An overview of Pre-Foreclosure/Foreclosure

In 2007 Florida had 11,000 foreclosure filings, 26,000 in 2008 and 2009 they are estimating 40,000 foreclosure filings.

Pre-Foreclosure: The lender has not filed a lawsuit yet but you may have received some letters from the mortgage company asking you to bring your mortgage up to date. You may be 3-4 months behind at this point. CALL your lender NOW! Do not wait. Discuss options relating to the Making Home Affordable Program and/or Loan Modification. Please be patient when you call.  There are a lot of homeowners in the same situation. If you do not get the answer you are looking for, call back and insist on speaking with someone else or even a supervisor.
You can also contact a HUD Counselor at 1-888-995-4673 or visit www.995hope.org

Foreclosure:  You have received a summons/complaint from the Lenders Attorney. IMPORTANT: You MUST respond in WRITING to the Clerk of the Court along with the Attorney within 20 days after receiving the summons. In this letter you need to tell them WHY you should not be foreclosed on: Loss of job, reduction of income,  serious illness, death in the family, etc., keep it short and simple (1 to 2 pages).  NOTE: If you are in Orange County, Florida when preparing your letter be sure to ask for the MEDIATION PROGRAM (if requested the banks representative must sit down with you to discuss your loan. The bank is not required to come to an agreement but you have the opportunity to speak to them before the final judgment is signed).
 
The next step will be a motion and hearing. It is recommended you attend the hearing (or if you have an attorney he/she would attend). The hearing will last about 5 minutes. This will give you an opportunity to stand in front of the judge and explain why you do not want the foreclosure to occur or need a delay (waiting for a short sale to be approved, or working on a loan modification, etc). Remember if you are in Orange County, FL remind the judge you requested the Mediation Program.

Once the foreclosure is completed and the bank successfully sells the property,  the bank may issue a deficiency judgment. Which would be the the difference between your original loan balance and what they sell it for.

We have some helpful links on our website as well.

Vacation Homes at the Shire – West Haven/Davenport FL

The Shire has just reduced their prices but have still kept some of the great features in the home including: 
Granite in Kitchen & Master Bath, Appliances, 18 x 18 Floor Tiles, Heated Pool with Spa & much more.

The revised prices are:

THE COLUMBUS 3 bedrooms, 2 baths, 1677 sq. ft. $279,990, 2 car garage
THE HAMILTON 4 bedrooms, 3 baths, 2,032 sq. ft. $299,990, 2 car garage
THE MAYFLOWER 4 bedrooms, 3 baths, 2,529 sq. ft. $334,990, bonus room and 2 car garage
THE PATRIOT 4 bedrooms, 3 baths, 2,765 sq. ft. $359,990, bonus room and 2 car garage
2807 Ashford 4 bedrooms, 4 baths, 2807 sq. ft. $374,990, balcony, 2 story, and 2 car garage
Nottingham Holiday 5 bedrooms, 4 baths, 3212 sq. ft. $480,990, 2 story, 2 car garage

If you would like additional details or a tour of these wonderful homes, please contact us for an appointment. We look forward to serving you.

Countrywide/BOA’s new short sale process?

I called BOA yesterday to get an update on one of my sellers files that was submitted about 10 days prior. They kept informing the seller, “the paperwork is not showing in the system.” For those of us that have worked with BOA in the past know this is a phrase we hear often. So in my call I also wanted to confirm the short sale fax number, because we know this changes on a weekly basis.  The supervisor then shared with me that BOA has initiated a new policy effective end of July.

The seller/borrower will have to call 1-800-669-0102 and explain to the Home Retention Team that they are working with a Realtor and would like to list the property for a short sale.  BOA will then gather basic financial information, input into their system and pre-qualify them to continue with the short sale. Now I have not seen this in action yet, I have a few of my sellers calling this week and can report back.  If you have had any experience with this new system, I would love to hear from you.

According to the supervisor the new process is supposed to help cut down on the time frame for approving the short sales. Some BOA files that have taken 6-8 months so if this policy can cut the time in half I would be very happy!

Contact us if you have any questions.

5 Tips for Protecting your home from Foreclosure

1. Don’t ignore your mortgage problem.

If you are unable to pay--or haven’t paid--your mortgage, contact your lender or the company that collects your mortgage payment as soon as possible. Mortgage lenders want to work with you to resolve the problem, and you may have more options if you contact them early. Call the phone number on your monthly mortgage statement or payment coupon book. Explain your financial situation and offer to work with your lender to find the right payment solution for you. If your lender won’t talk with you, contact a housing counseling agency. You can find a list of counseling resources at NeighborWorks and on the U.S. Department of Housing and Urban Development's (HUD) website.

2. Do your homework before you talk to your lender or housing counselor.

Find your original mortgage loan documents and review them. Review your income and budget. Gather information on your expenses, including food, utilities, car payment, insurance, cable, phone, and other bills. If you don’t feel comfortable talking to your lender, contact a housing or credit counseling agency. Counselors can help you examine your budget and determine the options available to you. They may also advise you about ways to work with your lender or offer to negotiate with your lender on your behalf.

3. Know your options

Some options provide short-term solutions/help, while others provide long-term or permanent solutions. You may be able to work out a temporary plan for making up missed payments, or you may be able to modify the loan terms. Sometimes, the best option may be to sell the house. For information on different options, visit HUD’s website or Foreclosure Resources for Consumers for links to local resources.

4. Stick to your plan.

Protect your credit score by making timely payments. Prioritize bills and pay those that are most necessary, such as your new mortgage payment. Consider cutting optional expenses such as eating out and premium cable TV services. If your situation changes and you can no longer meet your new payment schedule, call your lender or housing counselor immediately.

5. Beware of foreclosure rescue scams.

Con artists take advantage of people who have fallen behind on their mortgage payments and who face foreclosure. These con artists may even call themselves “counselors.” Your mortgage lender or a legitimate housing counselor can best help you decide which option is best for you. For tips on spotting scam artists, visit the Federal Trade Commission's website, Foreclosure Rescue Scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Consumer Action Website.
Courtesy of http://www.federalreserve.gov/pubs/brochure.htm
For more information you may also visit our website and click on Help for Sellers.

Rent vs. Own – a snapshot

Buying a home will be one of the largest financial investments you will make. It is important that you decide what is best for you. As a real estate professional I like to provide the tools to buyers so they understand why it may be a good time from being a renter to a home owner.

Here is a rent vs. own comparison that should illustrate the advantages of owning a home:

Purchase Price                                          $250,000
Mortgage – 5% for 30 years                 $241,250

Monthly Payment (Principal and Interest)     $1,295.08
Taxes and Home Insurance                                        450.00
Total Monthly Payment                                   $1,745.08
Less monthly tax savings                                            332.95
Less monthly appreciation                                         625.00
Less monthly principal reduction                            296.61
NET Cost of Owning                                               $490.52

Monthly rent for comparison                             $1,600.00
Less net cost of owning                                                  490.52
Monthly cost of renting vs. owning        $1,109.48
Annual cost of renting vs. owning                          $13,313.75           

Above analysis courtesy of Florida Realtors Magazine ®

If you would like more information about the home buying process or how to get started, please click on our buyer link for more information.

Windermere Stats as of August 1, 2009

Windermere is located in Southwest Orlando and nestled between numerous large lakes that form the Butler Chain of Lakes. Windermere was established in 1889 and works hard to maintain that small town feel. For instance, many local streets are still dirt roads. Windermere has expanded to include newer subdivisions such as Lakes of Windermere, Keene’s Pointe, Summerport, and Glenmuir. Below is a snapshot of the current state of the market in Windermere.

As of August 1, 2009 there are currently 591 properties listed in the MLS ranging in price from a two bedroom/two bathroom condominium in The Lakes of Windermere at $89,000 (Short Sale) to $12.5 Million estate home in Islesworth that is 9 bedrooms/8 bathrooms over 10,000 square feet. Here is the breakdown:

ACTIVE = 591:  118 are pre-foreclosure/short sales/bank-owned (making up 20% of the inventory).
HOME
530 TOTAL: 82 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
61 TOTAL: 36 are pre-foreclosure/short sales/bank-owned

PENDING = 190: 131 are pre-foreclosure/short sales/bank-owned, making up 69% of the pending inventory.
HOMES
153 TOTAL: 108 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
37 TOTAL: 23 are pre-foreclosure/short sales/bank-owned

SOLD (July 2nd to August 1st)= 46: 26 are pre-foreclosure/short sales/bank-owned, making up 56% of the pending inventory.
HOMES
44 TOTAL: 25 pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
2 TOTAL: 1 are pre-foreclosure/short sales/bank-owned

If you would like a Market Analysis for your home, please contact us directly.

We look forward to serving you.

Celebration stats as of August 1, 2009

Celebration offers a combination of condominiums, townhomes and single family homes.  Here is a brief snapshot of the current state of the market here in Celebration.

As of August 1, 2009 there are currently 350 properties listed in our MLS system ranging in price from a two bedroom/one bathroom condominium in Siena at $74,900 (Bank Owned) to $3.9 Million for an estate home in Aquila Reserve that is over 8100 square feet.
ACTIVE = 350:  68 are pre-foreclosure/short sales/bank-owned (making up 19% of the inventory).
HOMES
172 TOTAL: 32 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
178 TOTAL: 36 are pre-foreclosure/short sales/bank-owned

PENDING = 102: 61 are pre-foreclosure/short sales/bank-owned, making up 60% of the pending inventory.
HOMES
44 TOTAL: 25 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
58 TOTAL: 36 are pre-foreclosure/short sales/bank-owned

SOLD (July 2nd to August 1st)= 21: 7 are pre-foreclosure/short sales/bank-owned, making up 33% of the pending inventory.
HOMES
8 TOTAL: 2 pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
13 TOTAL: 5 are pre-foreclosure/short sales/bank-owned

If you would like a specific Market Analysis for your home, please contact us directly.

We look forward to serving you.