Maricopa, AZ

Should I Short Sale My Home

webmaster — Tue, 07 Sep 2010 03:55:07 +0000

Hello and welcome to the Group 4610 website. We are Kevin Kauffman and Fred Weaver, Arizona Short Sale Realtors. We have completed more than a couple hundred short sale deals since 2008. With a higher success rate and more familiarity than just about any other realtor in the Arizona Short Sale world, we are the leading short sale agents in the state.

We would like to chat about a delicate topic these days. Should you short sale your property? The strategic default, or as we refer to it, the business decision, is a very hot topic recently. You may be a property owner out there that is upside down on his mortgage. For illustration, you might owe $400,000 on your mortgage, but your property is only valued at $200,000. You may be in a place where you are getting ready to stop working or you are preparing to relocate. Possibly you have the capability to pay your mortgage, but you are doing this at the determent to your family. Basically, you are throwing money at a terrible asset or investment.

We have had lots of people come to us and say 'What am i doing here? What should i do?' The short sale, foreclosure, or keep paying the mortgage are all choices that property owners are taking into account. We won't tell you what you ought to do, but you ought to make the correct choice for you and your family. Many people believe that they have a moral obligation to make their payments.

While that is a legitimate point, there are some things in your mortgage agreement that give you the justification to stop making payments. Similarly, the bank has the right to foreclose or accept a short sale. You need to evaluate what is most important to you. If that means that you need to walk away from your property with a short sale, you ought to strongly ponder it.

There are a couple things you should always keep in mind. This is a private choice for you. Don't allow anybody to tell you what is right or wrong. Your mortgage is a contract that has choices for you to consider. Look at what your property is worth today. How long will it take you to get your mortgage back to level? There are consequences to every alternative that you have. Make contact with us today and we can help you weigh those consequences.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at My First Short Sale

Also, follow Group 46:10 on their blog at Maricopa - Avoid Foreclosure Arizona

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Short Sales And Missing House Payments

webmaster — Tue, 07 Sep 2010 03:20:20 +0000

Welcome to Group 4610's blog. We are Kevin Kauffman and Fred Weaver, Arizona's Best Short Sale team. We have completed hundreds of short sales over the past couple years. However, this video isn't about us, it is about you!

One of the common discussions we have with home owners is about missing payments. Many of these home owners are even now current on their mortgage payment. Possibly they haven't yet experienced the cut in their salary or they haven't completely exhausted their entire savings account thus far. They frequently want to know whether they ought to or ought to not miss payments.

Realize a couple things about short sales. It is possible to complete a short sale without missing payments. However, with the regularity that short sales are being completed, the lenders aren't even allowing for a short sale until the home owner is missing payments. We believe that the lenders have made that change since they do not want the home owner to take benefit of a short sale and still evade the harmful effects of missing payments. Furthermore, it is definitely a way for the lenders to keep short sale numbers down. There isn't a single bank in the land that has enough employees to handle the short sale folders they already have.

We are never going to inform you to make or miss your payment. However, we can tell you that the bank will want to observe you miss some payments before they decide to even look at your short sale. Most of our clients are okay with the credit hit and knowing that they can get back into a home in a couple years. We will talk about the decisions that are in front of home owners in a future episode.

Fill out the document on our website so a member of our team can have a short consultation with you. Thank you for joining us now. We will talk with you again soon.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at My First Short Sale

Also, follow Group 46:10 on their blog at Short Sale Arizona

Short Sales FAQ’s Part 1

webmaster — Mon, 06 Sep 2010 11:26:14 +0000

With America's real estate market in a frantic tailspin, we are seeing more and more homeowners turn to short sales in Phoenix, Arizona as a solution to avoid foreclosure. Within the confines of this article we will give attention to the ten most frequently asked questions regarding shorts sales. Short sales, in our professional opinion, are the best option available to the general public. However, each situation is different for each home owner and their family. So, it is in your best interest to find the option to avoid foreclosure that will work best for you. Be informed about all of the options and weigh them against your specific situation. Now, on to those questions about short sales
1. What are Short Sales?
Short sales are when homeowners who owe more money to the bank on their mortgage loan than the current market value of the home and the bank approves of selling the home for less than the pay off amount. As an example, Bob Smith in Phoenix, AZ owes $250,000 on his mortgage and his home has a value of $170,000. This is referred to as an upside down mortgage. These types of homes are the perfect candidates for short sales to help the home owner get out of the property and the mortgage debt.
2. Why would a lender accept taking a loss in short sales?
The lender, bank, or mortgage company agrees to take a loss because, in the long haul they will save money. Whether the home is in pre foreclosure or foreclosure, the bank is getting no money for it. Furthermore, if they have to foreclose on it, legal fees and other hassles eat away at the eventual price the bank will get at foreclosure sale. Consider one step further, at foreclosure sale a home gets far less than it would get if it short sales. Take this idea yet another step and consider that the money from the short sale of the home can be borrowed to someone else that WILL pay off their debt. Hopefully, by now, you understand that it is in their best interest for banks to support short sales from the very first time that the home owner mentions the words. They are so inclined to support short sales that they often forgive the remaining balance between the sale price and the mortgage pay off amount. But, we must caution, in short sales, it is at the lenders discretion whether they choose to forgive the remainder or not. They have the legal right to collect the difference from you (but don't be too alarmed, you were facing a potential foreclosure. So, they understand that legal action against you will more than likely yield nothing).

Your Short Sale Specialist Has To Be Committed To Succeeding

webmaster — Mon, 06 Sep 2010 06:58:07 +0000

We are Group 4610, Arizona's Leading short sale team. Short Sales in Arizona are our thing. We frequently get questioned about why we are the best short sale realtors in Arizona. Basically, what seperates us from other realtors in this Arizona short sale market?

I had a recent situation where a pal was going through a short sale and wanted some guidance as to what to do with a short sale at Bank of America. I coached her a little bit and gave her some thoughts to pass on to her short sale agent. Basically, if you are having troubles escalate to somebody higher up at the lender.

After getting off the telephone with her, something dawned on me. I should have told her something else. It's not about what we do. Don't get me wrong. We have excellent strategies and we have great associations inside the lender. When we ask for something, they are conscious of who we are and they react to us. This occurs because they understand that we close short sales. We are not there to squander anybody's time.

Basically, our accomplishment is a complete product of our mindset. Short sales are intricate transactions. They are not like the conventional real estate transactions. Finding answers to problems, no matter the situation, is what we do best. Our deepest committment is our goal and, in turn, your consequence.

If you choose to work with us, know that when you enter into a relationship with us we take that very seriously. Our deepest committment is to get your short sale done effectively. We have a mindset that we are going to get the transaction done and help you avoid foreclosure. There are troubles that arise in this procedure all the time. Still, we choose to overcome those troubles.

If you have questions, get them answered here Paradise Valley - Short Sale Realtors

Short Sale Solution To Financial Crisis

webmaster — Sun, 05 Sep 2010 13:54:10 +0000

The main thing you need to know about a short sale transaction is that you can sell your house for less than you owe on the mortgage and walk away from it. Beyond that, there are a number of steps that should be taken before you can short sale your home in Queen Creek, AZ.
Economy in this country is a dirty word these days. Some studies reveal that more that more than fifty percent of all homes in Queen Creek, Arizona are in upside down mortgage situations (where the home is worth less than the mortgage). Much of this is a result of two factors, poor lending practices and a weak housing market.
With many homeowners affected by one or both of these factors, foreclosures are at an all time high. So, the best way to avoid the frightening foreclosure is to use a short sale to get rid of your burdening mortgage and your devalued home.
With a short sale, the home owner must gain approval from the bank to sell the home for less than the value of the mortgage. The bank can choose to refuse such a sale or any offer that may come as a result of the short sale. However, given the state of the economy, banks are much more accepting of the short sale because they do not want to take possession of your home through foreclosure.
If you are one of the unfortunate individuals that is considering a short sale, it is best to find a real estate agent that has experience working with short sales. You will also need to get your house appraised. Then, with your appraisal in hand, put the house on the market. Your hope for a quick sale will probably be met as many investors are searching for these bargain properties to bolster their portfolio.
One of the goals of your short sale should be to get the lender that holds your mortgage to issue a judgment of "Payment in Full". Doing so, means that they will accept the sale price of the home as full payment of your mortgage. It is well within their rights to require the home owner to pay the remaining balance on the mortgage. So, the use of a real estate agent in facilitating a short sale transaction can help you gain the payment in full judgment that you desire.
With the dyer situation that many home owners are in, the rise in foreclosures, and the importance of a good credit score, the short sale is a great option for many home owners that find themselves in financial trouble. Finding a real estate expert with experience dealing with short sale transactions can help you through the process.

PRE FORECLOSURE Purchases

webmaster — Sat, 04 Sep 2010 18:53:59 +0000

Are you currently considering purchasing a Pre Foreclosure home in Phoenix, Arizona for an investment or to live in? there are several items that need to be weighed and thought about before you jump in head first. How do you find a property in Pre Foreclosure? How do you introduce yourself to the other party in a Pre Foreclosure sale? How do you negotiate with people that are dealing with a Pre Foreclosure situation?
There are many ways to find Pre Foreclosure properties. One of the more popular ways is through the local newspaper. Check in the public notice section. Look for the phrase, "intent to sell" which can lead you to prospective homes in the Pre Foreclosure process. You can virtually ignore the Notice of Default section of the paper because the home owners in these situations could decide that they want to keep their home still Usually an intent to sell with give you an address, auction date and time, and other relevant information. It is always in your best interest to visit the house before the auction to check on the general condition before the sale.
However, there is another way to seek out homes in Pre Foreclosure in Phoenix, AZ. This other way is a relatively quiet process. Often times, home owners that find themselves in Pre Foreclosure may choose to short sell their home. A short sale works to the benefit of the bank and the current home owner. However, the short sale can work to your benefit to, whether you are looking for a home to live in or a home to invest in, the short sell during the Pre Foreclosure process can be a gold mine. Here is why...
-during a Pre Foreclosure short sale, the home owner is selling the home for less than the mortgage that they have on the home with the hopes and probability that the bank will forgive the outstanding debt on the mortgage. This creates a very motivated seller.
-Also, because the home is in Pre Foreclosure, the bank understands that the home is only a few short steps from foreclosure. And because banks do not want to take possession of homes, this creates a very motivated lender that wants to see the home sold.
-And lastly, with a Pre Foreclosure short sale, the home is generally in good condition, because the home owner has not abandoned the property with the thinking that a foreclosure is a certainty.
Given these two conditions, it is in your best interest to find a real estate agent that deals with Pre Foreclosure short sales and notify them that you are in the market for a home. They will probably have a list of homes available for short sale at their fingertips.

Is Bankruptcy Worse Than Foreclosure For Your Credit Score?

webmaster — Sat, 04 Sep 2010 03:39:52 +0000

For anyone who might be thinking of whether to file personal bankruptcy, it's a good idea to think of the long term impact of bankruptcy versus any other way of fixing your credit problem. One of the big issues facing many people today is the threat of foreclosure on their home, compared to bankruptcy. It's not an apples to apples comparison, but here are some issues to consider.

First, foreclosure is another debt, just like a credit card. If you default on your home loan, the lender can take your house, or foreclose on the note. If you are behind on a car loan, the lender will take back your car. Either of these are major bad credit events, and will result in a drop in your credit score.

Bankruptcy however is a situation where multiple debts are either discharged, or wiped away, by a bankruptcy court, or you instead set up a plan to repay. While credit agencies won't specify which is worse or by how much, avoiding multiple debts in bankruptcy means that many creditors were left unpaid. For secured creditors, however, like mortgage companies or car financing companies, they did get back a portion of their loan through repossessing your home or car.

If you aren't sure whether to file bankruptcy or let the bank take your home, there are multiple issues for your to consider. Many times, you can file bankruptcy and lose your home in foreclosure anyway, as a secured mortgage lender can ask the bank to allow them to sell your home and get paid that way. This would happen in Chapter 7 more than Chapter 13 bankruptcies. In Chapter 13 bankruptcies, you will be setting up a repayment schedule, which could help you keep your home and make payments according to the repayment plan you set up with the bankruptcy court. In this case, the bankruptcy court could stop your home fro being sold, if you are making approved payments, thereby avoiding foreclosure.

Whether to file bankruptcy or let your home go to foreclosure will depend on your specific situation, your income, your total debt, and your other expenses. It's best to make an appointment with an attorney to discuss whether a bankruptcy could actually help you save your home and avoid foreclosure. You might decide that your primary concern is to save your home, and not worry about your credit score. You can rebuild your credit score after bankruptcy, but buying a home or saving the one you have is much tougher. Talk with a credit counseling agency or bankruptcy attorney before you decide whether bankruptcy is worse than foreclosure for you and your family.

Do you need to decide right away whether to go through bankruptcy or foreclosure? You can find more about filing personal bankruptcy at BankruptcyHelpOnline.

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Short Sales FAQ’s Part 3

webmaster — Fri, 03 Sep 2010 21:07:50 +0000

6. How long after short sales can a home owner buy another house?
There is exciting news in Phoenix, Arizona regarding this question. Recently implemented programs give us a great answer to this frequently asked question. There exists now, a new loan program specifically tailored for people who used short sales to sell their homes. You can have the opportunity to purchase a new home by applying for a home loan in as little as two years provided that you meet much of the same criteria that you have to meet for a traditional home loan. In case you are wondering in Phoenix, AZ, those criteria are maintaining a good credit history, maintaining a good payment history on all of your debts, keeping your debt to income ratio at an acceptable rate as stated through common lending guidelines and have a verified source of income. Does that criteria sound a bit familiar?
7. When considering short sales, what does the bank consider that qualifies as a financial hardship?
This question has endless possibilities. However, there are many different types of hardships that almost any lender, bank or mortgage company will widely accept as "qualified" hardships. Those valid hardships include, but are not limited to...
* Mortgage rate adjustments - as is commonly seen with the adjustable rate mortgages that were so popular among home buyers five to ten years ago
* Increase in monthly expenses - which is admittedly more difficult to show in a hardship letter, but with inflation rising as it has and wages not keeping pace with inflation, this reason is becoming ever more popular
* Need to move - a fairly cut and dry reason, usually coupled with the fact that selling your home at a profitable price is almost impossible due to the crash of the real estate market
* Reduced Income - one of the most commonly sited hardships, especially in recent months with corporate wage cuts and reduction in hours
* Unemployment - like reduced income, this reason is popping up in hardship letters with more and more frequency.
* Health issues - not a common hardship, but doctors are requesting that patients move to other climate friendly areas of the country with more and more frequency. This hardship does not include medical expenses (as you will see below)
* Separation or Divorce - take half of a home's income away from the home and trying to pay the mortgage is nearly impossible.
* Medical Bills - rising health care costs, coupled with reduced health care benefits, with just a sprinkle of less quality care and you have the makings of a medical bills hardship
* Business Failure - businesses have always failed more often than they have succeeded, but when the economy goes in down the drain, this problem just becomes worse
* Business cutbacks or downsizing - very related to unemployment hardships, with a few minor differences
* Death of a Spouse - much like divorce, when you take away half of the household income, it is tough to pay the mortgage
* A valid reason you are unable to make your mortgage payment - lump everything else in this category

Loan Mods Not Worth The Excitement

webmaster — Fri, 03 Sep 2010 19:37:49 +0000

We wanted to take a little time to talk with you regarding loan modifications. One of the more common questions we hear from home owners is "What should we do regarding our home?" The home owners do not want to leave their properties. Yet, they are either late on their payments or upsidedown with their mortgage. They usually consider doing a loan modification.

We simply want to let you know that the government and the media talk regarding loan modifications frequently. Yet, they aren't nearly as helpful as the government or media would have you think. There are some good loan modifications that occur. Yet, less than one in ten really get approved. Some of you watching this may have by now found this out by applying for a loan modification yourselves.

You should know that there are two types of loan modifications, principal reduction and change to rate or payment. A principal reduction is nearly non-existent. Possibly one in 500 get approved. The principal reduction is where the bank says that your mortgage is worth $200,000, but your home is worth $150,000. So the bank redoes your mortgage for $150,000. Yet, be aware that if you get a principal reduction you are legally responsible for the taxes on that $50,000 gift from the bank.

Payment reductions are seen sporadically. When they occur, they are good temporary fixes. Yet, most people discover that there comes a certain time when they choose to default it. It still does not address the fact that your home is not worth the value of your loan. We aren't saying that the loan modification alternative isn't for you. Yet, most people usually end up going to the short sale process. The short sale enables you to get a new start and meet the criteria to purchase a home in as little as two years.

Nearly all people comprehend that the loan modification didn't help them after the first few months. We would love to have the opportunity to speak with you. A short sale is the best option for most home owners looking for aid.

If you have questions, get them answered here Avondale - Short Sale Realtors

Short sale homes Benefit All Parties Involved

webmaster — Fri, 03 Sep 2010 02:09:30 +0000

Short sale homes are homes in which a home owner is able to keep from going into foreclosure buy selling the home for less than the mortgage is worth. Generally, this happens in the pre foreclosure stage or sometimes even before that if the home owner knows that they will have difficulty paying their mortgage very soon. Short sale homes give the home owner a much better outlook after they are free from their mortgage because their credit is not damaged like it would be if the home went to foreclosure.
Usually with short sale homes in Phoenix, Arizona, the home owner needs to contact the lender to get their approval. The lender usually agrees to short sale homes because they understand that their loss will be great if they have to take possession of the property through foreclosure and sell the home themselves.
When the bank agrees to short sale homes the have a much less expensive process and a much quicker process than if they were to go to foreclosure. Byers of short sale homes will usually work with the lender in the negotiation process to come to terms with the mortgage that satisfies the bank. Basically a buyer of short sale homes is buying the debt from the old mortgage. In a growing number of short sale homes, the bank will forgive the previous home owner of the remaining debt so that they can complete the deal. However, it is important to note that with the short sale homes in Phoenix, AZ, the home owner can still be held responsible for the remaining debt. The lender will usually take the home owners financial situation into account when they make this decision.
The lender is the only party that has the final say in completing short sale homes. When home owners short sale homes, the sales are not governed by any agency or the government. Short sale homes are growing in numbers with the recently troubled housing market.
So, if you are an investor or a home owner that is in trouble, you should strongly consider and research all of the short sale homes that are and have been on the market. Most troubled home owners are usually very motivated to avoid foreclosure. So, short sale homes can make a great bargain for investors.
Short sale homes are a great benefit to the lenders also. You have to remember that banks are not in the real estate market. They are in the money market. So, there is not a bank in the world that WANTS to take possession of a home. Short sale homes give them a way out just like they do for the home owner. The lenders do not want to keep trying to honor their side of a mortgage contract that the home owner is not willing to (or can't) honor. When a home owner stops paying the mortgage, the bank gets no money. So, short sale homes help them recover at least some of the money that they have lost. Furthermore, foreclosures can be very costly to banks. So, short sale homes help banks keep their costs low.