Real Estate Information

Reports of foreclosures by the millions have been in the news so much over the past few years that to some, it might seem like normal.

But as a real etate professional who is in the trenches with financially stressed homeowners every day, it never for a second feels to me like business-as-usual.

The prospect of losing ones home is right up there among the major sources of grief, and often, it goes hand in hand with the other tragic setbacks such as the loss of a job, a divorce, death of a loved one, mounting medical bills or skyrocketing mortgage payments.

Unfortunately, the first stage of grief is denial, and that's even more the case when the threat of foreclosure is looming. No one wants to talk about or admit financial troubles - even when millions of others have found themselves in a similar spot. It's completely understandable, but for homeowners who are behind on mortgage payments, decisive action is often the most critical step toward ensuring the best possible solution.

As a real estate professional who has sought out the Certified Distressed Property Expert (CDPE) designation, I help homeowners to deal with every aspect of the grief and uncertainty that accompanies a mortgage which is no longer manageable. In the process, I help them get on a path of financial solvency.

If you or someone you care about would like to change the course of a life that's facing a foreclosure, I get it and I can help.

Contact me today at 707-441-1765 or email dean@thekesslerteam.com.

With gratitude,

Dean Kessler

Visit my distressed homeowner website www.EurekaForeclosureHelp.com to download my just published free report on the latest loan modifications

Dean Kessler, The Kessler Team, was recently interviewed by CNN Money!!!

Are you a homeowner who has an adjustable rate mortgage, or a high interest rate mortgage, or a mortgage balance larger than the value of your home? Nationally, 1 in 4 homeowners is upside down in their home loan. California is even more troubling with 1 in 3 homeowners upside down in their home loan.

If your mortgage is owned by Freddie Mac or Fannie Mae, you need to know about their Home Affordable Refinance Program (HARP). Administered by Freddie Mac and Fannie Mae homeowners can refinance to a new loan and lock in at today’s lower fixed interest rates. And their may also be a principal reduction.

To qualify, you need to be a homeowner who is current on your loan payments, and your loan balance is 80% to 125% of your property’s current value. A majority of home owners who purchased in the past 5 years will meet this requirement.

This refinance program was ready to expire June 30, 2011 and has recently been extended one year thru June 30, 2012.

Now you won’t know Freddie or Fannie is your lender by who you’re sending mortgage payment to every month. The Wells Fargo’s, Bank of America’s, Chase’s, etc, brand name lenders may just be “servicing” the loan on behalf of Freddie or Fannie. To find out if you have a Freddie Mac loan, visit www.freddiemac.com. For a Fannie Mae loan visit www.fanniemae.com.

HARP is intended to pull borrowers “above water” and help them get out from under plummeting property values and/or increasing interest rates. Nationally 621,803 homeowners have taken advantage of this program. Yet this represents only 10% of annual home sales nationally so it’s clear many homeowners are not aware of this program. If you have questions, both Freddie and Fannie’s websites have excellent examples, one of which may fit your scenario. Additional questions should be directed to your favored Eureka area loan officer or mortgage broker who knows how to speak HARP.

3 Reasons the Term “Strategic Default” Is Misleading

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider “strategic default”—another term for walking away from your mortgage—if they were underwater (owed more on their home than what it was worth).

Now that more than one in four American homeowners is “underwater,” I feel that it’s important for the community to know the truth about strategic default.

The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That’s why it is vital to explain the 3 reasons why the term “strategic default” is misleading:

1. There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
2. The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.
3. A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.

If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.

If you have any questions about what steps you or someone you care about should take next, contact me today!

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Submitted to local press and television outlets:

While major lenders examine foreclosure and eviction practices, Dean Kessler offers local homeowners an understanding of the alternatives to foreclosure, including short sales.

Eureka, CA – 11/10/2010 – As Ally Financial, Bank of America and JPMorgan Chase review their foreclosure processes across the country, CDPE-designated agent, Dean Kessler of The Kessler Team, helps local homeowners understand alternatives to their distressed situations.

“There is a common misconception among homeowners that the so-called foreclosure freezes translate into a ‘get-out-of-my-mortgage-free’ card. This simply isn’t so,” Kessler said. “It is vital for homeowners facing foreclosure to understand that there are other, more beneficial options, including short sales.”

A short sale occurs when the lien holder accepts the sale price of a property that is less than the borrower’s mortgage balance. Short sales have become an increasingly utilized alternative to foreclosure, growing 126.5 percent in the past year alone, according to the Federal Housing Finance Agency. Lender Processing Services (LPS) also estimates that more than seven million mortgages are either delinquent or in the foreclosure process.

Starting in September, major lenders initially began freezing foreclosure procedures in the 23 states requiring a judicial review. Bank of America and Ally have since resumed foreclosures in these states, continuing to review their processes, and JPMorgan has yet to lift its temporary suspension.

“While some of these lenders have restarted their foreclosure process, homeowners remain generally uninformed of what this means to their individual situations,” Kessler said. “Homeowners facing financial hardships deserve to know the options available to them, and that lenders are willing to work toward alternatives to foreclosure.”

There has been much in the news in the past few weeks about mortgage modifications for homeowners who are having trouble making their house payments. Many are having difficulty qualifying for modifications, and so far the government’s Home Affordable Modification Program (HAMP) has had disappointing results.

Last month I was working with a Eureka homeowner in financial distress who had attempted to modify their loan thru HAMP. Three months later they where declined for a HAMP modification because a mathematical equation the lender used had determined it would be better for the lender to foreclose then to modify the loan. The lender then offered an “internal” modification, but only if the homeowners would pay an extra $80,000 on the loan if in the future they paid off the loan or sold the house. My clients declined and we successfully pursued a “short sale”. It was a very emotional decision, but financially it was there best option.

As a side note, the lender also found a reason to decline these homeowners for participation in the governments Home Affordable Foreclosure Alternative (HAFA). If we had been successful in a short sale under HAFA, the lender would have had to offer the borrowers $3,000 relocation assistance.

Not all lenders are as devious as this lender was, but this experience was an example of how some lenders tend to manipulate or just completely ignore rescue programs meant to help distressed homeowners and lenders. My counsel remains for distressed homeowners to be proactive with their lender and be realistic about their options.

The Washington Post recently reported that “troubled homeowners who receive housing counseling are 60% more likely to avoid foreclosure and have their mortgage payments lowered significantly than borrowers who navigate the process themselves.” I can help homeowners facilitate the process of loan modification and discuss other alternatives to foreclosure if a modification is not an option.

As a CDPE, I feel it’s my duty to help anyone I can during these hard times. If you would like to know more about mortgage modifications and whether or not you might qualify, please feel free to contact me.

Released to our local media:

Local Agent Provides Resource on Foreclosure Alternatives, Short Sales

For homeowners struggling with mortgage payments, website explains differences between foreclosure and short sales.

Eureka, CA – 15 October 2010 – Local CDPE-designated agent, Dean Kessler of The Kessler Team, has released an informational report comparing the consequences of a short sale and foreclosure.

The report can be found at www.EurekaForeclosureHelp.com and provides a thorough explanation of how a short sale may potentially improve a homeowner’s future financial stability.

“Considering how damaging foreclosure can be for the homeowner and the surrounding community, it is important that everyone knows all of the alternatives available,” Kessler said. “This report is the latest addition to my website, which gives distressed homeowners a way to inform themselves on their best options.”

Currently, one in seven mortgages is in some stage of delinquency. Once a mortgage payment has been missed, the lender has the ability to begin the foreclosure process. A short sale can potentially minimize the damage to one’s future loan eligibility, credit score, employment, security clearance and more.

“We often see homeowners enter the foreclosure process without any visible means of professional guidance,” Kessler said. “My hope is to inform the Eureka area community that there are legal, dignified alternatives to foreclosure.”

With More Than One in Seven Mortgages Not Being Paid, Local Agent Offers Free Resources to Struggling Homeowners 

In response to community needs, new website educates struggling homeowners on options to foreclosure. 

Eureka, CA –July 22, 2010 – Local real estate agent and Certified Distressed Property Expert^®, Dean Kessler of The Kessler Real Estate Team, responded to new mortgage delinquency numbers by creating a new information website for Humboldt County-area homeowners facing financial hardships. Www.eurekaforeclosurehelp.com contains vital facts about the options available to financially distressed homeowners. 

“With more than 14 percent of mortgages in default status, there are a significant number of homeowners facing foreclosure,” Kessler said. “When faced with the possibility of foreclosure, I’ve seen too many homeowners make poor choices, even walking away from their homes without calling their lender or a real estate agent. By offering free information on more beneficial options, I know I can help our community’s homeowners.”

The Mortgage Bankers Association’s First-Quarter 2010 National Delinquency Survey announced that more than 14 percent of mortgage loans are not current on payments. More specifically, 10 percent of prime loans and more than 40 percent of subprime loans are delinquent. 

“Whatever their best option is, the most important thing distressed homeowners can do is educate themselves before making a decision,” Kessler said. 

www.eurekaforeclosurehelp.com acts as a central location for information on the issues and options for struggling homeowners, putting all the necessary information in one, easy-to-use location. The information and materials located on the site are regularly updated to reflect market changes, trends, new lender requirements and industry updates.

The Tour de France, the world's most prestigious and challenging bicycle race, rolled out of Rotterdam on July 3rd heading south into France. This year the 198 riders are circumnavigating France in a clock-wise direction. And for me, each day evolves around the live video feeds coming from France. Television coverage generally starts at 4:30 am, and I'm there in front of the TV in my PJ's with my french maps spread out in front of me, eating a bowl of oatmeal watching these premier athletes suffer. And I'll try to watch the day's race again when it's rerun in the afternoon or evening. For 21 days these guys cycle 4-5 hours averaging 120 miles per day. Drenching rains, searing heat, relentless wind in your face flats, leg-breaking mountains, the Tour goes on.

I love when the TV cameras focus in on the cyclists faces as they dance on their bike pedals flying up steep mountain roads cresting Alpine mountain passes. I focus in on their facial intensity as they command their body and spirit thru excruciating throes of fatigue and pain. It reminds me of the power I have within me of mental focus. Do I know my goals and have I mapped a road of achievement. And will these roads sometimes be steep with an oaccasional Alpine pass to conquer. If there isn't an occasional Alpine pass, maybe the goals aren't lofty enough!  

Just a couple more days of the Tour left to watch. And on July 26th, I get to sleep in late.