Rob Davis Short Sale Expert

Twin Cities Short Sale Information

Sun, 27 Mar 2011 22:37:49 GMT

Rob Davis - Realtor- ReMax Results - twincitiesrob.com

Most buyers want to make sure they get a ‘good deal’ when they purchase something. Purchasers of real estate are no different. That is why many decide to buy a distressed property (a foreclosure or a short sale). The National Association of Realtors (NAR) last week reported foreclosures, on average, sell at a 22% discount and short sales at a 17% discount. It sounds like a pretty good decision to buy a property at those levels of discount.

However, the purchaser must realize that there are added obstacles in these type of transactions. Many foreclosures are left in less than pristine condition by the previous owner and some have title issues that must be corrected before they can change hands. Many short sales have multiple loans that must be negotiated before an offer is accepted by all parties to the transaction. This can take months in many cases. Purchasing a non-distressed property will probably have a lot fewer pitfalls.

Patience Equity

Does that mean that you shouldn’t consider a distressed property? Not necessarily. Just understand that there is an additional cost to purchasing a foreclosure or a short sale: the cost of time. For some, the 17 or 22 percent discount is well worth the extra time they must spend on the transaction. We like to call that savings your ‘patience equity’. Patience equity will require you to be patient however. Realize going into the deal that there will be obstacles to overcome and make sure you give your real estate professional time to overcome these challenges. Again, patience equity will require your patience.

Bottom Line

Buying a distressed property could make sense for you as long as you realize you will need to be VERY patient with your real estate agent throughout the process. If you are, you will own a home that has considerable equity the day you move in.

Foreclosures - We Have Only Seen The Tip Of The Iceberg

Sun, 20 Feb 2011 08:59:20 GMT

We have seen many headlines recently reporting that foreclosures and foreclosure sales have decreased over the last few months. However, though the headlines are technically accurate, they don’t reflect what is actually taking place.

Foreclosure statistics are being impacted by the issues surrounding the challenges with faulty paperwork which the banks have spent the last several months trying to correct.

James J. Saccacio, CEO of RealtyTrac addressed this issue in a recent press release:

“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000. Unfortunately this is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”

While these issues are being addressed, the number of foreclosures are still continuing to mount. Mike Fratantoni, VP for single family research at the Mortgage Bankers’ Association said:

“While the foreclosure starts rate fell during the fourth quarter, the percentage of loans in foreclosure rose to equal the all-time high… As we predicted last quarter, the percentage of loans in the foreclosure process increased in the fourth quarter, largely due to the foreclosure paperwork issues that were being addressed in September and October. These issues caused a temporary halt in foreclosure sales, particularly in states with judicial foreclosure regimes… With fewer loans exiting the foreclosure process through sales, the foreclosure inventory rate naturally increased.”

When will this inventory make its way to the market?

That’s the million dollar question. There have been new challenges created by the courts and there have been some rather interesting responses to these new problems. Still, many experts believe it will occur sooner rather than later. Rick Sharga, a RealtyTrac spokesman said:

“We expect a spike in the first quarter.”

Just how many foreclosures (REO) can we expect this year?

Another question that does not have a simple answer. Delinquency rates are showing improvement. Yet, if prices continue to soften, more houses will fall into a negative equity situation. That could lead to an increase in strategic defaults (where homeowners simply walk away from their mortgage obligation. Housing Wire has reported:

Analysts said the number of REO properties could double over the next 12 months to 4 million from 2 million.

Bottom Line

Don’t be fooled by some current headlines. Major foreclosure challenges still exist. We just happen to be in the ‘eye of the storm’.

Minnesota, Minnetrista, Minnetonka, Wayzata, Chaska, Chanhassen, Turtle Creek, Orono, Mound, Excelsior, Maple Grove, Plymouth, Remax Results, Waconia, Victoria, Highway 7, Highway5, short sale, mortgage, Interest rate, realtor rob davis

Think You Should Wait To Sell Until Spring? Think Again!

Tue, 08 Feb 2011 17:43:22 GMT

Several months ago, we explained that there would be an opportunity to sell your house at a higher price in the first quarter of this year than you could later in the year. Our believe was that the robo-signing mess would delay foreclosures coming to the market and that your home would sell at a higher price before these distressed properties became your competition (foreclosures sell at a 41% average discount). The numbers are now in and what we projected is in fact taking place.

Clear Capital released its monthly Home Data Index last week. In the report, they explained:

(Our) Home Data Index shows that U.S. home prices stopped declining in early January and have posted their first uptick since mid-August 2010.

“This recent national change in price direction is encouraging for the overall housing sector,” said Dr. Alex Villacorta, senior statistician at Clear Capital.

“This uptick is the first non-incentivized change in prices we’ve seen since the downturn began, and could provide great opportunity for buyers, sellers and investors alike. Although many markets still remain under significant downward pressure in light of increased distressed sale activities, it is clear that the severity of the downturns observed in October and November have subsided.”

It seems prices have stabilized and, in some markets, are perhaps even showing appreciation. However, before we get too excited let’s take a look at the reason this is taking place. According to Clear Capital:

…it is still too early to determine whether this current uptick in home prices is a temporary reprieve or the start of a sustained recovery…

Why? The number of distressed properties coming to market slowed dramatically in the last quarter of 2010.

…every spike in REO saturation (REO saturation calculates the percentage of real estate owned properties sold as compared to all properties sold in the last rolling quarter) has corresponded with a decline in home prices, and vice versa. The most recent rolling quarter for REO saturation has slowed considerably after gaining 3.2 percent during Q3 2010, with national REO rates only climbing 1.4 percent. A decrease in REO saturation indicates that an increasing proportion of fair market transactions are occurring, and as the level of distressed transactions decrease, prices tend to increase since the overall market value for an area is less affected by distressed comparable sales. If this observed negative correlation persists, a leveling off of the national REO saturation rate could indicate that home prices are poised for further gains well ahead of the seasonal spring lift.

As we explained months ago, there is a window of opportunity to sell before a large number of discounted properties go up for sale. This opportunity will last for the next 60-90 days. By then, banks will have fixed many of their paperwork challenges and again start releasing distressed properties to the market.

Bottom Line

If you wish to sell in the next twelve months, do it now. You will get a better price today than you will later in the year.

Is Now A Good Time To Buy A Home?

Thu, 27 Jan 2011 08:28:57 GMT

We are beginning 2011 with much more positive news about real estate than we have had in several years. The pending sales numbers (houses going into contract) have been climbing for several months. Last month’s Existing Homes Sales Report from the National Association of Realtors showed an increase of over 12%. Demand definitely seems to be increasing. Does that mean prices will begin to appreciate? Probably not. Though buyers have finally come out of hiding and started to purchase homes again, an increased inventory of distressed properties is also emerging from the shadows. These houses will impact prices.

Prices are determined not by demand alone but instead by the relationship of demand to the supply of inventory available. We are talking about the ‘shadow inventory’ of homes that will come to market at discounted prices when they are sold as short sales or foreclosures. This inventory has swelled to several million units.

When will this begin and what impact will it have on prices?

Over the last year, banks have been slowly releasing this inventory to the market being careful not to release too great a number in fear of driving down house values even further. Over 25% of all sales in 2010 involved a distressed property. The numbers increased as the year went on with 33% of all sales in November being in this category. In December, that number jumped to 36%! It now seems that banks are preparing to increase the flow of such properties to the market.

Last month, CNBC reported on economist Nouriel Roubini’s predictions on this issue:

“There has been an effective moratorium on foreclosure,” said Roubini.

And the beginning of the end of that moratorium means more housing supply is about to become available on the market.

“The shadow inventory of not-yet-foreclosed homes—due to the moratorium—will surge in the next year,” Roubini says.

Bank of America said:

…it resumed foreclosure sales in most states that have a non-judicial process, but the bank won’t restart sales in judicial states until sometime in the first quarter.

And Housing Wire reported last week that Fannie Mae “directed its mortgage servicers to delay scheduled foreclosure sales 45 days” for borrowers trying to get assistance through certain government programs.

What impact will this have on prices? Wells Fargo projected that house prices will drop 8% by mid-year. Fannie Mae and Bank of America have also predicted price depreciation for the first half of 2011.

Should I wait to purchase?

Not necessarily. Remember, sellers should sell now before prices do begin to fall. However, as a purchaser, you should look at cost. With interest rates on the rise, waiting may result in a higher monthly mortgage payment even with a lower sales price.

As a good example, Mr. Roubini, who was mentioned above, just sold his home and upgraded to a more expensive residence. Get counsel from a mortgage professional before you consider delaying a purchase.

Bottom Line

If you are looking to sell, you probably want to do it before this ‘surge’ of discounted competition comes to market.

Have You Heard OF Shadow Inventory?

Wed, 05 Jan 2011 16:09:13 GMT

Wondering whether 2011 is the right year to buy that new home?

Well consider this; S&P warned this week that it will take 44 months to clear all the distressed homes out there, many of which aren’t actually on the market.

That’s nearly four years, up from the second quarter estimate of 40 months.

This so-called shadow inventory consists of homes that will eventually end up on the market, thanks to default and subsequent foreclosure.

However, many of these properties are being held by mortgage lenders until home prices improve.

Traditional housing inventory numbers don’t factor these in, painting a rosier picture than reality suggests.

As of the end of the third quarter, the principal balance of foreclosed homes was more than $450 billion, representing roughly a third of the non-agency residential mortgage-backed securities market, those not guaranteed by Fannie Mae and Freddie Mac.

Victoria Minnesota Short Sales

Tue, 23 Nov 2010 10:26:40 GMT

Currently there are 74 homes listed on the MLS for sale in Victoria and 8 of them are short sales. To view all of the homes for sale in victoria you can visit www.TwinCitiesRob.com

Minnetrista Short Sales

Tue, 23 Nov 2010 09:39:28 GMT

Currently there are 108 homes listed on the MLS for sale ranging in price from $114,900 to $3,865,000 and 13 of the homes for sale are short sales. Visit www.TwinCitiesRob.com to view all the homes currently on the market in Minnetrista Minnesota.

Foreclosure Freeze Lifted

Thu, 21 Oct 2010 07:09:38 GMT

Ally Financial (GMAC’s mortgage unit) has lifted their temporary foreclosure freeze, joining Bank of America in proceeding with the foreclosure processes in the 23 states requiring judicial review. While Bank of America maintains their moratorium in the non-judicial states, Ally is now continuing the foreclosure process for its entire non-performing portfolio, and expects that individual reviews will be complete by the end of the year.

JPMorgan Chase is the last of the remaining major lenders with a suspension in place. While their freeze is currently restricted to the 23 judicial states, the bank continues to review foreclosures in 41 states for any errors or anomalies in procedure

907 Lawnview Ave Shorview MN

Sat, 14 Aug 2010 08:46:59 GMT

Absolutely turnkey. Large master bedroom w/powder room & walk-thru full bath, plenty of closet space, vaulted ceilings, open and bright kitchen & dining area, lower level retreat with wet bar, plus a large deck overlooking treed park area with playground. Close to walking and biking trails. Visit www.twincitiesrob.com for more information and to view pictures.

How Are Minnesota Mortgages Foreclosed?

Thu, 12 Aug 2010 07:40:00 GMT

How are Minnesota mortgages foreclosed?

The primary method of foreclosure in Minnesota involves what is known asnon-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly calledforeclosure by advertisement. When themortgage is initially signed it will usually contain a provision called apower of sale clause which upon default allows an attorney to foreclose on the property in order to satisfy the underlying defaulted loan which is sometimes referred to as abond. Theattorney acts as a representative of the lender to effectuate the sale which typically occurs in the form of an auction. Auctions are conducted by the Sheriff. Because this is a non-judicial remedy there are very stringent notice requirements and the legal documents are required to contain thepower of sale language in order to use this type of foreclosure method. For additional information contact me today.

Minnetrista Minnesota Short Sale

Thu, 12 Aug 2010 07:37:13 GMT

If you are considering taking money out of your 401K or savings to try to keep your home, you may want to talk to me first. Many home owners are not aware of the options available to them and take money out of savings to try to save their home. It is possible; you may end up losing both your home and your savings. If you are having trouble making your mortgage payments and would like to discuss you options contact me today. There may be more items to consider like, bankruptcy, your credit score, deficiency judgments & tax ramifications etc. I work with a skilled team of attorneys, and accounts that are available to discuss your specific situation. Whether you live in Minnetonka, Minnetrista, Maple Grove Plymouth, Medina, Orono, Wayzata, Lake Minnetonka, Victoria, Eden Prairie, Chanhassen or Chaska I can help. Short sales are not easy and you need an experienced agent on your side to ensure the best possible outcome for you & your family.

Short Sales in Minnetonka Minnesota

Thu, 22 Jul 2010 10:43:20 GMT

Are you currently late on your mortgage? or are you facing a hardship that is making your monthly mortgage payment challenging to make? Please contact me with any short sale related questions you may have regarding the short sale process. I specialize in short sales in, Maple Grove MN, Plymouth MN, Minnetonka MN, Wayzata MN, Medina MN, Minnetrista MN, Eden Prairie MN, Minnetrista MN, Waconia MN, Victoria MN, Chanhassen MN, Chaska MN, St. Louis Park MN, Minneapolis MN, Edina MN, Corcoran MN, Long Lake MN, Lake Minnetonka MN, Orono MN, Excelsior MN, as well as Hennepin, Carver & Dakota counties. For reliable & honest information please visit:

www.twincitiesrob.com

www.tcrshortsale.com

Have You Heard About The Government Programs Available To Home Owners? Find Out If You Are Eligible By Clicking Here!

Fri, 21 May 2010 09:11:56 GMT

Are You Eligible?

The government programs currently available to homeowners can be valuable resources, but only if you know which ones are right for your situation.

That’s why I’ve created this free resource that lets you find out which programs you’re eligible for. Read the descriptions for each program to see which one fits your situation, then fill out the corresponding survey to see if you are eligible.

Find out now if you are eligible!

The good news is that programs exist for a variety of situations, and even more options are available beyond those programs. As a CDPE-designated agent, I can provide all of your possibilities and help you get moving toward a solution

For discreet professional advice contact me today.

Rob Davis - rob.davis@results.net - Cell 612-770-5777 - www.TwinCitiesRob.com

Do you qualify for $3,000 to avoid foreclosure? HAFA is a new government program that may help you or someone you know.

Mon, 10 May 2010 07:18:25 GMT

If you haven't heard yet, there's been a big change in the housing market. Homeowners are now being offered $3,000 to avoid the foreclosure process through a short sale or deed-in-lieu of foreclosure.

This development comes through a new program called Home Affordable Foreclosure Alternatives (HAFA). It adds even more of an incentive to avoid the foreclosure process—a route that already has strong reasons to pursue.

When I meet people who are struggling to make mortgage payments, too often they think that foreclosure is their inevitable destination. The truth is that foreclosure is also a very costly process for the lender. If they can avoid it, they will.

With HAFA, homeowners are ensured a quick short sale process and they're guarded from being pursued by the lender for the remaining mortgage debt once the short sale or deed-in-lieu has been completed.

I have a free report available to download at www.tcrshortsale.com that explains exactly how HAFA can help those with unaffordable mortgages. If you know anyone in this situation, share this resource with them so that they can get their full range of options.

For immediate assistance, don't hesitate to contact me. I have been trained in how to find the best possible solutions for distressed homeowners.

I'm here to help.

Rob Davis I www.twincitiesrob.com

What IS HAFA? What Is Needed To Qualify?

Fri, 02 Apr 2010 15:47:44 GMT

Do you qualify for HAFA?

In order to qualify for the HAFA Program, you must first meet the initial HAMP criteria. More information on both HAMP & HAFA are available at www.tcrshortsale.com. A few of the specifics on HAFA are as follows:

1. Home owner must be delinquent on mortgage or face imminent risk of default.

2. Occupy the property as your primary residence.

3. Have a mortgage originated on or before January 1, 2009.

4. Have an unpaid principle balance no greater than $729,750 for a one-unit property.

5. Have total monthly mortgage payments exceeding 31% of your gross income

For more HAFA information please visit www.tcrshortsale.com to download a free report or contact me today.

Rob Davis I ReMAx Results I 612-770-5777 I rob.davis@results.net I www.twincitiesrob.com

What Is A Short Sale?

Tue, 30 Mar 2010 08:02:50 GMT

What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy have improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of an experienced professional. Together, we can identify all possible options and, when possible, I can assist you in the execution of a short sale transaction. If you or someone you know is in distress with their home please don’t hesitate to call me or visit www.tcrshortsale.com. I’m here to help!

Rob Davis I ReMax Results I 612-770-5777 I www.twincitiesrob.com

First Time Home Buyer Credit Expires April 30th 2010!

Thu, 18 Feb 2010 11:12:28 GMT

You may qualify for up to $8,000 in tax credits!

Did you know the Federal Government has extended its tax credit for First Time Hom Buyers & Current Home Owners who have owned their homes for the last five years?

You may qulify for the credit if:

You have never owned a home
You have not owned a home in Minnesota for the last three years
You have owned your current Minnesota home for the last five years

If you or someone you know would like to learn more about this great opportunity, contact me today! There are plenty of homes for sale in the Minneapolis, Twin Cities Metro that could be your new home!

How will my credit score be affected by a short sale vs. a foreclosure?

Fri, 12 Feb 2010 15:29:26 GMT

This is a great question and the answer is surprising to most people. A foreclosure will lower your credit score anywhere from 250 to over 300 points! Typically the foreclosure will affect your score for well over 3 years.

A short sale however will only show late mortgage payments after the sale. The mortgage is normally reported as "paid as agreed", "paid as negotiated", or "settled". This can lower your score as little as 50 points if all other bills are being paid. A short sale's effect can be as brief as 12 to 18 months.

Do you have specific questions about short sales? Please contact me... I would welcome the opportunity to speak with you!

How long does a short sale take to complete?

Sat, 06 Feb 2010 08:20:52 GMT

Every short sale is different and they take MUCH longer than a traditional sale. Currently the average short sale is taking 4 to 6 months to compelte in the Minneapolis area. If you are interested in searching for short sale homes visit www.TwinCitiesRob.com and set up your own customized home search.

Is a short sale more difficult to complete with two mortgages vs. one?

Sun, 24 Jan 2010 12:56:01 GMT

In most cases yes. The issue comes into play when the mortgages are not held by the same company. If your second mortgage is held by a different company than the first, it can be more challenging to complete a short sale. Keep in mind it can still be done but an experienced agent is needed to get this type of short sale to the closing table.

Are You Living Under the Cloud of an Unmanageable Mortgage

An Unmanageable Mortgage Clouds Everything

When families are tapped out financially and faced with the uncertainty of not knowing how much longer they'll be able to stay in their home, the prospect of planning or having a positive outlook on the future seems out of the question.

Many financially strapped homeowners feel frozen in action and it's no wonder, but here's the most important point that you need to know:

Even though millions of homes have been lost to foreclosure, you and those you care about absolutely do not need to add to that statistic.

More help is available now than ever before.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am adept at navigating among the full range of solutions for helping financially distressed homeowners to make a fresh start.

If you, or someone you care about is looking to get out from under the cloud of unmanageable mortgage contact me today for a confidential consultation!

Short Sales vs Foreclosures

Short Sale vs. Foreclosure

Making the Right Choice for a Stable Future

The US housing crisis has claimed millions of victims. Unfortunately, many homeowners are losing their homes to the bank because either they think that a short sale will have the same financial effect as a foreclosure or they don't know their options.

The good news is that homeowners don't have to navigate this process on their own. I am available for those who need my expertise to get back on the path to stability.

If you, or someone you know has questions about this information, or would like to get started creating a plan, call me today.

The more proactive we are, the better the chance of finding financial freedom and stability.

A Dignified Solution

You Deserve a Dignified Solution

The economy today has been especially hard on homeowners. I meet people every day who thought they made a responsible decision on their mortgage loan, only to be hit with the unexpected.

The first and best move to make in this position is to educate yourself on what your options are based on your financial situation. Avoiding foreclosure is always something worth pursuing if you can, and there really are dignified alternatives available.

To get my free report on all the options and benefits of avoiding foreclosure, fill out the form below and click "Send". If you need immediate assistance, please contact me right away.

I'm here to help.

Mortgage Payments Weighing You Down?

Give Yourself and Your Family the Gift of a Fresh Start to 2012!

If you've spent too much of 2011 living under the dark cloud of an unaffordable house payment, you're in good company. Current estimates are that more than 25 percent of all homeowners in this country would net less on the sale of their home than the amount they owe on their mortgage, and 6.3 million homeowners are in some stage of foreclosure.

The good news is that you have options. Helping homeowners to avoid foreclosure has actually emerged into the spotlight of as a national priority, with major banks, the Federal government and many state and local agencies offering more assistance than ever before to financially strapped homeowners.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am tapped into the full scope of solutions for helping financially distressed homeowners to make a fresh start. If you'd like to learn more, I invite you to access my free report: "Mortgage Payments Weighing You Down? Give Yourself the Gift of a Fresh Start."

Contact me today and let's get started!

Don't Walk Away From Your Mortgage

Stop Don't Walk Away From Your Mortgage

At a Crossroads?

Walking away or "strategically defaulting" on your mortgage is not the answer. You will find that there is nothing strategic about foreclosure, especially when there are solutions to avoid it.

You should know that you have options, and that you are not alone. More than 25% of American homeowners now owe more than what their homes are worth, and millions more are having a hard time paying their mortgages.

I've developed a free, detailed report on foreclosure alternatives you can download below. Download it today and give yourself a green light for a solid financial future.

The sooner you take this step, the more time you'll have to act and move toward a more promising tomorrow.