Foreclosure Tips and Advice - The English Team

Forclosure Tips and Advice

Avoiding Foreclosure in Atlanta

A question I am asked frequently is "How can I avoid foreclosure?"

Foreclosure is happening across the spectrum in this market. Starter home owners and million dollar home owners face the same question. Avoiding foreclosure in Atlanta is a complex task and there are options for the distressed property owner. The truth is foreclosure can be avoided in many instances. Foreclosure is a devastating financial challenge and families need to know and understand their options.

During 2009 I obtained my CDPE (Certified Distressed Property Expert) designation so I could better serve families in the Atlanta area who face foreclosure. I had already been working with many families on short sales and other foreclosure avoidance measures. Thankfully, the folks at CDPE offer many good resources for dealing with families who own distressed property.

Here are some CDPE foreclosure avoidance solutions that might work for your family...

Atlanta Short Sales Take Determination, Persistence and Patience To Successfully Complete.

Short sales in Atlanta, Georgia require determination, persistence and patience. I have been working short sales in Atlanta, Georgia for over a year and it has been a road filled with obstacles.

Sellers Avoid Foreclosure Through Short Sales: All the effort put into short sales is worth it for those home owners who are able to avoid foreclosure and get their home sold. Yes, their credit score takes a hit but is not nearly as harmful as a foreclosure which hangs around on your credit report for years.

Home owners who choose to "short sale" their home need cooperation from their lender to reduce their loan payoff to an amount that equals what their home is worth in today's market. This amount is often less than the loan balance that is presently owed on the home. Thus the nickname "short sale" for the process.

Lenders Require Lots of Forms and Demonstration of Hardship: Not everyone qualifies for a short sale. You have to demonstrate to the Lender that you are unable to pay off your home in any other way. Lost jobs, health issues, divorce etc are some of the many ways home owners can demonstrate their inability to make monthly house payments.

Sally English is a Certified Distressed Property Expert in Atlanta Georgia: If you need help with forms to send to your lender, figuring out what your house is worth in today's market or just need to talk to someone about your situation, call Sally English at 770-939-3174 or email Sally English and the English Team at sallyenglish@englishteam.com.

Sally English is a Certified Distressed Property Expert in Atlanta Georgia. Sally English and The English Team can get your home sold through a "short sale" and help you avoid foreclosure!

Tough Decision: Loan Modification, Short Sale or Foreclosure

Many homeowners are facing a tough decision about their home loan. Unemployment, under employment, illness, accidents and unexpected expenses have left may home owners without the means to pay their mortgage loan payment in full each month. What should you do if you find yourself unable to make a full loan payment this month?

Loan Modification May Be The Right Path For You: The Obama Administration has touted the Home Affordable Modification Program (HAMP) as the answer for consumers who need mortgage loan help. In this program the lender agrees to lower the monthly payment by either lowering the interest rate on the loan or extending the period of time over which the loan must be repaid. You apparently have to be behind in your mortgage payments to qualify.

The big problem with this program is that the lender representatives who answer the phone are often unaware of the program or do not know how to put you in contact with someone in the organization who can get you relief. And then there is the total incompetency of the lenders once you actually find out how the program works. Lenders lose documents, often more than once. Communication is poor with both the home owner and within lending organizations.

And your credit score is going to take a hit. It all depends on how the lender reports the loan modification to the credit bureaus. Some lenders report you as delinquent and others report it as a partial payment. Others see this as "paid as agreed". Talk to your lender. If you have great credit, expect your score to drop sharply. If your credit was already suspect, it may not be a significant blow.

Short Sale is an Excellent Option For Some Homeowners: As a Certified Distressed Property Expert I work with many home owners If you are "upside down" in your mortgage loan. That is if you owe a lot more than your home is worth, a loan modification will not answer your problems. You need to contact your lender and get started with a short sale.

In a short sale your lender agrees to take a payoff for your mortgage loan that is less than the amount you owe. Some lenders consider the short sale as payment in full. Other lenders go after a deficiency judgment through the court system for the amount of your loan you were unable to payoff. The deficiency judgment is especially damaging to your credit and hangs around for a number of years. Your credit score may also plunge 140 points or more. How lenders report your short sale to credit bureaus is negotiable.

Foreclosure is Unavoidable for Some Home Owners: If you can't make your house payments and your house does not "short sale" you may be on a collision course with foreclosure. Many owners in foreclosure also file for personal bankruptcy. What is the effect on your credit?

"A bankruptcy can hurt your credit for up to 10 years, a foreclosure and other serious delinquencies for up to seven years. FICO, for example, classifies bankruptcies and foreclosures as negative items and treats them in a similar manner. Loan modifications and short sales can also be negatively classified, although that ultimately depends on how those items are reported on a credit profile, says FICO's Mr. (Tom) Quinn. Under the VantageScore-an emerging competitor to FICO developed by the three major credit bureaus-scores can fall by as much as 140 points in a short sale or foreclosure and can plummet by as much as 350 in a bankruptcy, says Sarah Davies, head of analytics and product development at VantageScore Solutions LLC. Borrowers with short sales and loan modifications should see their credit recover more rapidly if they keep making their payments on time, keep balances low and refrain from applying from new credit, said FICO's Mr. Quinn."
- Digging Yourself Out of a Mortgage Mess By Jane Kim and M.P. McQueen, Wall Street Journal

If you are looking for unbiased advice about your distressed property in Atlanta, call Sally English at 770-939-3174 or email Sally English and the English Team at sallyenglish@englishteam.com We have experience with short sales and lender contacts. You don't have to go through this alone!

Sellers Facing Foreclosure or Short Sales Need Real Estate Agents With Proven Track Records

Are you a seller facing foreclosure or a short sale? If you answered yes then you need a real estate agent with a proven track record to make things happen before you become the latest victim of the mortgage loan crises.

The vast majority of real estate agents have never worked with a home facing foreclosure. Marketing a home facing foreclosure requires intense negotiations with your lender, education of potential buyers and marketing savvy to make your home stand out from the crowd.

You can not select a short sale savvy real estate agent based on friendship, convenience or "potluck". Do your home work and select a real estate agent who has a proven track record of successfully navigating the bank foreclosure and short sale obstacle course.

Questions to Ask Potential Short Sale Real Estate Agents

What educational certifications do you hold that prepares you to handle my sale before I end up with a sale on the courthouse steps? Answers should include CDPE or Certified Distressed Property Expert. Other certifications that show your real estate agent is at the top of their profession include the CRS and GRI designations.
Have you successfully sold and closed a short sale listing this year? It is an obvious question but it will weed out 90 percent of the real estate agents who claim they are short sale experts. Be specific and ask about specific properties they have listed and sold as short sales.
What lenders have you negotiated short sales with in the past 12 months? This is a less obvious question but it is highly pertinent to your situation. ALL LENDERS ARE NOT THE SAME in the short sale world. Wachovia has a workable short sale system. Bank of America/Countrywide is a house of horrors in the short sale world. Try to find a real estate agent who has worked with the mitigation department for your specific lender!
Do you have the documents and forms I need to get the short sale process started? You need to start the short sale process immediately and the process takes months. If the real estate agent does not have the necessary forms and documents, are they really qualified to negotiate the short sale maze.
Are you a short sale superstar? This sounds like a comic book character or something but short sale superstars are actually a group of real estate agents that share specific information and strategies for dealing with the mitigation departments of major lenders. I have learned a lot through this cooperative group.

Don't sit on the couch and let your home go through foreclosure. You can get your home sold as a short sale and take a far less serious hit to your future credit rating than a foreclosure event. PLUS you can essentially live rent free in your home while the lengthy negotiations are taking place.

Paraphrasing Larry the Cable Guy: Git it done!

WHAT IS a Certified Distressed Property Expert or CDPE?

"A Certified Distressed Property Expert®is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today's market, specifically short sales.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs. For more information, contact a CDPE in your area.

CDPEs don't merely assist in selling properties, they serve and help save their clients in need."

What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall - In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. Find a CDPE in your area by clicking here. Together, you can identify all possible options and, when possible, a CDPE can assist you in the quick execution of a short sale transaction."

HOW CAN I Identify a CDPE Real Estate Agent?

Look for this Logo:

PUTTING THE CDPE Certification to Work
Foreclosures and short sales have inundated the market place in Atlanta, Georgia. Sally English and The English Team have already assisted many sellers who found themselves "upside down" in their mortgage loans. Together, we successfully marketed and sold these properties and avoided foreclosure. The process requires patience and can be frustrating at times, but the sellers put themselves in a better financial position in the long run and that made it all worth while.

Working with buyers in this market,we have guided my clients to some incredible values and deals on premier properties in Atlanta, Georgia. By purchasing short sales and foreclosures, English Team buyer clients have truly found some amazing values. The buying process can take up to 120 days once an offer is submitted so this is definitely not a process for some one who needs to be in a home in 30 days.

CONTACT Sally English and The English Team to Help Avoid Foreclosure: I can help home owners avoid foreclosure. Call me now at 770-939-3174 or contact me by email at sallyenglish@englishteam.com to get started. It would be my pleasure to share with you what I have learned in obtaining my Certified Distressed Property Expert (CDPE) designation.