Elva Branson-Lee, CDPE

Becoming a Certified Distressed Property Expert has given me a new perspective. And I'm not complaining. That's the way it has to be.  

Whereas a few years ago I led what I thought was a normal and balanced life, I now realize it was a sheltered life. Now, the work I've chosen requires that I put in long hours and sometimes seven days per week to help as many people as I can and stay on top of my game. Why? Because there are so many people who need what I've got to give.

This challenging real estate market demands that I keep learning and growing professionally day-by-day. Look arouond you. The ground rules of the game have changed drastically, and if I want to stay in it, I MUST spend the tdevelop the knowledge and skills needed now. The still growing number of Georgians losing their homes to foreclosure requires a new breed of real estate professionals  -- short sales specialists with up-to-the-minute knowledge,  expertise born of experience, a finely-honed skill set and one aim in mind -- helping home owners in trouble.  

Every Successful Pre-Foreclosure Sale that I can help make happen in my south metro Atlanta real estate market will help tame the tidal wave of declining home values in Georgia by preventing more foreclosures.   

And that's why I work as hard as I do. I get a rush every time I help a homeowner through a successful short sales process. Every pre-foreclosure sale is a successful sale, because it prevents bank foreclosure.  

Do you know that nearly half of all the homes currently listed on the Georgia MLS are either foreclosures or pre-foreclosure sales? That's why I am on a mission to get this word out and assist as many homeowners as I possibly can to avoid foreclosure through pre-foreclosure sale.  I know how to help make this happen. I've invested extensive time, effort and expense to learn everything I can about the Georgia foreclosure process and how to prevent it. Consequently, I have become an expert at assisting people in distressed property situations. 

I can help you, too. Contact me today.

Q. - What Is Lien Priority and How Does It Effect Me?

A. - To explain this as simply as possible, lien priority is the position of one lien over another, which determines which gets paid first in a payoff, AND it is based on when things get recorded.

Surprised? Many people think that lien priority is based on which loan is the for the largest amount.

Well, not exactly.

When you buy a home and get a loan for the home, the lender puts a lien on the property. In this way, the property becomes collateral for the loan. So, in the event the homeowner is unable to make payments, the lender can force the sale of the home to get paid. There can be several liens at one time on a single property.

Except for tax liens which take precedence over any other lien, all other liens are prioritized according to when they were recorded. Every home owner should be aware that non-payment of taxes is one more way they can lose their property to foreclosure.

But, barring a tax lien, whoever records first would be in "Senior" position and any other liens -- as with a second mortgage, a Home Equity Line of Credit used for home improvement, or any judgments against the homeowners -- would be in "Junior" positions according to when they were filed.

Buying a Short Sale Bargain?

Pt. 1. - It Takes TIME! Get Your Expectations Set Right From the Beginning.

So, you think you've hit the jackpot! You've found the perfect bargain property. It's a short-sale, a lovely owner-occupied residential property in a great Georgia neighborhood. It's been clearly been lovingly cared-for by its occupants and is now being marketed for well under what the current owners paid (and probably still owe) on it. You've done your research, made your offer and the seller has accepted it. Yay! Well.... maybe. Snagging a real estate bargain usually requires some trade-offs, so don't start celebrating too soon.

You may be making a smaller dollar investment, but don't forget to

...consider the larger investment you will have to make in TIME.

The thing you must remember as a short sale buyer in Georgia is that -- it's not really going to be a SHORT sale, at least not as far as time is concerned. For, while you may have a meeting of the minds and binding agreement with the sellers, you don't have a doable deal until the sellers' lender approves. And that can take considerably longer than a "regular" transaction.

Sometimes the process takes several months, and the buyer should be made aware of this at the start.

Unfortunately, many short sales will "fall out" before the approval comes, because the buyers weren't prepared for the wait. A general rule of thumb is, the larger the lender, the longer the process. Consider that large lenders have more loans out there. So, a single processor may have hundreds of files on his or her desk at one time. According to reports I've heard, they are only expected or required to successfully process thirty or so of these per month. So.... it could be a long time before yours finds its way into their hands for review and approval.

So... you wait.

And wait. And wait some more.

Plan ahead for the time it will take. Be sure that your current housing arrangements and your budget will accommodate the possible delays. Beyond being extremely frustrating for all involved, the wait can also be costly.

For one thing, if prices are still declining in your neighborhood of choice, the price you agreed to six months ago may be too high to appraise by the time the approval comes through. This is usually okay with the buyer, but sometimes not so with the lender, who has the right to refuse the lower price.

Or, what if prices start inching up? What if the lender counters at a slightly higher price? Are you prepared for further negotiations, or an increased monthly payment?

For another thing, you may qualify for a loan now, but what if it stretches out for several more months? You'll probably have to re-qualify if negotiations go beyond the 90-day typical pre-qualification period. What if mortgage interest rates or your personal credit picture have changed by then?

So, be prepared for the time it is going to take and the adjustments you may have to make when buying a short sale. If you can hang in there and handle these variables, you can indeed snag the deal of a lifetime. THEN, when it's closed, you'll have good reason to break out the champagne!

Breaking News - CNBC report 02/18/2010

Is anything Really Working?

Is the federal government really getting out of the mortgage market at the end of March?

If the housing programs have so far only helped 12% of those affected, should the government actually get out of housing altogether and let the floor fall where it may, as some are suggesting?

These are the kinds of questions that have so many in our industry buzzing. Yesterday the conversation continued on a CNBC newscast, The Road to Recovery.

What do you think? Is housing getting better?

Has the government helped housing at all? Have foreclosure rates been artificially delayed as so many short sale and REO designation sellers keep claiming?

Are the programs working, or helping homeowners, or housing prices, or housing demand? Are they "making homes affordable"? And is so-called "strategic default" a viable option in the bigger picture?

Okay, this is what I get for being a Smart Alec last week, and teasing my northern neighbors about their weather.

Retribution!

I found myself snowbound in the sunny south this weekend. Won't be firing up that grill on my little patio today! My poor bamboo was pratically bent down to the ground with the weight of the snow.

These photos were taken from the inside looking out, (of course). The whole town of metro Atlanta was practically shut down for this inch or so of snow!

Well, it WAS pretty, even if it didn't last long. In the few years that I've been here, this is the most snow I've seen. Most of that time, there has in fact been a drought. So I won't complain about the current precipitation.

Anyhow, we still didn't get as much of the white stuff as my friends in Pittsburgh!