Brady Howard Chesapeake and Portsmouth Realty Pro

This was in "RISMEDIA" this morning. It's just the link but can be passed on to clients and friends. It still sounds better than it is. Most of the people who are upside down in there property are way above 5% so it doesn't help them. I don't think it's punishment either way but when someone is that upside down and there having problems with making the payments it might be time to take the loss.

1. Of the people who have been saved in the last year it is my understanding that most of them are already in trouble again.

2. If your upside down and the bank reduces your payment by giving you a 40 year loan (which I think they would do before taking a loss off the top) your going to be WAY upside down.

3. From a lender stand point, and I'm no lender. I would think that the cost of the foreclosure would more than make up for the difference when you look at the economic side of the loan. If you foreclose you might lose 40%, if you take a hit up front and then extend the term to 40 years what is that money going to be worth to you in the end, not much I would think.

Just my thoughts on it. I will continue trying to help every one out because no matter what in 5 years were going to look back with wise eyes and carry on.

Brady

New Forclosure plan out

This is from the Washington Post and I just wanted to pass it along in case someone has military clients out there that are in a less densely populated military area. The economic stimulus package has a $555 million provision to help military members who are required to relocate. You had to purchase your home before July 1st, 2006 to qualify but most people who are getting ready to relocate this year should fit into qualify.

Best of luck out there to all you hard charging stay in the game Realtors.

here is the link, I didn't want to copy right anyone.

Military Families

I have been working with many sellers who owe more than their house is worth. I want to clear up a couple things, the market is what it is.

1. What your neighbor sold his house for 2 years ago has no influence on what your house is worth now.

2. What you paid for your house 2 years ago has no influence on what your house is worth now.

3. The improvements you did to your house in the last couple years make it more appealing right now, but not worth more than your neighbors.

Now that everyone is upset. Let’s get down to the nitty gritty. If you have to sell your home you can.

1. Conventional sale, you market the house at fair market value, hopefully cheaper than others in your neighborhood so you have the most value for the buck. At closing you have enough equity to pay your closing cost, Realtor Fees, and in this market most likely the closing cost of the buyers.

You walk away with less than you would have a couple years ago but when you go to buy your next house you score!!!! You pay much less than you would have ever expected to pay for the house you’re buying and the sellers are most likely going to pay your closing cost. Now the best part, you probably had an interest rate that was substantially higher than the new rate you’re going to get on your discounted home!

2. Bringing money to the table, you market the house at fair market value, hopefully cheaper than others in your neighborhood so you have the most value for the buck. You were smart and saved for a rainy day, well it’s here and in order to walk away you have to bring money to the table to pay the difference between what you owe and what’s required to close the deal.

This hurts but you will still be fine, your savings is down some and you didn't make any money off your house. The next will be discounted, you won't have to pay closing cost, and your interest rate will be lower than before.

3. Short Sale, this is not the worst case but pretty painful. You’re upside down in your house, like being upside down in a car except you can't trade it in and roll the negative equity into your new loan.

In this scenario you will not be receiving any money back at closing and you don't have any money in the bank to make up the difference. There are other factors like your ability to maintain the property, I.E. job loss, military transfer, divorce, reduction in pay, and many others. This will have a negative effect on your credit as you will most likely become 30-60-90 late possibly more.

The key here is to start negotiating with the bank as soon as possible in order to avoid foreclosure. The bank doesn't want your house and you don't want a foreclosure on your credit. This is a long process but I have been working with people and we are ironing it out, keeping it simple and methodical. The process works but you have to work with us.

There is a good side to this, you won't need to file for bankruptcy, and you won't have a foreclosure on your record and in about a year if you keep your credit clean you should be able to buy again at the same good rates as everyone else.

4. You let your home go into foreclosure. This is the worst, it is much worse than a bankruptcy and you shouldn't expect to be able to buy a home for at least 7-10 years again. This should be avoided period

There are other ways to save your credit, you can file for bankruptcy and depending on your financial situation at the time you could include your property in the bankruptcy and it will be discharged. This will keep you from getting a foreclosure on your record but you will still lose your home. There is a lot of talk about programs that will keep you from losing your property but in most cases you will need to have good credit, have the ability to make the payments, and be financially sound.

No matter where you are if you have any questions please call anytime.

Brady Howard

Short Sales are like Beacon credit scores to most people. They know what it is, some even have a really good idea of how it works, but it's still a mystery. I would like to say that the banks are trying to keep it a big secret, but I'm sure that's not the case. Last year Loss Mitigation was one of the fastest growing job markets in the world, which should surprise to no one. Think of the amount of training required and the learning curve these institutions are going through.

As Realtors, and consumers, both sellers and buyers, we need to understand this and be patient. Frustation leads to negativity, and negativity leads to your file going back to the bottom of the pile.

I am not a loss mitigation specialist, nor would I want the job of deciding the fate of a homeowner, but I am a very experienced short sale Realtor, with numerous successes. My business is helping people to become whole again, detaching ones emotional pride from the outcome.

If your in the Hampton Roads area and have questions, please call. If you think your going to lose your home, please call. Most importantly if you want to sleep at night knowing that the situation your in isn't all your fault, please call. Most people who go through the process of losing a home are the same. They are hard working and come from all classes. It effects low income to high income, warehouse workers, factory workers, blue collar, white collar, bankers, lawyers, and doctors. Most of these people try everything, they pay their bills with credit cards, they borrow from family and friends, they take pay advances, they work two jobs, and take all the overtime they can get. They whittle their 401K's to nothing, they spend their kids college fund; they try.

No one is to blame fully, It is Capitalism, not bad, just a cycle, we go up, we go down. It effects society and it effects every individual, so try and sleep tonight knowing that your not alone, and tomorrow instead of letting it consume your every thought do something about it. Talk to a professional who will give you their time for free. Lawyers, Consumer Credit Counseling and Realtors will all help, and they hold what you say in confidentiality.

If you are in Hampton Roads you can reach me any time.

Brady Howard

Broker Associate, Keller Williams Elite Realtors

Short Sale Specialist

757-635-2516

bradyhoward@kw.com

Visual Tour of Sterling Point Portsmouth VA Sterling Point is the most beautiful neighborhood in Portsmouth VA. Developed in the 1950's it was made up of Green Acres 1 and Green Acres 2. One of the first high end Waterfront communities in S.E. Virginia. Sterling Point today is the Safest, most Park like setting in the area! Across the street from the new library, the YMCA, shopping, restaurants, medical offices and hospitals, and the cultural centers of Norfolk. Convenient to military bases via 164, 664, 64, and 264. 30 minutes from the ocean front. For more information on this neighborhood or anywhere in Hampton Roads; Brady Howard Keller Williams Elite Realtors 757-635-2516 bradyhoward@kw.com