Beware of Foreclosure Rescue Scams - Help Is Free!
If you are trying to modify your existing mortgage, be careful of Foreclosure Rescue Scams...there are people and/or companies that are only after your money or property. They are not there to help! Keep these thoughts in mind:
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If, after you have attempted to modify your mortgage, still find yourself in a financial crisis, that's when you need to call a Certified Distressed Property Expert. I am one of 14 agents at Realty World Homes of Distinction that have the extensive knowledge and training to stop foreclosure in most cases. We can help...Let us help you!
Home Prices Continue to Fall. Are Foreclosures to Blame?
Florida had one of the greatest price increases in the housing boom, and everyone jumped on the bandwagon. What everyone didn't realize is what goes up must eventually some down...did you hear the thud? This rapid decrease in home values, which happened very suddenly, almost over night, has caused a lot of the foreclosures. Homes purchased during the boom are no longer worth what a homeowner paid for it. Homeowners are in financial distress, and because of the decline in value, they have no equity in their home, and they are simply walking away.
The foreclosed homes are sitting abandoned, and they do effect the values of other homes in the neighborhood. This is not a good thing for the homeowner that wants to sell and is not in a distressed situation, but thankfully, we are seeing buyers come back out and scoop up some of these deals. If that continues, and we will reduce the inventory, and it will help the values stabilize.
Investors and home buyers are taking advantage of today's market, and I don't blame them. Fixed 30 year mortgages can be found easily below 5% and 15 year mortgages have sunk below 4.5% according to the Mortgage Bankers Association. The spurt in activity over the past 4 - 6 weeks is a sign that buyers think that we are at or very near the bottom, and they want to take advantage of these good deals before they go away. Sales jumped 5 percent in February compared to the same time last month.
Tax Credit Available for First Time Homebuyers
If you are a first time homebuyer, what are you waiting for? Interest rates are at an all time low, there are an abundance of homes to choose from, and the sellers are motivated. And last but not least…the new stimulus bill will allow you to claim a credit worth $8,000, or 10% of the home’s value, whichever is less on your 2009 taxes. The tax credit of not a loan and does not require repayment provided you on the home for 3 or more years.
This tax credit reduces the buyer’s tax liability, and if the buyer’s tax liability is less than $8,000, the remaining credit will be issued as a check. For example, if your total tax liability came to $6,000, but you had $7,000 withheld from your payroll, you would normally receive a $1,000 refund. With this credit, your refund would total $8,000.
To qualify for the credit, the home must be purchased between Jan. 1, 2009 and Nov. 30, 2009. You must be a first time homebuyer (or have not owned a home for the past three years to qualify as “first time” buyer). You must live in the home for at least three years, or you will be obligated to pay back the credit.
In addition, there are income restrictions: To qualify, you must make less than $75,000 if you are single or $150,000 for a couple. (Higher-income buyers may receive a partial credit.)
You will apply for the credit on your income tax return. No other forms or paperwork have to be filed.
Avoiding Foreclosure in Florida
Foreclosure is not the answer for the homeowners in crisis, which seems to be increasing throughout Polk County, Florida.
I’ve heard horror stories of homeowners packing up during the middle of the night, and homeowners that have actually mailed their keys back to the lender and just walk away from their homes. There is another alternative, one that you should seriously consider as soon as you find yourself in a distressed situation. Doing a short sale on your home is so much more beneficial to your credit and much easier and quicker to repair than having a foreclosure on your record.
A foreclosure stays on your credit report for 10 years, and if you buy another home in the future, you have to disclose on the credit application if you have EVER had a foreclosure, there is no time limit on that. With a short sale, you can begin building your credit immediately, and can usually have it completely repaired in a 2 year timeframe. A foreclosure can affect your credit score by 300 points...for each loan, so if you have a first and a second mortgage, or line of credit, it could be as much as 600 points. With a short sale, your late payments will show on your credit report, but typically it only affects your credit score by about 50 points. So, you can see that it is much easier to repair your credit with a short sale vs. a foreclosure.
A Realtor that is trained and has experience in short sales will be your new best friend! Insist on a Realtor that is a Certified Distressed Property Expert (CDPE). Short sales listed with a CDPE agent have an 85% success rate of selling and closing, which avoids foreclosure for the homeowner, while the national average of short sales closing with Realtors is 10 to 12%. That’s because there are many, many Realtors taking listings that are short sales and they have no idea what they are doing. This can be devastating for the homeowner.
Alex Charfen founder of the Distressed Property Institute believes that homeowners surrounded by a strong CDPE real estate agent team including legal and financial referrals have the greatest chance of avoiding foreclosure and at minimal financial investment to the homeowner.
If you are behind on your mortgage payments, feel you may be facing foreclosure or simply have questions regarding the short sale or foreclosure process, please contact our office at 863-577-2600, and we will schedule a confidential phone interview with one of our CDPE agents. We are here and ready to help. Time is of the essence, so please call today if you need help, or to discuss your options to avoid foreclosure.
Local Real Estate Company Commits To Helping Save Homeowners From Foreclosure
FOR IMMEDIATE RELEASE
Fourteen Realtors® from Realty World Homes of Distinction have earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Historically, a percentage of homes have always been in foreclosure. With the recent challenges in the subprime lending market, this percentage has grown dramatically. “We felt it was important to acquire the specialized knowledge needed to assist home owners in need,” said Debbie Ward-Terry, one of the Realty World agents to earn the CPDE designation, “and to further enhance the ability to provide homeowners with every option available to find the best solution for their situation.”
Rapid growth in what once was a niche market requires Realtors® to gain specialized knowledge and learn new processes that will allow them to successfully assist homeowners in need. The Distressed Property Institute provides the tools and information Realtors® need to help distressed homeowners avoid foreclosure and move forward with their lives.
More than 11 percent of American homeowners are either delinquent on their mortgages or in foreclosure, according to the National Delinquency Report from the
Mortgage Brokers Association. The number of borrowers at least one month behind in their payments - but not in foreclosure - rose to nearly 8 percent during the fourth quarter of 2008. That is the highest rate of delinquency ever recorded by the survey, which began in 1972. It reflects a record 13 percent jump compared to the third quarter.Nationally, only 12 percent of short sales are approved. Among CDPE designated Realtors®, more than 85 percent of short sales are approved. According to the National Association of Realtors®, more than 45 percent of existing home sales in the fourth quarter of 2008 were foreclosures and short sales.
In a short sale transaction, homeowners sell their property for less than the mortgage amount. With declining property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures. Ironically though, 7 out of 10 homeowners go into foreclosure without viable intervention. “Our goal is to spread the word that there is an alternative to foreclosure if you are experiencing financial difficulties,” said Ward-Terry.
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience. Charfen believes that homeowners surrounded by a strong CDPE real estate agent team including legal and financial
referrals have the greatest chance of avoiding foreclosure and at minimal financal investment to the homeowner.The Distressed Property Institute opened in January 2008 and is providing training throughout the United States. There are over 1.2 million Realtors® in the United States, and currently fewer than 3,000 are Certified Distressed Property Experts. The CDPE is the premier designation for Realtors® helping homeowners in distress and handling short sales.
For a confidential interview to see if a short sale is right for you and for more information about avoiding foreclosure, call 863-577-2600.
