Thursday, October 29, 2009

Learn the Truth about Short Sales

Thursday, October 29, 2009
by The Pilgrim Team, York, PA

Short Sale Myths

A short sale can be an excellent solution for homeowners who must sell and owe more on their Homes for sale in york pa than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.

Myth #1 - The Bank Would Rather Foreclose than Bother with a Short Sale

The qualifications for a short sale include:This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.

1. Financial hardship- There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall - "You have more month than money." A lender will want to see thatyou cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Myth #2 -You Must Be Behind on Your Mortgage to Negotiate a Short Sale

While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.

If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.

Myth #3 - There,is Not Enough Time to Negotiate a Short Sale Before My Foreclosure

This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.

The foreclosing party-in most cases a lender--can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.

Myth #4 - Listing My Home as a Short Sale is an Embarrassment

It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, one out of five homeowners in theU.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.

With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.

Myth #5 - Short Sales are Impossible and Never Get Approved

This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.

For example, agents with the Certified Distressed Property Expert(CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.

Myth #6 - Banks are Waiting on a Bailout and Not Accepting Short Sales

You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.

Today, more banks are aggressively pursuing short sales and working with agents who understand how how to process them. Freddie Mac recently hosted a national training webinar for real estate agents where they expressly stated the organizational goal of "eliminating distressed assets through loan modifications or short sales."

Myth #7 - Buyers are Not Interested in Short Sale Properties

This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.

For buyers, short sales and foreclosures have become synonymous with "good deals." More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.

In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.

Wednesday, October 28, 2009

Search for Open Houses Online

As a homebuyer, how do you learn where open houses are in the area? You probably start by checking out the ads in the local paper. Then, you might hop in the car on Sunday afternoon, cruising the streets on the chance you might stumble upon an open-house sign. With gas prices at an all-time high, do you really want to waste an afternoon driving up and down the streets of the neighborhood in which you’d like to move looking for the possibility of an open house? Looking for open houses just got easier.

The new and innovative Web site allows buyers to search open houses throughout your desired community. It is fast and user-friendly! Currently, real estate agents have listed their open houses on the site, which is updated weekly.  Simply go to the Web site, type in your preferred area and immediately see hundreds of open houses in the comfort of your own home. View maps, directions and multiple pictures before you get in the car and traverse the neighborhood. With more than 75 percent of homebuyers using the Internet to view homes for sale, doesn’t it make sense to find information about open houses online? Save time, money and the hassles of driving all over town for open houses. Visit today to see the upcoming open houses in your neighborhood.

Tuesday, October 27, 2009

Is Now The Time To Sell My House?

Is now the time to sell my house or should I wait? That is probably the question most people who want to sell are asking themselves these days. It all comes down to do you need to sell right now or just do want to make a change? Sometimes because of a job relocation it is not a decision you have any choice to make. But if you want to sell because you have outgrown your present house due to family size or maybe you want to downsize because the kids have moved out, what do you do? With the dramatic drop in home values do you wait for the market to recover to the norm or do you sell now? Let's take a look at where the market is and where it may be going. If your house has dropped around 20% in value over the last 3 years and the market rebounds to what is considered normal which is an average of 2-3% appreciation a year it could take over 10 years for the market to make up the difference in what you lost. Most people don't and can't wait that long. What you do have going for you is that you can possibly save thousands of dollars on the house you will buy and at a very low interest rate if you need to finance it. So is it a good time to bet.

What is most important if you decide to sell you house keep in mind that all Realtors are not alike. As far a what company do you hire, that really has no bearing on your decision, remember the company does not sell your house the agent does. So be sure you choose an experienced agent who has an excellent marketing plan, has excellent negotiating skills and has the experience to help you all the way until you get a successful sale. Please feel free to check me out at my web page or call me for a interview. You'll be glad you did.

Big Savings on Big Homes!

If you ever thought of a time to buying a larger home in an upscale neighborhood, now is the time. With Mortgage interest rates low and larger home prices that have dropped substantially and now you can save $10's of thousands of dollars like never before. Local York neighborhoods, such as Wyndham Hills, Brittany, Autumn Wood, Springwood, Chestnut Ridge, South Wynd, Sentry Woods and many more have seen dramatic price reductions. Take the time to search the local house market and call us to take a peek. You will be glad you did.

Update on the $8,000 Tax Credit

I recently had a conversation with our local congressman about what may be happening to the first time home buyers tax credit as it now exists. It sounds like our Representatives in Washington are leaning towards allowing all buyers of real estate to use the tax credit and it may be increased to as much as $15,000. I expect the program to be passed by both houses. What this will do for homeowners in the price ranges above $200,000 should help stabilize the prices and hopefully see an increase. Stay Tuned! This is good news York, PA.

Tuesday, October 20, 2009

More Homes Going into Foreclosure in 2009

Tips for homeowners in distress to avoid foreclosure.
Most people have options when it comes to foreclosure, very few people know exactly what to do or where to go! Whether is be refinance options, modifying your loan, or short sale, seak advice from someone who has the training, knowledge, and tools to help you in a time of financial hardship (free of charge). An agent who has earned CDPE© Certified Distressed Property Expert© designation has dedicated their time and effort to understanding the issues distressed homeowners are dealing with.
So if you or anyone you know is considering bankruptcy and in fear of going into forclosure, now is the time to learn your options. Feel free to call Jerry Pilgrim today! 717-757-5955 or visit . He is available to explain the options and paths in front of you, to help you choose the best solution for you and your family.

Monday, October 19, 2009

Shortsale Financing

There is a rumor floating around in the York PA area that "FHA, VA finacing is not acceptable for shortsales". This is the furthest from the truth. The Lender who makes the decision regarding the shortsale approval's want to see a mortgage pre-approval and then the mortgage commitment prior to the settlement. As long as the Buyer finds a lender who will provide the financing for the shortsale they could care less what financing ultimately helps pay for the property. Don't let anyone tell you otherwise!

Cozy Clean and Ready for New Ownership!

Call Jerry Pilgrim now at 717-757-5955 to see this home or any other home you may see or go to:

Click Here to Search the ENTIRE York County MLS - Updated Hourly - Large Photos - Easy-to-read Maps

Thursday, October 15, 2009

Extend The Home Buyer $8,000 Tax Credit

Extend the Home Buyer $8,000 Tax Credit
Thursday, October 15, 2009
by Jerry
The $8,000 tax credit is set to expire November 30th. Currently Congress is deliberating on to either let it expire or possibly extend the credit with modifications. The talk is that they could raise the credit to as high as $15,000 for all buyers (this means not just for 1st time home buyers). With the state of the economy nationally and the fact that local economy (Useful Information about York PA) is so depended on real estate related goods I believe if anything that needs a continued stimulus is real estate. I wouldn't have said that before this all started but since the government started down this road they have to finish what they started and don't let this vehicle run out of gas now. If they don't extend this to all home buyers it could be devastating nationally.

Friday, October 09, 2009