Need to sell your home? Can't afford the payments? Owe more than the home is worth? Think you are in a short sale or pre-forclosure situation? If you answered yes to any of these questions then you need contact Cidalia today at 781-389-7252 or by pressing HERE to schedule a private consultation to see if she can help you. Cidalia has a team of professionals who have helped many people that sell their home.
Cidalia@kw.com
www.HomesbyCidalia.com
781-389-7252
Keller Williams realty
Sunday, December 16, 2007
Wednesday, December 12, 2007
Short Sales and Pre-Foreclosure and What you need to Know!
By now we've all heard that defaults on mortgage loans are on the rise, with some industry experts predicting record numbers of foreclosures the remainder of this year and throughout next year. Whether this will have a dramatic impact here in the Brockton Area is really anybody's guess, but it is a more likely than not possibility, which leads to this page.
What is a "short sale?"
If you've never heard of a short sale, you're in good company. Many (if not the majority) of home owners have never even heard of a short sale. The reasons for this are many, including the rarity of their occurrences. While a short sale is certainly not the answer for many homeowners struggling to keep up with mortgage payments, for others it may be a way to avoid having a foreclosure on that ever important credit report.
Here's how a short sale may come about:
Typically after a homeowner has defaulted (missed) anywhere from one to a couple of mortgage payments, your mortgage lender will send you a "notice of default." In the real estate and mortgage industry this is commonly referred to as an "NOD." NODs are likely to occur in greater numbers in slower or decreasing housing markets.
The NOD essentially states that the homeowner has 90 days to become current on payments due the lender, or else the bank will foreclose on your home. However, as banks are in the business of selling loans, not properties, they prefer not to foreclose on homes. That is not to say that they won't, but it is generally their last resort. For this reason, occasionally banks will approve a "short sale." But, keep in mind, it won't necessarily be easy to negotiate this with your lender.
Suppose you bought a home for $400,000, and opted for a 100% financing loan (which is not uncommon particularly in the last few years.) Everything was going smoothly, until an unforeseen hardship made it impossible for you to make your monthly payments. At this stage you will likely consider selling your home. But, when you go to do so, you find that your house has actually depreciated in value, and it will now only command $325,000 as determined by current market value. In order for you to avoid foreclosing, you would have to sell the home, not to mention come up with $75,000, plus closing costs, commissions and any past due amounts.
Should you determine that coming up with that money is simply impossible; you may opt to seek out a REALTOR® who has expertise in these situations, to try to negotiate a short sale on your behalf with your lender.
Here's how a short sale works.
After you receive your NOD from the lender, first contact a REALTOR® familiar with short sales (also known as short pays). It is urgent that you do this immediately, as you and your REALTOR® have only 90 days to achieve all of the following:
*List and market the property. It will be listed for sale just as any other property would, on the MLS System. It will be marketed as a short sale.
*Receive and accept an offer
*Submit the offer along with an explanation of why you can no longer afford to keep the home (sometimes called a "hardship letter.") to the lender.
*Negotiate with the lender for forgiveness of the remainder of the loan.
Negotiating for Forgiveness
If you did a double take on the last bullet, it's not the least bit surprising. A short sale in its most basic form is the lender forgiving you for figuratively costing them -in the above example- $75,000. They will usually agree to pay the closing costs and commissions for you.
Why would they do such a thing? Frankly, it's because it's easier for them to cut their losses, and at least recoup some of the money for the house, than it is for them to foreclose and sell the home at an auction. But note the following:
*Negotiation between your REALTOR® and lender is not easy, even with a compelling "hardship letter"
*Lenders will not be willing to negotiate at all, unless your REALTOR® provides them with an offer in writing from a buyer
*Lenders are not always expedient with their response to your request, pushing your 90 day deadline to the limit
*Lenders reserve the right to forgive some of the debt, but not all, leaving you to come up with any balance
*You may be subject to taxes on the amount of the loan forgiven. In the above example therefore, you may receive a 1099 statement from the lender for the total amount of debt forgiven. This would include the $75,000, the closing costs, the commissions plus any amounts past due. A 1099 in this instance could potentially put you at risk for owing taxes on an additional $98,000 in taxable income.
So Where Is The Good News?
The sole reason to seek a short sale would be to avoid having a foreclosure on your record. In the eyes of most lenders a foreclosure on your record is reason enough to deny you a loan for another house, even years in the future. At the very least, a foreclosure on your credit would likely relegate you to the "sub prime" category of borrowers, which is the segment of the market currently experiencing tightening guidelines and increasing restrictions. In lieu of having a foreclosure on your credit, you will be marked with the short sale, but it will not affect your credit as negatively as a foreclosure would.
Please note that without the guidance of a REALTOR® and a competent Real Estate Attorney trained in negotiating with lenders on your behalf for a short sale, the odds that you will be granted a short pay from a lender on your own are pretty slim. These short sales are not particularly common, and are only granted after much effort on your behalf by your REALTOR® and Real Estate Attorney.
However, should you find yourself facing hardship, and a potential inability to pay your mortgage loan, consult a REALTOR® immediately to see if any other options are available.
What is a "short sale?"
If you've never heard of a short sale, you're in good company. Many (if not the majority) of home owners have never even heard of a short sale. The reasons for this are many, including the rarity of their occurrences. While a short sale is certainly not the answer for many homeowners struggling to keep up with mortgage payments, for others it may be a way to avoid having a foreclosure on that ever important credit report.
Here's how a short sale may come about:
Typically after a homeowner has defaulted (missed) anywhere from one to a couple of mortgage payments, your mortgage lender will send you a "notice of default." In the real estate and mortgage industry this is commonly referred to as an "NOD." NODs are likely to occur in greater numbers in slower or decreasing housing markets.
The NOD essentially states that the homeowner has 90 days to become current on payments due the lender, or else the bank will foreclose on your home. However, as banks are in the business of selling loans, not properties, they prefer not to foreclose on homes. That is not to say that they won't, but it is generally their last resort. For this reason, occasionally banks will approve a "short sale." But, keep in mind, it won't necessarily be easy to negotiate this with your lender.
Suppose you bought a home for $400,000, and opted for a 100% financing loan (which is not uncommon particularly in the last few years.) Everything was going smoothly, until an unforeseen hardship made it impossible for you to make your monthly payments. At this stage you will likely consider selling your home. But, when you go to do so, you find that your house has actually depreciated in value, and it will now only command $325,000 as determined by current market value. In order for you to avoid foreclosing, you would have to sell the home, not to mention come up with $75,000, plus closing costs, commissions and any past due amounts.
Should you determine that coming up with that money is simply impossible; you may opt to seek out a REALTOR® who has expertise in these situations, to try to negotiate a short sale on your behalf with your lender.
Here's how a short sale works.
After you receive your NOD from the lender, first contact a REALTOR® familiar with short sales (also known as short pays). It is urgent that you do this immediately, as you and your REALTOR® have only 90 days to achieve all of the following:
*List and market the property. It will be listed for sale just as any other property would, on the MLS System. It will be marketed as a short sale.
*Receive and accept an offer
*Submit the offer along with an explanation of why you can no longer afford to keep the home (sometimes called a "hardship letter.") to the lender.
*Negotiate with the lender for forgiveness of the remainder of the loan.
Negotiating for Forgiveness
If you did a double take on the last bullet, it's not the least bit surprising. A short sale in its most basic form is the lender forgiving you for figuratively costing them -in the above example- $75,000. They will usually agree to pay the closing costs and commissions for you.
Why would they do such a thing? Frankly, it's because it's easier for them to cut their losses, and at least recoup some of the money for the house, than it is for them to foreclose and sell the home at an auction. But note the following:
*Negotiation between your REALTOR® and lender is not easy, even with a compelling "hardship letter"
*Lenders will not be willing to negotiate at all, unless your REALTOR® provides them with an offer in writing from a buyer
*Lenders are not always expedient with their response to your request, pushing your 90 day deadline to the limit
*Lenders reserve the right to forgive some of the debt, but not all, leaving you to come up with any balance
*You may be subject to taxes on the amount of the loan forgiven. In the above example therefore, you may receive a 1099 statement from the lender for the total amount of debt forgiven. This would include the $75,000, the closing costs, the commissions plus any amounts past due. A 1099 in this instance could potentially put you at risk for owing taxes on an additional $98,000 in taxable income.
So Where Is The Good News?
The sole reason to seek a short sale would be to avoid having a foreclosure on your record. In the eyes of most lenders a foreclosure on your record is reason enough to deny you a loan for another house, even years in the future. At the very least, a foreclosure on your credit would likely relegate you to the "sub prime" category of borrowers, which is the segment of the market currently experiencing tightening guidelines and increasing restrictions. In lieu of having a foreclosure on your credit, you will be marked with the short sale, but it will not affect your credit as negatively as a foreclosure would.
Please note that without the guidance of a REALTOR® and a competent Real Estate Attorney trained in negotiating with lenders on your behalf for a short sale, the odds that you will be granted a short pay from a lender on your own are pretty slim. These short sales are not particularly common, and are only granted after much effort on your behalf by your REALTOR® and Real Estate Attorney.
However, should you find yourself facing hardship, and a potential inability to pay your mortgage loan, consult a REALTOR® immediately to see if any other options are available.
Friday, December 7, 2007
Tuesday, November 20, 2007
Just Sold in 55 Days!
Just Sold in 55 Days! For full asking price.
Do you know anyone that would like to see there home sold. I can help. I am a student of the market and have creative marketing plans to help sellers reach the goal of selling the or home for the most money possible in the shortest amount of time. Call me today at 781-389-7252 or visit my web site at www.HomesbyCidalia.com for information.
Monday, November 19, 2007
Just Reduced ! Like New!
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Central heat
Sunday, November 18, 2007
Are you having a difficult time with your mortgage payment?
Many people in today's world are having a difficult time every month with their mortgage payment. I am here to just let you know that as a real estate consultant there are options. If you are falling behind and are worried that foreclosure is next please call or e-mail me at Cidalia@kw.com or 781-389-7252 . I have a team of professional who are experienced with short sale situations and that can help you get out of the situation you are in. There is no cost to you! Call today for more information.
Tuesday, November 13, 2007
Is Now a Good Time to Buy ?
The age old question "if now is the time to buy" or " is the market still declining "? I wish I had the concrete answer. Here is my professional opinion.
If you are considering buying for a 5 year plus investment then there could not be a better time to buy. The inventory is saturated with oprtion. The buyer is in control. Buyer can get great deals and have a beautiful home in neighborhoods that in the past were unreachable.
Historically, real estate has always been a great investment. Yes values go up and then go down. However, long-term , unless you use your home like an ATM, you will gain equity and get a great return when you sell later on.
In this market, a great realtor that will due their due diligence to discover if the home is priced correctly could never be more valuable. If the property is overpriced it is the realtor's job to let the client know the true facts if it is a "hot" price they need to inform the buyer that , yes folks, the home will sell quickly. I still see properties sell in 5 days if aggressively marketed and priced.
The buyer needs to see value before anything else.
For more information visit http://www.homesbycidalia.com
Cidalia@kw.com
Cidalia Mendonca Matuaks
If you are considering buying for a 5 year plus investment then there could not be a better time to buy. The inventory is saturated with oprtion. The buyer is in control. Buyer can get great deals and have a beautiful home in neighborhoods that in the past were unreachable.
Historically, real estate has always been a great investment. Yes values go up and then go down. However, long-term , unless you use your home like an ATM, you will gain equity and get a great return when you sell later on.
In this market, a great realtor that will due their due diligence to discover if the home is priced correctly could never be more valuable. If the property is overpriced it is the realtor's job to let the client know the true facts if it is a "hot" price they need to inform the buyer that , yes folks, the home will sell quickly. I still see properties sell in 5 days if aggressively marketed and priced.
The buyer needs to see value before anything else.
For more information visit http://www.homesbycidalia.com
Cidalia@kw.com
Cidalia Mendonca Matuaks
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