The Stats Are Out--The Market Is Dead. Or is it?
Yesterday, everywhere I turned, I was either looking at or hearing a news story about how homes sales plunged 27% nationwide to the lowest number on record. Wait, weren’t we in a housing recovery just a couple months ago? Weren’t we officially out of the recession? Is the media not telling the whole story?
Well, before you go jump off a cliff, let’s see what that really means:
Homes sales fell 27% nationwide… From June to July. There are three problems here:
So why the big real estate market “crash” last month? IT’S THE TAX CREDIT, pure and simple. Take large numbers of buyers who would have purchased in July and August, and convince them to purchase a couple months earlier to benefit from the $8,000 tax credit. This causes May and June sales to spike. What would you expect for July?
Now cheer up and go buy a house before everyone figures out that the market isn’t dead.
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Authored by David Monroe, Real Estate Agent and Short Sale Specialist
The Home4Investment Team at Keller Williams Seattle Metro West
Phone: (206) 905-8590
Have you stopped making your mortgage payments? Are you considering it? If you’re just considering it and haven’t already stopped, read the post, Should You Stop Making Your Mortgage Payments?
If you have stopped making your mortgage payments, either because you can no longer afford to pay or for some other reason, here’s what you can expect:
First Mortgage
First mortgage lenders are typically much easier to deal with if you fall behind on your payments. They typically won’t harass you by phone, but they’re likely to fill up your mailbox with letters reminding you that have haven’t made your payment.
If you speak to your first mortgage lender on the phone, they usually won’t use high-pressure collection tactics. That doesn’t mean they won’t ask for a payment, but the collection effort over the phone is not likely to go past that level. They will make a lot of effort to determine if there’s a way to bring the loan out of default status by offering a loan modification, payment moratorium, or some other workout solution. However, these workout solutions are rarely successful, since most borrowers just get lost in the system.
This low-pressure collection strategy may not apply if your loan was sold off to someone that specializes in purchasing loans that are in default for pennies on the dollar.
Second Mortgage
If you stop making payments on your second mortgage, this can create a bit more of a challenge. Not only will the second mortgage lender fill up your mailbox with threatening letters, your phone is likely to ring off the hook as well.
I put second mortgage lenders in the same collection category as credit card collectors. Second mortgage lenders have a lot more to lose, especially if the first mortgage lender forecloses. Therefore, they tend to use high-pressure, threatening, and sometimes unethical collection practices. They may try to contact you at work or they may try to contact your relatives, although you can request in writing that they not do this.
They may lie to you. They may tell you that they won’t approve a short sale or loan modification if you’re behind on your payments. This is not true. If you challenge something that they tell you and they offer to have you talk to their supervisor to confirm, don’t take the bait. Their “supervisor” is most likely just the collector in the cubicle next to them.
Letters In The Mail
During the first 90 days or so, your mailbox is going to fill up with letters from your lender. They may start out friendly, offering lots of options and telling you how much they want to help you, then they will start getting more threatening. Usually around the 60 day mark, they’ll send letters by certified mail as well. They’ll use terms like “Acceleration Warning”, “Notice of Intent to Foreclose”, “accelerate the maturity of the loan”, “declare all sums immediately due and payable”, “commence foreclosure proceedings”, “take legal action”, etc. They're trying to get your attention. Just remember that no matter what they say, there are specific procedures and timelines that they must follow (see Foreclosure Process and Timelines in Washington State).
Two Notices To Take Seriously
If you’re receiving so much correspondence from your lender that you’ve given up even opening your mail, there are two letters (or notices) that you should pay particular attention to. The first one is the “Notice of Default”. This will usually be sent by regular mail, certified mail, as well as a hand-delivered copy (usually taped to your front door if you’re not home). This notice warns you that the bank may start the foreclosure process if you don’t cure the default within 30 days.
The second notice is the “Notice of Trustee's Sale”, which is sent 30 days or more after the Notice of Default. Like the Notice of Default, this notice is also sent by regular mail, certified mail, and hand-delivered. This notice means the bank has scheduled the foreclosure auction for your property. The foreclosure auction will be at least 90 days from the date of the notice. The bank has the ability to postpone the auction at their discretion if you’re in the process of a short sale, loan modification, or some other workout option.
As always, if you’re concerned about your legal rights or legal implications, you should consult with an attorney.
This is just a brief overview of what to expect, and it may differ slightly from lender to lender. Feel free to share your experiences.
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Authored by David Monroe, Real Estate Agent and Short Sale Specialist
Access Seattle area short sale help and foreclosure resources including selling in foreclosure, and 8 Ways to Avoid or Stop Foreclosure.
Considering a short sale? Check out this Short Sale FAQ first.
Copyright (c) 2010 by David Monroe (Keller Williams Seattle Metro West)
The Highlands - Quality Suburban Living In Snohomish, Washington
Just 10 minutes northeast of downtown Mill Creek is a master planned community called The Highlands, with nearly 400 homes spread throughout rolling hills--many with views of the North Cascades. Seven community parks, a soccer field, and walking trails are scattered throughout The Highlands, creating an exceptional suburban living experience.
The Highlands went from concept to construction in 1998, with the final homes completed in 2001. House sizes range from approximately 1,300 square feet to over 3,100 square feet, and most of the lots range from around 3,500 square feet to over 10,000 square feet. Over the last year, selling prices for houses in The Highlands have ranged from the mid $200's to the upper $400's, although short sales in the neighborhood have been putting some slight downward pressure on prices.
A half mile south of The Highlands is Willis Tucker Park, an 84-acre park with an activity center, basketball court, baseball fields, amphitheater, 4.5 acre off-leash dog area, picnic shelters, playground, water park, and walking trails. During the summer, local residents gather at the amphitheater on Thursday nights for a park-hosted movie night, and on sunny summer days, the water park is buzzing with activity as children experience the cooling effects of the Tricky Soaker, Silverflow Cannon, Aqua Dome, Water Jelly, Aqua Jumper, Power Spinner, Power Volcano, Water Domes, and Splash Palace. If you have a dog, the off-leash dog park is a great place to exercise your dog, and there's even a separate "shy dog" area for dogs that are bit more timid.
A half mile from The Highlands is the newly renovated Mill Creek Family YMCA. With over 39,000 square feet of state-of-the-art facility space and all new equipment, this YMCA branch is one of the nicest in the area.
The Highlands is also within a mile of the new Glacier Peak High School, Valley View Middle School, and Little Cedars Elementary School.
View Larger Map
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Authored by David Monroe, Realtor and Pre-Foreclosure and Short Sale Specialist.
Considering a short sale? Check out this Short Sale FAQ first.
Copyright (c) 2010 by David Monroe (Home4Investment Team at Keller Williams Seattle Metro West).
MonteVista Community in Snohomish, Washington
Less than a mile from MonteVista is Willis Tucker Park, an 84-acre park with an activity center, amphitheater, baseball fields, basketball court, 4.5 acre off-leash dog area, picnic shelters, playground, water park, and walking trails. During the summer, the park hosts a movie night at the amphitheater each week, and on sunny summer days, the water park is buzzing with activity as children experience the Tricky Soaker, Silverflow Cannon, Aqua Dome, Water Jelly, Aqua Jumper, Power Spinner, Power Volcano, Water Domes, and Splash Palace. If you have a dog, the off-leash dog park is a great place to exercise your dog. There's even a "shy dog" area separated from the main dog park for dogs that are bit more timid.
Exceptional Homes In Willow Creek - Snohomish, Washington
The 176 homes in Willow Creek were built between 2003 and 2005. House sizes range from approximately 2,200 square feet to over 3,300 square feet, and the lots are larger than most newer construction in the area, averaging around 8,000 square feet. Over the last year, selling prices for houses in Willow Creek have ranged from the mid $300's to the upper $400's, although short sales in the neighborhood are putting downward pressure on prices.
Real estate agent specializing in short sales and other difficult home sale situations, including foreclosure, bankruptcy, probate, estate, divorce, no equity, fixers, and more.
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