These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of Most of us grew up thinking that if we planned well
Connecticut home owners who were foreclosed on or who are currently underwater on their mortgages from the 5 banks who were accused of robo-signing documents are now eligible for some monetary help from
Finally! As part of the foreclosure settlement between the five major banks and the attorney generals these lenders are now required to adhere to short sale deadlines or be penalized. The deadline
As part of the $26 billion settlement involving 5 major banks, Bank of America has announced that it will trim up to $100K off the principal of around 200,000 home owners who are underwater. To be eligible,
Looks like the banks are going to pay! A group of attorney generals including our state's, George Jepsen, has been negotiating a settlement with 5 big banks to pay homeowners who are victims from these
I'm now a CDPE ( certified distressed property expert. I have the opportunity to be an advocate for families that need a professional, knowledgeable agent who can help them with the issues they are
Most of the nation's largest metropolitan areas are seeing a sharp drop in foreclosure activity as banks take longer to move against homeowners behind on their mortgage payments. In the first half of
Here's an update on Connecticut's foreclosure activity for the first half of 2011 according to RealtyTrac. Please, note what the last paragraph states as it is believed that nationwide over 1 million
Looking for a deal where the home seller pledges in advance to contribute potentially thousands of dollars to your closing costs? If so, check out the summer sale terms available from two of the largest
Please note HUD foreclosure properties are listed on http://www.ruspinirealty.com as well as the local mls. Not all agents can sell them. The brokerage have to be registered with HUD and have a NAID# to sell
You must be referring to a short sale property if it is in pre-foreclosure. I suggest that you hire an experienced agent in the area to assist you in finding additional information about the property and how the short sale process works. I would be happy to assist you since I have experience in short sales and have had numerous transactions selling homes in Stamford. Please, feel free to contact me with the property address as I would welcome the opportunity to find out more information on the home for you and explain how short sales work.
Prudential Connecticut Realty... more
The economy is improving overall and, as a result, some bright spots are showing up in the real-estate market. However, the foreclosure spike, which began around the same time the recession did, isn’t
According to Realty Trac's report of foreclosure filings for the month of January 2011, Connecticut ranked #39; one of the lowest in the country. Massachusetts ranked #40 and the state of Vermont has
Interesting article from House Hunt magazine with WalletPop's predictions for the 2011 housing market and how foreclosures will be affecting values. It does stress that real estate activity needs to be
When purchasing a property many buyers, and particularly first time buyers, want to know what their closing costs will be. The National Association of REALTORS® offers you a guide on what to expect.
My company specializes in buyer representation in Stamford CT, and we can assist you in buying a foreclosure or short-sale. Please visit our website for more information and to view listings. Please feel free to contact me at your convenience once you're ready to view properties.
CT Licensee, Broker
Modern Edge Realty
810 Bedford St. Suite 4
Stamford, CT 06901
On a preforeclosure, you're either talking about a short sale (if the value of the house isn't enough to repay the mortgage and other expenses of selling), or simply a purchase (if there's sufficient equity to cover amounts owed).
Let's take a short sale. Person owes $500,000, but the house is only worth $450,000, and the person can't afford to sell his house and come up with an additional $50,000 in cash...plus the commission...plus back interest, penalties, etc. In that case, you make an offer. Maybe $450,000...maybe $350,000. Doesn't matter. The lender has a short sale "package"--a number of items that must be completed by the seller. Often, it includes a couple of years of past income tax returns, a listing of assets and liabilities, a requirement for a "hardship letter," and more. Your offer is one component of the entire package. The package--your contract, hardship letter, tax returns, etc.--is sent to the lender, who decides whether to eat the loss and allow you to purchase the property. It can be a long and uncertain process.
Now, if there's enough equity in the property, the process is much different. To use the same basic example, let's say the house is worth $450,000, and the owner owes $200,000. But maybe the owner lost his job and couldn't make the payments...or he got sick...or he bought another house thinking he could sell the old one. You get the idea. So the owner owes $200,000, plus back payments, penalties, attorneys fees, etc. Let's say the grand total is $230,000. Make an offer for any number between $450,000 and $230,000. Say $300,000. It's just like a normal purchase. $230,000 of that would go to pay off the existing mortgage, plus back payments, penalties, etc. Then, if there's a real estate agent, there'd be the agent's commission. Whatever's left--$70,000 minus commission, if there is one--would go to the owner. And you'd have bought a $450,000 house for $300,000.
In the case where there's equity in the property, the question is whether the seller will accept your offer. At one extreme, the seller may want to hold out for the full $450,000, or close to that. A lot of them do. Many of those do get foreclosed upon. At the other extreme, some investors buy the house for just what's owed on it--in our example, $230,000. Or, some investors will acquire the house doing a "subject to." The owner in preforeclosure deeds the property over to the investor, who promises to clear up any arrearages and to continue making the payments on the property. The mortgage itself remains in the seller's name, although the property itself is now owned by the investor. The investor's out-of-pocket cost, in this example, is the $30,000 it takes to clear up the arrearages and bring the mortgage current. The investor may give the seller some additional cash. At some point in the future, the investor sells the property and the $200,000 mortgage is paid off. The investor keeps the remainder.
Certain states--Maryland, for instance--has laws governing purchases of properties in certain states of pre-foreclosure. Make sure you're in compliance with those laws, if your state has them.
Hope that helps.... more