Recently there has been some talk about "strategic foreclosures". Unfortunately there have been some individuals promoting to people who are in financial distress and don't know where to turn when they have fallen behind in their mortgage payments. They have taken the stand that it is O.K. to just walk away and never look behind them for the consequences that come with such a move.
Just last week Good Morning America had a special about walking away from your commitment. The analogy they used was that if it is good enough for corporate America to do so, it is O.K. for the average homeowner too. It was totally irresponsible reporting and they should be taken to task to promote such a terrible injustice to the public. They did not mention what consequences there are to individuals who actually must work and maintain households, credit ratings and personal reputations if they allow a foreclosure to happen. Obviously they did not realize or even care that with that type of reporting people could be jeopardizing their financial futures including holding on to the job they currently have or a job in the future. Corporations don't have to think about those things as it not part of the business world. So yes, corporations do that sometimes but with different consequences.
Please don't consider a Strategic Foreclosure as you might not be happy what you may end up with. Call me today for a confidential interview and we can set the record straight and get you on the right financial path.
Showing posts with label short sale. Show all posts
Showing posts with label short sale. Show all posts
Monday, April 30, 2012
Tuesday, May 24, 2011
Break Free From Unaffordable Mortgage Payments!
Break Free From Unaffordable Mortgage Payments!
A recent study in Nevada
The Realtors Association of York and Adams County (RAYAC) and the local Multiple List Service report for York County
Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they’d soon realize that there’s nothing ‘strategic’ about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability.
Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.
Education is key. The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I’ve seen this firsthand.
I can help with the education part—it’s up to you to contact me!
Thursday, October 14, 2010
National Distresses Property Numbers for Quarter 2 of 2010
The statistics below are for the National Real Estate Market. I track these numbers to get a better of what can be predicted in the future regarding pricing of homes. As you will see because there is so much inventory yet to be sold nationally and here in York, I believe that we can expect some further depreciation of value on real estate here unfortunately. If you would want more specific information on the current market value on your property contact Jerry Pilgrim at Professional Realty Associates for a complimentary home value analysis.
National Numbers for all current FHA Mortgage Loans in the 2nd quarter 2010
3.62% in Foreclosure, 12.63% in Default (30+ days late) which means there is a Total of 16.25% FHA properties in distress.
National Numbers, VA Loans 2nd quarter 2010
2.50% in Foreclosure, 7.48% in Default (30+ days late) for a Total of 9.98%
National Numbers for Subprime Loans 2nd quarter 2010
14.38% in Foreclosure, 25.90% in default (30+ days late) which is a Total of 40.28% properties in distress
National Numbers for Prime Loans 2nd quarter 2010
3.49% in Foreclosure, 6.66% in Default (30+ days late) for a Total of 10.15% properties in distress
National Numbers 2nd quarter 2010
4.57% in Foreclosure, 9.40% in default (30+ days late) for a Total of 13.97%
National Numbers all Mortgages
Total Distressed Properties 6,216,650
Total Predicted sales 3,830,000
* Numbers provided by the Mortgage Bankers Association, based on 44.5 million mortgages, non-seasonally adjusted
The numbers above indicate a national inventory of 19+ months properties to be sold. Keep in mind real estate is a local market so the numbers will vary from area to area. Here in York County PA we currently hava 17 month inventory based on local MLS statistics.
National Numbers for all current FHA Mortgage Loans in the 2nd quarter 2010
3.62% in Foreclosure, 12.63% in Default (30+ days late) which means there is a Total of 16.25% FHA properties in distress.
National Numbers, VA Loans 2nd quarter 2010
2.50% in Foreclosure, 7.48% in Default (30+ days late) for a Total of 9.98%
National Numbers for Subprime Loans 2nd quarter 2010
14.38% in Foreclosure, 25.90% in default (30+ days late) which is a Total of 40.28% properties in distress
National Numbers for Prime Loans 2nd quarter 2010
3.49% in Foreclosure, 6.66% in Default (30+ days late) for a Total of 10.15% properties in distress
National Numbers 2nd quarter 2010
4.57% in Foreclosure, 9.40% in default (30+ days late) for a Total of 13.97%
National Numbers all Mortgages
Total Distressed Properties 6,216,650
Total Predicted sales 3,830,000
* Numbers provided by the Mortgage Bankers Association, based on 44.5 million mortgages, non-seasonally adjusted
The numbers above indicate a national inventory of 19+ months properties to be sold. Keep in mind real estate is a local market so the numbers will vary from area to area. Here in York County PA we currently hava 17 month inventory based on local MLS statistics.
Friday, March 12, 2010
What Can a Certified Distressed Property Expert (CDPE) Do For You?
What can Jerry Pilgrim, a CDPEAdvanced member, offer to homeowners in distress?
“I am a member of the CDPEAdvanced program. You may have heard of CDPEs or Certified Distressed Property Experts before. We are agents who have committed to understanding and providing foreclosure avoidance solutions to homeowners facing financial hardship.
Being a real estate agent today means something different than perhaps a few years ago.
Today, around 15 percent of mortgages are delinquent, or not being paid. That means one in six homeowners you meet may be experiencing the same challenges you are. So the first thing you should know is that you’re not alone, and that there are millions of others across the country in your situation.
As a CDPEAdvanced member, I’m part of the charge to turn this crisis around by immersing myself in the solutions available to distressed homeowners. And my goal is to bring the best option to each individual homeowner.
CDPEAdvanced gives me access to regular industry updates from the Distressed Property Institute, a company created by real estate leaders with the specific purpose of pulling as many homeowners out of distress as possible.
I also have access to a network of top agents nationwide who are also dealing with distressed properties. This is a powerful tool. It lets me find out what is happening on the front lines, what banks and buyers are looking for, which foreclosure avoidance tactics are working and which ones aren’t.
Between the market analysis and the network of agent communication, I can offer you the most current, relevant solutions. This housing market has become such a moving target that anyone who isn’t taking extra steps to keep up will simply get left behind. My clients need to know all the options available to them, and that is what I can deliver. This is why I am a CDPEAdvanced member.”
Find out more by visting www.PilgrimTeam.com or visit www.StopYorkForeclosures.com
“I am a member of the CDPEAdvanced program. You may have heard of CDPEs or Certified Distressed Property Experts before. We are agents who have committed to understanding and providing foreclosure avoidance solutions to homeowners facing financial hardship.
Being a real estate agent today means something different than perhaps a few years ago.
Today, around 15 percent of mortgages are delinquent, or not being paid. That means one in six homeowners you meet may be experiencing the same challenges you are. So the first thing you should know is that you’re not alone, and that there are millions of others across the country in your situation.
As a CDPEAdvanced member, I’m part of the charge to turn this crisis around by immersing myself in the solutions available to distressed homeowners. And my goal is to bring the best option to each individual homeowner.
CDPEAdvanced gives me access to regular industry updates from the Distressed Property Institute, a company created by real estate leaders with the specific purpose of pulling as many homeowners out of distress as possible.
I also have access to a network of top agents nationwide who are also dealing with distressed properties. This is a powerful tool. It lets me find out what is happening on the front lines, what banks and buyers are looking for, which foreclosure avoidance tactics are working and which ones aren’t.
Between the market analysis and the network of agent communication, I can offer you the most current, relevant solutions. This housing market has become such a moving target that anyone who isn’t taking extra steps to keep up will simply get left behind. My clients need to know all the options available to them, and that is what I can deliver. This is why I am a CDPEAdvanced member.”
Find out more by visting www.PilgrimTeam.com or visit www.StopYorkForeclosures.com
Tuesday, February 16, 2010
Strategic Foreclosures Good or Bad?
Recently there has been some talk about "strategic foreclosures". Unfortunately there have been some individuals promoting to people who are in financial distress and don't know where to turn when they have fallen behind in their mortgage payments. They have taken the stand that it is O.K. to just walk away and never look behind them for the consequences that come with such a move.
Just last week Good Morning America had a special about walking away form your commitment. The analogy they used was that if it is good enough for corporate America to do so, it is O.K. for the average homeowner too. It was totally irresponsible reporting and they should be taken to task to promote such a terrible injustice to the public. They did not mention what consequences there are to individuals who actually must work and maintain households, credit ratings and personal reputations if they allow a foreclosure to happen. Obviously they did not realize or even care that with that type of reporting people could be jeopardizing their financial futures including holding on to the job they currently have or a job in the future. Corporations don't have to think about those things as it not part of the business world. So yes, corporations do that sometimes but with different consequences.
Please don't consider a Strategic Foreclosure as you might not be happy what you may end up with. Call me today for a confidential interview and we can set the record straight and get you on the right financial path.
Just last week Good Morning America had a special about walking away form your commitment. The analogy they used was that if it is good enough for corporate America to do so, it is O.K. for the average homeowner too. It was totally irresponsible reporting and they should be taken to task to promote such a terrible injustice to the public. They did not mention what consequences there are to individuals who actually must work and maintain households, credit ratings and personal reputations if they allow a foreclosure to happen. Obviously they did not realize or even care that with that type of reporting people could be jeopardizing their financial futures including holding on to the job they currently have or a job in the future. Corporations don't have to think about those things as it not part of the business world. So yes, corporations do that sometimes but with different consequences.
Please don't consider a Strategic Foreclosure as you might not be happy what you may end up with. Call me today for a confidential interview and we can set the record straight and get you on the right financial path.
Monday, January 25, 2010
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
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
Saturday, January 09, 2010
Distressed Homeowners Beware of those We'll Buy Your House Ad's
Homeowners who are in financial distress here in York Pa and the rest of the country have been seeing a lot of advertising lately about buying homes for cash. Though these offers may seem legitimate and some may be, the vast majority of these companies are in my opinion scamming the distressed homeowner who is going through a financial crisis due to the downturn in the economy the last 3 years.
What homeowners must realize and question is how could a person offer to buy a home that the current homeowner is "under water" meaning the home is worth less than what they currently owe on it and then resell it and make money on it? As a homeowner if you have equity in the property why would you not want to put that in your pocket instead put it in someone else's, especially in this current economic climate?
What the intent is by these companies is to not only scam the homeowner but defraud the lender who has the mortgage on the property. How do they do that? They offer the homeowner to buy the property and write an contract on the home for x amount of dollars. The company has no real intention to buy it. What they will do is "shortsale" the property at the lower price and then put it on the market for sale at a much higher price than the contract price looking for a buyer willing to pay what really is fair market value. Once they find a buyer who is willing to purchase the property at the higher price they arrange a settlement date that will coincide with the 1st and 2nd contracts and settle on both concurrently. This settlement which we call a "double flip" they transfer the property from the current owner then to the buyer the company has found and the difference between the 1st contract and the 2nd contract that was written is pocketed by the company. This is done with very little money ever transferred by the investment company.
You say what is wrong with that? The lender who holds the mortgage was never aware of the 2nd contract and was lead to believe the companies 1st contract was fair market value, which in fact it was not. So in my opinion this is fraud committed on the lender and ultimately the american consumer and taxpayer who has paid billions with bailout money loaned to these institutions.
So if someone comes to you to buy your house for cash or you respond to one of those billboards you see out there, steer away from these companies. It will be only a matter of time to they get caught.
Labels: Buy Your House For Cash, Foreclosures, Selling Homes york pa, Shortsales, We Buy Houses, York PA, York Pa Real Estate
What homeowners must realize and question is how could a person offer to buy a home that the current homeowner is "under water" meaning the home is worth less than what they currently owe on it and then resell it and make money on it? As a homeowner if you have equity in the property why would you not want to put that in your pocket instead put it in someone else's, especially in this current economic climate?
What the intent is by these companies is to not only scam the homeowner but defraud the lender who has the mortgage on the property. How do they do that? They offer the homeowner to buy the property and write an contract on the home for x amount of dollars. The company has no real intention to buy it. What they will do is "shortsale" the property at the lower price and then put it on the market for sale at a much higher price than the contract price looking for a buyer willing to pay what really is fair market value. Once they find a buyer who is willing to purchase the property at the higher price they arrange a settlement date that will coincide with the 1st and 2nd contracts and settle on both concurrently. This settlement which we call a "double flip" they transfer the property from the current owner then to the buyer the company has found and the difference between the 1st contract and the 2nd contract that was written is pocketed by the company. This is done with very little money ever transferred by the investment company.
You say what is wrong with that? The lender who holds the mortgage was never aware of the 2nd contract and was lead to believe the companies 1st contract was fair market value, which in fact it was not. So in my opinion this is fraud committed on the lender and ultimately the american consumer and taxpayer who has paid billions with bailout money loaned to these institutions.
So if someone comes to you to buy your house for cash or you respond to one of those billboards you see out there, steer away from these companies. It will be only a matter of time to they get caught.
Labels: Buy Your House For Cash, Foreclosures, Selling Homes york pa, Shortsales, We Buy Houses, York PA, York Pa Real Estate
Sunday, November 08, 2009
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
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
Sunday, August 09, 2009
Foreclsure List now available
Home buyers looking for great deals on homes that are bank owned (REO'S) or short sales can contact us for the latest property listings that we can pull from other bank sites as they come on the market or even before they go to foreclosure. We would be happy to provide home buyers looking for foreclosures in York County PA. Contact us today for the list!
Monday, May 18, 2009
Buying in a Buyers Market
The Long and Short of Short Sales
A Short Sale has been referred to by more than one real estate professional as a dignified solution to a financial crisis. The reality is that many homeowners today owe more on their homes than they are worth and don’t know what to do. If you have exhausted other options like a mortgage modification or a refinance or simply can no longer afford your home due to the loss of a job or other hardship a short sale may be the solution for you.
Short Sale Qualifications
There are three simple qualifications almost every lender will want to see to qualify you for a short sale:
1. Financial Hardship - your mortgage company will want to see that you have a verifiable material hardship that is affecting your ability to pay your mortgage. Hardships can be issues such as a payment increase, job loss, income decrease, medical expenses and any other issue that is truly affecting your ability to pay.
2. Monthly Shortfall – your lender will want to see that on a monthly basis your hardship is causing you to have a monthly shortfall. This means that they want to see that your monthly income is less than your monthly expenses. This is a simple calculation that can be done by adding up all your expenses and comparing them to your total income. If your expenses are higher than your income you have a shortfall.
3. Insolvency – your lender or servicer will want to see that you are insolvent prior to approving a short sale. Simply translated this means they want to see that you do not have the ability to pay down the balance of your mortgage in liquid funds.
Short Sale Process – How do I get this done?
In order to successfully sell your property through a short sale you will need to fully cooperate with your real estate professional. Your assistance in this process will give you the highest likelihood of a successful outcome, a sale and most importantly a foreclosure avoided.
Here is a simple list of items you can take care of immediately:
· Prepare your property for sale, this includes: remove all clutter, make sure all lights work, clean out your property and make it as presentable as possible. Your agent will have additional suggestions for you however there is no reason not to get started now.
· Gather the required paperwork and documentation that your agent will need in your first meeting you have, see the list below.
· If you believe a short sale is the right option for you, list your property with the qualified CDPE professional that gave provided you with this information. They will help guide you through this process.
Paperwork Needed for a Short Sale
(Start Now)
In order to demonstrate to your lender that you qualify for a short sale your agent will need the following documentation:
· Two months most recent mortgage statements (all mortgages)
· Two months checking account statements (all borrowers if separate)
· Two months saving account statements (all borrowers if separate)
· Two months other account statements (all borrowers if separate)
· Last two paycheck stubs (all borrowers)
· Two years tax returns
· Hardship Letter (see samples)
· Financial Worksheet (provided)
· Any other documentation to help your agent prove your hardship
Monthly Income Shortfall Calculation
Total Monthly Income
-
Total Monthly Expenses
=
Total Monthly Shortfall
Don’t Delay
Each day is important when you are exploring options on your mortgage – don’t wait one day that could be spent working with your mortgage servicer or lender on finding a solution to your specific issue.
How will my retirement be treated in a short sale?
There is a common misconception that in order to qualify for a short sale you can’t have any assets or savings. This is not normally true; in fact in many cases banks are disregarding retirement accounts that would otherwise be protected in a bankruptcy. Don’t assume that you will have withdraw funds from these account to qualify.
A Short Sale has been referred to by more than one real estate professional as a dignified solution to a financial crisis. The reality is that many homeowners today owe more on their homes than they are worth and don’t know what to do. If you have exhausted other options like a mortgage modification or a refinance or simply can no longer afford your home due to the loss of a job or other hardship a short sale may be the solution for you.
Short Sale Qualifications
There are three simple qualifications almost every lender will want to see to qualify you for a short sale:
1. Financial Hardship - your mortgage company will want to see that you have a verifiable material hardship that is affecting your ability to pay your mortgage. Hardships can be issues such as a payment increase, job loss, income decrease, medical expenses and any other issue that is truly affecting your ability to pay.
2. Monthly Shortfall – your lender will want to see that on a monthly basis your hardship is causing you to have a monthly shortfall. This means that they want to see that your monthly income is less than your monthly expenses. This is a simple calculation that can be done by adding up all your expenses and comparing them to your total income. If your expenses are higher than your income you have a shortfall.
3. Insolvency – your lender or servicer will want to see that you are insolvent prior to approving a short sale. Simply translated this means they want to see that you do not have the ability to pay down the balance of your mortgage in liquid funds.
Short Sale Process – How do I get this done?
In order to successfully sell your property through a short sale you will need to fully cooperate with your real estate professional. Your assistance in this process will give you the highest likelihood of a successful outcome, a sale and most importantly a foreclosure avoided.
Here is a simple list of items you can take care of immediately:
· Prepare your property for sale, this includes: remove all clutter, make sure all lights work, clean out your property and make it as presentable as possible. Your agent will have additional suggestions for you however there is no reason not to get started now.
· Gather the required paperwork and documentation that your agent will need in your first meeting you have, see the list below.
· If you believe a short sale is the right option for you, list your property with the qualified CDPE professional that gave provided you with this information. They will help guide you through this process.
Paperwork Needed for a Short Sale
(Start Now)
In order to demonstrate to your lender that you qualify for a short sale your agent will need the following documentation:
· Two months most recent mortgage statements (all mortgages)
· Two months checking account statements (all borrowers if separate)
· Two months saving account statements (all borrowers if separate)
· Two months other account statements (all borrowers if separate)
· Last two paycheck stubs (all borrowers)
· Two years tax returns
· Hardship Letter (see samples)
· Financial Worksheet (provided)
· Any other documentation to help your agent prove your hardship
Monthly Income Shortfall Calculation
Total Monthly Income
-
Total Monthly Expenses
=
Total Monthly Shortfall
Don’t Delay
Each day is important when you are exploring options on your mortgage – don’t wait one day that could be spent working with your mortgage servicer or lender on finding a solution to your specific issue.
How will my retirement be treated in a short sale?
There is a common misconception that in order to qualify for a short sale you can’t have any assets or savings. This is not normally true; in fact in many cases banks are disregarding retirement accounts that would otherwise be protected in a bankruptcy. Don’t assume that you will have withdraw funds from these account to qualify.
Wednesday, May 06, 2009
Home Buyers Seminar
York, Pa-- "The Pilgrim Team" at Professional Realty Associates is pleased to announce they are hosting a FREE informative Home Buyer Seminar. Anyone considering purchasing or investing in real estate should attend this special event. Learn about first time home buyer programs and the $8,000 tax credit. Take advantage of very low interest rates and how to buy short sales and foreclosures and save $1,000's of dollars!
Where: Tuesday May 19th at 7:00pm
at Perkins Family Restaurant (meeting room)
2500 E. Market St, York PA 17402
With Guest Speakers to include:
Maximum Realty Settlement Services will discuss the settlement process and how title insurance benefits you.
Steven Gohn of Credit Bureau of York will discuss how a person's credit score is an integral part of financing a home. He will suggest ways to improve their credit ratings, score and repair credit if necessary.
Tim Leiphart, V.P.National City Mortgage will inform us about new loan guidelines and taking advantage of the new First Time Home Buyer's Credit.
Jerry Pilgrim, Professional Realty Associates will speak to buyers interested in purchasing Homes for sale in york pa and what to expect when purchasing foreclosures and short sales.
Anyone who attends will receive a buyer’s orientation book and prizes.
All Attendees who purchase a home with us will receive a Free 1 yr. Home Warranty.
For more information or to make reservations for the Free seminar call Professional Realty Associates at 717-757-5955 or visit our webpage at www.PilgrimTeam.com and click the link to register online. http://www.pilgrimteam.com/home-buyers-seminar.aspx
Where: Tuesday May 19th at 7:00pm
at Perkins Family Restaurant (meeting room)
2500 E. Market St, York PA 17402
With Guest Speakers to include:
Maximum Realty Settlement Services will discuss the settlement process and how title insurance benefits you.
Steven Gohn of Credit Bureau of York will discuss how a person's credit score is an integral part of financing a home. He will suggest ways to improve their credit ratings, score and repair credit if necessary.
Tim Leiphart, V.P.National City Mortgage will inform us about new loan guidelines and taking advantage of the new First Time Home Buyer's Credit.
Jerry Pilgrim, Professional Realty Associates will speak to buyers interested in purchasing Homes for sale in york pa and what to expect when purchasing foreclosures and short sales.
Anyone who attends will receive a buyer’s orientation book and prizes.
All Attendees who purchase a home with us will receive a Free 1 yr. Home Warranty.
For more information or to make reservations for the Free seminar call Professional Realty Associates at 717-757-5955 or visit our webpage at www.PilgrimTeam.com and click the link to register online. http://www.pilgrimteam.com/home-buyers-seminar.aspx
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