Traditionally, the housing market is considered NORMAL when there is a six month supply of homes. When there is less than a six month supply, the market generally tilts towards a SELLER'S MARKET. As the supply of homes goes beyond six months, the market becomes more of a BUYER'S MARKET. Today, there is less than a six month supply for homes under $200,000 and homes in that price range are selling quickly and often at above list price. The supply of higher priced homes, on the other hand, continues to be high (especially in the luxury range of over $1,000,000). There are great opportunities out there for those looking to buy homes where there is the greatest supply.
While the news remains good for Buyers, sadly many homeowners are finding themselves in financial distress. The article below called Buying "TIME" gives excellent advice for those facing foreclosure. The most important thing to remember if you are in this difficult situation is to be pro-active, don't stick your head in the sand! There is help out there... just be cautious in your search for help, as there are many unscrupulous folks looking to take advantage of your situation. If you are in need of advice, I would be happy to help you find someone to help you address your foreclosure and loan modification options.
Warmest Regards,
Pook
Today's Topics:
- Market Update: The Cromford Report 4/14/09
- Buying "TIME" (Advice for the Seller who is facing foreclosure) - Article by Mildred Wilkins
Market Update: The Cromford Report - 4/14/09
We have over 13,000 Pending Listings in mid-April – over 1,000 higher than the largest number seen in 2005. There are another 2,803 AWC (Active With Contingency) listings, included in the active number above which continues to fall at an unprecedented rate. Many transactions are in escrow, as the sales figure struggles to catch up.
Average $/SF for pending listings is $88.32, which is higher than March 14’s reading of $87.75. This suggests that average $/SF pricing will not fall over the coming 30 days and may actually start to move higher. We see very little downward pricing pressure on properties under $150,000 and as these form the bulk of sales, the overall average $/SF for sales seems very unlikely to drop below $80.
We have seen a marked slowdown in trustee sales in the first half of April, although foreclosure notices still climb. The 9.083 REO listings on ARMLS represent just 1.7 months supply at the current monthly sales rate.
Buying "TIME"
Never before has the expression “If I could just buy some time” meant so much to people. When you are facing foreclosure you need time to discover your options, analyze your situation and implement an action plan. Your most precious commodity is time…And it’s running out.
When your money is running out…
You don’t have time to wait for the trickle down effect of the stimulus package to make a difference in your personal situation. While the package will make a significant difference over the long haul for thousands of Americans, anyone who thinks it is going to quickly make a difference for EVERY American is kidding themselves. Facing reality is hard, but necessary. As a country, we have ignored hard truths with disastrous consequences for too long. Nothing will be gained by continuing to point fingers. However, we must immediately recognize that each of us has a role to play in correcting the serious housing problem we face as a country. (Even if your home is paid off, FREE and CLEAR). The housing market holds the key to stabilizing our country, so anything we can do to keep people in their homes is a step in the right direction.
First things first...
DO NOT ABANDON YOUR HOME. Even when you are behind on your mortgage, no matter how far behind you are, DO NOT abandon your home until the entire legal process has been played out. You can stay in YOUR house until your right to possession has ended. Exactly when that time is will be determined by three (3) factors:
1. Type of foreclosure in your state: judicial or non-judicial
2. Whether you have a mortgage or a deed of trust
3. State statutes regarding sheriff or trustee sale and possession timeframes
Find out the answers to items 1, 2 and 3, and then abide by them. Make sure your lender abides by them as well. Things could improve while you are holding out. Hold on.
Things are changing radically and very quickly because of the magnitude of the housing problem. Your local courts could dramatically change the way they process pending foreclosures so that you have a chance to work things out with the lender. Stay in our home and fight for the chance to work things out. More banks are willing to work with borrowers today simply because they really can’t manage the huge backlog of homes which have already been lost to foreclosure. If you can present a viable plan, your chances of retaining home ownership are pretty good.
Second things second…
I know you know that, but I needed to get your attention. Probably the second most valuable thing anyone will ever tell you to do to save your home from foreclosure is to:
1. Demand the lender or servicer who is threatening to sue you for foreclosure produce the original note/deed of trust which says you owe them. In legal terms you are asking them to demonstrate that they are the “real party of interest.” In common language that means, prove I owe you. Prove you have the right to demand payments from me.
2. The most effective way to demand this documentation is with a “qualified written request.” You are entitled to request that and any other information you want which is related to servicing on your loan (any mortgage loan in the United States) under federal RESPA regulations.
What Choices do I have?
Let’s consider the answer to that question. It is critical that you start with an honest inventory of your situation. How far behind are you? Do you have the resources to resume payments? If not now, when will you be able to do so? What do you want to do? What are you ABLE to do? Why should the bank consider your proposal? You’ll need to able to defend it as being reasonable, based on your current circumstances.
Space in this article will not allow me to go into detail but I will provide you with the options you can consider. Do further research on each of them, online, in the library, on websites such as HomeOwnershipMatters.com Or at the blog: HomeOwnershipMatters.
a. Options to keep the house—special forbearance, loan modification or a partial claim. You need to learn what each of these means and how it works
b. Options to let the house go—short sale, assumption or deed-in-lieu. All of these options are better than foreclosure but you need to know exactly how they work to avoid creating yet another problem for yourself down the road.
c. Reverse mortgage could be considered, it could be your solution. Be sure to use a government backed reverse mortgage if you decide to use this option.
d. Receiving disability payments (if you have a claim pending) could make the difference. Hold on until you know what you will be receiving
e. Acquiring a roommate could change your finances—get started working on it (I mean a roommate who will PAY—not one who will add to your expenses)
f. Selling unnecessary items in order to cover the gap until you get a permanent solution. Ebay or Craigslist could bring in some immediate cash. (Stop crying—we are trying to save your home and Buy “T I M E”).
g. Some other solution which has not even occurred to me
“Answer” the summons
The summons is your official notification that the lender has moved to legal action. The court notifies you via the “summons”. Your response should be to the clerk of the courts, the lender/servicer and their attorney. It is critical that your answer be received within the legally stipulated timeframe in your state. It is strongly recommended that the answer be sent by certified mail, with a signature required. This is a task which you can handle on your own, with a little coaching.
Basically, an answer should acknowledge that you are aware of your situation and that you are working with the lender on a plan. Specify what that plan entails. If you are challenging whether or not the lender has the legal right to foreclose (due to failure to produce the original note or demonstrate that they are the “real party of interest”) this is your time to say so. The foreclosure is likely to be stalled based on the quality of a timely, well prepared “answer.”
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