Get Foreclosure Information and Help Stop Foreclosure: Save Utah Homes Blog

First Time HomeBuyer Credit Stimulates Market

Keith — Mon, 12 Apr 2010 17:36:29 +0000

We are seeing more reports about the market and how sales are on the rise. Logically, one should notice this is due to the first time homebuyer credit , and after the deadline date of closing by June 30th, the valley can expect to see a decline once again. The credit is creating a false stimulus that is not reflective of our true market with current qualifying and lending standards. What we expect to see after this time period is a rise in short sales and foreclosures. This is not happy news to report, but thankfully we are experienced in both and are here to answer your questions pertaining to both.

Good news pertaining to lenders and their approval ratings is they have gone up. It is in the banks best interest to short sale instead of foreclose, due to the costs of a foreclosure. The public should be aware the banks have put policies and procedures in place to help with approvals of short sales, and to help with the process for all parties in general. We are seeing more and more approvals on short sales on a weekly basis, and expect to see more with time passing.

Lastly, The HAFA (Home Affordable Foreclosure Alternative) has begun as of April 5th, 2009. To qualify, borrowers must:

Have been considered for other foreclosure prevention options
Meet HAMP eligibility(Home Affordability Mortgage Program)
Be either delinquent or current

These are some basic guidelines and for further questions feel free to call us at 1-801-485-SAVE or email us to info@saveutahhomes.com.

Short Sale Question and Answer Live Presentation

Keith — Fri, 12 Mar 2010 23:17:38 +0000

There seems to be an enormous need for seminars on Short Sales to the public here in Salt Lake City. We here at Save Utah Homes have decided to do a presentation every month to help answer some of the many questions we receive every month. It will be a free seminar for you or someone you may know to discuss the questions that keep arising pertaining to short sales and loan modifications. There will be a lender on the panel as well to answer all your loan qualification needs as well. See the details below and feel free to call us at 1-801-485-SAVE.

SHORT SALE QUESTION AND ANSWER PRESENTATION–FREE TO THE PUBLIC–7 pm to 8:30 pm: March 24th -Wednesday

Address is –1214 Wilmington Avenue, Salt Lake City, Utah 84106

Feel free to bring a guest.

Short Sales–The Listing Side and The Buying Side

Keith — Mon, 08 Mar 2010 19:48:35 +0000

Here in the valley, our statistics are showing 25% of our listings are short sales whereas the rest are bank owned and equity listings. What this means is short sales are growing in numbers and expected to be seen as 50% of our listings by the middle of this year. If you are a buyer, this is important because to put offers in on these properties means more time, more effort, and for sure more patience. It doesn’t mean you can not or should not buy a short sale. What it means is you should be more educated about the process, and what it takes to purchase a short sale. There are some benefits to buying a short sale, such as getting a great home for under market value, getting a great investment property that you could possibly rent out and be cash flow positive, and also helping to release a seller who has found themselves in dire straits with their mortgage. Often these homes are in very good condition compared to bank owned homes because the sellers are still emotionally attached to the home and still taking very good care of the property which would then create a turn key purchase, versus having to put money into repairs like with a bank owned property. For answers to your questions regarding purchasing or listing a short sale please email us at saveutahhomes.com or call us at 801-485-SAVE

Also–We will be having a buyers presentation this week for anyone looking to purchase a home in this shifting market. See information below:

Thursday-March 11th, 2010 at 7pm. 1214 Wilmington Avenue 84106–801-566-9500 Call With Questions
Presentation Geared Towards Buyers on How to Purchase In This Market–How to Qualify and Get in On The First Time Homebuyers Credit
And Any Other Questions About Purchasing a Home.
Sponsored by Keller Williams Salt Lake City/Aaron Marshall Group and Veritas Funding.

Short Sales Growing in Numbers Nationwide

Keith — Wed, 24 Feb 2010 21:25:39 +0000

Short Sales are growing in numbers every year nationwide. In fact they are doubling year after year, and due to the high volume it can take up to 3 months to complete the process once an offer is received by your lender. That being said, the great news is the banks are knowledgeable of the demand and many banks are taking several steps to make the process easier and quicker. In retrospect –they have stepped up from previous times.We have had several calls asking if there are any buyers even buying short sales right now? It might surprise most people that 44.5% of the people purchasing short sales right now are first time home buyers. Due to the first time home buyers credit coming due April 30th, 2010, the markets are experiencing a spike across the nation that is expected to last until the end of May, 2010. Many lenders are doing what they can to rev up their systems in order to process as many short sales as possible before the first time homebuyer credit expiration. If you are upside in your home, and not sure if now is a good time to list, make sure you take this information into consideration. Waiting on doing a short sale could remove your home from a larger pool of buyers that are currently in the market. For more information, please call 801-485-SAVE and speak to Dawn Griffith, or Travis Straw, or simply submit a question form online.

The Low Down on Loan Mods(Modifications)

Keith — Fri, 19 Feb 2010 21:47:38 +0000

We receive a number of questions on loan modifications, and if we do them or not? In the state of Utah, it is required by the real estate division that we either participate in helping with loan modifications or doing short sales. We are told we can not do both, which actually makes sense when you look at how a bank processes loan modifications versus short sales. If your lender detects a loan modification being done for your property, they will stop all processing of any short sale being attempted. We always advise you to try a loan modification, if that is the direction you want to go, but to go in to the process with as much knowledge and information as possible and realize the terms of the loan may change; such as the interest rate, or the length of time of the loan, but the principal of the note is NOT changed. We are not saying it is impossible for the principal to change, but in our experience we have yet to see one change the base value of the note. A seller needs to weigh out their options and their long term goals as far as keeping the property. They need to look at if they will ever recover the value of the existing note, or if they are so far upside down, that it may not make sense to even pursue the loan modification. If the cost to benefit ratio is too high then a short sale is the way to go. Short sales are getting easier to close due to lenders streamlining their processes, and providing agents with approval letters relatively quickly(60-75 days). Feel free to call us with all your short sale questions at (1801485save), or email us at www.saveutahhomes.com. We are here to help in any way we can, and answer questions regarding both processes to help you make the best decision for your future.

Bankruptcy, Foreclosures and Short Sales

Keith — Fri, 12 Feb 2010 15:29:24 +0000

Recently, we took a listing from a new client. They have a bankruptcy that has already been processed and discharged. Their home was under the bankruptcy. Their question to us was, “can we still short sale our home?” Yes, and in most, but not all cases this is a slam dunk for approval. If they chosen to not do the short sale, they would have not only a bankruptcy on their credit, but also a foreclosure. This asset still needs to be handled by the bank, and they will go through the foreclosure process in order to rectify the debt on their books. We are able to do the short sale, and get it done relatively quickly, with most banks. Currently, banks have been very willing to work with sellers on doing their short sales, and the approval rate is still higher than a lot of loan modifications being attempted. This is good news for people finding themselves in a position where they have researched all of their options, and still need to get out from under a home that is worth less than what they owe. For further answers to your short sale questions, visit www.saveutahhomes.com, or call us @ 801-485-save(7283).

Home Prices Hit Bottom…..Don’t Count on It

Keith — Fri, 19 Jun 2009 15:02:47 +0000

In a recent CnnMoney article some analysts and economists don’t expect home prices to stop dropping before mid 2010. Some bear analysts warn it could be 2013 before they may actually hit bottom. The reasoning behind this thinking is there is an avalanche of specialized adjustable rate mortgages, known as pay option ARM’s that are slated to reset over the next 18-24 months. On top of this the unemployment numbers for May indicate an increase in unemployment in all states except for one Nebraska. Some projections expect that home prices could tumble another 20% before the market starts to rebound. All of this will add to the number of foreclosures. The biggest increase in foreclosures in the first quarter alone (50%) were amongst prime mortgages, as those with good credit were affected by unemployment. National home prices plunged in the 1st quarter of 2009 by 19.1% according to Standard & Poor’s/Case-Shiller National Home Price Index. Foreclosures for 2009 are estimated to increase by a half million over 2008 which had approximately 2 million. It is also estimated that unemployment could reach 12.1% by 2011. With these kind of numbers you can expect values to remain lower and fall further. As a nation we are still in for some challenging times.

Foreclosures Slow Efforts for Economic Revival

Keith — Thu, 04 Jun 2009 16:38:09 +0000

As far as news goes, every once in a while you read or hear “Could the bottom for real estate be near.” Well based on various articles from CnnMoney and Msnbc don’t count on it. Foreclosures hit record highs for the first quarter of 2009. Over 616,000 homeowners were hit with foreclosure actions in the first three months of the year as reported by the Mortgage Bankers Association. The nature of troubled loans is also changing. It started with subprime loans and adjustable rate mortgages back in 2007, but now it is affecting prime mortgages (those with good credit). The reason for the change is due to the employment market and the amount of lay offs that are still taking place or cut in hours/pay. When you lose part or all of your income then you may tap your savings to continue to make the payments but at some point those funds get exhausted which now puts in you into the situation of being late on the mortgage.

When you are here what options do you have? You don’t want to have the foreclosure on your credit and more than likely you don’t qualify for a loan modification because you don’t have the income any more or due to the decrease won’t meet the debt ratio’s any longer. There is one other option which is a short sale. In this scenario the lender is willing to take a discounted payoff on what is due them in turn avoiding a foreclosure. The short sale also saves the loss for the lender by approximately 50%. It also shows the lender that you are trying to work with them through the situation instead of walking away the home. When you choose this option then you will need to find a company that is local in your area that has the experience of doing short sales. As you research companies find one that has done more than just a hand full. The experienced companies will have done hundreds of short sales, have a good reputation with lenders, members of BBB with an A+ rating and a team that will help you understand the process.

Median Home Price Fell Nationwide 1st Qtr 2009

Keith — Tue, 12 May 2009 16:24:23 +0000

As posted in the Salt Lake Tribune Tuesday May 12, 2009, home prices fell in nearly 9 out of every 10 U.S. cities in the first quarter of 2009. The National Association of Realtors said Tuesday that median sales prices of existing homes declined in 134 out of 152 metropolitan areas. The median price nationwide was $169,900 down 13.8 percent from a year ago.

When you find yourself struggling to make your mortgage payments or are currently behind on payments due to circumstances beyond your control such as job loss, cut in hours, medical etc this is not the type of news you want to read about. With this type of drop in values on top of the challenge with the mortgage payments you probably find yourself owing more than what the home is worth. Your options become limited either let the bank foreclose and potentially pursue a deficiency judgment after the sale or the other less detrimental option is a short sale. With a short sale you participate with the lender on solving the challenges you are in with the mortgage. This is more favorable for you because your credit is not affected as dramatically as the foreclosure would and the loss to the lender is less than if they had to foreclose and have the addtional costs of an REO. A short sale also helps the neighborhood as the home doesn’t sit vacant and as we know, a vacant home can suffer vandalism or the lack of upkeep could even bring down the values in the neighborhood further.

When you find yourself in a financial situation that puts you behind on payments and you want to save yourself from foreclosure the best option is to locate a short sale company in your town to help resolve the matter. Make sure that they are reputable, Better Business Bureau rated, experienced having done more than just a few short sales, high percentage of success and doesn’t charge for their services. These chararistics of a short sale company will help in relieving the stress you are feeling and have a favorable outcome for you and the lender.

Spammers find new market: homeowners behind on payments

admin — Fri, 01 May 2009 22:54:13 +0000

Spammers have found a new market to exploit: homeowners who are behind on house payments, facing threat of home foreclosure and looking for help. The mortgage crisis has hit them and their families hard so they are desperately looking for a way out. This pain has given spammers the opportunity to exploit.

Since the beginning of the year 2009, spammers have launched an invasion on homeowners’ email-inboxes with emails titled “Don’t Let Them Foreclose.” They are also using email blasts targeting everyone while offering them to buy foreclosed houses. These emails have subject lines like, “Homes Given Away.”

Doug Bowers monitors spam for Symantec. While explaining how these emails slowly provoke homeowners, he said: “Someone will then be on the other end that will try and engage in a dialogue that will end up with you sending information, which then could either be used to actually make purchases, open new credit cards, potentially access your current bank accounts or financial information.”

Symantec also pointed out that the approach of the April 15, tax-filing deadline, lead to a rise in tax-related touts that are common in April every year. The goal of spam like, “We Could Settle Your IRS Debt Now,” is to collect personal information of the victims on receiving end. These emails from the IRS are never legitimate and the agency says it doesn’t do direct communications with taxpayers through emails. In fact these spam come not from within the US but from outside of US. Locations like China, Brazil, India etc. are the top spam sources.