PRESS RELEASE - Jeff Edmisten Earns NAR Short Sales & Foreclosure Certification
Author: Jeff Edmisten | March 9, 2010
FOR IMMEDIATE RELEASE:
JEFF EDMISTEN Earns NAR Short Sales and Foreclosure Certification
Buyers and Sellers Benefit from REALTOR® Expertise in Distressed Sales
Spotsylvania, Virginia March 9, 2010 — JEFF EDMISTEN with THE EDMISTEN/BUCK TEAM at RE/MAX Bravo has 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 “traditional” 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 leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “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. To earn the SFR certification, REALTORSÒ are required to take one core course and three Webinars. For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.
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Topics: Fredericksburg Real Estate |
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Don Chapman, Head of HAP - Speaks in Fredericksburg
Author: Ruthie Buck | March 6, 2010
To recap - The Homeowners Assistance Program (HAP) was put in place to assist:
Wounded, injured or ill members of the Armed Forces(30% or greater disability) and wounded Department of Defense (DoD), including Coast Guard and civilian employees reassigned to further medical treatment or rehabilitation, or due to medical retirement in connection with their disability;
Surviving spouses of wounded warriors;
Base Realignment and Closure (BRAC) 2005 impacted homeowners relocating during the mortgage crisis; and
Service member homeowners with orders for a Permanent Change of Station (PCS) move during the mortgage crisis.
Sitting in and listening to Don Chapman discuss the Homeowners Assistance Program was definitely enlightening. He brought up some great points of interest and clarified some of the misperceptions/misinformation associated with the program.
Don shared data which showed that HAP has purchased 48 homes to date and has helped approximately 500 families. He also indicated that there are presently 5900 applications in process.
He touched on many valuable points of the HAP, but the following stood out:
* When applying for HAP, do not fax or e-mail your application as it may end up lost in others’ paperwork. Instead, mail it directly.
* It is better for the family of the PCS member to stay behind until the house sells as to not incur two mortgages, making your first mortgage payment unaffordable before HAP is able to assist.
* If you are behind on your mortgage, HAP will be unable to assist you.
* You must have purchased the home prior to July 1, 2006 for PCS eligibility.
* HAP will review appeals, but they must be written and submitted to the executing district for review.
* For wounded, injured, and surviving spouses, HAP will assist after a foreclosure. If the home is sold through a private sale, HAP will reimburse 95% of purchase price, minus the sales price and any closing costs.
* For those who have PCS orders, HAP benefits will pay up to 90% of the purchase price, including any closing cost and realtor fees.
If you have questions on the HAP program, visit the website at http://hap.usace.army.mil/
Or if you live in the Fredericksburg real estate market, call Ruthie or Jeff for more information.
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Option # 2 - Sell & Bring Cash to the Closing Table
Author: Jeff Edmisten | March 4, 2010
Of the seven basic options when you are facing a default scenario on your home mortgage, today we are briefly discussing option number two. That is when you owe more on your mortgage than the home is worth, you can sell the property and bring the difference in cash to the closing table to pay off the mortgage.
Unfortunately, for the vast majority of homeowners in a distressed property scenario, this very simply isn’t an option. In the Fredericksburg real estate market, most homeowners who are upside down, are way upside down. Out of all the short sales we have managed, it is very rare to see one where the difference between what is owed and the home’s current value is less than $100,000. If someone had access to $100,000, they are probably making their mortgage payments on time.
But, in those rarest of instances, if the deficiency is small, and the homeowner knows they are going to lose the home eventually, they may be able to gather the cash to pay the difference, and just get out from under the mortgage. Most times the cash is borrowed from a parent, a friend, or another family member.
We did have one short sale scenario, where the homeowner was current on the mortgage, but just needed to move. The difference was going to be pretty nominal, something like $5,000 (relatively speaking.) She had the cash, and was willing to pay it at closing. So, this is an option, just not a likely one for most homeowners today who need to avoid foreclosure.
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Option # 1 - Refinancing to Avoiding Foreclosure
Author: Jeff Edmisten | March 2, 2010
One other note to speak about before I get into each of the seven basic options, and that is what I would almost always say is NOT an option in a distressed situation. That is agreeing to a contract with an investor, who is saying they will “save” you from a foreclosure. There are a lot of different scenarios in which this plays out, and virtually all of them puts the homeowner in extreme jeopardy. DO speak to a real estate professional BEFORE you take any action with an investor or a so called “save your home” specialist.
Ok. Option # 1 Refinancing. This is not a viable option for the vast majority of distressed properties across the country. The reason it is not a viable option is that the majority of homeowners who find themselves facing a foreclosure are “upside down” or “underwater” on their mortgage. Meaning, they owe more on the mortgage than the home is worth.
It is impossible for a lender to refinance a home and extend capital on a loan if the collateral, the home, isn’t worth the amount of the loan. If a homeowner put a lot of money down when they purchased the home, or they purchased the home prior to the late 1990’s, and now are experiencing difficulty paying the mortgage, then a refinance may be an option. This does happen sometimes due to job loss, costly medical situations, and other unexpected scenarios. A refinance, if possible is a good option.
But again, for the vast majority of homeowners in a distressed situation in the Fredericksburg real estate market, this is not a viable option. In the next article we will be discussing selling and bringing money to closing. That will be a short and sweet article, before moving into the more detailed options.
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Facing Foreclosure? What are the viable options?
Author: Jeff Edmisten | March 1, 2010
Approximately 1 in 7 homeowners in America are in a “distressed property” situation. Meaning, they are in default or delinquent on their mortgage by 60 days or more. The other common denominator in most of these distressed homeowners is that they do not know what to do. They do not understand their options. This is a statistic that applies on a national level, but certainly sees it’s application here in the Fredericksburg real estate market.
I want to spend a couple of days discussing those options, in general terms, as there is only so much I can put into a blog post. But, we are available to discuss any issue in more detail, either telephonically or in-person.
Let’s start with understanding that there are 7 basic options for someone who is in a distressed property situation. Let’s look at what those options are:
- Refinance
- Sell and bring cash shortage to the closing table
- Lender Workout
- Short Sale
- Deed in Lieu of Foreclosure
- Foreclosure
- Do nothing and walk away
We will discuss each of these in turn in a little detail over the next week or so. I will take each issue one at a time, to try to shed some light on each scenario. So check back for updates over the next few days.
Remember, nothing printed here is intended to be legal advice, and we always recommend our clients consult with legal and tax professionals before making any decisions.
Topics: Fredericksburg Real Estate |
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Custom Built Brick Home w/ Water View - Coming Soon
Author: Jeff Edmisten | February 3, 2010
Custom Built Water View Home
Coming this week to the Fredericksburg real estate market is a beautiful brick home overlooking Lake Land’Or. Take advantage of our market’s low prices to buy this as your first home, or maybe you are looking for a vacation/weekend home for a very reasonable price. Either way, this home may be just the home for which you are seeking! Priced at just $115,000!
- Gorgeous Brick Waterview Home
- Perfect Starter Home
- Great Vacation Home
- Custom Built
- Huge Front Porch
- Gated Community
- VERY unique home with custom cabinets, hardwood floors, wainscoating throughout, a large lot and more.
Topics: Fredericksburg Real Estate |
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Take Advantage of Home Buyers’ Tax Credits
Author: Jeff Edmisten | January 31, 2010
Within the past week, I have had at least 3 inquiries as to whether someone would qualify for the extended tax credit. There are two Tax Credits we’ll discuss in this article; the First Time Homebuyer Credit, and The Homeownership and Business Assistance Act of 2009. The guidelines can be somewhat confusing, therefore, I’ll attempt to provide a little clarification in the following paragraphs.
First Time Homebuyer Credit:
If you have not owned a principal residence during the three years prior to the purchase date then there is a great chance you may qualify for the First Time Homebuyer Credit. The purchase date must have occurred after April 8, 2009 and before May 1, 2010 with a closing date prior to July 1, 2010. The credit is equal to 10% of the purchase price with a maximum of $8000. If you take advantage of the tax credit, you must reside in the home, as a primary residence, for three years or you will have to repay the tax credit.
A couple of rules that are attached to the tax credit are as follows: First, the property cannot be purchased from a relative. Second, married taxpayers must both qualify as first time homebuyers if they file their taxes jointly.
The Homeownership and Business Assistance Act of 2009:
The Homeownership and Business Assistance Act of 2009 extended the tax credit from November 30, 2009 to April 30, 2010. That means there must be a binding contract in place prior to April 30, 2010 and closing must occur before July 1, 2010. With this extension came a few more guidelines for those who purchased homes after November 6, 2009: First, you must be 18 years of age on the purchase date and cannot be claimed as a dependent. Second, if married, at least one of the spouses must be 18 or older. Third, the purchase price cannot exceed $800,000.
Current homeownersare not being left out of this tax credit. The Homeownership and Business Assistance Act modified the credit to include current homeowners who have lived in their same principal residence for a five consecutive year period. They are eligible for a credit of up to $6500 if the home is purchased before April 30, 2010. Homeowners looking to purchase a replacement primary residence must be in a binding contract after Nov 6, 2009 and before May 1, 2010 with a closing date on or before July 1, 2010.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
For homes purchased in 2009, tax credits must be claimed on their 2009 income tax return. For 2010 purchases, those can be claimed on either the 2009 or 2010 income tax returns. So, for all you readers who are contemplating a purchase in the Fredericksburg Real Estate market and surrounding areas, now is the time to buy.
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Upcoming Changes to FHA Lending - Should You Buy Now?
Author: Jeff Edmisten | January 22, 2010
I wanted to write this post to let our readers know the changes that are taking place very soonwithin the FHA lending program that will have an effect here in the Fredericksburg real estate market. Why is changes to FHA lending important? Because approximately 80% of current home purchases are FHA loans. Most people use FHA because they require a substantially smaller down payment than conventional loans and allow for more help from the seller. Until these changes take place that is.
For anyone who is looking to purchase a home within the next 6 months to a year, they might want to consider stepping up their time table. For any loan application/home purchase that is using the FHA is not in underwriting by April 5, 2010, the new FHA rules will apply. Our initial understanding of the changes are primarily this:
- The funding fee charged by FHA, which currently stands at 1.75% of the purchase price, will increase to somewhere between 2% and 2.25%. Most people roll the funding fee into their loan, which increases the principle of the loan. On a $200,000 home that means the funding fee increases from $3,500 to between $4,000 and $4,500.
- Secondly and possibly a critical issue for many home buyers is the change to the seller concessions. Seller concessions is the term used for money the seller allots to the purchase to pay their closing costs and other fees. Many people who use FHA need anywhere between 3% and 6% of the purchase price in seller concessions to make the loan/purchase doable. FHA currently allows up to 6% in seller concessions. For any transactions not in underwriting by April 5, 2010, the seller concessions will be reduced to a maximum of 3%. That is huge. Again on a $200,000 home, the seller concessions just went from $12,000 to $6,000. Many potential buyers won’t have the extra cash to pay for closing costs that exceed the 3%.
- The down payment requirement of 3.5% of the purchase price will remain the same, with some caveats for specific situations.
So, again, if you know of anyone who is wanting to buy a home sooner rather than later, please pass this information along to them. You or anyone you pass this on to may call or email me with questions. Or you may call the mortgage planner that we partner with Kim Thagholm at (540) 295-6674. We want everyone who is capable of taking advantage of the existing program to do so before it soon changes.
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Coming Soon - Great Property for Seniors
Author: Jeff Edmisten | January 22, 2010
Great Home for Senior Citizens
We have the honor of listing and marketing this delightful home located in The Greens at Lee’s Hill. This is a great home for Senior Citizens, as the Homeowners Association takes care of the lawn, leaves, roof and more, removing the burden of much of the exterior maintenance of home ownership. The additional amenities of the community afford many other recreational opportunities for home owners, and their families, including tennis, swimming pools, trails, playgrounds, and more. Golfers will enjoy the golf course accessed from within the Lee’s Hill community.
The home itself is a townhouse style home that features approximately 2400 SF of finished living space on two levels, with 3 bedrooms and 3 full baths. The custom designing resonates throughout the home, and is readily apparent in the dining room that includes an abundance of additional cabinetry and a beautiful ornamental ceiling. Steps away, the bright and cheery sun room provides a cozy atmosphere with walls of windows, four skylights and opens to a nice sized deck.
One bedroom and it’s own full bath is located on the first floor, and the additional bedrooms are located upstairs. A nice library (that could be used as an office, recreation room, etc) is situated at the top of the stairs and continues the open feel of the entire home. A luxurious master bath puts the finishing touches on a home that is close to shopping, transportation routes, and so much more.
This home was just listed for sale in the Fredericksburg real estate market with our team, and will be appearing on the MLS within the next 1 to 2 weeks, priced at around $235,000. If you have questions, feel free to email or call us at (540) 538-7222.
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1 in 7 Properties in America are Distressed
Author: Jeff Edmisten | January 15, 2010
Here is a relatively staggering statistic… 1 in 7 properties in America are distressed properties. Meaning they are delinquent on their payment, facing foreclosure or in foreclosure. Think about that for a minute. In a community that has 50 homes, AT LEAST 7 of those homes are distressed.
There are currently approximately 3.8 million homes currently in foreclosure across America. There another 5 to 7 million homes in what is known as the shadow inventory… homes in foreclosure, but not yet released for sale.
The ramifications of foreclosure are very serious, and present a punishing financial blow to the home owner who loses their home to foreclosure. The staggering concept for me is that many, many of these home owners DID NOT need to lose their home to foreclosure… they had options. The vast majority of them were qualified to short sale their home and be faced with a much better credit and financial situation than where they are now.
So, here is the thing. Market values and our communities here in the Fredericksburg real estate market will benefit greatly from preventing more homes from going into foreclosure. So… think about this question. Who do you know that is behind on their payments and don’t know what to do? You very likely know somebody, probably several somebodies, because you know at least 7 people, right? Remember 1 in 7 properties are distressed, in EVERY price range. So, help them, and help our communities by steering them in the right direction to explore their options.
Do you know of anyone who is behind on their payments and don’t know what to do? Who doesn’t understand all their options? We may be able to help them. Refer them to our short sale page here on the website, have them email us, or better yet, have them call us at (540) 538-7222 or (540) 455-8374. Preventing more foreclosures benefits everybody.
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