Marsha Cleaveland's Posts - Foreclosure Agents

Closing the Business

2009-01-27T16:26:35.621Z

After a couple of profit-free years, I made the decision to close my real estate sales business and refer my callers to other active agents. Real estate taught me a lot, and I don't regret the effort made. I value the relationships forged and the soul-searching involved in this decision. Although I may continue to post from time to time, bear in mind that I am on the sidelines as an inactive license holder, no longer full time in the sales force.

Notice of Default....Now What?

2008-01-08T15:39:41.161Z

A 91 day window – take action immediately!

The Notice of Default on your home loan is the document that warns you of impending foreclosure. It is triggered by missing one or more payments. The N.O.D. launches a timeline which will result in the sale of your home at auction and your eviction by the Sheriff on a specific date. In Arizona, the auction date must be no less than 91 days from the N.O.D. You have 91 days….what do you do?

1. Call the Loss Mitigation department of the Lender immediately to see if a forbearance plan can be worked out. The forbearance may involve moving the money and penalties owed to the end of the loan, actually increasing the loan amount. This is hard to swallow if your loan amount is already more than the home is worth in the current market. But it may be the way to go if you know you’ll be in your home long-term, so the home’s value will eventually catch up to the loan amount.

2. Call a Realtor immediately about selling your home. Selling within 90 days will call for aggressive pricing, and may result in the home selling for less than the loan amount. This is called a short sale, and requires the Lender’s approval. This is the best option if you are in financial crisis and know that your will not be able to make the payments any longer.

3. Immediately pay all the money owed plus penalties. Now you are back on track with your mortgage and no longer in foreclosure. This will take some negotiating as well, because most home loans have an “acceleration” clause making the entire loan amount due once the loan is in default. Make sure you receive a document from the bank revoking the N.O.D. when you bring the loan current.

If not interrupted by the sale of the home and/or payment of all money owed plus penalties, the home will be auctioned on the date given in the N.O.D. Take action immediately in one of the above ways to avoid foreclosure and eviction.

For help in selling your home or an objective view of your other options, contact Marsha Cleaveland, 623 337-8990, or visit my website, www.homekey.org.

Facing Foreclosure? Here are some Options...

2008-01-06T04:05:59.934Z

An ARM mortgage resetting to a higher interest rate and payment can be financially devastating.

If you have an ARM mortgage that is about to reset and are concerned about the impact on your finances, check out the options that may be available to you:

If you are current on your mortgage and have good credit:

Refinance to a fixed rate mortgage through your current lender or another company. This will be your best choice if you have equity in your home. Interest rates are still competitive, and financing is available for those with good credit.

If you are current on your mortgage, but your credit score is not so good:

Loan modification may be best for you. Your current lender could work out a temporary freeze on the interest rate so that it would not reset to the higher level. You will need to prove that the reset amount would make your monthly payments unaffordable at your current level of income. This will require negotiations with your lender and submitting financial statements. If you have no equity because the market value of the home is less than the loan, you will want to consider the possibility of a short sale.

If you have fallen behind on your mortgage and can't catch up:

Selling the home can help you avoid foreclosure. If the market value of the home is less than your loan payoff amount, it will be a short sale. This means the bank will recieve less than the amount owed -- the payment comes up short. Your realtor can aid you in negotiations with the lender to set a reasonable price and find a buyer. The process is a lengthy one, so act as soon as you realize you've fallen behind.

It is vitally important to act immediately when the problem is on the horizon. By selling your home or working out a refinance early, you can avoid the negative impact of foreclosure and/or late payments on your credit score.

For more information about your options, visit the Federal Housing Authority.

Short Sale in 2008?

2008-01-02T05:08:25.146Z

Should you Short Sale?

If you're following the news, you've been hearing about the mortgage crisis in America. Three factors have converged to create a difficult situation for many homeowners:

1) The market spiraled out of control in '05 and '06 when many bought their homes at record-high prices.

2) Buyers took ARM mortgages in order to afford the high-priced homes, with low starting rates which they could afford. Now those rates are re-setting to higher, market rates, making the monthly payments too expensive, since wages have not risen dramatically.

3) Home prices have now begun to reduce to normal, affordable amounts - which is great for those in the market to buy right now, but difficult for those who bought when prices were high. Now they may owe more than the home would sell for in today's market.

What should homeowners do in this situation? First, know the terms of your mortgage. Do you have a loan that will adjust? If so, calculate what your new payment is likely to be, and begin putting money aside to carry you through those first tight months. This will give you a buffer to make a sound decision when the time comes.

If your mortgage has already reset, and you are struggling, what are your options?

1) Refinance at a fixed rate - the best option if your credit is good and your home is still worth the amount you owe.

2) Work out a forbearance plan with the mortgage company - they may freeze the rates at the present level for a period of time, to allow the market value of the property to catch up to the loan value.

3) Short sale - if circumstances have caused your finances to bottom out - job loss, major medical costs, etc., the mortgage lender may allow you to sell the home for less than you owe. You will lose any equity you may have built up, but the impact on your credit score will be less than for a foreclosure.

4) Foreclosure - the bank will foreclose if you do not pay your mortgage. Act immediately to pursue one of the above options if you receive a foreclosure notice from the bank, as foreclosure is to be avoided if at all possible.

A Realtor can help you evaluate the best choice for your circumstances. If you have already received notice from your bank, legal advice is highly recommended. Be wary of people ready to ‘help' who have no professional licensing or credentials. Some will take advantage of your predicament.

If you are in a tough situation, don't give up. Call a real estate professional who understands these options and more. There is a way out, and there are professionals ready and qualified to guide your journey. Learn the life lessons that come from the storms, and resolve to carry new wisdom into tomorrow.

For more information and an objective view of your situation, call Marsha Cleaveland at 623 337-8990. www.HomeKey.org.