Agents Heaven - Real Estate Blog

Must Read Tips: 4 Ways To Avoid Foreclosure

While I’d like to focus this blog more on the positive and on purchasing and selling homes, I can’t ignore the F-word… FORECLOSURE! Now, there’s a lot of chicken little “the sky is falling” noise going on in the media over the mortgage/foreclosure situation that continues to slow down the previously surging real estate market, but the one thing to remember is that in most cases these foreclosures could have been avoided, and the root of the problem was too many folks buying something they couldn’t afford, often with adjustable rate mortgages.

You may or may not be one of those people who jumped in with their feet (and empty wallet) first, but if you are concerned about home foreclosure (however you got to this point), David Faulker offers some priceless advice on ways to avoid foreclosing on your property. Yes, though it’s not easy, it is possible to avoid the benefits to your credit and the rest of your life going forward are immeasurable.

4 Ways To Avoid Foreclosure by David FaulknerAny one of us can hit the financial wall at any time, and without warning. But even if the loss of a job or unforeseen medical bills or other emergency have exhausted your financial resources, those to whom you owe money, including your mortgage holder, still expect to receive their scheduled payments.

If you have failed to pay your monthly mortgage payment for long enough, your bank or lender may have presented you with a notice of foreclosure. But if you know you are going to have difficulty meeting your mortgage payments, there are some steps you can take to try and avoid foreclosure.

Special Forbearance

If you know your financial shortfall is only short-term, speak to your lender about having your monthly mortgage payments lowered until you are back on your feet. If you can provide sufficient evidence that in a reasonable amount of time you will be able to resume your regular schedule of payment, your lender may allow you to a void foreclosure by catching up on the amount you have missed. This process is called Special Forbearance.

Use Your Equity To Refinance

If you’ve lived in your home and made enough mortgage payments to have built up a sizable amount of equity, which is the amount of money for which your home has been appraised minus the balance you have remaining on your mortgage, you may be able to refinance your mortgage. You can get the cash equivalent of your home equity, use it to avoid foreclosure by paying off your existing mortgage, and perhaps even negotiate lower interest rates and lower monthly payments on your new loan.

Look For A Loan

If you haven’t lived in your home long enough to build any appreciable equity, and your credit rating has not been lowered because of missed home payments, you may be able to avoid foreclosure by borrowing the money to pay off your default. You can look for a conventional lender, or perhaps get help from family or friends. But if you are going to get help from a conventional lender to avoid foreclosure, you should do it at the first sign that you will have difficulty meeting your mortgage payments, so that your credit record remains intact.

Sell Your Home Yourself

If all else fails, you avoid foreclosure by beating your mortgage holder to the punch by selling your home before it goes into full foreclosure. While you will have to give up you home, and may not realize any cash from the sale, you will have managed to avoid foreclosure, saved your credit rating, and can look for a mortgage on a new home with a price within your budget. As long as you make your payments on your new home as scheduled, you need never fear the stigma of foreclosure and you should have a solid financial future.

You can also find more info on auction foreclosure and real estate investors. Foreclosureshomeguide.com is a comprehensive resource to get help about property Foreclosures.

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Tags: foreclosure, real estate foreclosure, home foreclosure, foreclosed, the sky is falling, foreclosed homes, foreclosure crisis, mortgage foreclosure, foreclosing, mortgages, mortgage crisis

Attention First Time Home Buyers - Choose A Realtor Wisely

Veteran Nashville real estate broker Pam Rumley has written an excellent article on what to look for in a Realtor, and I highly recommend first time home buyers or otherwise inexperienced home buyers give it a read, as choosing a Realtor is one of the most important decisions a person makes and it’s easy to overlook many of the considerations Pam talks about. Even experienced home buyers could benefit from Pam’s advice, because many of her points are things you wouldn’t necessarily think to consider before settling on a Realtor.

Realtors - How to Find the Right One for You
By Pam Rumley

Why is it important to find the right Realtor? Because this person is going to be representing you in one of the most important transactions in your lifetime. Unless you have a huge portfolio, a home purchase will involve more money than you normally deal with. Treat this transaction with the consideration it deserves and don’t leave anything to chance!

It’s critical that you take the time to interview several different agents before making a choice. The worst thing you can possibly do is to find a home that you like…and then call the Realtor who has their name and number on the yard sign! In the first place, this Realtor is representing the seller of that property…and you should have your own representation. Secondly, you don’t know this agent’s personality or work ethic. You don’t know the scope of services they offer…or their background.

Before you start looking for a home, it’s vital that you talk to different agents until you find one that is a good match for your personality. Find answers to these questions:

• What services do they offer to homebuyers? Do they offer total representation, or has their broker “designated” them to work with you? Will they be available to “preview” homes for you in case you can’t be there?
• What is their experience level? The search for your new home is a journey, sometimes encountering problems that you don’t anticipate. An experienced agent has likely run across more issues than an inexperienced agent…and can head-off many problems before they take root and grow.
• Does this person smoke (or have a problem with people who do)? This can quickly become a problem because you’re likely to be spending a lot of time with them. And even if they don’t smoke in the car, the smell might bother you. Or vice versa. If you smoke, it might be a bother to them. And don’t forget a problem just as bad…perfume! Many people are allergic to perfume…and can’t stand the odor. These are odd questions, but I see them come up more often than you would think!
• Do you get the feeling that this person is “pushy”? Or just trying to make a sale? If the Realtor seems pushy to you, you might wonder if they are pushy to others. Will they possibly antagonize the sellers or their agents in an attempt to negotiate for you? You will surely want a strong negotiator, but there is a fine line between effective negotiation and causing negative feelings with people involved in the other side of the transaction. When sellers feel pushed or insulted, most negotiation stops right then and there!
• Does this agent have strong political or religious views that you don’t agree with? Often, when spending several hours at a time in the car…these issues can come up and cause a conflict between the agent and their clients. I’ve had more than one person call me and say that they’re looking for a new agent because they are being “preached to”. And, it can be very offensive behavior.

These are just a few ideas to think about. Your relationship with a Realtor is often short-term, but can be very volatile. Even in the best of circumstances, pressures can build because there are so many chances for problems to arise. Finding the home…negotiating with the sellers and their agent…applying for a mortgage…working with a home inspector…termite letters…title searches…the list can go on and on. And problems often arise…and the way they are handled can make all the difference in whether you have a smooth or rough transaction.

You might want to ask the agent how they would handle a particular problem. Get a feel for the way this person answers the question. Are they giving you an open, honest answer or do you sense a “bristling” in their answer.

Establish the way you prefer to communicate. Do you want phone calls? And if so, what time of day is better for you? Or, would you prefer e-mails? Always make sure you understand each other.

Finding someone that you can trust and feel comfortable with does take some effort, but the resulting smooth transaction will be well worth that effort.

Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer’s Agent, which means that her office never takes listings. This fact assures that there is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time!

For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com
Be sure to check out her “Real Estate University” section, where you will find more informative articles on a variety of topics concerning homebuying.

Pam is easily reached at pam@pamrumley - so be sure to check in with her.

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