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1. Foreclosure Follows You – Homeowners will always have to disclose that they have had a foreclosure on any mortgage application and many job applications that they submit in the future. This can have an adverse effect on their future mortgage rates. This is a credit item that is asked about specifically in credit inquiries. There is no seven-year time limit on this item.
2. Credit Score Negative Impact – Credit scores will be lowered by 300-plus points (per loan). Along with bankruptcy, a foreclosure is one of the most devastating credit issues you can have in relation to future credit availability.
3. Ineligibility for a Government Insured Loan – The homeowner will be ineligible for a government insured loan for 5–7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.
4. Possibility of Deficiency Judgment – Your lender can seek a deficiency judgment against you and collect any amount they do not recuperate at bank sale.
5. Negative in Employment Credit Checks – Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire in jeopardy.
6. Potentially Damaging in Current Employment – Many current employers run credit checks. A foreclosure can put a current position in jeopardy.
7. Negative on Security Clearances – Security clearances and government positions— including but not limited to military and law enforcement—can be jeopardized by a foreclosure. Revocation of security clearance can result in job reassignment or loss.
8. Lower Tax Liability than Foreclosure – The tax liability in a foreclosure may be much higher than in a properly negotiated short sale since canceled debt will be higher in a foreclosure.
9. You Have Alternatives – As your expert, I will explore every option with you and work toward the best resolution.
10. Do Everything You Can – While it may not seem like it now, there will come a time where your current financial troubles will pass. You will feel much better knowing that you did everything you could to avoid this devastating financial consequence that so many people face today.

If you or anyone you know is facing foreclosure, or know that you will not be able to make mortgage payments much longer, call me today at (267) 918-3691 for a confidential consultation. I can help you sell your home and get a fresh start.

With the first-time homebuyer tax credit deadline having come and gone, you may be asking yourself, “What now?” Fortunately, the door is now open to a new wave of savings: distressed properties.

For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices.

According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.

By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.

If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

Your best ally when purchasing a distressed property is an expert. Always have a professional agent by your side to help you make informative decisions. If you’re interested in learning more about purchasing a distressed property, call me now at 215-961-3603, or send me an email.

I’m hoping that our legislators wake up and start reading this and other stories by agents and consumers who have to deal with the madness of the shortsale process employed by some lenders. Saxon Mortgage is a mortgage servicer that is particularly adept at being inept. Keep reading to understand why.

This shortsale negotiation was started in February. The subject property needs almost total rehab, and I’d repeatedly asked Saxon Mortgage to do an interior BPO. I finally got an answer from them that said: we don’t do interior BPOs, you’ll have to do it yourself and submit it. Great. So I did that. A thorough, full-color, 40 page BPO with photos, descriptions, and comps. Then yesterday I find out that they do in fact do interior BPOs, and now I have to wait for them to do it. My suspicion is that they are suddenly interested in doing it since my value was so low. The guy I spoke to asked for the name of the person who gave me the “wrong” information. I only got one name and extension number of the several people I spoke to, since they said it was company “policy” not to give out names of the people in the shortsale or loss mitigation departments. He found that “strange”. I’m sure he’s just as full of crap as the owners of Saxon themselves.

Homeowners who are choosing to participate in the “Making Home Affordable” program to save their home from foreclosure may be in for a nasty surprise. One of the side effects of the program are that the homeowner’s credit score will be lowered at all three credit bureaus. So in addition to having adverse credit because of late payments, homeowners will now get hit with the double whammy of further reduced credit scores. Read the full MSNBC.com article here.

If you are deciding how to deal with your late payments or pending foreclosure, consider doing a shortsale. A shortsale is when you sell your home, and your bank is willing to accept less than what is owed on your home as full payment. You won’t make any money from the sale, but the debt will be paid and you can move on to make a fresh start at a new residence. You also won’t have to worry about your credit scores being reduced, which will affect your ability to buy another home, car or insurance in the future.

Don’t wait until it’s too late. Click here to see if you qualify for a shortsale.