Orangecrest Riverside California Real Estate Blog
Orangecrest Riverside California Real Estate Blog

Scott Chappell and Brian Bean
Saturday, November 10, 2012

Relocation Incentive | Short Sale Agents | Fannie Mae | Freddie Mac | Riverside Real Estate | Riverside Short Sales

Relocation Incentive | Short Sale Agents | Fannie Mae | Freddie Mac | Riverside Real Estate | Riverside Short Sales

New short sale rules standardize seller cash incentives

Relocation Incentive | Short Sale Agents | Fannie Mae | Freddie Mac | Riverside Real Estate | Riverside Short Sales
New short sale guidelines may make it easier for a distressed homeowner to receive cash to move after a short sale.

Mortgage giants Fannie Mae and Freddie Mac on Nov. 1 launched a revamped and cohesive short sale program that, among other things, allows a short sale without missed payments and without requiring repayment of the loan balance.

The government-sponsored enterprises formerly processed short sales under varying sets of rules and even had their own versions of the Home Affordable Foreclosure Alternatives (HAFA) program, which provided a $3,000 relocation incentive to the seller. But the guidelines were restrictive and many distressed home sellers were disqualified for the cash payments.

Under the new guidelines, an owner-occupant home seller is entitled to a $3,000 relocation check to assist with relocation expenses, with the following exceptions:
  • The borrower is required to contribute funds or execute a promissory note. In California, laws protect most home sellers from having to contribute funds or sign a promissory note.
  • The borrower has military Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other government relocation assistance.
  • The servicer has knowledge that the borrower is receiving relocation assistance from another source. In this case, the $3,000 would be reduced by a like amount.

Fannie and Freddie back about half of U.S. mortgages. For homeowners whose loans are not covered by one of the GSEs, many banks offer short sale programs that provide relocation incentives.

OTHER BANK PROGRAMS

HAFA PROGRAM: More than 40,000 short sales have been completed through the federal HAFA program, which provides a $3,000 relocation incentive for the homeowner.

The U.S. Treasury version of the program allow $8,500 to satisfy junior liens, making the program a better alternative for California homeowners, who are more likely to have high-balance home-equity loans.

Many banks participate in this program, though not all homeowners fit the mold.

BANK OF AMERICA: The nation’s largest servicer offers the HAFA program along with several in-house programs. Its most prominent proprietary program is the “Cooperative Short Sale Program” with an “Enhanced Relocation Assistance” that ranges from $2,500 to $30,000.

Bank of America launched the enhanced program nationwide in May. It applies to preapproved short sales (in which the short sale is initiated without an offer to purchase), and the incentive amount is based on the home value.

Eligible homeowners must start their short sale before the end of 2012 and close by Sept. 26, 2013, to receive the cash payments.

WACHOVIA: Wachovia Mortgage has been providing relocation incentives of $2,500 to $10,000 in a short sale for more than a year. The lender is well-known for its speedy response and no-nonsense negotiations.

CHASE BANK: This lender offers relocation incentives up to $45,000. Not all Chase loans qualify for the incentive — To find out if you have one of these loans, call us today at 951-778-9700.

CITIMORTGAGE: Citi says its average short sale incentive offer is $12,000 in cases where Citi owns the loan. The incentives are based on a variety of factors, including level of distress of the homeowner and loan characteristics.


WELLS FARGO: Wells completed a trial program in Florida last year that offered $10,000 to $20,000 to a homeowner who completes a short sale or deed-in-lieu. The incentive is only available on first trust deeds that Wells itself owns, the lender said.

This is not a comprehensive list, but these are good examples of the programs available to homeowners who are in danger of losing a home to foreclosure.

WILL THE BANK COOPERATE?

Despite what you may have heard, banks prefer short sales over foreclosure or even loan modifications. Why? It’s all about the numbers.

Short sales net banks 12 percent to 25 percent more than they would gain from a foreclosure because of the time and expense to take back, repair, maintain, market and resell a property. And as many as half of loan modifications re-default within the first year, later turning into foreclosures and short sales.

Thus short sales continue to increase, especially in Southern California, as lenders streamline processes and create attractive offers to help distressed homeowners. A short sale allows a homeowner to avoid a financially devastating foreclosure, limit damage to their credit, and re-enter the housing market much more quickly as an able buyer — before home values again shoot through the roof.

More importantly, a short sale allows a homeowner to exit their house on their own terms, with dignity intact.

Want to know if you qualify for any of these programs? Call us today at 951-778-9700and we’ll do the research for you.

Brian Bean and Tim Hardin, owners of Dream Big Real Estate in Riverside, are Default Advocates and ambassadors for Helping A Million Homeowners. They can be reached at 951-778-9700, PE@DreamBigRealEstate.com or at www.DreamBigRealEstate.com and www.ShortSaleAndStay.com.

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# posted by Scott Chappell and Brian Bean @ 3:35 PM

Saturday, November 03, 2012

Riverside CA Real Estate | 5986 Avenue Juan Bautista Riverside, CA 92509

HALF-ACRE POOL HOME
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License #: 01346382

5986 Avenue Juan Bautista
Riverside, CA 92509
Bedrooms: 3
Bathrooms: 2 full
List Price: $Get Current Price
Living Area Approx: 1536
 










Looking for a little space to stretch out, to get away, to call your own? Check out this great single-family property on 0.48 acres. This fantastic home is the right price for a first-time buyer -- even with FHA financing, the payment would be lower than rent! Large Lot with a tree house for the kids, and a large patio area there, perfect for entertaining. This home is close to shopping, parks, an elementary school and Jurupa Hills Country Club.
Have questions? Ask me.
Dream Big Real Estateis not associated with the government, and our service is not approved by the government or your lender.
Equal Housing Opportunity

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# posted by Scott Chappell and Brian Bean @ 7:58 AM

Thursday, November 01, 2012

Brian Bean and Tim Hardin, Realtors, and their California Short Sale Team close another Canyon Lake, California, Short Sale with Seterus


Brian Bean and Tim Hardin, Realtors, and their California Short Sale Team close another Canyon Lake, California, Short Sale with Seterus

The Dream Big Team, A Riverside Short Sale Specialist Team known for their Canyon Lake, California, Real Estate experience in Short Sales, has just closed another Short Sale in California using their comprehensive Short Sale System. 

29535 Ash Dale Way Canyon Lake CA 92587

CANYON LAKE, CALIF. (Nov. 1, 2012) -- The Dream Big Team, A Riverside Short Sale Specialist Team known for their Canyon Lake, California, Real Estate experience in Short Sales, has just closed another Short Sale in California. Using their comprehensive Short Sale System, The Dream Big Team can handle a large volume of short sales and consistently close short sale real estate homes in the 92587 Zip Code at a high percentage.

The process was complex, but with strong negotiating skills, pinpoint problem solving, a comprehensive marketing process, and a never-say-quit attitude, Brian & Tim beat the odds and obtained a difficult approval to close the Canyon Lake, California, home sale.

The Quail Valley home, which is located in Menifee, outside the Canyon Lake walls, took a total of 132 days from contract to closing. Although banks are improving their processes and speeding up timelines, The Dream Big Team said this is a common timespan to complete a short sale.

This was a Seterus short sale in California and no deficiency will be pursued. The homeowner had one loan and Seterus preferred the short sale vs. foreclosure. The Mortgage payoff amount was $137,521. The Original List price was $139,900 and it closed at $155,000 with the bank.

The sale included two separate lots, or APNs, which were adjacent to each other and surrounded by a common fence. The homeowners included the second lot as a show of good faith to Seterus that they wanted to net the bank the highest possible return on the short sale.

"There are no promises or guarantees in a Canyon Lake, California, short sale, whether the lenders will approve the short sale or forgive the debt, but Short Sales offer an alternative to the emotionally and financially devastating effects of a California foreclosure," said Brian Bean, CEO of The Dream Big Team. "A short sale in Canyon Lake, California, is a complicated process. There are so many details and potential pitfalls -- more than the average homeowner is aware of. That's why it's so important for someone having trouble to consult a Canyon Lake, California, Short Sale Specialist with a proven history of success with short sales, such as The Dream Big Team."

Bean and Hardin use a comprehensive Canyon Lake, California, Short Sale system for sellers known as The Dream Big Blueprint (http://www.DreamBigBlueprint.com). Homeowners facing Canyon Lake, California, foreclosure can meet with The Dream Big Team to ask questions about their specific situation, workout solutions for which they may qualify, and how to position themselves to take advantage of the next real estate wave. In additional, The Dream Big Team will provide a custom hardship package for the homeowner to ensure their file will smoothly move through the process.

"We have surrounded ourselves with the best and brightest, from our administrative staff and Listing Managers to our processors and escrow officers," said Brian Bean, leader of The Dream Big Team. “Our team members understand how to keep a transaction moving forward. Our short sale team is skilled, experienced, determined, and Never Quits. That’s why we are so successful."

A Canyon Lake, California, short sale occurs when a home is sold for less than the mortgage balance and the bank agrees to discount the payoff. A short sale in Canyon Lake, California, is an alternative to a financially and emotionally devastating foreclosure, allows a homeowner to deal with a crisis on their own terms, and puts them in position to re-enter the housing market more quickly, before home prices again shoot through the roof.

- CALL 951-778-9700 FOR SHORT SALE HELP NOW! - 

Seterus prefers to do a short sale vs. foreclosure because it nets 12 percent to 25 percent more money from a short sale. After a Seterus foreclosure, the bank must continue to pay for holding costs, maintenance, marketing fees and legal fees.

"The Dream Big Team" is a group of experienced, battle-test and skilled real estate agents specializing in distressed properties under the direction of Brian Bean and Tim Hardin at Dream Big Real Estate in Riverside, California. 

Every day, homeowners ask them, "Should I short sale my home or stay and ride it out? Will I have to pay the deficiency? Will I have to pay taxes on the loss? What is a strategic default? Can I short sale and lease back?" To make the best decision, distressed homeowners need information, answers and guidance on these and other critical questions.

For more information, see details at http://www.DreamBigRealEstate.com or call 951-778-9700 to set up a consultation.

About The Dream Big Team:
The Dream Big Team of Riverside, California, is a group of Real Estate Professionals and Default Advocates committed to helping distressed consumers climb out from under the crippling mortgage balances that have slammed California home values and the world economy. Brian Bean, CEO of The Dream Big Team, is a veteran Riverside, California, Listing Agent who knows how to market homes to obtain the highest possible price in the shortest period of time. Tim Hardin, COO of The Dream Big Team, is an accomplished negotiator with unparalleled skills helping buyers find great homes at low prices. The Dream Big Team can be reached at 951-778-9700 or info@dreambigrealestate.com and has partners throughout the United States.

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# posted by Scott Chappell and Brian Bean @ 7:01 PM

Saturday, October 27, 2012

Mortgage Delinquencies Spike | Riverside Short Sale Agents | Brian Bean and Tim Hardin | Mortgage Forgiveness Debt Relief

Mortgage Delinquencies Spike | Riverside Short Sale Agents | Brian Bean and Tim Hardin | Mortgage Forgiveness Debt Relief

Missed mortgage payments spike in September

The number of homeowners who missed a mortgage payment jumped unexpectedly in September.

The delinquency rate, which measures the number of home loans 30 or more days past due, reached 7.4 percent, according to Lender Processing Services’ “First Look” Report.

That was a 7.72 percent increase from the previous month but a 4.19 percent decrease from a year ago. The delinquency rate had been on the decline in July and August after increases in April, May, and June.

In California, the delinquency rate hit 8.6 percent, a 19.7 percent decrease from September 2011.

Nationwide, there were 5.64 million homes with mortgages at least 30 days past due or in foreclosure, LPS reported. Of those, 3.7 million were late but not yet in foreclosure, and 1.53 million were seriously past due (90-plus days), a 1.16 percent increase from August.

The top-five high-delinquency states were Florida, Mississippi, New Jersey, Nevada, and Louisiana, according to LPS. States with the lowest default rates were Montana, Alaska, South Dakota, Wyoming, and North Dakota, where job markets are robust.

Meanwhile, foreclosure inventory decreased last month to 1.94 million homes, the lowest level in two years, LPS reported. The number of homes taken back by banks fell to 3.87 percent, down 4.05 percent from the previous month and 7.37 percent from a year ago.

The latest figures indicated that banks and servicers were continuing to work through their standing inventories.

Last month, the American Bankers Association reported that home-equity-loan default rates increased to 4.09 percent in the second quarter, from 4 percent the previous quarter. And home-equity lines of credit rose to 1.91 percent during the same period.

Home-improvement-loan delinquencies increased to 0.9 percent from 0.83 percent, the ABA reported.

“While the housing market appears to have turned a corner, we are many quarters away from seeing improvement filter through to reduce home-related delinquencies,” James Chessen, ABA’s chief economist, said in a release.

The recent statistics could be attributed to several factors:

NO “GOLDEN TICKETS”: Homeowners who had been hoping for a loan modification with a reduction of the loan balance are finally realizing the “Golden Ticket” isn’t coming from their bank.

Only a fortunate few actually will receive principal reductions via the $25 billion Dept. of Justice settlement between five major servicers (Bank of America, Wells Fargo, Chase, CitiMortgage and Ally Bank) and 49 states over improper foreclosures.

Those who don’t qualify must resign to a modification with an upside-down home, riding out the market until values again exceed their loan balance, or doing a short sale and starting fresh.

TAX BREAKS EXPRING: Barring last-minute extensions, the federal Mortgage Forgiveness Debt Relief Act of 2007 and California’s Conformity Act of 2010 are set to expire at the end of this year. Both laws exempt some homeowners from paying income taxes after a home goes to foreclosure or short sale.

Banks claim their losses to the Internal Revenue Service as debt cancellation and send consumers IRS 1099 forms, which must be reported on tax returns. A taxpayer could owe as much as $15,000 to $35,000 in taxes on a $100,000 loss to the bank.

With lawmakers focused on the presidential election, it’s anyone’s guess if the tax exemptions will be extended. The federal and state governments are running in the red, and legislators differ on how to balance the budget.

If lawmakers fail to extend the federal law or the state law, which essentially mirrors the federal law but applies to California income taxes, homeowners who miss the deadline face crippling tax bills.

Those betting on government malaise may be hedging their bets to beat the deadline.

HOLIDAYS APPROACHING: With year-end holidays, and the financial demands that they bring, just around the corner, some homeowners who have been living month to month may have reached a breaking point.

Though unemployment figures have declined in the past year, many homeowners continue to be under-employed or kept jobs by accepting reduced hours or pay. Any financial turmoil could upset the balance for those in survival mode.

Whatever the reason, homeowners having difficulty making mortgage payments that exceed 50 percent of their take-home pay face a devastating foreclosure if they don’t find a suitable workout solution.

If the housing market, which has seen price increases in Southern California the past year, has truly reached the bottom, those who wait could again miss the optimum timing for buying another home.

Want to know if you qualify for any of the workout solutions available? Call us today at 951-778-9700 to make an appointment for an interview.

(Brian Bean and Timothy Hardin are Default Advocates and owners of Dream Big Real Estate. They can be reached directly at Brian@DreamBigRealEstate.com or 951-778-9700.)

Brian Bean and Timothy Hardin 
Licensed Default Advocates 
DRE Lic #01889132 
Info@DreamBigRealEstate.com

What's happening in the Real Estate Market today? CLICK HERE for more information.

Want to know if we're legit? Do your homework. Check us out atwww.google.com www.yahoo.com www.bing.com. www.DreamBigRealEstate.com www.IEShortSalePros.com www.ShortSaleAndStay.com

Certified Default Advocate
ACTIVE RAIN - Dream Big Real Estate and Inland Empire Short Sale Pros BlogDream Big Real Estate and Inland Empire Short Sale Pros Blog FACEBOOK - Dream Big Real Estate and Inland Empire Short Sale Pros TWITTER - Dream Big Real Estate and Inland Empire Short Sale ProsLINKEDIN - Dream Big Real Estate and Inland Empire Short Sale ProsRSS FEED - Dream Big Real Estate and Inland Empire Short Sale Pros BlogSTUMBLE UPON - Dream Big Real Estate and Inland Empire Short Sale Pros SEND EMAIL to BRIAN BEAN @ Dream Big Real Estate and Inland Empire Short Sale Pros YAHOO PULSE - Dream Big Real Estate and Inland Empire Short Sale Pros GOOGLE BUZZ - Dream Big Real Estate and Inland Empire Short Sale ProsDIGG - Dream Big Real Estate and Inland Empire Short Sale Pros

If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours.

Henry David Thoreau

Mortgage Delinquencies Spike | Riverside Short Sale Agents | Brian Bean and Tim Hardin | Mortgage Forgiveness Debt Relief

Mortgage Delinquencies Spike | Riverside Short Sale Agents | Brian Bean and Tim Hardin | Mortgage Forgiveness Debt Relief

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# posted by Scott Chappell and Brian Bean @ 6:05 PM

Riverside Short Sale Agents | Short Sale vs. Foreclosure | Brian Bean and Tim Hardin | Riverside Real Estate

Riverside Short Sale Agents | Short Sale vs. Foreclosure | Brian Bean and Tim Hardin | Riverside Real Estate 

Short Sales on the increase as foreclosures fall

Short sales are expected to overtake foreclosure in 2013 as the dominant workout solution for distressed homeowners.

Credit-rating agency DBRS attributed the change to “the record number of servicers that are using short sales as their primary loss-mitigation tool to prevent delinquent loans from entering foreclosure.”

HOPE NOW, an alliance of mortgage servicers, investors and non-profit counselors, reported this week that nearly 40,000 short sales were completed in August, bringing the total to more than 1 million since December 2009, when it began tracking statistics.

Another 36,260 were completed in July. “The increase of short sales has been significant and, for the first month since reporting on short sales, we estimate a high of 39,559,” HOPE NOW Executive Director Faith Schwartz said in a release. “Short sales provide another tool to avoid the high cost of foreclosure for families, communities and investors.”

The Office of the Comptroller of the Currency reported earlier this year that 138,000 short sales were completed in the first half of 2012, and anecdotal evidence from the industry suggested that number would continue to increase in the second half of the year.

HOPE NOW also reported foreclosure sales nationwide in August increased 12 percent to 71,149, up from 63,527 in July. And foreclosure starts increased 14 percent to 187,941, compared with 164,593 in July.

In the West, foreclosure starts have been on the decline. California saw a 20.7 percent decrease in September from August, according to ForeclosureRadar, an online industry tracker. The number of starts dropped by as much as 40 percent in Nevada and Oregon.

Regional foreclosure filings were down even more from the previous year. California dropped 48.1 percent from September 2011, while Nevada and Washington saw decreases of more than 70 percent.

Still, more than 14,000 foreclosure actions were filed last month in California.

“There has been speculation that the banks would rush to clear inventory before the California Homeowner Bill of Rights takes affect in January 2013, causing an increase in the number of foreclosures,” ForeclosureRadar said in its report. “Clearly this is not the case as we continue to see the number of Foreclosure Starts decline.”

But the recent foreclosure activity, along with the approximately 5 million homes in shadow inventory (homes 60-plus days behind or already owned by banks but not on the market), indicates the housing market has a long recovery ahead. Short sales and loan modifications will play an integral role in putting the economy back on its feet.

HOMEOWNER OPTIONS

LOAN MOD: Despite what they may have been told by friends, family or neighbors, a loan mod that reduces the loan balance is unlikely for all but a few homeowners. Others may get a lower interest rate but still owe the full balance on their loan, later opting for a short sale when they realize just how long it will take to reach break-even.

SHORT SALE: Others immediately choose a short sale, in which a home is sold for less than the loan balance and the bank agrees to discount the payoff.

Short sales in recent years have lost their stigma as hundreds of thousands of homeowners have used it as the best solution to avoid foreclosure. Banks responded by creating massive departments and streamlining the process. Why? Because they net 12 percent to 25 percent more money in a short sale than a foreclosure.

Is it any wonder why banks prefer a short sale over foreclosure?

LEASE-BACK: This year, some homeowners are opting for a short sale in which they can stay in the home and perhaps even repurchase the property three years later.

The Short Sale Lease-Back Program, which was introduced earlier this year, has become a popular option, though not everyone can qualify.

In the program, the homeowner completes a short sale to a qualified non-profit organization with the intent to lease the home for three years and then buy it back at a predetermined price, presumably less than they currently owe on the home. 

Candidates must have sufficient income to pay fair-market rent and many parties must say “yes” to the deal.

Whichever solution is best for a homeowner, they must take action, or the bank surely will. Because despite recent improvements in the real estate market, local homeowners have a deep, dark hole out of which to climb. 

Want to know if you qualify for any of these programs? Call us today at 951-778-9700 to make an appointment for an interview.  

(Brian Bean and Timothy Hardin are Default Advocates and owners of Dream Big Real Estate. They can be reached directly at Brian@DreamBigRealEstate.com or 951-778-9700.)

Brian Bean and Timothy Hardin 
Licensed Default Advocates 
DRE Lic #01889132 
Info@DreamBigRealEstate.com

What's happening in the Real Estate Market today? CLICK HERE for more information.

Want to know if we're legit? Do your homework. Check us out atwww.google.com www.yahoo.com www.bing.com. www.DreamBigRealEstate.com www.IEShortSalePros.com www.ShortSaleAndStay.com

Certified Default Advocate
ACTIVE RAIN - Dream Big Real Estate and Inland Empire Short Sale Pros BlogDream Big Real Estate and Inland Empire Short Sale Pros Blog FACEBOOK - Dream Big Real Estate and Inland Empire Short Sale Pros TWITTER - Dream Big Real Estate and Inland Empire Short Sale ProsLINKEDIN - Dream Big Real Estate and Inland Empire Short Sale ProsRSS FEED - Dream Big Real Estate and Inland Empire Short Sale Pros BlogSTUMBLE UPON - Dream Big Real Estate and Inland Empire Short Sale Pros SEND EMAIL to BRIAN BEAN @ Dream Big Real Estate and Inland Empire Short Sale Pros YAHOO PULSE - Dream Big Real Estate and Inland Empire Short Sale Pros GOOGLE BUZZ - Dream Big Real Estate and Inland Empire Short Sale ProsDIGG - Dream Big Real Estate and Inland Empire Short Sale Pros

If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours.

Henry David Thoreau

Riverside Short Sales | Short Sale vs. Foreclosure | Brian Bean and Tim Hardin | Riverside Real Estate

Riverside Short Sales | Short Sale vs. Foreclosure | Brian Bean and Tim Hardin | Riverside Real Estate

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# posted by Scott Chappell and Brian Bean @ 5:56 PM

Strategic Default vs. Short Sale | Avoid Foreclosure | Brian Bean and Tim Hardin | Riverside Short Sale Agents | Riverside Real Estate

Strategic Default vs. Short Sale | Avoid Foreclosure | Brian Bean and Tim Hardin | Riverside Short Sale Agents | Riverside Real Estate

One-third of Americans justify strategic default


In the wake of plummeting home values and government bailouts, Americans are more open to simply walk away from their underwater mortgages.

Nearly one-third of Americans said homeowners should be allowed to strategically default without repercussions, according to a recent survey commissioned by ID Analytics.

Strategic default, in which a homeowner stops making their payment even though they have the ability to pay, is frowned upon by creditors but has seen a marked increase since 2008 when housing prices went into free-fall.

Strategic Default vs. Short Sale | Avoid Foreclosure | Brian Bean & Tim Hardin | Riverside Short Sale | Riverside Real EstateID Analytics reported this week that 13 percent of those surveyed expect to strategically default on a home loan, while 17 percent said they know someone who already has. Thirty-two percent of respondents said they should be allowed to stop paying and face no consequences.

“What jumped out is how many Americans feel it is acceptable for homeowners to walk away from a mortgage and go into foreclosure,” John Zogby, senior analyst at JZ Analytics, which did the survey, said in a release. “If Americans carry on with that mindset, it will continue to cause problems as the economy undergoes a slow recovery.”

The survey offered telling reasons respondents justified strategic default:

CONSUMERS CONNED: The “mortgage market has been a scam for many years, built on false promises that took advantage of people that didn’t understand what was happening,” according to the survey.

CREDIT SCORES: Low credit scores have lost their stigma. More than one-third (36 percent) of those surveyed said damage to their FICO is now socially acceptable.

NEW CREDIT TACTICS: 17 percent of respondents said they would “exaggerate” to obtain new credit after their mortgage default.

The survey results are not surprising, considering the negative perception consumers have for big banks that received billions in assistance while homeowners endured frustrating and failed attempts to modify their loans while struggling to make payments on ballooning adjustable-rate mortgages. 

And though the American attitude of “I pay my bills” is still the moral imperative of two-thirds of Americans, an increasing number of those willing to walk away could have a major impact on the fragile economic recovery, and everyone’s home values.

MAKING INFORMED CHOICES

But simply walking away and letting a home go to foreclosure may not be the best option for homeowners who want to get back into the housing market before prices skyrocket.

Here are a few alternatives to foreclosure:

LOAN MOD: The most common loan modification available today simply reduces the interest rate and perhaps recasts the payoff period to a longer payback.

Despite what you may have been told by friends, family or neighbors, a loan mod that reduces the loan balance is unlikely for all but a few homeowners. Most will still owe the full balance on their loan, later opting for a short sale when they realize just how long it will take to reach break-even.

SHORT SALE: This option, in which a home is sold for less than the mortgage balance and the bank agrees to discount the payoff, has become the dominant type of sale in the Inland Empire.

A short sale allows a homeowner to escape a financial nightmare on their own terms, is less damaging to a consumer’s credit history, and it allows them to return to the housing market as a buyer more quickly, presumably before home prices again shoot through the roof.

Short sales in recent years have lost their stigma as hundreds of thousands of homeowners have used it as the best solution to avoid foreclosure. Banks responded by creating massive departments and streamlining the process. Why? Because they net 12 percent to 25 percent more money in a short sale than a foreclosure.

Is it any wonder why banks prefer a short sale over foreclosure?

LEASE-BACK: This year, some homeowners are opting for a short sale in which they can stay in the home and perhaps even repurchase the property three years later.

The Short Sale Lease-Back Program, which was introduced earlier this year, has become a popular option, though not everyone can qualify.

In the program, the homeowner completes a short sale to a qualified non-profit organization with the intent to lease the home for three years and then buy it back at a predetermined price, presumably less than they currently owe on the home. 

Candidates must have sufficient income to pay fair-market rent and many parties must say “yes” to the deal.

Any of these solutions can be more advantageous for a homeowner than simply walking away from a home. Want to know if you qualify for any of these programs? Call us today at 951-778-9700 to make an appointment for an interview.

(Brian Bean and Timothy Hardin are Default Advocates and owners of Dream Big Real Estate. They can be reached directly at Brian@DreamBigRealEstate.com or 951-778-9700.)

Brian Bean and Timothy Hardin 
Licensed Default Advocates 
DRE Lic #01889132 
Info@DreamBigRealEstate.com

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Strategic Default vs. Short Sale | Avoid Foreclosure | Brian Bean & Tim Hardin | Riverside Short Sale | Riverside Real Estate

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# posted by Scott Chappell and Brian Bean @ 5:51 PM


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