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Distressed Property Inventory Hits New High

by Dean Kessler

Eureka Area Real Estate Distressed Property Inventory Hits New High

 

The number of distressed properties facing foreclosure in the Eureka area continues to increase. Over the past 4 months, 164 homeowners received a Notice of Default, the first step in the pre-foreclosure process. Unfortunately, an additional 64 homeowners received a Notice of Sale, the final step before their property is sold at auction on the courthouse steps.  Finally, an additional 85 homes went to auction and where foreclosed on.  (Statistics retrieved from RealtyTrac.com)

 

Facing a foreclosure is a scary thing, but there are things you should do – and shouldn’t do – to avoid making the situation worse.

DO answer the phone and read your mail. Avoiding your lender won’t make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.

DO realistically assess you situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.

DO consider your options. If you are not in position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption.

DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.

DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.

DON’T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.

DON’T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help keep your home; however, you only have a limited amount of time.

DON’T convince yourself you can afford a home if you can’t. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.

DON’T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee.  

Reprinted from www.freddiemac.com

Eureka Home Selling Trends

by Dean Kessler

EUREKA AREA HOME SELLING TRENDS

 

Eureka real estate expert, Dean Kessler of The Kessler Real Estate Team is reporting home sales in the greater Eureka area remains consistent.

 

Kessler notes “The trend of 1st time home buyers driving our real estate market continues.  Each month since the beginning of the new year the 1st time home buyer group have been the largest group of home buyers actively pursuing and buying homes in our market. Demand for entry level priced homes remains high. The 1st time homebuyers are taking advantage of record low interest rates, tax incentives, and attractive home prices to invest in their financial future.”

 

Kessler went onto say “The average sales price of a single family home in Eureka decreased 6.6% to $241,922 from February’s average of $258,909.  The $8,000 tax rebate being offered by the government just about covers the complete down payment needed for an FHA loan. And the FHA loan is the most popular loan product used by 1st time homebuyers. And the news keeps getting better. Factor in an additional $10,000 tax rebate being offered for purchasing a newly constructed home and one can see how1st time home buyer’s are realizing a smart home purchase now, and a sizeable income tax return in 2009/2010.”

 

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

 

 

March 2009

% Change

March 2008

Active Listings

232

-18.9

286

Sales

25

+0

25

Short

Sales

1

+100

0

Bank Owned Sales

3

+150

2

Average Sales Price

$241,922

-24.9

$322,058

Time Supply of Inventory (months)

9.3

-18.4

11.4

 

A quick look at the least and most expensive homes sold in the Eureka area include a $155,000 2bed/1bath home “Bank-owned” sale in Myrtletown and a $441,000 3bed/2bath “New Construction” sale in Cutten.

 

The top 3 categories of Home Buyers last month include:

 

· 44% were 1st time homebuyers

· 24% were buyers relocating to the area

· 8% were investors

 

 

Dean Kessler is the Broker/Owner of RMK Realty, Inc and The Kessler Real Estate Team. He holds the Realtor, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

 

All statistics courtesy HMLS. 

 

First Time Home Buyer Seminar

by Dean Kessler

Join us for a Webinar on May 7th

Now is a great time to buy a home with inventories high and interest rates low. Our First Time Home Buyer Seminars provide a comprehensive overview of the home buying process.

Before you start actually looking for the home you want to buy, you should get educated about the process, learn how to "hire" a Buyer Agent, get a full pre-approval for a mortgage...and then start actually viewing potential houses to buy!

This online seminar is open to anyone, regardless of where you live or work, and whether or not you are a First Time Home Buyer. For those of you who are at the beginning stages of the process, the class gives you an opportunity to determine if you are ready to proceed with home ownership and to identify your next steps to prepare.

 
Title:   First Time Home Buyer Online Seminar
 
Date:   Thursday, May 7, 2009
 
Time:   7:00 PM - 8:00 PM PDT
 
After registering you will receive a confirmation email containing information about joining the Webinar.
 
System Requirements
PC-based attendees
Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista
 
Macintosh®-based attendees
Required: Mac OS® X 10.4 (Tiger®) or newer
 
Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/601728075

Online Seminar for Distressed Sellers

by Dean Kessler

The Kessler Real Estate Team in Eureka Holding Advanced Foreclosure Avoidance and Short Sale Online Seminar on April 30, 2009

 

Dean Kessler, a Realtor® with RMK Realty, Inc in Eureka is holding a free Advanced Foreclosure Avoidance and Short Sale Online Seminar on Thursday, April 30, 2009, 6:55PM.  This unique, hour long presentation is packed with the latest up to date information for financially distressed home owners. Sit back and listen to the presentation in front of your computer. Time is given at the end to submit your questions and hear the answers live.

 

According to the Mortgage Bankers Association, nearly 10 percent of Americans are in foreclosure or in default on their mortgage.

 

Seven out of 10 homeowners who go into foreclosure end up there without having received any professional help. A licensed Realtor like Kessler who has earned the prestigious Certified Distressed Property Expert (CDPE) designation is uniquely qualified to help homeowners in financial trouble.

 

This free seminar will address:

·         What is a short sale?

·         Why it is better than a foreclosure

·         Why would a lender accept a short sale?

·         The criteria for a short sale

·         Alternatives to foreclosure other than a short sale

 

Experienced foreclosure avoidance and short sale Realtors like Kessler are:

•         Familiar with local market conditions

•         Well-versed in the short sale process

•         Knowledgeable about how to drive the short sale process

•         Adept at talking to lenders

•         Great communicators

•         Problem solvers

•         Decision-makers

•         Educators

 

Registration is required. To register for the seminar, please call 441-1765 or email Katie@thekesslerteam.com by April 28, 2009.

Eureka Area Distressed Property Inventory Hits New High

by Dean Kessler

 

The number of distressed properties facing foreclosure in the Eureka area continues to increase. Over the past 4 months, 164 homeowners received a Notice of Default, the first step in the pre-foreclosure process. Unfortunately, an additional 64 homeowners received a Notice of Sale, the final step before their property is sold at auction on the courthouse steps.  Finally, an additional 85 homes went to auction and where foreclosed on.  (Statistics retrieved from RealtyTrac.com)

 

Facing a foreclosure is a scary thing, but there are things you should do – and shouldn’t do – to avoid making the situation worse.

DO answer the phone and read your mail. Avoiding your lender won’t make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.

DO realistically assess you situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.

DO consider your options. If you are not in position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption.

DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.

DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.

DON’T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.

DON’T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help keep your home; however, you only have a limited amount of time.

DON’T convince yourself you can afford a home if you can’t. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.

DON’T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee.  

Reprinted from www.freddiemac.com

Q & A Forum

What will a Short Sale cost me?

Nothing! In a properly negotiated Short Sale, your lender agrees to pay any of your closing costs including the Realtor’s commission. In some situations, your lender may also agree to pay some of the buyer’s closing costs.  Very few real estate agents have obtained the training and skill for these unique negotiations. How does a distressed homeowner know whether a real estate agent is truly qualified to facilitate a short sale? Look for an agent with a CDPE designation.

How long does a Short Sale take?

Depends. Once a purchase offer has been submitted some lenders are responding quickly. In a recent negotiation the lender tendered acceptance within 4 days. Another lender had taken 90 days. All lenders are overwhelmed with the amount of Short Sale offers they’re processing. Each is unique. After we receive lender approval, escrow is opened and typically closes within 30 days.

I have a first and second loan and owe much more than what my house is worth. Can I avoid a foreclosure and participate in a Short Sale?

Yes! Many of the Short Sales we’ve negotiated included multiple lenders with loan amounts much larger than the property’s current value. Lenders understand that a property will only sell for today’s market value. As long as an offer is reasonable, lenders would rather enter into a short sale than take the property back at foreclosure and attempt their own REO sale in the same market.

Dean Kessler is The Broker/Owner of RMK Realty, Inc and The Kessler Real Estate Team in Eureka. He has earned the prestigious Certified Distressed Property Expert (CDPE) designation at the Distressed Property Institute in Florida and is uniquely qualified to help homeowners in financial distress.

Displaying blog entries 1-5 of 5

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