Is There a Benefit using a Third Party Negotiating Company?

I have noticed that there has been an increase by York Pa Real Estate Agents using companies to negotiate a Short Sale for them. The reasoning behind it is that the vast majority of agents don't have a clue how to negotiate a successful short sale, so use a company to do it for them. On the surface most people probably don't see a reason why not to do that. 1. it save the agent time. 2 Agent can list a short sale and think they can make a commission. 3. The agent can tell the seller he has an experienced company handling it for them.

The problem with this strategy in my opinion is that the Seller could really get damaged by this type of procedure. First of all the Seller is in a distressed situation with the home potentially going to foreclosure. The Negotiation company charges a buyer a fee that in most cases the buyer is not willing to pay. This will mean the property will get few if any showings. Secondly if an offer does come in the Negotiating company starts the process, they do not know either the Seller or the Buyer. That means they have no personal rapport with either party and with that in mind when the Lender wants a lot of information so they can make a decision on the viability of the short sale the effort on the Negotiating company is less than satisfactory. The success ratio of such a company must be much less than what a Certified Distressed Property Expert will be able to offer. What is really troubling is that when an Real Estate Agent uses this type of company basically because they don't know what they are doing in regards to short sales, but they think they will get a commission paid to them if it is successful. Unfortunately this practice ultimately pushes the Seller into foreclosure. No one wins when that happens.

If you live in York, PA and in are facing foreclosure, please consider a Short Sale and put your situation in the hands of an experienced team The Pilgrim Team of Professional Realty Associates and be confident you made the right financial choice.

Foreclosure Market Trends

UsForeclosure Market Trends Foreclosure Market Trends

Monday, January 25, 2010by The Pilgrim Team

Phone: 717-757-5955x101
Email: jpilgrim@pilgrimteam.com
Jerry Pilgrim

Professional Realty Associates
3921 E Market St
TYork, PA 17402

I am a Certified Distressed Property Expert and I pride myself as the local expert on buying or Listing York PA Homes distressed Homes for sale in york pa in York County. Contact me for a confidential meeting to assist you.

January 2010

Vol. 4, Issue 3
6 month National Foreclosure Trends

NOD NTS NFS LIS REO

REALTYTRAC® YEAR-END REPORT SHOWS RECORD 2.8 MILLION

U.S. PROPERTIES WITH FORECLOSURE FILINGS IN 2009

A total of 2,824,674 U.S. properties in received a foreclosure filing in 2009, a 21 percent increase in total properties from 2008 and a 120 percent increase in total properties from 2007, according to the RealtyTrac Year- End 2009 U.S. Foreclosure Market Report. The report also shows that 2.21 percent of all U.S. housing units (one in 45) received at least one foreclosure filing during the year, up from 1.84 percent in 2008, 1.03 percent in 2007 and0.58 percent in 2006. Foreclosure filings were reported on 349,519 U.S. properties in December and foreclosureactivity in the fourth quarter decreased 7 percent from the third quarter.

The latest idea bubbling up in the world of real estate is the use of principal reductions to stem the foreclosure tide, the theory being that if we lower mortgage balances then homeowners will have smaller monthly payments and fewer foreclosures. Truth is, the only reason lenders will reduce principal balances is when it's to their advantage. Reducing principal balances will instantly produce big and hideous losses, something Lenders don't want but something lenders will accept if the probability of even bigger and more hideous losses from short sales and foreclosures can be avoided.

Will Principal Cuts Reduce Foreclosures?

Here are some of the most recent Investment opportunities in the area.

Property Type Address Market Value Default Sq. Ft.

Bank-Owned

Airville, PA 17302

Delta Rd,$15,000 N/A 1,381

Auction Date: 2/8/10

Auction Dillsburg, PA 17019 Old Mill Rd,$78,140 N/A 2,127 Pine St Dillsburg PA, 17019 Market Value $126,040 Beds/Bath 3/1

Default Amount $N/A

Sq. FT 1,632

Pre-Foreclosure

FORECLOSURE TRENDS :


NOVEMBER 2009

NODs 88,790 0 0 NTSs160,660 0 0 FSs65,922 3,202 94
LISs 132,813 3,640 244
REOs 152,008 2,724 112

Faster Sales Coming For Foreclosure Buyers

Foreclosure buyers got a Christmas Eve goodie from Fannie Mae, a new strategy that's likely to make foreclosure purchasing very much quicker. The catch? A bunch of lenders are about to be very unhappy. With the growing number of distressed properties there's now a substantial “foreclosure discount” in most markets. What were once tolerable and controlled losses are today steep and sharp declines that leave lender red ink everywhere. The question for loan owners is this: Is there anyway to make such lender losses smaller? The answer, as we shall see, turns out to be good news for foreclosure buyers.

For More information on available foreclosures or short sales go to: www.StopyorkForeclosures.com

Searching for York PA Foreclosures?

If you are searching for Bank Owner Property (REO'S) we offer a free list of foreclosures and also pre-foreclosures of real estate in York County PA. Go to our web site or our link at www.yorkpabankowned.com for your list. We have agents who are experienced with this type of property and who are trained in dealing with lenders so we may be able to get you the best deal possible. Contact The Pilgrim Team at Professional Realty Associates.

Is now the time to Sell and Buy your next home in York PA

I'm often asked if this is a good time to buy or sell a home here in York, PA. Some of my clients are concerned that home prices may fall further than they already have. They are assuming that the best course of action is to wait for the bottom in the market and then buy a home here in York at that time. The problem with this approach is that you don't know where the bottom is until after you passed it it is like looking in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have held fairly steady the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call me Jerry Pilgrim if I can be of any assistance in determining how much home you can afford in today's market. Visit me at www.PilgrimTeam.com

York PA Shortsales and Foreclosures

Hi Everyone,
It's that time of year again, and even I'm planning some travel and setting my affairs in order for the next few months. I hope you and your family are happy and healthy headed into the end of the year, and I look forward to catching up soon.
But I'm finding this time of year is also proving difficult for a lot of people in our community who are upside-down on their mortgages in York PA and surrunding area's and don’t know what to do. I'm seeing it often lately, and in these cases I'm also finding a lack of good information.
This is why I became a Certified Distressed Property Expert. I want to make sure the people of our community have the right facts to make the right decision for their individual situations. And to help, I made this website dedicated to the issues affecting distressed homeowners, and the solutions available to them:

http://yorkshortsales.com/

Download my free report on the myths concerning short sales. Because in reality, a short sale could be the best solution for a homeowner in trouble. Use this report to gain insight on your situation, or to help someone you know. Don't let your path to a stable financial future get derailed by a myth.

Feel free to contact me to learn more about this or just to talk ... either way it would be great to hear from you.


Sincerely yours,


Jerry Pilgrim
Professional Realty Associates
The Pilgrim Team

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.

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!

House Flipping

Beware of House Flippers! Sellers beware of the come on advertising to "buy your house for cash". Remember it is an investor looking to steal your house at a low price, put as few dollars in it and turn around and make a tidy sum. Who loses? The house Seller. Who wins the investor. Unless you are desperate for a quick sale don't talk to these people!