in the master bath, and much more.  The formal dining room has a painted accent wall.  The covered front porch is perfect for a quiet summer’s evening.  You are going to love this house!  It’s a short sale, but I am a Certified Distressed Property Expert and together we can get this deal done!  This home is an excellent value!

(more…)

COLLEGE STATION (Real Estate Center) – Texas is experiencing its highest residential foreclosure rate since the late ’80s. All residential foreclosures are governed by strict statutory rules, and Real Estate Center attorney Judon Fambrough says homeowners in jeopardy should know these rules to protect their rights.

 ”For example, how many days’ notice must the homeowner be given to satisfy the amount in arrears before the entire amount of the unpaid loan may be declared due and owing?” Likewise, Fambrough said, “What are the qualifications, if any, of the person who conducts the foreclosure sale? How many times a year can a foreclosure sale occur, and on which day of the week, and during what hours?”

 These and other questions are answered in “A Homeowner’s Rights under Foreclosure,” available on the Center’s website.

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1.  Check for and correct errors in your credit report.  Mistakes happen, and you could be paying for someone else’s poor financial management.

2.  Pay down credit card bills.  If possible, pay off the entire balance every month.  However, transferring credit card debt from one card to another could lower your score. 

3.  Don’t charge your credit card to the maximum limit.

4.  Wait 12 months after credit difficulties to apply for a mortgage.  You’re penalized less for problems after a year.

5.  Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved.  The amounts will add to your debt.

6.  Don’t open new credit card accounts before applying for a mortgage.  Having too much available credit can lower your score.

7.  Shop for mortgage rates all at once.  Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquirey if submitted over a short period of time.

8.  Avoid finance companies.  Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management. 

This information is copywrited by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation.  To obtain a complete copy of the publication, “Knowing and Understanding Your Credit,” visit http://www.homebuyingguide.org.  Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS.

1.  In general, a foreclosure property should be at least 20% lower than similar homes in the area.   

2.  Buying a foreclosure at auction is risky.  The home could have liens, be in poor condition, or have other legal headaches attached.  Buying bank-held or HUD foreclosure properties is safer. 

3.  Do your homework!  Rumors of bargain prices have attracted buyers to the foreclosure market, but it’s not always a good deal.  Sometimes multiple bids on a property drive up the price making it less of a bargain. 

4.  There are a lot of un-reputable websites that promote foreclosures.  A good website to use is RealtyTrac.com.  You can also search the entire Houston MLS Database at BuyandSellwithShannon.com/Buy

5.  Work with an experienced Realtor (like me!) that has access to foreclosure data through the Multiple Listing Service.  Impulsive or uneducated buyers can get taken advantage of and acquire a home with many problems.

6.  Make sure you have the home inspected during your option period.  If the bank will not allow an option period, get it inspected before putting in an offer.  Your inspector will be able to spot water, pest, and structural problems.  If the inspector recommends it, hire an HVAC professional to check out the heating and air conditioning system. 

7.  If there are repairs that need to be made you should get estimates for repair costs before getting locked into a contract on the home.

8.  Get a Pre-Approval before house hunting, as the bank will require that with your offer.

TEXAS (Real Estate Center, The Herald-Zeitung) – Despite rising foreclosure rates in the United States (now nearly 32 percent), the rate in Texas is down 14 percent since last year.

Jim Gaines, research economist with the Real Estate Center at Texas A&M University, said the Texas housing market is doing very well compared with the rest of the nation.

“We’re being compared to large, high-growth states like Florida, New York, California and Illinois, and our housing market is in much better shape. This is partly because about four or five years ago, we didn’t have the big run-up in prices that many of those states had,” Gaines said.

Texas also benefits from a lack of overbuilding, which often creates an excess of inventory to drive down home prices.

Affordable homes, low mortgage and interest rates, and first-time homebuyer tax credits also make this an ideal time to buy a home, according to Gaines.

by Ralph Roberts

Read the entire article.

The Treasury Department recently released its Home Affordable Modification Program Guidelines (part of its Making Home Affordable initiative), which include eligibility requirements to determine which homeowners qualify for relief under the plan. Following are the eligibility requirements as specified in the guidelines:

 

 

• Mortgage must have originated on or before January 1, 2009. 
• Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties. 
• Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law). 
• Home may not be vacant or condemned. 
• Borrowers in bankruptcy are not automatically excluded from consideration. 
• Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights. 
• First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

 
1. 1 Unit: $729,750 
2. 2 Units: $934,200 
3. 3 Units: $1,129,250 
4. 4 Units: $1,403,400

 
• Foreclosure actions are suspended (not cancelled) during the trial period or while borrowers are considered for alternative foreclosure prevention options. If homeowners fail to qualify, foreclosure proceedings may resume. 
• No minimum or maximum LTV ratio for eligibility purposes. 
• Loans are eligible for only one loan modification under the program. 
• Subordinate liens (such as second mortgages or home equity loans or lines of credit) are not included in the Front-End DTI calculation, but they are included in the Back-End DTI calculation. Back-End DTI is used to determine whether the borrower will be required to undergo credit counseling as a condition to modification. 
• Servicers should follow any existing express contractual restrictions with respect to solicitation of borrowers for modifications. Applicants will be accepted into the program only until December 31, 2012 (the program expiration date), but incentive payments will continue up to five years after the date of entry into the Home Affordable Modification Program. Monitoring will continue through the life of the program.

When discussing this program with homeowners in your area, it’s a good idea to point out the following:

 
• Eligibility requirements are simply government guidelines. Guidelines may change, and lenders make exceptions, if it is in their best interest to do so. In other words, homeowners should not count themselves out. If they are having trouble making their house payment, they should explore the loan modification option. Sometimes, the only way to determine whether you qualify is to apply. 
• Not all servicers, lenders, or investors are required to participate in the program at this time. The program is designed for Fannie Mae and Freddie Mac mortgages, but the plan’s incentives may encourage servicers, lenders, and investors to modify other types of mortgages, as well. 
• The individual servicers that agree to participate in the program are required to sign a contract agreeing to abide by the program guidelines. If the servicer does not contract under the program, they are not eligible for incentive payments. 
• Homeowners should consult a specialist who works with lenders on a daily basis to review their situation and determine whether the homeowners are likely to qualify for whatever workout options are available through the lender. Sometimes the only way to determine whether a homeowner qualifies is to submit an application.

During this unprecedented crisis in the housing industry, you can play a valuable role in keeping homeowners in your area well-informed of the programs available to help them keep their homes. I encourage you to do your part to preserve the American Dream of Homeownership and stabilize your corner of the housing market.

I read an article by Betty Shute about the Foreclosure Alternatives and Iwould like to share some of that information with you.  Sometimes when homeowners feel their only way out is a foreclosure, they just don’t have enough information.  If you are in financial crisis, call your Realtor.  I am happy to help my clients.  Next, call your  Mortgage Company to see what you can do to keep your home or avoid foreclosure.  If you have received a Notice of Election and Demand for Sale, this signifies the beginning of the foreclosure process.  Betty recommends you first consult with your Lender, an Attorney, and Financial Advisor or Accountant to discuss your specific situation.  Everyone will need to work together to determine:

Solvency -  Does your monthly income exceed your monthly expenses?  Do you have some savings or assets?  Are you over extended?  Do your montly expenses exceed monthly income with no savings or assets?  If the home is worth more than what is owed on the loan, that is good news. 

Equity-  Do you have any equity in you property and if so, how much?  You want to owe less on the house than what it is worth.

Your Options:

Sale – Sell the property, pay off the lender, you may or may not get money back.  You may or may not have to bring money to closing.

Refinance – Replace loan in foreclosure with new financing, this may require cash to close.

Loan Modification – This is a voluntary adjustment of the terms of a loan by the lender to enable the homeowner to continue making payments; may include repayment plan for missed payments.

Short Sale – Sale transaction in which lien holders agree to accept lesss than full amount owed to release their liens against the property.

Deed in Lieu – Process whereby lender agrees to take back title to property by way of voluntary transfer of title/deed to avoid the foreclosure process.

Bankruptcy – Seek discharge of potential deficiency and other unsecured debts through Chapter 7 or Chapter 13, depending on qualification.

You can read Betty Shute’s full article in the Hosuton Real Estate Executive March 2009 edition.  I have shorted and changed the article for my clients, but replicated many of her clear cut points that I feel will be beneficial to you.  Please call me if you are a homeowner in financial trouble and I will be happy to help you with your situation.  Many homeowners can avoid foreclosure – know your options!