Gege Winton's Blog

Everyone who is facing foreclosure should understand exactly what its implications are and what other options are available.
If you are behind on mortgage payments and do not see a way to catch up, avoiding foreclosure can help you recover your finances more quickly.
Short sales and deeds-in-lieu are two dignified alternatives that more and more homeowners are using to avoid the financial impact of foreclosure.

A short sale is when the lender agrees for the property to be sold at a price lower than the mortgage balance owed. A Deed in Lieu is when the lender receives the house deed in place of the mortgage balance, although in some cases the lender will still pursue the homeowner for the leftover mortgage balance. This balance is called a deficiency judgment.

A small group of lenders and mortgage servicers may not participate in the HAFA (Home Affordable Foreclosure Alternatives) program

A HAFA short sale or a deed in lieu can prohibit the participating lender from pursuing a deficiency judgment.

Do you have…
1. Financial Hardship: severe illness and military service are some examples
2. Monthly Shortfall: business failure, job loss, wage reduction, divorce, etc.
3. Insolvency: you currently owe more money than you have or you are about to reach that point.

If you can meet these conditions, you may qualify for a short sale. Check into the possibility!

Many  homeowners bought their homes in a financially responsible manner. Unfortunately, some of these people have had their finances turned upside-down over the past few years. Now, they must make their mortgage payments with constricting incomes.
One option is the Home Affordable Foreclosure Alternatives Program, or HAFA, which offers eligible homeowners $3,000 to pursue a short sale or deed-in-lieu, two alternatives to foreclosure.

The Mortgage Bankers Association’s First-Quarter 2010 National Delinquency Survey announced that more than 14 percent of mortgage loans are not current on payments. More specifically, 10 percent of prime loans and more than 40 percent of sub-prime loans are delinquent.  That means out of ten prime mortgages, one is not current on payments to the lender and out of 10 sub-prime mortgages, four are behind on payments.

Whatever their best option is, the most important thing homeowners can do is to find all the help available before making a decision.  There are several possibilities for home owners consideration and the information changes frequently.

The Certified Distressed Property Expert  designation provides real estate professionals with specific understanding of the complex issues confronting the real estate industry. Through comprehensive training and experience, we are able to provide current information and possible solutions for homeowners facing hardships in today’s market.

There is big news for homeowners in America. In an effort to slow the rising number of foreclosures, a government-backed program has been released: the Home Affordable Foreclosure Alternatives Program (HAFA). Basically, the program aims to save as many Americans from foreclosure as possible, which also saves the overall value of the surrounding communities.

HAFA offers a  homeowner incentive for successful short sales or deeds-in-lieu, and also guards the homeowner from harmful lender actions.

To learn more,  a free report is downloadable from here:

http://www.gegewintonshortsale.com/

With one in six homeowners struggling to make mortgage payments, there is probably someone you know who could use this information.

Great news! I have earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures.  For many real estate professionals, short sales and foreclosures are the new transaction.  REALTORS^® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

As an advocate for homeownership, I believe that any family that loses its home to foreclosure is one family too many.  Unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale happens. Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR^® who has earned the SFR certification for these kinds of purchases.

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^® stay current on national and state-specific information as the market for these distressed properties evolves.

News Release   November 5, 2009

Fannie Mae Announces Deed for Lease™ Program

WASHINGTON, DC — Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers.Our job is to help those who house America.

Fannie Mae Resource Center

Telephone 1-800-7FANNIE

(1-800-732-6643)

Reinstatement

A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult.

The homeowner simply requests the total amount owed to the mortgage company to date and pays it.

This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

The last few years have brought huge changes to our local real estate market.

Many honest people have found themselves in a bad situation and could face foreclosure. They owe more on their home than they can sell it for and this creates stress, sleepless nights and a feeling of being trapped. This happened to some friends of mine and they were too upset and scared to ask for help.

So  I made the decision to align myself with the top professionals in the market by taking the additional educational courses to become a designated Certified Distressed Property Expert. With this designation comes access to the very best tools, the greatest insight, the essential education and the critical knowledge to help you avoid foreclosure.

Why should I buy instead of rent?
Good news! First Time Home Buyers are eligible for special credits on their Federal Income Tax for 2008 and 2009, home prices are much lower than they were just a few months ago and mortgage interest rates are lower too! There are more Federal Housing Authority (FHA) qualified lenders than ever before. But the lenders have tightened their loan requirements by raising the minimum credit scores and increasing down payment requirements.
Buying a home has several advantages. The interest on your mortgage and the real estate taxes are deductible on Federal income taxes. If you own your home for several years, you may see the value of the property increase.