A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.
Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:
Brought to you by!
Laura & Rod Watson
The Watson Group Realty
Re/Max Prestige
11143 Huffmeister Rd.
Houston, TX 77065
Office: 281-797-3841
Direct: 281-797-3941
E-mail: thewatsongorup.remax@gmail.com
Did you know that there are actually options available to you should you find yourself in the situation where you owe more for your home than it is worth on the market if you were to attempt to sell it?
One of these options is a Short Sale, which occurs when a lender agrees to accept less than the actual balance of the loan as payment in full, allowing you, the homeowner to get out of the property and start over.
Why are banks willing to do this? Because the alternative is foreclosure, and the foreclosure process is usually far more expensive than the discount that lenders take on a Short Sale.
How the Short Sale Affects Your Credit
What happens to your credit as a result of this, you may ask? In almost every case we have ever worked, the homeowner walks away from the situation free and clear with no further damage to their credit beyond the effect of the late or missed payments that led up to the situation.
The bottom-line: a Short Sale proves to be a "win-win" solution for everyone involved.
How Do We Get Paid?
In the Short Sale transaction, we primarily act as the real estate agent, which enables us to be the liaison between you, the homeowner and your bank, as well as all other parties in the transaction. For this service, the bank pays us a commission on behalf of the homeowner. The homeowner doesn't pay us anything!
We Knew We Could Help!
We began to realize, however, that we could develop a business helping homeowners get through this process and walk away from a potentially devastating situation with hope, our focus quickly shifted to simply offering our services as real estate agents. Furthermore, because so few real estate professionals have the information and experience to help their clients navigate this process, we have dedicated ourselves to providing a professional service to distressed homeowners in the Houston community.
If you have any questions or would like a free consultation on how we may be able to help you avoid foreclosure with a Short Sale. Contact us at 281-797-3941
To view other home owners we have assisted with short sale settlements visit www.thewatsongrouprealty.com
Brought to you by!
Laura & Rod Watson
The Watson Group Realty
Re/Max Prestige
11143 Huffmeister Rd.
Houston, TX 77065
Office: 281-797-3841
Direct: 281-797-3941
E-mail: thewatsongorup.remax@gmail.com
Option #1.
Loan modification
A modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the principal balance, interest rate or an extension to the length of the loan term. In some cases a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default or foreclosure.
A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan. Loan Modification is sometimes the only way to avoid foreclosure.
The Watson Group Realty will have an ethical and qualified loan modification specialist help you save your home. Do not take this burden on your self. That is exactly what you lender wants. Be prepared by having The Watson Group Realty on your side.
We have helped lots of homeowners avoid foreclosure through our mortgage foreclosure relief program. Homeowners we assist have experienced a recent job loss, divorce, financial hardship or their mortgage rate has adjusted and increased their payments as much as 40%. Our program focuses on lowering your mortgage rate and payment, removing late payments, fees and giving you a fresh start. We do this through negotiating a mortgage loan modification with your lender. You do not have to be late on your mortgage to receive help, recent government incentives to lenders nationwide now give our loan modification team the ability to modify a mortgage even if it is not late.
Option #2.
The Short Sale
Did you know that there are actually options available to you should you find yourself in the situation of being unable to continue to pay your mortgage loan but you need to sell youra home, and your home is worth less on the market than you owe?
One of these options is a Short Sale, which occurs when a lender agrees to accept less than the actual balance of the loan as payment in full, allowing you, the homeowner to get out of the property and start over.
Why are banks willing to do this? Because the alternative is foreclosure, and the foreclosure process is usually far more expensive than the discount that lenders take on a Short Sale.
How the Short Sale Affects Your Credit
What happens to your credit as a result of this, you may ask? In almost every case we have ever worked, the homeowner walks away from the situation free and clear with no further damage to their credit beyond the effect of the late or missed payments that led up to the situation.
The bottom-line: a Short Sale proves to be a "win-win" solution for everyone involved.
How Do We Get Paid?
In the Short Sale transaction, we primarily act as the real estate agent, which enables us to be the liaison between you, the homeowner and your bank, as well as all other parties in the transaction. For this service, the bank pays us a commission on behalf of the homeowner. The homeowner doesn't pay us anything!
Are we Investors?
So you might wonder, why don't we actually purchase these properties as investments, since we could buy them at a discount. Well, as any smart investor knows, to make an investment worthwhile, the property must be purchased at no more than 65-70% of its after-repair-value. Generally, in a Short Sale, unless the property is in horrific condition, the bank will not discount the loan below 75-85% of its appraised value.
Since 95% of the calls we get come from first-time homebuyers who have bought brand new homes in the last 2-5 years, the banks simply cannot discount the property enough for it to qualify as an investment opportunity for us.
When we first started our Short Sale business, our primary objective was to purchase investment properties through this process. We quickly learned, however, that it was like looking for a needle in a haystack to find a good investment candidate.
We Knew We Could Help
We began to realize, however, that we could develop a business helping homeowners get through this process and walk away from a potentially devastating situation with hope, our focus quickly shifted to simply offering our services as real estate agents. Furthermore, because so few real estate professionals have the information and experience to help their clients navigate this process, we have dedicated ourselves to providing a professional service to distressed homeowners in the Houston community.
What we do
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The Watson Group is the PREFORECLOSURE SPECIALIST you need on your side!
We understand that sometimes bad things can happen to good people. We are a family of caring professionals working together to help you stop foreclosure and save your home. Our home foreclosure intervention offers highly experienced and effective assistance to homeowners faced with the possibility of losing their homes. By providing alternative solutions, using government and non-government programs, we can tailor a mortgage work out plan to meet your specific family needs and circumstance.
How do we accomplish this?
We specialize in out-of-court resolutions of government and non-government mortgage delinquencies or home foreclosure claims for homeowners. These can be FHA, Rural Administration, VA, Freddie Mac, Fannie Mae, or conventional loans, which have become behind on house payments. Using creative and oftentimes un-conventional methods, all well within the Code of Federal Regulation guidelines; we stop the home foreclosure process. We DO NOT want to buy your home. We want to HELP YOU to keep your home and save your credit.
If you simply must sell your house we can help you work with your lender and assign you to one of our Realtor Professionals who has expertise in marketing properties in foreclosure in your market area.
Who We Are
We are the PREFORECLOSURE SPECIALIST you need on your side! We stop home foreclosure all across the greater Houston Area. Contact us today to find out how we can help you Avoid foreclosure 281-797-3941.
Brought to you by!
Laura & Rod Watson
The Watson Group Realty
Re/Max Prestige
11143 Huffmeister Rd.
Houston, TX 77065
Office: 281-797-3841
Direct: 281-797-3941
E-mail: thewatsongorup.remax@gmail.com
Many households say that foreclosures are a bargain and are increasingly eager to buy them, according to a Harris Interactive survey conducted for Trulia.com and RealtyTrac.
The survey found that 55 percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, up from 47 percent who answered the same question in November 2008.
But buyers aren't naïve about the hassles involved with purchasing foreclosed property. About 85 percent said that they could identify negative aspects, up from 80 percent who felt the same way last November.
Buyers of foreclosures also expect hefty discounts - at least 25 percent.
Right now is a great time to consider purchasing a pre-foreclosure or forclosed home. However, I recomend that you work with an agent or some one that is experienced with handling foreclosure transactions. To insure you are getting the right information and counsel. Keep in mind not all foreclosure are great deals! If you ever have any questions or would like us to assist you with finding the right foreclosed property send us an e-mail at laurawatson@remax.net or click on the "Request FREE monthly Foreclosure list here" link, above. We are HUD approved and can provide you with a wealth of information on how to find the best deals on the market!
| Request Free monthly Foreclosure list here |
Brought to you by!
Laura & Rod Watson
The Watson Group Realty
Re/Max Prestige
11143 Huffmeister Rd.
Houston, TX 77065
Office: 281-797-3841
Direct: 281-797-3941
E-mail: thewatsongorup.remax@gmail.com
There are questions that buyers in any market should be asking before they make an offer on a property in foreclosure. April 2009
Is now a good time to buy a foreclosure?
This is a very common question from both real estate professionals and prospective buyers. Obviously, because local market conditions vary, the answer is different from market to market. But there are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.
What's the first step buyers need to take?
Require buyers you work with to be preapproved for a loan before you help them shop for a foreclosure. If they're thinking of buying a foreclosure as an investment or second home, they need to understand that financing the home will be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.
How can you tell a bad foreclosure from a good one?
Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. But making a sound deal can be tricky. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your clients' responsibility when they purchase a property in foreclosure. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner-your clients. Don't let them fall into the same financial trap as the previous owner.
If I'm a qualifying borrower, can I appeal to banks for better loan terms?
Lenders are drowning in defaults-particularly in hard-hit real estate markets such as Arizona, California, Florida, Michigan, Nevada, and Ohio-so they may be motivated to cut a deal. If your clients have a good credit score, many banks will offer them a below-market-rate loan on a bank-owned home. Unlike paying down with points, this doesn't cost anything in fees, and it gives them the ability to spend more for the home.
What are the costs of buying a foreclosure?
It takes money to make money. The best opportunities are for buyers with cash. If your clients are planning to rent out the property or even resell it for a quick profit, make sure they consider the carrying costs, including sales commissions, marketing costs, vacancies, taxes, insurance, and maintenance costs. Once you've calculated all the expenses, add on another 10 percent to 15 percent. If they don't build in a "surprise fund," your clients might be the next foreclosure statistic.
How does choice of neighborhood affect foreclosure investments?
Clients looking for a good investment should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts-but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you're in a market where prices are still falling, encourage your clients to factor falling prices into any offer they submit on a foreclosed property.
Brought to you by!
Laura & Rod Watson
The Watson Group Realty
Re/Max El Rey
11143 Huffmeister Rd.
Houston, TX 77065
Office: 281-797-3841
Direct: 281-797-3941
E-mail: thewatsongorup.remax@gmail.com
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The Watson Group Realty specializes in: Residential Listings, Foreclosure Prevention, Short Sale Listings, REO Properties, and New Home Sales in Katy, Cypress, Galleria, Medical Center, and Inner Loop
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