Matt Borushko

National statistics show that nearly 1 in 8 mortgages across the United States are in some type of default (at least 30 days late) or are in the process of a foreclosure. Foreclosures can often be avoided. If you know of someone who is struggling, please pass this information along to them. Here are a few alternatives to foreclosure:

Foreclosure Avoidance Options

Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options available to residents for foreclosure are many, including but not limited to short sales. Following is a brief explanation of these solutions:

Reinstatement


A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender's approval and will 'reinstate' a mortgage up to the day before the final foreclosure sale.

Forbearance or Repayment Plan


A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

Mortgage Modification


A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

Rent the Property


A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, can convert their property to a rental and use the rental income to pay the mortgage.

Deed in Lieu of Foreclosure


Also known as a 'friendly foreclosure,' a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.

Bankruptcy


Many have considered and marketed bankruptcy as a 'foreclosure solution,' but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.

Refinance


If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

Servicemembers Civil Relief Act (military personnel only)


If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.

Sell the Property


Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

Short Sale


If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.

This represents only a summary of some of the solutions available to homeowners facing foreclosure. Locate a CDPE in your area for an evaluation of your individual situation, property value, and possible options.

Understanding your options now could mean all the difference in the world.

For more information on the alternatives availiable to you, please visit www.indianapolisavoidforeclosurenow.com or call a member of our team.

There has been a lot of activity in the Carmel housing market the past few months. Some of the pertinent statistics are:

• 829 Active Listings
• 109 Sold Homes
• Average Sales Price $284,385
• Avg Days on the market: 77
• Avg List to Sales price ratio: 95%
• 143 Pending Sales

What does this information mean? The average sales price is low for the Carmel area due in part to the large numbers of first time buyers in the market buying their homes in the Carmel area. The average 77 days on the market means that homes sell fairly quickly once they are properly priced and in good condition.

The overall outlook for Carmel remains very good. The large number of first time buyers the past 2 months into the Carmel housing market is a great sign as housing markets fix themselves from the bottom up. We expect there will be an increase in sales of homes between 300-400K over the next few months as the recent sales move up to take advantage of the market condition.

Reasons for the stability in the Carmel area are the great schools, the growing arts and design district, the proximity to downtown and the fantastic shopping and dining opportunities!

For specific information about a specific neighborhood in the Carmel area, email our team matt@mattsellsindy.com and request information on a specific neighborhood (or more). We will gladly keep you up to date with actives, pendings and sold homes in any community!

If you are looking to buy, sell, or invest a home in the carmel Indiana area, the Matt Borushko Team would love to help!

by Matt Borushko Keller Williams Realty Carmel, Indiana

I hope the title grabbed your attention. As a full time real estate agent in the Indianapolis Area, almost every buyer I talk to today starts the home buying process looking for a "deal" on a home. While the concept sounds great, it is hard to put into practice for a few reasons and can actually be detrimental to your long term financial health. Hopefully this information will help.

Defining a Deal: Everyone has a different definition of that term. Universally it seems to involve spending less or getting something cheaply. The challenge is that no homes are created equally. If nothing else they are always on a different piece of property. Spending less may just be getting less. Hence the first challenge or risk in only seeking a deal.

Define Your Wants and Needs First: Every home search should start by clearly understanding your wants and needs. When working with buyers, I always meet with buyers and work together with them on a needs analysis prior to looking for a home. I would recommend that a buyer never buys a home that fails to meet their wants and needs.

Why is a Home Underpriced? Homes are rarely "underpriced". The few that are sell very quickly. If a home price seems too good to be true, you (and your agent) should start asking questions. Some good questions would be:

• If this floorplan currently desirable or functionally obsolete?
• Is the home in good repair.
• If the home needs structural work completed, what is the cost of repairing the home and how will you pay for the repairs?
• Do you have the time and the expertise necessary to ensure the work is completed properly? And lastly is the home in a desirable area and is there anything planned for that area which could negatively effect future values?

When Negotiating Never Use a List Price: All too often I hear buyers say they would never pay more than 90% of a list price or something to that effect. When buying a home, never, never, never use the list price as a benchmark for an offer. The reason for this is simple...a list price is a sellers wish and may be unrelated to reality. Some sellers choose to price their homes aggressively (close to comps) while others insist on pricing their properties way too high. For these reasons offers should be based on comparable sales, the condition of the property compared to these comparable sales and the current competition, and current market conditions. Put in place a negotiating strategy with your agent which takes into account these factors and your home buying goals.

The great news is that with proper planning and market knowledge savvy buyers can definitely get great value on a home today. Start by choosing an agent who will help you define your wants and needs, and narrow your focus to the areas you want to live. If a home meets these criteria and is a place you would enjoy living, that is the best "deal" in real estate!

If you are currently trying to sell your home or are considering selling your home, you are probably aware of the high number of homes for sale in your area. You would be wise to consider all of them your competition. So how do you compete with these homes for the much needed interest of the buyer? All you really need to understand is the basic pricipals of value and how buyers apply them.

The Same for Less. The basis behind this is simple. When comparing 2 similar homes (condition, size, features, neighborhood, and floorplan) the one that is priced lower than the competition will be the next one to sell.

More for the Same: The other basic principle that buyers apply when determining value is more for the same. In this instance, when buyers are considering different properties that are mostly similar, they will look to purchase the home that offers them more features for the same amount of money. It could be brand new flooring, warranties, a fenced yard, etc. The differences between homes may be subtle but offer very real financial differences to buyers.

How do you apply this knowledge? First you have to be very realistic to the property values in your area in today's market. An overpriced home will not sell, period. Second, be very careful not to over value slight differences between your home and the competition. As an example I often hear sellers tell me something like "the fence we put in our back yard cost us $4000 so our home should be worth that much more". This $4000 dollar fence will definitely not get you $4000 more for your home. However if you apply the More for the Same principal and list your home at the same price as your competition without the fence, your home has more value to most buyers and will be the first to sell!

The good news is that the sellers who apply these simple concepts are selling their homes quickly even in the current housing market. In an era of declining home values, time is definitely of the essence.

If you are looking to sell a home in the Indianapolis Indiana Area, the Matt Borushko Team would like to help. Feel free to contact us through our website at www.mattsellsindy.com

Building a home can be a great experience...or a nightmare. As a local real estate agent I often see the long term effects of decisions made by people choosing to build a home. My past also includes 10 years as a new home sales consultant with both local and national builders. With this experience many of my clients build new homes with great success. With that in mind here are a few tips to help you should you decide to build:

Have Representation: Hire an agent to represent you during the building process who has experience with builders. I know what you're thinking, of course I'll say that as an agent. However with 10 years experience I can tell you that the majority of poor decisions were made by people without representation. The easiest way to say it is that you don't know what you don't know. Also a good agent can help you save money through better choices and stronger negotiation positions.

Don't Overbuild: Do your research and be careful not to build a home that you can't resell. Before you build, make sure you know what style of homes, what upgrades, and what price ranges are typical in the area you've chosen. When you know this information make sure the home you're building fits in to this niche. Again your local real estate expert can do the legwork for you.

Prioritze your Choices: When it is time to decide what to put into your house, prioritze your list of selections. Make sure you select the items that cannot be done at a latter time first. For example a garden or deluxe bath often changes the basic structure of the floorplan and cannot be done later, so this selection becomes much more important than flooring that can be done at a later date. Also make sure you can live with your last minute cuts...I've seen too many people cut out the "full basement upgrade" at the very last minute only to regret it later. That extra square feet is often the storage you need when your family grows or the place for that full bathroom and wouldn't cost much up front.

Choose Location Wisely: Location, location, location. Where you build your home matters. The area of town, the neighborhood, the homesite you choose all make a huge difference. The right homesite will allow you to enjoy your home, and will also benefit you by allowing you to sell your home for more money later. Pay particular attention to the school districts in your area. Better school systems almost always correlate to better resale.

Financing: Get approved before you go to a builder. The approval will definitely help your negotiating position as well as help you know and understand your options. Builders will often pay your closing costs if you choose their lender but the rates are often much higher. Plus you may be giving up some of your much needed seperation.

Have Proper Expectations: No home is perfect. If you choose to build you need to understand that mistakes will be made and there will be some material defects. Good builders understand this and have systems in place to address and correct these issues as they arise. Everything in a home can be fixed if addressed in a timely fashion. We would be happy to recomend you to a great builder with these systems in place.

Buying from a builder and building a home can be a great experience. Hiring an experienced agent can provide you with needed representation, helps make the building process more smooth and predictable, and can save you money in both the short and long term. If you're considering building a home in the Indianapolis area, contact the Matt Borushko Team and put our experience to work for you!