Q: Someone told me that the house down the street from mine in Parkwood was foreclosed on and for sale by the bank. I am not happy about the foreclosure, but I would love for my son to buy it. There is no for sale sign on the property, but I can tell it’s vacant. How can I find out if it is for sale?

A: It’s unfortunate to have a foreclosure in a neighborhood. But while it’s a drag on home values, the flip side is that it could be a deal for some lucky homebuyer. Many times there is a lapse between the time a home is officially foreclosed on and the time the bank lists it for sale. It could be months or even years, depending on the bank. continue reading »

Q: My neighbor’s house has been for sale for the last nine months. He told me it is a short sale and has moved out. He didn’t come back to cut the grass at all in the summer. Since it’s snowed and he hasn’t come back to shovel either. It’s a short sidewalk, just three cement blocks to clear. To whom can I complain?

A: This guy has moved out and moved on. Since your neighbor is selling his home by short sale, he will not make a dime from the sale. In fact, the sale will leave the mortgage lender short, as it will be getting less than your neighbor owes for the property, hence “short sale.” continue reading »

Q: I live in the Northeast, but hope to move in the spring. I have neighbors who said their mortgage is higher than their home is worth. This week they decided to simply move out and let their mortgage company take it. I now have a vacant home on my block. What will happen now?

A:  Your neighbors have elected to default on their mortgage and leave in their wake lower home values in your neighborhood. The fact is, no matter what the defaulting homeowners’ excuse, foreclosures decrease nearby home values. continue reading »

Q: I lost my job and can no longer afford my home in Wissinoming. I don’t have any money to bring to settlement, so selling it for less would be problematic. My agent listed my house for sale in January for $94,900, because I owe $83,000 and I needed to make sure the sale covers my closing costs. No one is even coming to see it. My agent tells me the average sale price for the same house in my neighborhood is about $78,000. Can I try for a short sale?

A:  Short sales are not easy, and, despite their name, they are anything but short in process. There have been many homes that didn’t make it through the short sale process and have ended up in foreclosure.   Contact the Loss Mitigation department of your mortgage company to find out what documentation is required to apply for a short sale. Usually you will need the following items, among others: continue reading »

Q: My house is in foreclosure. I have not been able to make the payments in several months. I want to sell it before the sheriff does. What should I do?

A: If you owe more than market value, you have some work ahead of you. continue reading »

Q: I understand interest rates are low and I have heard it is a good time to refinance, but I’m having a hard time finding a bank to do a refi on the home I bought in 2007. Why?

A: If you purchased in 2007, you may have a potential appraisal problem due to the increasing number of short sales and forclosures that are now being included in appraisals.

According to the National Association of Realtors, approximately 38 percent of existing home sales in 2009 were distressed sales, and 12 percent were short sales. Foreclosure sales accounted for two out of three distressed sales, and the rest were short sales.

Stan Reinford from Bank of America Home Loans had this to say: continue reading »

Q: My soon-to-be ex-husband and I bought our home in Lawncrest in 2007. Now we are getting divorced and are in foreclosure, too. I think we owe more than it’s worth but I was told by my lawyer to try to sell it through “Short Sale.” What do I need to do?

A: Even if you owe more than the home is worth, you can still try to sell it through a “Short Sale.” Nothing like their name, short sales are a lengthy process where the lender must agree to accept less for the loan than what is owed. continue reading »