Stop Michigan Foreclosure

I’ve recently learned of an interesting bit of folklore that has been circling around the real estate world for years. The legend says that if you bury a little statue of Saint Joseph in your yard, your home will sell swiftly. You then give thanks to the tiny St. Joseph by digging him up and placing him on the mantel of your new home.

Where did this tale come from, you ask? According to www.StJosephStatue.com, an online purveyor of all of your plastic (and pewter, if you’re feelin’ fancy!) St. Joseph needs, this tradition has been around quite some time. “The solemn tradition of burying St. Joseph in the earth began hundreds of years ago in Europe. During those times, an order of nuns prayed to St. Joseph (the patron saint of the family and household needs) when they needed more lands for convents. The Sisters were encouraged to bury their St. Joseph medals in the ground.”

Now, I am not a skeptic. If this 4” St. Joseph can sell my house quickly in Michigan’s tough market, I’ll buy him a posh little dollhouse to live out his golden years. But if you’re looking for a surefire way to sell your house, I’d try pricing it at fair market value. Easier said than done, though. Ever since housing values took a dramatic dip, many people owe much more than their homes are worth. This is where a short sale comes in handy, and this is where we step in! We can negotiate with the bank to accept an amount closer to what your house is worth, rather than what you owe on it. If you’re facing a Michigan foreclosure, want to sell your house, and want to find out if a short sale is right for you, give Emily a call. She’s ever so sweet, so don’t be nervous! Oh, and let’s bury a St. Joseph statue just for good measure…

Holly

(The “Authentic” St. Joseph Home Sale Kit – $7.95)

I just received a call from someone who realized that they need our help. She lost her job and was feeling so overwhelmed, that she didn’t want to address any of her financial issues. The only problem: once she did start to address her problem, it was too late. She said she’s known in the back of her mind that she’s needed a short sale but was just so overwhelmed, she didn’t even know where to start. Now that she’s realized that a short sale is her best and only option, it’s too late for us to help her.

Why? Foreclosures are very time sensitive. Once the lender refers the matter to an attorney to start the foreclosure, there is a legal process they must go through. However, unlike many states, the process before the foreclosures auction is relatively quick in Michigan taking weeks instead of months like some states. While we can still help you after the foreclosures auction (another relatively unique feature of a Michigan foreclosures) that time period is also dictated by law and goes incredibly fast considering everything that has to happen (contact lenders, get house listed with a REALTOR®, find a buyer, waiting for an answer from the bank, etc.). Although they vary from case to case, every minute wasted is a minute that we could have been helping you stop your Michigan foreclosure.

If you’re trying to sort out your options, please give me a call. It’s never too early to call me; I’m glad to help and to also explain your timeline to you as well as options and resources to help you make a good decision about the best plan for you. Please don’t wait to give me a call – it just may be too late if you do!

Emily

This week we got an email from “Jeff”. Our team was negotiating a short sale for Jeff when his financial situation changed for the better. He decided to attempt a loan modification with his lenders and cancel the short sale (despite the 6% success rate).

Jeff had been having some trouble getting through to someone who could help him or tell him anything definite about his options, so he decided to contact us in the hopes that we could help point in him the right direction.

I was able to quickly tell him which department to call and what to tell that department when he did call. After he’d tried the number I gave him, his email back to me read, “I don’t know how you guys can handle talking to banks day in and day out. I get so frustrated, mainly because I get absolutely nowhere when I call. And this was after you gave me the right number to call and told me exactly what to say! You guys must have the patience of saints…”

I’ve never thought of myself as particularly saintly, but I got to thinking about what he’d written. Many lenders are so huge and have so many departments that navigating through the maze of their phone system is difficult for me, and I’ve been doing this for three and a half years! I can’t even imagine what it must be like to have to figure that out as a first time caller.

If you find yourself needing a short sale and don’t have the patience of a saint, give us a call, and let us handle the navigation of your lender’s phone system…and the short sale for you.

Melissa

Have you made your New Year’s Resolutions yet? Maybe this will be the year that you stick to your diet. Or maybe you will spend less time watching TV and more time doing things with the kids. Or maybe this will be the year that you will deal with a financial noose that is tightening around your neck from being behind on your Michigan mortgage payments.

Good news! We can help with the last one (but not the other – you’re on your own for those). If you are having a hard time making your mortgage payment, maybe it is time to get rid of the problem. How do I know what the problem is? I know what the problem is because it is always the same thing – the house has become too much for you. This can be a hard thing to realize because there is so much sentiment and emotion represented by a house – your house. And while it does provide you protection and warmth and a place to make memories, it is also the cause for a lot of stress when it costs more money to keep it then the budget will comfortably afford.

This can be a tough realization to reach because obviously, there was a time when the house was not a burden. Then a hardship hit – job loss, divorce, death of your spouse, any number of things can change and suddenly the house, which is most people’s biggest expense, becomes a huge weight on their shoulders.

Never fear! We are here to help. We can help move the weight of that burden of a house off your shoulders.

If your house has become a burden due to a financial hardship and you are facing a Michigan Foreclosure, give us a call. We specialize in getting families back to better times. And our New Year’s Resolution is to help even more Michigan families in 2010 than we did in 2009!

Happy Holidays from all of us to all of you!

Ann

I was having lunch with a group of people 5 or 6 years ago and someone mentioned that their neighbor was losing their house to a Michigan foreclosure. A hush came over the group, a few people gasped. People lowered their voices and said “Really?”. It was almost like someone had announced that their neighbor murdered their family and buried them in the back yard. You see, back then foreclosure was not common place and people were shocked by the mention of it.

Today, foreclosure is unfortunately an everyday occurrence (especially in Michigan). We hear almost daily mention of it either in the media or because we know someone going through foreclosures. When we are exposed to the constant evidence that foreclosure is reality in Michigan, we begin to accept is as inevitable and think there is nothing we can do to stop it. However, it is not inevitable and there are things people can do to prevent their lives from being turned upside down by a Michigan foreclosure.

People who are behind on their house payments and facing a Michigan Foreclosure do have options. A great option is to call us and discuss those options. We have helped hundreds of families get back to better times. In fact, when we hear of a foreclosure situation, we don’t think it is inevitable, we create solutions to help these families.. If you or someone you know is facing a Michigan Foreclosure, give us a call today and let us help them.

Ann

From the REALTORS® we work with to the sellers we help, all seem to want to know if we take on their case and negotiate their short sale, whether or not they’ll owe a deficiency.

Of course, we can’t guarantee (no one can) that your lender(s) will agree to settle the accounts.  That is, not ask for any further payments.  Some lenders ask without fail while others will never ask.  What we can guarantee is that we will exhaust our resources and knowledge to prevent you from having to pay anything more; we want you to be able to walk away owing nothing.

Unfortunately that doesn’t always happen.

But the good news is a deficiency (usually what’s called a “promissory note”) can actually be a positive thing.  Chances are good that if you need a short sale, you are behind on your payments, and that’s had a bad effect on your credit.

A promissory note is an extended, low interest or interest-free, unsecured loan.  It is an excellent and easy way to repair your damaged credit.  Also if you find yourself facing another financial hardship and not able to make payments, there is no collateral on the loan.  This means there is no property – houses, cars, boats – on which the lender can foreclose or repossess.

We work hard to keep you out of these situations, although at times it may be unavoidable.  If you have any questions about short sales or deficiencies or promissory notes, feel free to give us a call – we’d be glad to answer any questions or find a way to help you.

Melissa

We belong to two national short sale mastermind groups with members from across the country. This helps us stay up to date on techniques and industry changes involved with working short sales. (Quick review – a short sale is getting the bank to accept less than the balance owed to sell a house). Jeff Watson, an attorney who consults with one of these groups recently published a paper designed to assist Investors, REALTORS®, title companies and others who help sellers with Short Sales. A section of this article succinctly described the four choices facing a family in foreclosure. I found this educational and interesting and decided to share the information here.

1. Remain in the property as a “squatter” until the foreclosure process is over and eviction occurs. This allows the family to stay in the property as long as possible for a low cost. It also results in poor credit for the next 7+ years and the likelihood of the lender pursuing them for the balance of the loan, attorney fees, late fees, back payments, etc – UGLY!
2. List the house for an amount of money to pay all mortgages, liens, taxes, closing costs, etc. and pray that some buyer will come along willing to pay that price. This usually results in the family living in the property with unrealistic expectations because the property never sells and is ultimately foreclosed.
3. (Often recommended by many REALTORS® who do not understand the complexities of short sales): The seller lists the property seeking a short sale buyer and hope that the buyer has the patience and endurance to wait the long process as the seller or their REALTOR® negotiate with all lien holders to get the short sale approved. The result is the buyer often gets frustrated and the REALTOR® and/or seller are not trained or equipped to handle the negotiations with the lenders. Only 10% of REALTORS® successfully complete short sales because of the simple fact that very few have been trained and know how to successfully negotiate a short sale.
4. Seller list the property seeking a short sale and work with a competent and knowledgeable real estate investor or negotiation company where the company assumes the responsibility for negotiating the short sale for which they have been trained and have the experience to do. The investor/company is knowledgeable about the entire short sale process and they understand the key steps in the negotiation process.

We are such a company that is highly trained and experienced working short sales. We have handled 100’s of short sale cases and have a success rate over almost 80% when a suitable buyer is found.
If you are facing a Michigan foreclosure and you aren’t sure which option is right, give us a call and we will help you sort through your options. We know there is a lot of confusing and misleading information out there and we are prepared to help you find the option right for you. If option 4 looks like the best and right option for you, give our team a call and put our strengths to work for you.
Ann

You’ve probably been hearing a lot of talk about President Obama’s Making Home Affordable Plan, but aren’t sure if you qualify or not. Unfortunately, chances are high that you don’t – rigid restrictions set in place and the newness of it all (coupled with bad communication and poor customer service – just my opinion) are making it hard to people to get the help they need. I’ve been mulling around the Making Home Affordable website for a few days, and here’s what I’ve found.

If you are current on your loan, you could qualify for a Home Affordable Refinance. By current, they don’t mean that you are caught up with your payments. If you have been over 30 days late in the last year, you are not considered current (crazy, I know). So let’s say you are current by their standards. In order to refinance, your loan must be backed by Fannie Mae or Freddie Mac. This very quickly makes about half of all families ineligible. Another stipulation is that your first mortgage cannot be more than 125% of the value of your house. For example, if your mortgage is $150,000 your house cannot be worth less than $120,000. This is a huge problem for most families in Michigan due to the rapid decline in house values. Sill eligible? Let’s keep going. While refinancing from an adjustable rate or balloon payment to a fixed rate is definitely an improvement in the long run, the problem lies in the fact that your mortgage payment may not go down with a Home Affordable Refinance. This means that if after the refinance, you still do not have the ability to make your payments, a refinance is not for you.

If your mortgage is not backed by Freddie Mac or Fannie Mae, there is another option out there – the Home Affordable Modification. With this option, if you are behind on your payments may qualify for the program. The main problem with the modification is that only the first mortgage can be modified. In order to qualify, your first mortgage payment has to be more than 31% of your gross monthly income. That is, if your family is making $35,000 a year, your first mortgage payment must exceed $904 a month. That seems extremely high to me. Push that income up to $50,000 and your payment has to exceed $1,290! Many times it is not the first mortgage that is causing problems for individuals – it’s the pesky equity loan or second mortgage. Remember, that 31% rule isn’t taking these into consideration. Add another $250 onto that, and your $1,290 payment goes up to a whopping $1,540. Another reason many people have fallen behind on their mortgages is because they have income properties that didn’t quite work out, or were affected by the housing crisis. If you don’t live in the house, you are not eligible for a Home Affordable Modification.

So, you meet the stringent requirements for either a the Refinance or Modification programs? Now comes the fun part! You get to call your mortgage company and ask for one of these options. The Making Home Affordable website tells you to “be patient” because these programs are newly implemented, and it might be a while before all applications can be processed. According to CNN.com, only 6% of eligible families have actually been helped so far. I’ll give you another reason to be patient: Most Banks Are Slow. I know – I’ve been working for them and with them for the last two and a half years. They lose your paperwork, they don’t contact you (except to collect money), and there is poor communication within. You’ll get customer service representatives giving you the wrong information or passing you off to someone else. Be prepared for some serious aggravation and time loss.

If you are one of the majority of people who don’t qualify for these programs or simply don’t have the patients required, and want to avoid a Michigan foreclosure, give us a call. We will never ask you for any money, or to do any repairs to the house. We promise that we will never put you in a worse situation, and that we will work harder than anyone else to give you a permanent foreclosure solution. We also promise to keep everything confidential. Give Emily a call at 269-385-5921 – we look forward to hearing from you!

Holly

I just got off the phone with a homeowner who is facing a Michigan foreclosure. They only have a few months left in their redemption period and called to see what options they have. Unfortunately, since they waited so long without searching for a solution, there are not many options left.

She told me that she’s known this whole time about the foreclosure, but that the idea of it was so scary, that she had just pushed it to the side and didn’t address it. I certainly understand her being scared, but I would find it even scarier if I didn’t know what the next step was, how long I had left in the house, or what my options were.

Yes, the idea of facing a Michigan foreclosure is scary; but your best tool for dealing with that is having information. The more you know about your rights and options, the more control you’ll gain over the process. If you’re not sure who to call, look no further, I’m just a phone call away. You can reach me anytime at 269-685-5921 or on my cell at 269-808-5880.

Emily

I was called by a seller facing a Michigan foreclosure yesterday who had been told by a mortgage person that she does not need a third party to do a short sale for her, she can do it herself. She wanted to know why she should work with us.

Let me tell you, like we told her, the top three reasons why you should get us involved:

• The closing rate national average for sellers or REALTORS® negotiating Short Sales is about 10% while ours is almost 80%.
• Our negotiators have over 10 years experience negotiating Short Sales. One of them does nothing else 8+ hours a day besides negotiate.
• You will never pay us a fee.

Yes, you are perfectly capable of calling the bank and asking for the short sale yourself. Before you do, ask yourself:

• Do you want to do this? Do you want to sit on hold, get passed from person to person, be submitted to degrading remarks by customer service people who are trained to get you to pay anything they can get you to pay?
• Do you have time to call the bank? Most people are busy with jobs and kids during lenders hours and don’t have 30-60 minutes to sit on the phone waiting to be told nothing is new. Not just one day but multiple days.
• Will you understand what the lender tells you and know what to do if obstacles are put in your path? One gentleman told me yesterday that he called the lender about a short sale and was told the loan had been written off and the bank would accept nothing less than a full payoff. He didn’t know what to do. Our negotiators know what to do in this situation so the short sale does not die.

Yes, it may look easy when you watch trained professionals like our negotiators talk to a lender about a short sale. It may even sound easy when you break down the basic steps. However the professionals always make the talent they have perfected look easy. Doesn’t mean I want to perform surgery on myself if I ever need it!

If you decide to try negotiating the short sale on your own, or have your REALTOR® do it, I wish you the best of luck. If you’d like to see if you are eligible for us to do it for you, give Emily a call and discuss what is right for you and how we can help you get back to better times.

Ann