Tri-Cities WA Foreclosure

February 3rd, 2011

With more people looking for a deal and more bank owned inventory available nationwide, I thought no better time than to share a few tips on how to purchase a bank repossessed property. Of course, you’ll want to find the right Realtor to assist you in your search and through closing, but below are a few quick tips that will help aid you in a successful transaction. 

• Become a bank customer. With dozens of investor and broker calls about purchasing REOs every day, lenders often give preference to depositors.
• Go with proof of funds-either cash or a loan from another lender. A few lenders will loan on REO, but that’s still the exception.
• Do due diligence promptly. It should be conducted before you make an offer, if possible, since sellers usually want to close in 30 days or less.
• Don’t expect complete property records. Lenders usually don’t have them and won’t obtain them.
• Don’t ask for an extension on the closing. You’ll probably face financial penalties or a lost deal.

For help in understanding and purchasing REO properties, please contact Yvonne Caffrey at (509) 438-4212.

*This blog was comprised by using excerpts from a February 2011 article in REALTOR magazine.

February 19th, 2009

Even though our Tri-Cities economy is still thriving in most sectors, we are still running into a number of folks that have questions about short sales and foreclosures. We’ve received enough questions that we felt the need to formulate a book on the topic.  Please feel free to sign up for our free book if you have questions about short sales.

In many cases this information is changing weekly with the new stimulus plan and changes in the law.  We will be keeping up on these changes and using the information to help homebuyers and sellers take full advantages of the programs.  The following information below on forclosures was found at:

http://www.hud.gov/foreclosure/
http://www.huduser.org/publications/destech/foreclosure_kit.html

Foreclosure is the process in which a lender repossesses a property after the owner has defaulted on the mortgage, or failed to comply with the terms. In 2008 data gathered by RealtyTrac showed that about 91,000 American families lost their homes to foreclosure. The economy has taken a steep downturn, and the number of foreclosures are raising. Let me ask, are you at risk?

There are some ways you can avoid foreclosure. Here are some tips:

1. Don’t ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include important notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can’t make your payments.  Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL .

6. Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide.  Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.
After healthcare, keeping your house should be your first priority.  Review your finances and see where you can cut spending in order to make your mortgage payment.  Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.

8. Use your assets.
Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income?  Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies.
You don’t need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender.  While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don’t lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home!  Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

If you feel you are at risk, have missed payments, or are in the process of a foreclosure, here are some resources that you may find useful.

U.S. Housing Market Conditions (Published Quarterly)
http://www.huduser.org/periodicals/ushmc.html
U.S. Housing Market Conditions is a compilation of statistical data and written reports. Tabular data indicate market conditions on the national level and are presented for each quarter. This includes information on delinquencies, foreclosures, sales, and price trends. Overviews of economic and housing market trends within each HUD region and historical trends in national and regional housing markets are regular features of this report.

Untangling the Sources of Mortgage Closing Costs (September 2008 issue of ResearchWorks)
http://www.huduser.org/periodicals/ResearchWorks/sep_08/RW_vol5num8t1.html
This article from HUD USER’s monthly newsletter, ResearchWorks, provides insight drawn from recent HUD research into the fees and closing cost variations paid to lenders and mortgage brokers, real estate agents, and title companies. The research calls for better and clearer consumer information as wide variations in costs between services and lenders, as well as price discrimination, indicate a less-than-competitive market.

A Study of Closing Costs for FHA Mortgages (May 2008, 270 p.)
http://www.huduser.org/publications/hsgfin/fha_closing_cost.html
This study presents findings on how much borrowers pay in closing costs when they buy a house, how much these costs vary, and factors to which the variation is related.

Providing Alternatives to Mortgage Foreclosure: A Report to Congress (August 1996, 200 p.)
http://www.huduser.org/publications/hsgfin/mortgage.html
This report reviews foreclosure laws, investigates the use of various avoidance procedures, and cites areas for continued improvement. It urges greater uniformity among state foreclosure laws and calls for agencies to provide better incentives for loan servicers to initiate loan modifications and forbearances.