Positive Real Estate Professionals

One of the most important things that people have to keep in mind today is that we need to keep moving forward in today’s housing market. This is the only way that we are going to truly come out of this housing crisis. For the people that announce that there is no crisis in this country, they are wrong. However, with that said, not every area or market in the United States is effected the same way. Therefore, they might not have a crisis in their area or housing market. These pockets are great in respect to leading the rest of the country to get out of the current funk.

With all that stated, one of the first things that you have to learn is how to maintain a positive attitude in this housing market. Without a positive attitude, there is no way that we can keep moving forward. One of the biggest questions that I get concerns the very article that is linked in the beginning of this paragraph. I highly recommend reading it whether you have a positive attitude or not. I have to tell you that maintaining a positive attitude is not always an easy task, but it is one that I have embraced. This was one of the biggest components in my decision along with my business partner, Rich Dansereau, when we decided to create Positive Real Estate Professionals. Without this “find the silver lining” mentality, it really would not have made sense to start this site.

Another big question that I get is “How to start over after a foreclosure“? Unfortunately, this is information that a lot of people across this great country are needing. Once again, the article that is linked here is only one source of information on this subject. If you want to learn more on this topic, just click the link and read the entire article. If you cannot find all the information that you need, then please contact one of the many professionals that are associated with this site. They will be more than willing to help you find the information that you need. In a nutshell, you can start over after a foreclosure. You are not doomed to spend the rest of your life as a renter. Though the options for you are limited to start out with, they will expand as time moves forward. The biggest thing that you will need to learn is how to increase your credit scores.

For the people that are looking to buy a home, their biggest question is “How to obtain a mortgage in today’s housing market“? To that, I simply answer that you need to contact a competent loan officer that can help walk you through each and every step of the process. Choosing your loan officer is just as important as choosing your Realtor or home inspector. These are the people that are going to walk you through each and every detail of your transaction. Making a crucial error in judgment here can result in a painful transaction. This issue is another reason that we chose to create PREP.

All in all, as long as we keep moving forward in today’s housing market, we can overcome any crisis that we are in. All we have to do is keep a positive attitude and outlook.

Desperation is an awful feeling. At some point in our lives most of us have felt desperate about something; be it that final exam, theft of a credit card while on vacation, or a job loss. It is also a sad truth that some scammers and cons use this very desperation to prey on people when they are most vulnerable. In many cases, those who feel they are in a desperate situation just want to feel some amount of control so they may accept certain assumptions or propositions that they might otherwise dismiss out of hand. During this vulnerable time it is important to explore options that are available to help restore your sense of control and stability. It is also important that you arm yourself with tools to help insure that your vulnerability does not permit you to make normally unthinkable decisions. In the following article Fred Chamberlin discusses some steps that homeowners who are facing foreclosure can do to protect themselves.

As always, please ask if you have any questions concerning this or any post on PREP.

Via Fred Chamberlin of EugeneLoanGuy on Neighborhood Expert Online:

Tomorrow is the last day of National Consumer Protection Week and the Federal Reserve Board has compiled some items to protect consumers from becoming victims of foreclosure avoidance scams. Reports of mortgage foreclosure scams are on the rise. Knowing what to watch for and where to turn for help is vital for families who are struggling to remain in their homes. It’s important for consumers to know that housing counselors and other resources are available at no or low cost to assist homeowners who have fallen behind on their mortgage payments. One note before we get into the following information, the best and safest way to avoid foreclosure is to make your payments on time.

Solicitors of foreclosure schemes reach out to potential victims by a variety of means using the Internet, the telephone, and direct mailings. Some solicitors go door-to-door or approach homeowners at events related to home preservation. The information the Federal Reserve is providing, which is part of its “5 Tips” series, is intended to give consumers the basic information they need to recognize and avoid foreclosure avoidance scams. Consumers are urged to check the credentials of counselors and to avoid working with someone who collects a fee before providing any services or accepts payment only by cashier’s check or wire transfer. Consumers should not pay for a service without knowing exactly what they are buying.

“Saving a home from foreclosure requires fast and informed action but the solution doesn’t have to be costly,” said Federal Reserve Governor Elizabeth A Duke. “It shouldn’t hurt to get help.” Avoiding foreclosure cannot be guaranteed–regardless of the circumstances. Working with a legitimate counselor can increase the chances of keeping a home, but consumers should be wary of people who tell them it’s a sure thing. Details of the transaction, along with any promises, should be provided up front and in writing.

The tips to follow from the Federal Reserve Board will help consumers select a reputable counselor and avoid fraudulent foreclosure scams.

1. Work only with a nonprofit, HUD-approved counselor.

If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development’s list of approved agencies. Visit HUD’s website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors–by mail, phone, or in person–make sure the counseling agency is HUD-approved before you do business with them.

1. Don’t pay an arm and a leg.

You should not have to pay hundreds–or thousands–of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier’s check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

1. Be wary of “guarantees.”

A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home–but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

1. Know what you are signing–and be sure you sign it.

Don’t let a counselor pressure you to sign paperwork you haven’t had a chance to read through carefully or that you don’t understand. Don’t sign any blank forms or let “the counselor” fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

1. If it sounds too good to be true, it probably is.

If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission’s webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies; which you can find on the Federal Citizen Information Center’s Consumer Action Website.

Protection of your rights in a foreclosure procedure is very important. Make sure you make use of the programs and organizations that are available to help you. The Oregon Department of Insurance and Finance also has some very good information on their website about things you can do to avoid foreclosure. Here is a link to their PDF pamphlet about how to avoid foreclosure.

With economic turmoil in many real estate markets it should come as no surprise that foreclosures are also up in many areas of the country. This awful truth has resulted in many properties now sitting empty. The following article by Fred Chamberlin presents some great ideas on how to revamp some of these vacant properties to make them more environmentally friendly and more attractive to potential buyers.

Via Fred Chamberlin of FHA Loans Oregon:

Another reason to use an FHA 203k Streamline rehab loan: Foreclosures are bringing down the Eugene/Springfield and Lane County Real Estate market. My reasoning on this has to do with the condition of many of the foreclosed properties. Many of them aren’t livable and may have been vacant for some time. In many areas of the United States, entire neighborhoods sit vacant, havens for crime and an eyesore to surrounding neighborhoods. Although I haven’t seen this scope of a problem here, I do know that there have been cases of squatters moving into foreclosed (or about to be foreclosed) properties and using them as a base of criminal operation.

How about starting a movement to help take these properties and provide affordable green renovations for buyers in need through FHA 203K renovation loans? Not only would we be fulfilling the mission of FHA 203K, to restore and preserve America’s existing housing stock, but also incorporating money and energy saving green improvements into those homes.

Although solar panels and wind turbines are “sexy” improvements, I want to be realistic about what the individual can do. For that, I am talking about simple and affordable 203K streamline improvements like EnergyStar windows and appliances, low flow toilets and showers with on demand water heaters. Not only would these kind of improvements benefit the planet, but they would also help the low to moderate income home buyers save on their monthly energy bills. That makes their FHA mortgage more affordable, lessens the likelihood they default and helps restore the integrity and quality of the neighborhood by ensuring that its homes are in good condition, energy efficient and OCCUPIED!

The FHA 203K Streamline Rehab program is the ideal way to bring these homes back as great representatives of their respective neighborhoods. When you combine this with the $8,000 Tax Credit for First Time Home Buyers and exceptionally low interest rates, it really is the ideal time to buy a home. Call me today at 541-342-7576 to make an appointment for your one on one time with me.

In today’s market and economy, this is a statement that I hear why to much. My heart goes out to all of the people that have had to endure through a foreclosure or a short sale. But, I am here to tell you that this is not the end of the line for you. There is light at the end of the tunnel. I wrote an article a while about about starting over after foreclosure. I have decided that it would be a benefit to bring that very article right here to PREP. It is so important that anyone that has gone through a foreclosure or a short sale realize that they are not stuck renting for the rest of their life. Bad things happen to good people, so keep your head up.

If you have any questions about this article or any others here, please feel free to ask. That is what we are here for.

Via Danny Thornton:

Step1

The most important step is to make sure that the foreclosure process is complete. Most people think that it stops when the house is taken back by the bank and that is the furthest from the truth. You have to make sure that the foreclosure has been satisfied. This means that the property has been resold.

Step2

In the case of purchasing a new home after foreclosure, there are two routes to go. The first is going to be conventional and the second is through FHA. Conventional looks at the date of the foreclosure and FHA looks at the date of the satisfaction.

Step3

Now, once the process is complete, it is time to get your finances and credit back in order. The first and foremost thing is to make a budget and live within the means that you have. When making a budget, take into consideration what you would make in each month. If you are a commissioned employee, use the low end. If you work a lot of over time, figure the budget with limited OT. If the OT dries up, at least your budget does not.

Step4

Setting a budget means not going over it. The first point of a budget is housing. Make sure that you calculate enough for rent and all utilities. Once that is in, make sure that it does not exceed 25% of your income. This way, rent and utilities can be paid with one check. Next, you want to budget for your automobiles. This means payments, insurance, and gas all need to be calculated. Then move on to the food and make sure that you add in for eating out. Go through this whole process until you have covered all the bills that you could possibly have. Make sure that you set aside an amount of money per paycheck for you.

Step5

Once the budget is made, live within the means of this budget. Make sure that you pay all your bills on time and keep your credit cards to a maximum charge of 33% so that you can keep your scores high. After 3 years, you should be back in the market for home ownership.

Fred Chamberlin has been working on a series about buying a foreclosure. This is another edition in that series. I think that he brings out a good point that when you buy a foreclosure, you will need to find a license contractor that will be able to complete all the repairs that will need to be done.

If you have questions concerning this post or any other listed on this site, please ask, that is what we are here for.

Via Fred Chamberlin of Eugene Loan Guy:

Next in our series about buying a foreclosure using the FHA 203k Streamline Rehab loan has to do with selecting a contractor. So far, you have gotten pre-approved for a loan in a specific price range and you have developed a rapport with the Realtor® that is going to make sure you get the proper guidance and support you need. Now, let’s talk about the next very important thing you need to do, selecting the contractor or contractors for your rehab process. This is a very important aspect of your Oregon FHA 203K loan. There are things that you need to look for in the right FHA 203K contractor as they can mean the difference in a successful or unsuccessful FHA 203K renovation.

The Streamline process does not require a general contractor, but may require two or three specialized contractors like roofers or plumbers or electricians. It is your choice who you use for these jobs and you only need one bid, but the underwriter will determine if they think the bid is either too high or too low and request additional bids in that situation.

1.) Are They Properly Licensed & Insured? — To complete a FHA 203K renovation in Oregon most contractors MUST be licensed by the state. There are exceptions, but very few. You can verify their licensing via the Construction Contractor’s Board (CCB) website. If they aren’t listed then they need to be replaced. If contractors have not met the licensing guidelines, not only will your FHA 203K contractor have a tough time pulling permits, but you loan likely will not make it through underwriting in the first place.

2.) Do They Have References? — We check 2 references for each of your FHA 203K Contractors. All we need is a name and phone number of the reference.

3.) Do They Have a Line of Credit? — We don’t require that your FHA 203K contractors have a line of credit but it makes it easier for them to begin work immediately after closing without having to wait for the first draw. The easiest way to avoid any delays is to make sure they can start work immediately and can pay for it by using their line of credit.

Contractors can be one of the biggest issues with your Oregon FHA 203K loan. Since we are FHA 203K experts we want to make the renovation as painless and profitable as possible (and FASTER to CLOSE as well!). For more information on FHA 203K Loans give us a call at 541-342-7576 and we’ll be more than happy to guide you through the process. Whether it be a renovation of that fantastic foreclosure deal or upgrading your current residence, we can help!

A couple of days ago Fred Chamberlin wrote an excellent article, Buying Your Home: Do You Want To Buy a Foreclosure? In that article he discussed many of the issues that a prospective home owner might encounter when buying a foreclosure. In this post Fred discusses the importance of having a Realtor® that is knowledgeable and trustworthy to represent your interests.

Via Fred Chamberlin of Eugene Loan Guy:

You are in the market for a new home and you have decided that you want to maximize your investment by buying a foreclosure. You read my last post about some of the problems encountered with a foreclosed property and have gotten yourself set up with a knowledgeable lender and are ready to proceed with the next step in the process. So, let’s talk about the next step: Finding the right Realtor®.

I am not the world’s greatest expert on Realtors®, however I know the ones that I have worked with and understand professional behavior. I know there are Realtors® that can work as the listing agent and the selling agent, but personally, I believe that a buyer should be represented by their own agent and not risk the possible conflict of having a listing agent as your buying agent. The only thing worse, in my opinion, is having your Realtor® also as your loan officer. Now, that I have that out of the way, how do you determine who the right Realtor® is for you? Here are some of my criteria:

1. Find someone that you respect.
2. Find someone that you trust.
3. Find someone that you will listen to and will listen to you.
4. Find someone that you believe.
5. Find a professional.
   

Do they have to be a man? a woman? young? old? in Eugene? in Springfield? The simple answer is, yes. Your Realtor® should be someone that you decide. Ask them questions and develop a rapport. Tell them what you want. Make certain they are familiar with the area you want to live in.

Can I recommend someone to you? Absolutely! There are a number of Realtors® that are linked to my website and I can recommend all of them highly. For specific recommendations, I have specific people in mind.

A good Realtor® will have access to all of the foreclosed properties in the area you are looking in. This Realtor should be able to narrow the choices from what you have shared but often, the property descriptions are not as accurate as they should be, so you might be looking at properties that are not as suitable as others. Trust your Realtor® and keep faith they will find the right place for you.

Here, I want to talk about loyalty. If you are spending time with a Realtor® and they are taking you to houses that are within your parameters, give them your loyalty. That means that if you go to an open house and the Realtor® at the open house asks if you are working with someone, say yes! If your Realtor® is not showing you what you are looking for, doesn’t return your calls or doesn’t seem to care, then find someone that does. Call me; I will set you up with someone that cares.

OK, this is pretty long, so tune in next time to find out what you need to do once you have found that perfect house (well, it will be after repairs). To understand more about the buying phase, read this article from one of my Realtor® partners, Lori Palermo.

Once again, Rich produces a quality story that brings benefit out of this current crisis. This time, he focuses on the benefit that the renters are entitled to for homes being foreclosed on.

Via Rich Dansereau of Rich Talks Real Estate

I posted earlier today on the three week extension on the foreclosure reprieve that was announce by both Fannie Mae and Freddie Mac. As I thought more about the extension and what it could mean for thousands of homeowners, I began to wonder what it might mean for renters as well. It might seem odd that renters, and not just homeowners, would see any benefit in the foreclosure reprieve, let me explain.

There were several news stories that mostly ran on local news stations this past summer and fall about the plight of renters who had paid their rent on time and to the appropriate parties but found themselves facing eviction. This may sound odd but when you realize that the property owner, who received in good faith the rent payments from his tenants, was not meeting his financial obligations to the lienholder on his property then the issue becomes clearer. In many of these instances the landlord, a.k.a. property owner, had neglected to pay his financial obligation and was now losing his property to foreclosure. When the foreclosure occurred the bank who now owns the property oftentimes immediately evicted the tenant who had been faithfully paying their rent on time. Many times the possibility of this type of thing occurring did not even cross the mind of the tenant who felt safe in the knowledge that they had met all of their responsibilities.

So how does the reprieve come into play in this situation? Fannie Mae announced in December, 2008 that renters in these foreclosed properties would not face eviction as long as they had a legitimate lease and were current with their rent. This is good news for many renters who may have been concerned about this but keep in mind that only Fannie Mae has this National REO Rental Policy in place. The three week extension on the foreclosure moratorium should give Fannie Mae the time necessary to more fully implement this program (Source: CNNMoney.com).

Here is a post written by Rich Dansereau, co-owner and co-author of Positive Real Estate Professionals. In this particular article, he is discussing the reprieve on foreclosures that both Fannie Mae and Freddie Mac have granted. If you have any question, please fell free to ask.

Via Rich Dansereau of Rich Talks Real Estate

In November of 2008, Fannie Mae and Freddie Mac announced a three month reprieve on foreclosures for its seriously delinquent homeowners. They were quickly joined in this moratorium by JP Morgan Chase. This reprieve, though not the answer for all homeowners delinquent on their mortgages, would allow homeowners to explore the options available to them. Today, Fannie Mae and Freddie Mac announced a three week extension to the foreclosure moratorium (CNNMoney.com).

Today’s announcement comes one day before the moratorium was set to expire. Fannie Mae and Freddie Mac have agreed to the three week extension to allow those seriously delinquent homeowners who qualify for a streamline mortgage modification program and choose to participate in it the time to do so. Fannie Mae and Freddie Mac anticipate that up to 6,000 homeowners could save their homes from foreclosure while obtaining a low fixed interest rate mortgage with more favorable terms and affordable payments.

Foreclosures have been going on in the mortgage industry for as long as I can remember. However, it has never gotten as bad as it is now. Before we go any further, lets take a look at what a foreclosure is. Foreclosure is a legal proceeding that is brought about by the mortgagee (legal term for the mortgage lender) or any lienholder (a person, company, or entity that has a lien against the property) against the mortgagor (the legal term for the borrower or person that is responsible to pay back the note). The proceeding is meant to sever all rights to the property that the mortgagor has.

Over the last 20 years that I have spent in the financial and credit sectors, I have never seen anything this bad. That is the ugly truth to this whole thing. There is no way to paint it pretty. With that being said, there is a way to put a positive spin on what is going on and where we are heading; Life after Foreclosure.

Questions are being asked if everyone will eventually face foreclosure and to me that might be the craziest question that is out there. Foreclosure rates are higher than normal, but to be honest, I do not think that any investor or mortgage company did not see that coming. When you loosen the restraints on lending you encounter the people that can not manage from paycheck to paycheck as it is. But, because they fit into the new guidelines, then you turn around and give them the house that they want. I can sit here all day and give you reasons why foreclosures happen, but honestly, that is not going to do us any good. It is about as successful as the presidential candidates sitting there telling us why their opponent is so bad instead of telling us what they will do to bring change to the country.

Just the other day, I was counseling a potential client. She was telling me about her credit history and she mentioned to me that she had a bankruptcy and wanted to know if that was going to keep her from buying a home. After I found out that the bankruptcy was 17 years ago, I then helped her understand the effects of foreclosure and bankruptcies on people and their application for a mortgage. This post will deal with the foreclosure side of it.

Several months ago I wrote a post entitled “How to Start Over After a Foreclosure“. If you are facing foreclosure, life is not over for you as you know it. It is not a sentence to live out of your parents basement or an apartment for the rest of your life. There are options that you have and there are things that you can do to start over. I will not go into the article as you can click the link and read the article for yourself. There is a path to picking up the pieces and moving forward. In this article, it talks about rebuilding your credit. If you do not know how to get your scores back up after a foreclosure, read “How to increase your credit scores“.

Bottom line is that life after foreclosure can be whatever you want to make it. It is truly up to you to decide if you want to be a home owner again or just a renter. I will say this. Home ownership is not for everyone no matter what anyone tells you. It is crazy to think that you can buy a house today and sell it next year for a profit. That is one of the issues that got us here today. Home ownership needs to get back to a commitment like it was 30 to 50 years ago. When I got into the mortgage business, home owners refinanced at a rate of every 30 months. Today, we need for that number to be driven up to 60 or higher. This is the same commitment period that a person that is buying should think about when buying a home. Also, a great rule of thumb is to make sure that you can afford this payment for those five years if you are faced with financial issues.