I blogged on my Wall!

http://www.homepath.com/financing/index.html

Here is the best link to answer these questions that I am asked being a Fannie Mae listing agent. Very informative link. If you are a Homepath vendor shoot me an email and I will link you out as a referral!! Thanks!!

Michigan Foreclosure Laws

Typical Michigan Foreclosure Time Frame – Typical time for a Michigan foreclosure is approximately 60 days.

Judicial Foreclosure – Yes

Non-Judicial Foreclosure – Yes

Types of Security Instruments – Mortgage and Deed of Trust

Right of Redemption Period – For loans that have a balance of 2/3rds or more a period of 6 months applies; however, if home was abandoned only 30 days applies.  All other mortgages have a redemption period of 365 days or 12 months.

Michigan foreclosure laws allow for both judicial and non-judicial foreclosures to be possible.  In the case of a judicial foreclosure, the lender is required to sue the borrower.  With the court’s permission the lender is able to obtain a decree for the amount of the default.  The courts then extend a period of time to the borrower in order for the default to be corrected; however, in the event that the default is not corrected the courts will issue a Notice of Sale.

For a non-judicial Michigan foreclosure a Power of Sale stipulation or clause is required to be included in either the mortgage contract or in the deed of trust.  This clause gives the lender pre-authorization to foreclose on the home in the event of a default.  It is important to note that if the clause specified the time, place, or even the terms of the sale that they must be followed exactly. 

According o Michigan foreclosure law, in the event that the terms are not set forth in the clause, the following process is used.  The first step is the Notice of Sale is required to be published a minimum of once a week for a minimum of four consecutive weeks.  The notice is also required to be posted at the property in a publicly viewable location within 15 days following the first publication of the notice.

Michigan foreclosure laws also states that the sale is to be a public auction that is handled either by the county sheriff or by the trustee that the lender assigns.  The sale itself must be during the hours of 9a.m. and 4p.m. on the date specified in the notice.  The high bidder of the auction will receive a deed for the property that gives them full rights once the redemption period expires. 

If it should become necessary to postpone the sale, it is required that a Notice of Postponement be posted at the time and date the original sale was scheduled to take place.  This procedure is only able to postpone the sale for 7 days, any longer postponement requires that the notice of sale be published again for a minimum of four consecutive weeks.

Michigan Foreclosure Laws

Expected Timeline: About two months.
Security Instrument: Mortgage or Deed of Trust
Type of Process: Judicial or Nonjudicial
Protections for Servicemembers: Mich. COmp. Laws § 32.517
Time to Respond: Homeowners do not need to receive notice via mail. Notice required to be published for four consecutive weeks before sheriff sale. Notice must also be published on property within 15 days of first publication.
Reinstatement Period: Reinstatement is allowed any time before the sale in judicial foreclosure. There is no reinstatement in nonjudicial foreclosure.
Protections for High-Cost Mortgages: None.
Redemption Period: For owner-occupied properties owing more than two-thirds of principal, redemption is six months after sheriff sale. For properties owing less than two-thirds, redemption is one year. For abandoned properties that owe at least two-thirds, redemption period is between one and three months.
Eviction Process: In judicial foreclosure, the judge may order eviction once the redemption period has ended. In nonjudicial foreclosure, the new owner will go to court to seek order for eviction, which may take from two weeks to a month.
Deficiency Judgments: Allowed in either judicial or nonjudicial foreclsure.
Limits on Deficiency Judgments: If the mortgagee bank purchases the property at auction, homeowners may use as a defense that the sale price was for less than the fair market value of the property.
Cash Exempted in Bankruptcy: $11,000 for single person, $22,000 for married couple.
State Statutes: Mich. Comp. Laws § 600.3101 to 600.3180, 600.3201 to 600.3280

Both the Non-Judicial and Judicial Foreclosure processes may be used in Michigan when the borrower defaults on the loan. When the Judicial Foreclosure process is used, the lender must sue the borrower in court to obtain a decree of the amount in default. The court gives the borrower a set amount of time to cure the default, and if the borrower fails to do so, the court issues a notice of sale.

If the Non-Judicial Foreclosure process is used, the original loan documents must contain a power of sale clause, authorizing the lender to sell the property in the event the borrower defaults. If the clause specifies the time, place, and terms of the sale, then those processes must be followed.

The sale process in Michigan requires the notice of sale to be published for four (4) consecutive weeks in a newspaper that is generally circulated in the county in which the property is located. Also, the notice must be posted on the property within fifteen (15) days of the first newspaper publication.

The sheriff of the county or the lender's trustee conducts the auction on the date specified in the notice between the hours of 9:00 AM and 4:00 PM . The deed the high bidder receives at the auction becomes operative once the applicable redemption period has expired.

Michigan allows the sale to be postponed be posting a notice of the postponement at the time and place of the original sale date. If the postponement is for longer than one week, the notice of sale must again be published for four (4) consecutive weeks.

The borrower has the right to redeem the property. The length of the redemption period depends on the circumstances of the sale. If the property has been abandoned, the redemption period is thirty (30) days. If the remaining balance of the loan is more than two-thirds of the original amount of the loan, there is a six (6) month redemption period. In all other cases, the redemption period is twelve (12) months.

posted 7/13/2011

Stopping Foreclosure: Are There Any Options?

There are options for people who are facing the possibility of foreclosure on their homes, but the options are few and, in many cases, undesirable. But depending on the circumstances, the undesirable options may be the only options there are.

It doesn't matter what the reasons are for not paying your mortgage, or the inability to pay it, a foreclosure on your credit is damaging and long lasting. Once your home goes into foreclosure, you have to make decisions quickly as to how you are going to handle it. Although three to six months may seem like a long time, it really isn't. Once a bank starts the foreclosure process, the days roll by very quickly so there is little or no room for indecisiveness.

If you are having in home financial problems, and the income is just not there at this time, will it get better in the near future? If so, what can you do to bring your property out of foreclosure? If you are going through a temporary financial crisis and you know you can put your hands on enough money to catch up on the back payments, you need to do it as soon as possible.

If you can't see your way out of this crisis, is it wise to try to delay the foreclosure? Many people file bankruptcy actions to stall the foreclosure proceedings. Will filling for bankruptcy protection work for you? Filing for bankruptcy may or may not work for you depending on what chapter you file under. The most common bankruptcy filings are Chapter 7 and Chapter 13. (bankruptcy) If you can pay court ordered arrearage payments along with regular contractual monthly payments. You have to understand that a bankruptcy does not necessarily relieve you of contractual responsibilities. How much you ultimately pay in monthly arrearage installments is decided by the courts. Many people who file for bankruptcy protection still end up losing their homes through foreclosure. Not only do they have a foreclosure on their credit history, they have a bankruptcy on it also.

Can you borrow the money to pull your property out of foreclosure? You can check with a family member or a close friend to see if they have some money put away that they can loan you until you get back on your feet. This is a serious request so you need to think about it hard before taking the money. Remember, it is a loan and you are expected to pay it back if they agree to loan it to you. When a friend or relative trusts you enough to loan you that type of money, you should be honored and make every effort to repay the loan. Set a time line to pay it back and try not to disappoint them. If you can't make a payment when a payment is due, call them and explain why you can't. Never let your friend or relative have to call you first about the money you owe them.

If you can't borrow come up with the money to catch up the payments, you can call your lender and talk to them. Be honest. Tell them why you got behind and ask to negotiate a reasonable, realistic plan to continue to make your regular monthly payments while paying back all arrearages. It is in the lenders best interest not to foreclose on you so they will listen and try to help you. If the lender agrees, you will be expected to live up to your end of the bargain. If you don't, they will not be willing to bargain with you again and they will foreclose.

Depending on the equity in your home, you may be able to get another loan by refinancing. Since your credit has been spoiled because of the late payments, you may have to get what is considered a hard money loan or a C or D paper loan. This is a loan with higher interest rates and less favorable terms. But it will give to the opportunity to keep your property and enough time to work towards rebuilding your credit score.

If you are honest with yourself about your financial situation, and you know you won't be able to continue making your loan payments, your best option may be to sell your home. If you sell the home before it is foreclosed on, the foreclosure will not go on your credit and lower your FICO score, although the late payments will. But late payments won't hurt your FICO score nearly as much as a foreclosure and/or a bankruptcy. By selling the property, even if you have to lower the sales price and walk away with nothing, you can always buy another home later when your finances are back in order.

posted 7/13/2011

I get this call frequently, someone has rode by a property or the home may be in their very neighborhood and it has been vacant for some time. Usually the status is unknown and appears to be in limbo. Oftentimes a call is from someone who wants the home for purchase without going through heartache and seeks to bypass the real estate marketing and bidding process and go directly to the bank. Well wishful thinking in most instances.  I came across an investors blog post and was impressed on the other side of the fence what you are looking at here, succintly and clearly. So if you have been looking at this one home and can't figure out what limbo state the home is in, this article is a good map to follow that spells it out.

First, I'll give my standard advice to folks in your situation. Buying a property involved in a foreclosure is an exercise in frustration and disappointment. Whether its a short sale, at the auction or bank owned (REO), the odds of you being able to buy any particular property are very slim. When I'm trying to buy, I typically consider over 100 houses (i.e., look at listings and do the basic research), actually look inside 50-60, make 15-20 offers and buy one house. I've learned to NEVER get tied to any specific house, since the chances of buying that house are very slim.

If you REALLY want this house, find out how much is owed to the bank and pay enough so the bank can be paid in full. If you do that, you can buy it right now. That may be way too much to pay, and a lender may be unwilling to use that as the value, but that's a sure way to actually get that house.

You could try to do a short sale. That would meaning getting cooperation from the current owner. That may be difficult if the heirs are not interested in working something out. But if the lawyer will cooperate, you might be able to do that.

The next opportunity would be at the auction. The lender may make this happen anyway, if they think they can get more at the auction. Not sure about auctions in different states (I think some others here are), but in CO, its cash on the barrelhead at the auction. Its a good way to buy if you have cash and understand what you're getting, but if you intend to finance the house, this won't work.

If the bank prices it near market value, they may well get a buyer at the auction. If that happens, you might be able to buy it from the buyer. Most auction buyers are investors, so there's a chance they would be willing to sell. You would want to be at the auction, then approach the buyer and see if they will sell.

If the bank takes it back, you will likely have to wait for the bank to get it listed on the MLS. This process typically takes many months. You might be able to contact the bank and at least find out who they will list it with, then contact that person and let them know your are interested. If its a smaller bank, you might actually be able to buy it directly. Most likely, though, its with one of the big banks (I say that simply because the big guys hold most of the mortgages that exist.) They have a process and its hard to short cut the process.

Once its listed on the MLS, you would make your offer and buy it just like any other property. Realize, though, that sales of REOs are pretty brisk in many areas. If they bring it on the market at a low price there may be a lot of offers. This is quite common in our area.

So, I'll again emphasize that if you want to avoid heartbreak, forget about this specific house. Find 10 or 20 more that you like and go after all of them. That should make it possible to buy one of them. If you're really determined to buy THIS specific house, find out what it will take and pay the price.

This was posted by Jon Holdman and couldn't have said it better myself!!

There seems to be quite a bit of confusion as to what FHA will allow in closing costs, no closing costs are allowed for conventional all pertaining to short sales.  Here is the directive straight from HUD.

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14626.pdf

Straight from my real estate board NOCBOR.  Worthwhile news FYI or better known as here we go again,,soon you won't be able to hold a reservation without holding a strong enough credit score!

Most Consumers Not Aware of Recent Credit Scoring Changes, Are You?-The Consumer Federation of America (CFA) and VantageScore Solutions have just released survey findings revealing that most consumers are not aware of recent changes in the credit score marketplace. On 22 questions administered by Opinion Research Corp. to over 1,000 representative Americans late last month, on average consumers answered 60% correctly, but most did not know who makes credit scores available, what a strong score is and what the financial cost of a poor score is. You can take the quiz at www.creditscorequiz.org. Government rules going into effect this July will require greater disclosure of credit scores. Widespread use of this quiz will increase consumer knowledge about a dynamic credit score marketplace.

FYI..Know Your Options

Fannie Mae has released a video Know Your Options to help distressed homeowners avoid foreclosure.  The video is interactive and allows the homeowner to be placed in different situations or scenarios, to give answers to various questions! If you or you know of someone who can use this information, please share!

Avoid foreclosure and get the help you need : Fannie Mae

Posted on22 December 2010. Tags: creative real estate daily, distressed senior, elderly homeowner, financial means, foreclosure, foreclosures, hud, karen walls, lender, loan modification, losing home, mortgage, mortgage loan, predatory lender, real estate, real estate agent, real estate alzheimer, real estate dementia, real estate elderly, real estate senior population, senior aide attorney, senior citizens, senior homeowner, senior population, seniors financials, short sale agent, short sale daily news, short sale elderly, short sale negotiator, short sales

Not much is written about short sales and how it affects our senior population. First, we have to be mindful that people are living longer. This is a good thing! If we have loved ones who are healthy seniors with the means to live a comfortable life and own/financially maintain a home, this is great. However, for seniors with health issues and/or who lack the financial means or who are upside down on their mortgage, a bigger issue exists.

I speak of this both as an agent and as someone who has traveled this route with a loved one. Alzheimer’s and dementia have now become the seventh leading cause of death, with a reported 5.3 million people afflicted according to the Alzheimer’s Association. With these statistics, you may happen upon a distressed senior (healthy or not), who is underwater and perhaps either refinanced to keep afloat or to help a family member. Or this senior could have fallen prey to a predatory lender. Regardless of how they got there, this sector of our society is often ashamed to admit they are in serious debt and may fall victim to foreclosure just for keeping silent.

There are also many senior citizens who do not have loved ones to check on them. These seniors may call upon us as agents for help or a way out without losing their home. Many have pride and do not want to end up in foreclosure. They have missed payments, are not in a position for a loan modification, but would still be a good candidate for a short sale. Seniors are now calling for short sales without having many options of what to do after the short sale. Where will they live? What can they afford? Can they rent?

One insensitive negotiator told me during the short sale for my elderly loved one, “they wouldn’t need credit anytime soon at their age, so what’s the difference, their home was better off just going into foreclosure.” After I picked my jaw up off the floor for such an insensitive remark, it dawned on me. How many lenders actually feel this way and are not as eager to work with the elderly? Is it because, to pursue them with a deficiency or promissory note, looks bleak? One might also ask, how does this affect us as agents?

There are a myriad of outreach services for the elderly so they have options when being displaced after the short sale. Call your local county legal senior aid department, Alzheimer’s society or HUD and find out all you can to assist the senior and their family with an attorney. Primarily, the majority of these agencies can put you in contact with a senior aide attorney and additional legal resources. For me, they were a life-saving resource for my loved one.

On a side note, I see a disturbing trend on automated forms lenders provide in short sale packages. The words retired or pension disability on the drop down or in the forms are often non-existent. I have made complaints about this to lenders. It leads me to believe many don’t realize the senior population is at risk and, therefore, their situations are not taken into consideration. If you see this on forms as well, complain!

Seniors are at risk. It is a false assumption that most seniors own their homes free and clear. We, as agents, must give this sector of our society the respect they deserve and go the extra steps in assisting them with dignity and help in such a tenuous time.

Karen Walls, GRI, SFR, CSSG, a veteran Realtor with more than 16 years experience, truly enjoys sharing information and enlightening her clients and the public in this evolving horizon of real estate! From short sales to REOs and foreclosures or just traditional real estate 101, Karen is knowledgeable about her craft and is a published real estate journalist. She has written many articles and performed numerous interviews as a local real estate expert in the Bloomfield Hills, Michigan area. Karen also writes for Examiner.com and MoveinMichigan.com. Learn more about Karen at www.wallsudeserve.com.

http://shortsaledailynews.com/banks-and-lockboxes-on-your-short-sale-listing/

I must admit I learn something new with each short sale I work on. Last week, I received a call
from a firm leaving a message that they would need to winterize my client’s home, which is a short sale. The lender was aware my clients had moved out of state. I knew this was going to be a challenging issue, if the pipes go bust so does any possible deal. In addition, the clients had no recourse financially to keep the utilities on.

I was waiting for a call back from the firm to gain entry to winterize. In the interim, I get a call
from an agent asking which lockbox were they to use at this listing. Now this catches me totally off guard,
as I know no one lives in the home, there is not a sheriff sale due, and redemption period is not up.
Could another agent have possibly listed this home with my clients and I was in the dark? Well
after all this speculation, I told the agent to try both and see which one worked with my code. The
agent gained entry through door #2, and was understandably irritated with running around the exterior of the home with clients in tow.

I called the homeowner who knew nothing of a second lockbox. The next call was to the bank.
It had happened on one other occasion where a bank erroneously placed a lockbox, citing
the home as abandoned when it was not. That time, the bank immediately pulled their lockbox after my call.

This time, my call to the bank had a completely different result. If the home is abandoned after nonpayment with this particular bank, it can exercise its right to re-key and gain entry to protect their asset. Talk about CYA! However, it makes perfectly good sense for the bank. I explained to the bank they re-keyed a second door, but what if only one lock was available, how was this to be handled? The lender skirted this without a clear answer.

My assertion was why not just call the Realtor and we will happily accommodate their entry as it protects
the home we are selling and our client who has an interest in obtaining a short sale. To say the least, I am not quite sure how this plays out. At what point would a home be considered abandoned handled in this
fashion? I can see possible problems with this as the bank who declared another of my client’s homes
abandoned and it was not, this could be sketchy during this tenuous selling period. In that instance, they immediately corrected the mistake, but this re-keying a door is worrisome. They do not issue out their lockbox code to anyone outside of their preservation team. On the flip side, other banks do not preserve nor winterize properties, and are aware that the home is vacant. Just a real catch 22.

My first time experience with this happening in any of my short sales, but something we as agents
should be prepared for, as I know all sellers do not read each and every clause on their note. Just as I
was caught off guard, so were my clients. They do not recall the clause at all. Nonetheless, if you get that
call from an agent asking which lockbox to use or telling you the code does not work at all, well just add this one to the list of short sale “probable causes.” Happy selling!

Karen Walls, GRI, SFR, CSSG, a veteran Realtor with more than 16 years experience, truly enjoys sharing information and enlightening her clients and the public in this evolving horizon of real estate! From short sales to REOs and foreclosures or just traditional real estate 101, Karen is knowledgeable about her craft and is a published real estate journalist. She has written many articles and performed numerous interviews as a local real estate expert in the Bloomfield Hills, Michigan area. Karen also writes for Examiner.com and MoveinMichigan.com. Learn more about Karen at www.wallsudeserve.com.

This article now appears on moveinmichigan.com

Rentals now in this climate of foreclosures have escalated. Unfortunately, there are scam artists who are taking advantage of those seeking to rent and these scammers are marketing some of these homes at unbelievable low prices! I was helping a fellow REALTOR place an ad to sell his listing on Craigslist. After entering his listing, we noticed there was a second listing for his identical property. At first, we thought perhaps the Seller had placed a “for sale by owner” ad and was not sharing that information with the REALTOR. However, upon confirming this with a frightened and angry seller, we discovered it to be fraudulent and law enforcement was called. Someone designed an ad with his or her own phone number. We called the number and it was now disconnected, placed under a phony real estate company name. The kicker, this home was listed for $400,000 and the offer to rent was $800.00 a month. Now the majority of us would say that if it looks too good to be true it probably is! Some of us could clearly see red flags everywhere. Without victims, scammers could not thrive so we have to be mindful.

What can you do to protect yourself against being a victim? Well, again if it looks implausible, research. I would research either way before I plunked down dollars. I would want to know who owns the home, and there is a plethora of websites, which provide free information in this regard. You have the right to ask the owner to provide identification
before you hand over money and sign a lease. It is a good idea to hire a REALTOR. They can research a home and ask the necessary questions and speak for you in putting together a lease to weed out the scammers. Check to see if the Real Estate Company and agent exist before you put up money. Furthermore, reference the listing on a MLS system or call a real estate company to see if the same home is listed with another company or if on the MLS with any company. In the case of assisting my REALTOR friend, we found that neither the agent nor the company existed, and we are sure the number was operable for a day or so, just long enough to pull off the scam and get easy money. It is never wise to wire money to an account, or deal with someone out of the country. Once you wire, there is no recourse, you just sent your cash. If you are unable to see a home for any reason, do not put up money. It never hurts to ask the neighbors if they know the owner, have they noticed the home being for rent for a day or so. Simply by asking a few questions, you may run into a wonderful nosey neighbor who is willing to share additional information on the owner and their whereabouts. Ask that the property owner provide a letter that says they are in good standing with their mortgage company, which serves two (2) purposes; it shows the home is not in foreclosure status, and payments are up to date. Secondly, the only person able to obtain this information is the owner with their account and social security number. The owner or Selling agent should not put up any objections in providing this for your reassurance, and I have not yet had a problem obtaining ID for my clientele. Make sure this letter is up to date and current. Two to three months back dated is not acceptable. It only takes three months to become behind in payments, for an account to become delinquent, and for the home to go into foreclosure status. So pay attention to the date. Optimally, you want a letter dated before you sign a lease and place down any monies. If you are using a rental agency, do some checking. If you feel pressured and everything must happen extremely fast, be cautious! Just because someone has keys or can gain entry to a lockbox does not mean they are agents. Scammers can easily have locks changed or setup with a lockbox for the purpose of defrauding you.

Staging and curb appeal in this case takes on a completely new meaning, for the scam artist and the trappings could cost you! Beware, be cautious and ask many questions, do your homework to avoid being a victim. It is just as easy with your own “due diligence” not to become one! Good Luck!

Karen Walls GRI SFR CSSG is a veteran realtor who truly enjoys sharing information and enlightening her clients and the public in this evolving horizon of real estate! From short sales to REO’S and foreclosures or just “traditional real estate 101” she is knowledgeable in her craft. Karen is a published real estate journalist. She has written many articles & sought out for interviews in different venues as a local expert in Michigan. Visit www.wallsudeserve.com today!

http://www.wallsudeserve.com

Copyright 2010. All rights reserved.

by Karen Walls  October 15. 2010

I was just asked this question by a client, and this question pops up quite often, so often I thought I'd address it immediately, as a very legitimate concern.

Do I have to keep paying my homeowner insurance in my state of (any three of this headline)? What happens if I don't?

It is an important question as you have much to lose especially if you are residing in your home and the inevitable happens, say the home catches fire, etc., Even if you don't reside in your home there still lie consequences, being the homeowner you are legally responsible. Consider you and your loved ones and weigh the outcome of not being insured, if you are to take that risk and it could be afforded by you to avoid future hardships. If not sure you are under the insurance umbrella pick up the phone today and ask your insurance company, especially if your insurance is taken out of your house note, if it is current. Reason being,  if your insurance is paid along with your taxes , your lender holds insurance money in escrow.  Just like property taxes, it's by law the bank  holds a reserve amount equal to two months of taxes and insurance for adjustments or increases. It would be prudent to find out if you are current or not before something unforeseen happens, to protect you and your loved ones against loss and theft.

Don't forget also, while the home is being shown whether you reside there or not, if someone gets injured on your property while you are still in possession of it, you are still legally responsible. So, the legal question, can the bank or the injured "trip and fallen" in or around your property come after you for damages? Well do you keep salt on your walkway in icy conditions? I would say yes and yes!

The smart thing to do if you are unable to make mortgage payments, see if you can work out arrangements to pay directly to the insurance company. Now one caveat I find important, to the seller who is doing a short sale, determine if your bank or insurance company has an ”enforced insurance" policy on your home. Unfortunately, a past client and I found this out the hard way years back, before they were called "short sales". The seller was losing their home. I found wonderful buyers. Everything was going great and after the closing, WHAM, a sheriff sale sticker was placed on the buyer's front door two weeks later and the home was going up for auction for an unpaid lien in a matter of days as was originally planned. I just knew it was a mishap, slight oversight of some sort.

Well, of course the Buyers were frantically upset to say the least. I called the title company, etc. trying to sort this out, we were going in circles not knowing including the bank, why this lien was placed by their own bank when they approved their own sale. Come to find out, one branch did not communicate with the other, and it was their oversight nevertheless, but wanted their lien to stand, what crock of crap stew that turned out to be for all involved. Well, to make a long story (which at the time seemed like such a L O N G time when a horror story like this happens) shorter. When the one bank branch failed to report this insurance lien unpaid this "imposed or forced, if you will" homeowner insurance. It was a large monthly amount that somehow the seller missed or neglected the notice, memo or mail indicating this was to happen.

Please folks during hardship times, I stress this as much as you hate to, open ALL mail. It always proves imperative for your well being in the long run. Due to hardships, the seller fell behind and had not made any insurance payments. The bank insured their amount three times higher than not only average, but also what the seller paid monthly. Had it not been for a large water escrow being held that was just scheduled to be given to the seller (bank) this would have been, to say the least, a gargantuan mess. Well, sure I could say in hindsight in the rearview mirror that the buyers would have paid this lien until sorted out to keep their new home perhaps, and passed on their leaking roof, and all the other problems the home imposed but purchased at a hardship price but what if this option didn't exist? Not the chance you may want to take! So check it out, for goodness sake, the lender, insurance company, none of these folks will bite off your head to obtain information literally.  Having said that, call your servicers to see what insurance or lack of insurance policy is implemented during this time. Keep in mind, if you are in a redemption state with the home being your primary residence, you hold responsibility and bankruptcy does not absolve you of this during your redemption period! Again seek legal advice.

In addition, if the rep is rude or abrupt, (so many are overwhelmed take a number) hang up using the “can you hear me now" excuse” until you get a understanding customer rep on the phone, give them a complimentary call afterwards, and pat youself on the back for taking the iniative and not flailing around out there blindly! Always consult an attorney or seek legal advice in any of these matters. Furthermore, if you should have problems remitting insurance payments, seek some form of legal aid or counseling to put on the right path to a solution! HOPE and others are out there to deal with these situations and trust me you are not alone! Good Luck! And for the "WALLS" you deserve,,don't lose them without a fight!

VA  is still around folks!  My parents both served as Veterans and somehow never had a chance to take advantage of the home buying privilege offered through the VA.  I think what has happened, with all the hullabaloo of  foreclosures and distressed sales, somehow this loan is not sought out anymore as it quite was.  I used to have more clients come to me for VA loans. I haven't had as many clients applying for this type of loan nor inquiries. We have more veterans now and I think we need a shot in the arm reminder that the VA loan is still a viable option in a home purchase. VA is the only loan unaffected in the 100% zero 0 down financing rule.  So, there you have it Veterans, why not consider it, you deserve it!!

 VA Loan Entitlement and Eligibility

If you’re a military member or veteran in the market for a VA home loan, there are two basic things you need in order to get the process moving. One is your basic eligibility for the VA mortgage itself, the other is how much of that entitlement you have coming. First time home buyers with enough time in the service to qualify for a VA mortgage don’t have any worries when it comes to the entitlement issue; if you have never used your VA loan benefits and you qualify, you have 100% of your VA loan entitlement available to you.

To start the process, you must apply for a Certificate of Eligibility from the Department of Veterans Affairs. When the VA responds to your application, they issue qualified applicants a Certificate of Eligibility telling your lender (and you) two things:

* The borrower has served in the military long enough to earn and use VA home loan benefits.
* The amount of the borrower’s entitlement to use for the VA loan.

It’s easy to assume that because you’ve served in the armed forces you’re automatically eligible for ALL the benefits offered by the Department of Veterans Affairs; the truth is that vets and active service members are eligible for VA guaranteed home loans only when they meet certain general rules:

* The applicant must have served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940.
* The applicant must not have a dishonorable discharge.
* The applicant must have served at least 90 days or more during wartime or 181 continuous days or more during peacetime.

For most veterans on active duty today and for many who have retired or separated, the following rules also apply:

There is a two-year duty requirement for those who served

* As an enlisted member after September 7, 1980.
* As an officer after October 16, 1981.

For all who joined after these dates, VA regulations require;

* 24 continuous months of active duty military service.
* The full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days during peacetime operations.

These rules mean brand-new recruits, basic trainees and recent graduates of military technical school programs are not eligible for a VA loan…yet.

New recruits and basic training graduates who want a VA home loan should begin working on their credit history between the time they join the service and the time they become eligible for a VA loan so that when the time comes the military member is completely ready to apply for a VA guaranteed mortgage.

Today's VA Loan Requirements

Service Requirements

Generally, for a service member or veteran to be eligible for a VA Loan, they will need to have completed any of the following:

• 181 Days of Peacetime Active Duty Service
• 91 Days of Wartime Active Duty Service
• 6 Years of Reserves or National Guard Service

If any of those are true or you are the spouse of a servicemember who was killed in action, you are likely eligible for a VA Loan.  You will need to make contact with a VA Loan Specialist to help you obtain your certicate of eligibility and let you know exactly how much you qualify for.

Income Requirements

VA Loans use two methods to qualify a veteran's income. The primary method of evaluating a veteran's income is residual income. This method determines if a veteran has sufficient income to cover daily living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments. The second method is a debt-to-income ratio method like other mortgage types. VA Loans only use one ratio which is the ratio of total debt to income including your new house payment.  Using this method, the veteran's total debts should not exceed 41% of the veterans total income.

Credit Requirements

The VA does not set a minimum credit score requirement to insure VA Loans.  Most lending institutions require a 620 FICO score or better, however, to approve a VA Loan Application.  The VA Loan underwriter will be generally be looking for at least one year of good credit history.  Past Bankruptcy may be OK, but all payments must have been on time for at least one year.  If the Bankruptcy was a Chapter 7, the veteran must wait at least two years from the discharge date to apply for a VA Loan.

VA Loan Certificate of Eligibility

Before you can get a VA Home Loan, you must first obtain your VA Loan Certificate of Eligibility (COE).  To obtain your Certificate of Eligibility, you must complete the VA Form 26-880 Certificate of Eligibility request.  You may be able to obtain your COE by submitting your completed VA Form 26-880 and your Form DD-214 Discharge Papers to your lender. If your lender is approved to use the VA's Automated Certificate of Eligibility system (ACE), you may be able to get your COE in less than 24-48 hours.  If your lender is not approved to use the ACE system, it could take significantly longer.

If you have any additional questions about the current VA Loan Requirements, please contact the Veterans Administration or visit http://www.valoanrequirements.net/

Readers in short sale distress contemplating Bankruptcy afterwards,

If you are in the throes of a short sale, and if you plan on filing for bankruptcy.  Would you PLEASE discuss this with your REALTOR BEFORE you file, ESPECIALLY if there is a patient buyer and professionals working on your behalf who may not be privvy to your financial hardship, understand or begin to know the extent of what financial ruin you are truly in or about to become mired in.  Unfortunately,  I have a buyer placed in this position and I understand that unbeknownst to all parties the seller received a garnishment and decided to file for bankruptcy to stop the garnishment due to employment considerations etc. That is understandable.  But after a 3 1/2 month wait, negotiations etc. and almost at the finish line, Buyer paid fees etc. The seller does not mention this to the Realtor nor any of the parties involved until after the filing and this home can be held exempt from the bankrupty filing, if filed correctly! 

Now we all (except the seller I am sure) are hoping that it is NOT too late as this was just done and perhaps this can be reversed.  But I am here to tell you, to file bankruptcy, please for everyone involved, if this is in your plans a short sale is NOT,  repeat NOT, for you!  And it is NOT fair to the Buyer/s, Realtor/s, title companies, all the folks involved to keep you out of a foreclosure or further ruin, by keeping this a secret or mum about filing, the bank you have a loan with knows that you filed. 

Therefore,  four succinct words comes to mind immediatley...HOW SELFISH of you!!!  This is one of my short sale rant days, but felt it important to share, decisions made like this without preparing all parties that is unacceptable.  This is why it is wise, prudent and helpful to seek the advice of an attorney if you are going down the road to financial hardship in advance to placing your home on the market. Filing bankruptcy and a short sale does not go together, not a marriage if you will.

 If your debts are crowding you in a corner, and it includes much more than just your home, again seek advice or in this case, the home can be dealt with outside of including it in a bankruptcy as a bankruptcy does not exonerate all debt. Perhaps it is not too late!  Make sure you give considerable thought to putting your home on the market, this effects the lives of other people as well as including your own. The next thing we will have to put in a contract is full disclosure of intent?  The days of closing fast are few and far between a rock and a hard place.  For everyone involved, including yourself, please be considerate and don't do to others what you don't want done to you! Remember, hindsight becomes 20/20 in your rearview mirror when you have your pedal to the floor!

Let me share what a fellow realtor seasoned in short sales commented on a blog for Realtors ...

"By having your seller walk away from the short sale, they put themselves in a position to get foreclosed, where they lose the property BUT STILL OWE THE MONEY! What would you rather have-Owe the full amount plus interest and legal fees and have to go BK to stop a judgment, wage garnishment, or collections harassment, or sign the note and only owe the balance of the note?

Further, how do you think a BK judge will react when you try to cram a full mortgage loss into a BK instead of a small note?

As for how MI or investors have the right to come after you, you must be really uneducated regarding your industry to even ask that question. This is basic, basic knowledge. When you sign a mortgage and note, you give full collection rights to the lender and any and all servicers and investors of the debt. If there is a loss and MI pays a claim to the investor, MI will move to collect that loss just like a credit card or any other consumer creditor would. Thanks Joseph Alfe for this comment as it ties in with my blog headline~! Taken from our Short sale specialist network group.

BK = Bankruptcy   MI= Mortgage Insurer or Insurance

Enjoy your week!

Sunday August 15th 2010

Can't believe it! On the short sale side BOFA is stepping up their game!  A new short sale program with out all the documentation! OTHER BANKS can stand to follow BOFA trends such as equator etc.  They were horrible with short sales but are really stepping up to the plate in this arena! So if you are a Bank of America customer read this,,,,,

New Secret Bank of America HPO Short Sale Details Leaked

Details that Bank Of America has begun a new HPO short sale program in an effort to stave off an increasing foreclosure inventory have leaked. Benefits are said to include no deficiency judgments, no financial documentation and two week approvals.

FOR IMMEDIATE RELEASE

August 5, 2010

Wouldn't you just know it?  I have been saying this over and over, it's getting tighter, leaner, stricter, meaner, over the top, tip of the iceberg unfair housing unethical behavior to obtain a home loan these days!  And before I hear the glass hit the floor, I know so because I am living it with clientele who were turned down for reasons that were almost surreal and so borderline riding the fine line of unethical behavior that HUD's lines have to be ringing off the hook! So what happens when there isn't a sea of homeowners?  Foreclosures which equals RENTERS, read the article to follow below,,,

The banks gave out these bad notes, now Americans with money to put down on a home with the same decent score of the past is paying for the sins of the banks bad discretions. I thought then,, here comes a train wreck for those with zero on everything to buy a home, zero down, zero closing costs etc. just waiting to crash! And bang did it ever! Now the middle class is becoming extinct, non existent, disappearing fewer in numbers?

Why don't we give scores to the banks that are the cause and ruination of  scores of people who have no choice now but to have their credit compromised who were truly unfortunate victims of predatory lending or loss of income (number one) or etc. and you have to love it when you are told in order to participate in a short sale or deed in lieu some banks require you to be 3 months behind before they'll talk to you!  Now some dutiful folks don't and cannot afford to be placed in this position.  Now after that 3 months,,,your credit takes a hit, you go for a short sale not sure if it will be granted or denied ,,, well you get the drill.  NOW you want to go out and rent .,,,HELLOOOO your scores just dropped how much by taking a hit on your credit that the bank just granted that short sale that you possibly may have a problem renting mainstream now, right because now Sellers, Renters, Investers (some of which walked away from their underwater homes to buy homes so they can capitalize on this market to rent to people only with marginally good credit, yep that's right) are requesting your score be at least 600. Wasn't that a good score a few years back? We forgot 560 was ok with a lil work on your credit. Well amnesia has hit and assimilated us Americans like a virus again as we just become the shrinking middle class of folks who can't sell, move but drowning for while holding your breath for 5 years is a more likely reality.

 Don't we love this NEW American Dream of .....home ownership, renting, employment ?  Well I ran across this fascinating article and BINGO is all I can say,,,,this is not to say, I am against renters, hecks I  was one for years,,,however it was by choice,,,,so just saying I found it to be a very interesting read and just had to share...

How Wall Street Reform Benefits Foreclosure Buyers
By Peter G. Miller    

With the passage of Wall Street reform now a done deal in Washington there are probably few people who did better than real estate investors. Stricter mortgage standards plus less federal emphasis on homeownership means there will be a new and growing demand for rental housing.

“In previous eras, we haven’t seen people question whether homeownership was the right decision. It was just assumed that’s where you want to go,” Raphael Bostic, a senior official with the Department of Housing and Urban Development, told the Washington Post. “You’re not going to hear us say that. What we’ve seen in the last four years is that there really is an underside to homeownership.” 

The change in government policies impacts the demand for investment real estate because a growing population combined with a smaller percentage of owner-occupants means more demand for rental property.

Mortgages
The Wall Street reform legislation homogenizes the mortgage marketplace and assures that there will be no shortage of conventional, VA and FHA loans. Lenders are entirely free to offer more exotic financial products, but only if they’re willing to set aside reserves, eliminate prepayment penalties and face potent lawsuits from borrowers and mortgage investors enabled by the new standards.

For buyers and investors with proper paperwork and visible finances the new loan requirements will be a low hurdle, however, for many borrowers mortgage applications will suddenly become more difficult. Application reviews will stiffen and lender standards will rise, meaning that many loan applications will be declined. We’re already seeing this with the new devotion to higher credit scores.

The tougher financing standards will create two results. First, there will simply be fewer buyers than might otherwise be the case. Second, there will be fewer buyers who can “stretch” and afford a bigger mortgage for a given income. In the end these two factors will create less pressure to push up home prices.

Rentals & Foreclosures
Since the end of World War II we have had a steady need for additional rental units to accommodate a growing population. In 1950 we had a population of 153 million, a figure that will soon top 310 million. Now we have massive numbers of foreclosures adding to demand.

For 2010, says James J. Saccacio, chief executive officer of RealtyTrac, “the midyear numbers put us on pace to exceed thee million properties with foreclosure filings by the end of the year, and more than one million bank repossessions. The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market.”

No doubt many of those who have lost their properties have moved in with friends and family. That said, there are only so many basements and accessory apartments. Armies of people who once owned now need rental units.

Marketplace Changes
Although there’s plenty of property demand that demand is not actionable. Individuals who might once have bought are effectively being shut out of the marketplace by such issues as tougher loan standards, unemployment, reduced wages, credit reports with major black marks and changing federal policies. And while such individuals may not have the financial muscle to buy a home, they often have sufficient income to afford a good rental.

Market data developed by Reis.Inc., a leading provider of commercial real estate information, shows two interesting trends.

According to its second quarter analysis of national apartment trends, Reis says occupancy improved in 67 out of 82 markets. “Vacancies fell for the first time in two years from 8.0 percent to 7.8 percent, as net absorption surged by over 46,000 units. This was the largest net positive addition to occupied stock on record in ten years. Approximately 70 percent of this addition to occupied stock came from existing buildings leasing up empty units.”

Fewer vacancies are good news for property owners, but what about rental rates?

Reis figures show that rental rates for apartments, the best barometer we have, increased steadily between 2005 and the third quarter of 2008. The last quarter of 2008 and all of 2009 saw rental rate declines. In 2010 we’re back to rising rental rates: Reis says rates were up .4 percent in the first quarter and .7 percent in the second quarter.

Time & Place
So is this the time to buy investment real estate, especially short sales and foreclosures?

In many markets there’s a fusion of discounted acquisition costs, historically-low interest levels, falling vacancy rates and rising rental rates. This doesn’t mean specific real estate investments are attractive everywhere or for all buyers, but in areas where such trends exist and seem likely to continue this may well be an unusually good time to consider short sales and foreclosures, two ways to acquire discounted real estate.

____________________
Peter Miller is syndicated in more than 100 newspapers and operates the consumer real estate site, OurBroker.com.

 Thanks Peter Miller,,,confirmed what I have been saying while watching this tide turn for the last couple of years! On my resources page check out the 5 mortgage myths!  Well a wrap for today! Thanks for reading!

Thanks to Kim Cook for sharing information to help other people out there who need tax help ASAP!

1. Free Help filling in Tax Tribunal form CLICK HERE

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CLASS SCHEDULE

Date	Day	Class	City	Time	Price	Material Fee
9/28/2010	Tuesday	HUD	HFCC	6:30-8:30 PM	$11.00	0
10/6/2010	Wednesday	HUD	Birmingham	6:30-8:30 PM	25	10
10/7/2010	Thursday	HUD	Southgate	6:30-8:30 PM	15	10
10/19/2010	Tuesday	Beg. Investor	Birmingham	6:30-9:30 PM	32	20
10/20/2010	Wednesday	Beg. Investor	Southgate	6:30-9:30 PM	39	25
10/26/2010	Tuesday	Landlord	Birmingham	6:30-9:00 PM	34	10
10/27/2010	Wednesday	Condo	Birmingham	6:30-8:30 PM	20	0
10/28/2010	Thursday	Landlord	Southgate	6:30-9:00 PM	42	25
10/30/2010	Saturday	Adv. Investing	Livonia	9:30-12:30 PM	45	25
11/3/2010	Wednesday	Short Sale	Birmingham	6:30-7:30 PM	20	10
11/4/2010	Thursday	Short Sale	Southgate	6:30-7:30 PM	20	10
11/9/2010	Tuesday	Fin. Analy.	Southgate	6:30-8:30 PM	42	15
11/17/2010	Wednesday	Quickbooks	Birmingham	6:30-7:30 PM	20	15
11/20-11/21/2010	Sat/Sun	Weekend Blast	Livonia	9:00 AM- 5:00 PM	179
12/1/2010	Wednesday	Adv. Investing	Southgate	6:30-9:30 PM	42	15
12/2/2010	Thursday	Quickbooks	Southgate	6:30-7:30 PM	20	15
12/4/2010	Saturday	Fin. Analy.	Livonia	10:00-12:00 PM	45	25

 
 

1. Free Help filling in Tax Tribunal form CLICK HERE

Filing drop dead date 7/31/2010 do not miss

Must do this to lower your property taxes if you are not happy with

March Board decision....

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3. Class schedule CLICK HERE

Classes on Real Estate and the

2 day Real Estate Blast last time this year

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Free help Free help filling out tax tribunal forms. Things you need.... 1. Transfer affidavit 2. Deed 3. Board of appeals decision letter We do appraisals for the tax tribunal please call for pricing   WHEN Call now , 2010   Email: georgia@addedvaluereaty.com Call: 248-787-7325 Email: mandy@addedaluerealy.com

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CLASS SCHEDULE

Date	Day	Class	City	Time	Price	Material Fee
9/28/2010	Tuesday	HUD	HFCC	6:30-8:30 PM	$11.00	0
10/6/2010	Wednesday	HUD	Birmingham	6:30-8:30 PM	25	10
10/7/2010	Thursday	HUD	Southgate	6:30-8:30 PM	15	10
10/19/2010	Tuesday	Beg. Investor	Birmingham	6:30-9:30 PM	32	20
10/20/2010	Wednesday	Beg. Investor	Southgate	6:30-9:30 PM	39	25
10/26/2010	Tuesday	Landlord	Birmingham	6:30-9:00 PM	34	10
10/27/2010	Wednesday	Condo	Birmingham	6:30-8:30 PM	20	0
10/28/2010	Thursday	Landlord	Southgate	6:30-9:00 PM	42	25
10/30/2010	Saturday	Adv. Investing	Livonia	9:30-12:30 PM	45	25
11/3/2010	Wednesday	Short Sale	Birmingham	6:30-7:30 PM	20	10
11/4/2010	Thursday	Short Sale	Southgate	6:30-7:30 PM	20	10
11/9/2010	Tuesday	Fin. Analy.	Southgate	6:30-8:30 PM	42	15
11/17/2010	Wednesday	Quickbooks	Birmingham	6:30-7:30 PM	20	15
11/20-11/21/2010	Sat/Sun	Weekend Blast	Livonia	9:00 AM- 5:00 PM	179
12/1/2010	Wednesday	Adv. Investing	Southgate	6:30-9:30 PM	42	15
12/2/2010	Thursday	Quickbooks	Southgate	6:30-7:30 PM	20	15
12/4/2010	Saturday	Fin. Analy.	Livonia	10:00-12:00 PM	45	25

 

This is very informative option to avoid a foreclosure!!

Thursday, July 22, 2010-NOCBOR is offering its members and the general public an opportunity to learn about a special housing assistance program, which is being offered in only 5 states in the country! Known as the “Hardest-Hit Fund,” the states of Arizona, California, Florida, Michigan and Nevada will receive a total of $1.5 billion in federal funds to help homeowners, who are currently drawing unemployment benefits, and are struggling to make monthly mortgage payments. The $154.5 million in federal funds, allocated to Michigan, is expected to help more than 17,000 Michigan households to avoid foreclosure, due to unforeseen circumstances, such as a medical emergency. The Michigan State Housing Development Authority (MSHDA) was selected as the Housing Finance Agency (HFA) to share in the “Hardest-Hit Fund.” Michigan will be the first of the nation’s five states to implement its program. To register for the workshop, scheduled Thursday, July 22, 2010 at 6:30 p.m. at NOCBOR, call 248-674-4080.