Shannon Martin

I found this information in an online article and although many of us know these steps front to back I thought it might be great information for the home seller facing the possibility of foreclosure:

Many of us have either gone through the process of foreclosure, a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property firsthand or know someone who has.

Realty Trac released its U.S. Foreclosure Market Report on April 15, 2010 for the first quarter of 2010. The report, which calculates foreclosure filings, including default notices, scheduled auctions and bank repossessions, showed that 932,234 properties were involved in the first quarter, a 7% increase from the last quarter of 2009, and a 16% increase over the first quarter of 2009. An astonishing one in every 138 U.S. housing units received a foreclosure filing during the quarter. If you (or a loved one) are facing foreclosure, make sure you understand the process. While the process does vary from state to state, there are normally six phases of a foreclosure. (Excerpt from online article http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/05/04/investopedia43902.DTL)

Phase 1: Payment Default
A payment default occurs when a borrower has missed at least one mortgage payment. The lender will send a missed payment notice indicating that they have not yet received that month's payment. Typically, mortgage payments are due on the first day of each month, and many lenders offer a grace period until the 15th of the month. After that, the lender may charge a late payment fee and send the missed payment notice.

After two payments are missed, the lender may send a Demand Letter. This is more serious than a missed payment notice; however, at this point the lender is probably still willing to work with the borrower to make arrangements for catching up on payments. The borrower would normally have to remit the late payments within 30 days or receiving the letter. (When you have a tough financial decision to make about your home, make sure you have all the information. Learn more in Fend Off Foreclosure - With Bankruptcy?)

Phase 2: Notice of Default (NOD)
A Notice of Default is sent after 90 days of missed payments. In some states, the Notice of Default is placed prominently on the home. At this point, the loan will be handed over to the lender's foreclosure department in the same county where the property is located. The borrower is informed that the Notice will be recorded. The lender will typically give the borrower another 90 days to settle the payments and reinstate the loan. This is referred to as the reinstatement period.

Phase 3: Notice of Trustee's Sale
If the loan has not been made up to date within the 90 days following the Notice of Default, a Notice of Trustee's Sale will be recorded in the county where the property is located. The lender must also publish a notice in the local newspaper for three weeks indicating that the property will be available at public auction. All owners' names will be printed in the Notice and in the newspaper, along with a legal description of the property, the property address, and when and where the sale will take place.

Phase 4: Trustee's Sale
The property is placed for public auction and will be awarded to the highest bidder who meets all of the necessary requirements. The lender (or firm representing the lender) will calculate an opening bid based on the value of the outstanding loan, any liens and any unpaid taxes, and any costs associated with the sale. Once the highest bidder has been confirmed and the Trustee's Sale is completed, a Trustee's Deed Upon Sale will be provided to the winning bidder. The property is then owned by the purchaser, who is entitled to immediate possession.

Phase 5: Real Estate Owned (REO)
If the property is not sold during the public auction, the lender will become the owner and will attempt to sell the property on its own, through a broker or with the assistance of an REO Asset Manager. These properties are often referred to as "bank-owned". The lender may remove some of the liens and other expenses in an attempt to make the property more attractive.

Phase 6: Eviction
The borrower can often stay in the home until it has sold either through a public auction or later as a REO property. At this point, an eviction notice is sent demanding that any persons vacate the premises immediately. Several days may be provided to allow the occupants sufficient time to remove any personal belongings, and then typically the local sheriff will visit the property and remove the people and any remaining belongings. Any belongings may be placed in storage and retrieved at a later date for a fee. (It's a tough choice, but some people will be forced to foreclose. Others won't. Find out which factors are likely to make the difference in Would You Walk Away From Your Home?)

The Bottom Line
Throughout the foreclosure process, many lenders will attempt to make arrangements for the borrower to get caught up on the loan and avoid a foreclosure. The obvious problem is that when a borrower cannot meet one payment, it becomes increasingly difficult to catch up on multiple payments. If there is a chance that you can catch up on payments - for instance, you just started a new job following a period of unemployment - it is worth speaking with your lender. If a foreclosure is unavoidable, knowing what to expect throughout the process can help prepare you for the six phases of foreclosure.

I came across this fabulous article this weekend in Money Magazine (May 2010.) In their REAL LIFE section Lisa Gibbs illustrates the real estate bust and how it has left many Americans struggling to ride out the tidal wave of upside down mortgages. The title of the piece "Drowning in Home Debt" is a fabulous article and I hope you get a chance to read it.

From that particular article a section caught my eye and I'd like to share it with you all:

WHAT AID IS AVAILABLE

(A spate of ferderal programs can help homeowners get out from under. Find out more at makinghomeaffordable.gov)

• FHA REFINANCE - What it will do: Refinance mortgages into FHA loans while cutting principal to 97.75% of the home's value, starting this fall. Who qualifies: Borrowers current on payments whose loans are not FHA-insured. The lender must agree to it.
• HOMEAFFORDABLE REFINANCE PROGRAM (HARP) - What it does: Refinances mortgages into loans with lower rates or better terms. Who qualifies: Up-to-date borrowers who are no more than 25% underwater and who have loans backed by Fannie or Freddie- if the lender agrees.
• HOME AFFORDABLE MODIFICATION PROGRAM (HAMP) - What it does: Changes loan terms to get payments below 31% of income. Lenders may also cut principal on homes more than 15% underwater. Who qualifies: Borrowers streuggling to make payments on loans under $729,000
• HARDEST-HIT FUND: What it will do: Give money to 10 worst-off states to design programs for struggling and underwater borrowers. Who qualifies: Details aren't out yet. Watch financialstability.gov for info.

I just received the following information directly from Fannie Mae via email:

3.5% Closing Cost Assistance and Appliance Incentive Extended Through June 30, 2010

Fannie Mae is extending the 3.5% incentive for homebuyers who purchase and close on a Fannie Mae-owned home by June 30, 2010. Buyers purchasing properties listed on HomePath.com will continue to be offered an incentive of up to 3.5% of the final sales price to be used towards one of the following: Closing costs The purchase of new Whirlpool® appliances A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%. Eligibility To be eligible for this incentive: Property sale must close on or before June 30, 2010 Buyer must be an owner-occupant (second homes are eligible as long as they are owner-occupied) -- investors are excluded The incentive reinforces Fannie Mae's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit HomePath.com, read the press release or contact a Fannie Mae listing broker.

I'm not sure how many of you are familiar with Hudson & Marshall Real Estate Auctions, but I wanted to take a moment to share the upcoming auction iformation with you. I've had many experiences with this company over the years both as a customer and as a buyer rep and they do a fantastic job. If you get the opportunity to attend a Hudson & Marshall auction in your area, I highly reccommend it.

My first experience with Hudson & Marshall was back in 2004 in Lansing, MI. I was representing a commercial client interested in purchasing one of their auction properties. The process is smooth and easy. The staff helpful and friendly.

https://www.hudsonandmarshall.com/AuctionSale/Athens-Area/1822.aspx

Heritage Park Heritage Park 2543 Macon Hwy. Watkinsville, GA 30677 (Farmington) Map / Directions

Facility Supervisor – Whitney Byce Email: wbyce@oconee.ga.us

Bike Trails and Horse Trails will be open daily to all users.

Please follow all trail rules and etiquette, including refraining from riding the trails under wet conditions to prevent trail damage.

Park Trails Info >

My husband and I had an adventure on horseback today. We've been to Heritage Park many times, but never with our two favorite ponies Teeny (an 18h Clydesdale gelding and Cirrus my 16h AQHA Gelding.) They are the loves of our lives and we truly enjoy taking them on new and interesting adventures. Located just moments from our home in Oconee County, Heritage Park has much to offer for anyone who loves the outdoors.

(From the OCPRD Website)

Heritage Park is 364-acres of natural resources with woodland and creeks, including a portion that borders the Appalachee River. The large open air arena is available for rental for agricultural and special events. In addition, the 31-stall feeder barn, small show arena and wash racks provides additional space for hosting animal shows and rodeos. The park also features historical structures such as the Central School House, a wood cabin and a tenant house. There is an extensive trail system at the park that includes over 10 miles of mountain bike trails and over 4 miles of new horse trails. Hikers also enjoy usage of the outdoor trails. The park is conveniently located in Farmington on Highway 441 seven miles south of downtown Watkinsville and ten miles north of downtown Madison. The park is very easy to find- just look for the long white fence that lines the front of the park on Highway 441. Come out and enjoy one of Oconee County’s hidden park jewels.

•Tenant House moved to park and renovation under way •New Horse Trails •New Trail markers for Horse, Bike, and Pedistrain •Larger parking area

Rental fees are as follows: Damage/Cleanup Deposit $250 100' x 200' Pavilion $350 31 Stall Barn $250 Small Arena $100 12 x 12 Stalls $25 each for up to 2 days Trail Rental Fee $250 per day