Rock Realty Blog » foreclosure

Opportunity v.s. Deal Properties

RockREI — Sat, 05 Jun 2010 03:52:50 +0000

During my SFR designation course the instructor explained the difference between opportunity properties and deal properties. There is a difference in the approach, and it is important the buyer understands the difference.

Opportunity properties are those less than 30 days on the market and are in move-in condition. They are usually priced to sell just below market value. The opportunity is a good property at close to market value. Deal properties are those that have been on the market for a while in less than perfect condition. They will sell for well under market value, but the buyer will usually have to put money in to get it to move-in condition. Buyers should know the difference when they first start looking. The choice is simple. Do you want a house that doesn’t need work, but at a closer to market price or a fixer upper at a great deal.

What do you think? Have you seen example of these types of properties?

Regards,
Michael Collins – Broker
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

Factors Contributing To The Rise In Foreclosures

RockREI — Thu, 03 Jun 2010 21:23:43 +0000

Some experts believe home loan delinquencies will peak during the middle of 2010. The reasons given are unemployment still at high levels, number of mortgages 90+ days late are rising, and Alt-A & Option-Arm loans are set to reset in high numbers. There are many factors contributing to default, but mainly we can focus on 4 reasons.

1) The first is predatory lending which was common place for many years. This refers to approved loans given to buyers without the necessary financial resources to pay on the debt and loan originators who failed to inform the buyers of factors such as ajustable mortgage rates.

2) The second is increased debt of homeowners. Many people make the mistake of maxing their credit cards and other lines of credit including home equity. The banks share in this fault by appraising homes far above their actual value. These debts accumulate and create monthly payments beyond what the homeowner can afford.

3) The third is unemployment. This one is easy to understand. We all know someone who has lost their job recently. Unemployment insurance is often not sufficient to compensate for lost wages, and bills start to be missed.

4) Finally, declining home prices exaserbate the situation. This is more of an effecto of the other 3 factors. When banks take back property they often have to sell at deep discounts. These sales are factored into future appraisals of comparable properties bringing the entire market down.

What other factors do you see? Please comment.

Protect your Credit, Contact your Bank

RockREI — Thu, 03 Jun 2010 21:13:37 +0000

I have recently received my Short Sale Foreclosure Resource (SFR) designation through the NAR. Part of the requirement was to take a core course, 3 webinars and pass an exam. There are many great tools, resources and advice available for those upside down on their mortgage. An important point most advised was for distressed homeowners to contact their bank even before missed payments.

It is estimated 50% who are going into foreclosure never call their loan servicer. That means about half never find out other options available. It is worth the effort to speak with a bank representative. Lenders have been responding to the word “immanent” when homeowners contact them. If at all possible seek a loan modification or refinance a.s.a.p.

I strongly urge any homeowner approaching trouble with their mortgage to contact their lender. It is important to find out all your options. As always I strongly advise to seek legal counsel as well as credit counseling. You can find valuable resources at www.HUD.gov

Escape Foreclosure! Call Rock Realty for all of your short sale needs.

RockREI — Sat, 28 Feb 2009 00:30:21 +0000

WORRIED ABOUT FORECLOSURE?

We want you to realize that your situation is not hopeless, regardless of what you might be thinking or may have been told by others. Your lender is not looking for an excuse to foreclose. The truth is most lenders would rather have you keep your home and keep making payments each month. You are not alone. Thousands of people across Wisconsin have similar issues with their mortgages every year.

The most important key to resolving your situation is being proactive. Even if your mortgage payments are just a few months behind, your lender has probably already started foreclosure proceedings against you. Doing nothing is the fast track to foreclosure. Thousands of dollars in penalties and legal fees may be added to your balance due. The longer you wait, the harder it is for us keep foreclosure off of your records.

WHAT IS A SHORT SALE?

You may have heard of a transaction called a short sale. This is just one tool that Rock Realty uses to help home owners keep foreclosure off of their credit. With a short sale, sellers avoid having to go through a lengthy foreclosure process and prevent the impact of a foreclosure on their credit score.

A short sale occurs when a lender agrees to take less than the amount owed to payoff a loan as an alternative to foreclosure. Lenders know that it will cost them a significant amount of money to take a property back. We can often convince them that they will be better off financially if they sell the property now rather than taking the home through foreclosure and trying to sell it later. So, a short sale can actually be good for them.

WE CAN HELP!

Our first priority is to help homeowners overcome the obstacles that could result in the loss of their home. We specialize in helping homeowners who have fallen behind on their mortgage payments. We’ve helped people in Dane County and Rock County. You deserve a fresh start. If you are facing the possibility of foreclosure and you live in South-Central Wisconsin, we can help you.

The first step is looking through our FRESH START PACKET.