Don’t lose your Chico Home to Foreclosure
December 21st, 2007 Categories: Chico CA Foreclosure Listings, Chico CA Real Estate News
by guest writer, Mike Wiegert- broker, Chico Homes Real Estate
If you are worried about keeping up with your Chico CA house payments or you've received a letter from your mortgage lender, take a moment to read this article.
The problem won't go away by itself!
1. Don't ignore your lender. They want to help you and will discuss the problems you are having. They have options to help you through these financially hard times. They can offer great advice to prevent you from getting into foreclosure. "I didn't get the mail" or "I didn't read it" are not valid excuses in foreclosure court. Disregarded mail usually turns into notices of legal actions.
2. Read your mortgage documents. Remember all those papers you signed when you bought your house? Dig them out of whatever hole you put them in and read them. You need to understand what your rights are and the procedures your bank will take to protect their interest in your property. Research other valuable information about foreclosures besides the information offered to you by your lender. An excellent source? Try: www.fha.gov/foreclosure/index.cfm.
3. Get some credit counseling. The U.S. Department of Housing and Urban
Development (HUD) offers free or very low cost housing counseling and information. A HUD counselors will outline options for you, help you organize your finances and even assist you in negotiating with your lender.
For more information call (800)569-4287.
4. Watch out for foreclosure prevention companies and foreclosure recovery scams. Although there many legitimate companies that will offer to assist you for a fee ranging anywhere from two to three months mortgage payments, most of their information and assistance is available to you through HUD as mentioned above. Don't waste your money at this critical time. NEVER sign your home over to an individual or company that claims it will act on your behalf. As always, enlist the help of an attorney or trusted real estate professional before signing any document conveying the title to your home.
Lastly, if you can't continue to make your payments consistently, contact a local real estate professional to help determine the actual market value of your property in todays market. Engage the services of a competent and trusted Realtor. Don't allow yourself to be lured into a listing agreement by an exuberant agent or broker claiming he can get you much more than the others simply because of his extraordinary talents. Ask the agent to provide you a detailed Competitive Market Analysis showing actual, recently sold properties in your neighborhood with similar features and in like condition to your home. The California Department of Real Estate not only allows agents and Brokers to negotiate their commission, but encourages it. Share your extenuating circumstances with your agent. Trusted friends and relatives can be a good source of recommending a Realtor that served them well.
Subscribe to: Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 6 Comments »
Foreclosures: What you should know BEFORE you make an offer, Part 3
November 18th, 2007 Categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico CA Foreclosure Listings
This is part 3 in a series of helpful hints to purchasing foreclosures in Chico, CA.
Did you miss parts 1 and 2? Read here!
Foreclosures: What you should know BEFORE you make an offer, Part 1
Foreclosures: What you should know BEFORE you make an offer, Part 2
Chico CA real estate buyers and investors LOVE foreclosures.
The problem is, there aren’t that many to go around! Many areas of California have experienced a high influx of foreclosures thanks to the recent mortgage meltdown. Chico, CA however has fared a little better in terms of relative numbers of repossessions.
Chico CA buyers are competing to snatch up the bank-owned (REO) property when it DOES come along. It’s important to remember, however, that purchasing an REO property can be quite a bit different than a traditional Chico CA real estate purchase.
Before offering on a Chico, CA REO property, you should know:
1. It’s important to have a preapproval letter from your lender. Most of the banks I’ve dealt with require that the preapproval be submitted with your initial purchase offer. Without it, they won’t waste their time reviewing your paperwork. While this makes good sense anytime you are offering on a property, it’s critical for an REO listing.
2. The bank also wants to prequalify you themselves.
They want to see the letter from your preferred lender, but they won’t necessarily trust it! Oftentimes, you will be required to fill out their credit application just so they can verify that you do indeed qualify for the loan amount, or are otherwise financially stable. Although they would be happy to process your loan, you are still pursue a loan through the lender of your choice.
3. The bank is picky when it comes to title companies.
Typically, a buyer has some say about which title company they prefer, and even which officer they would like to work with. The bank really doesn’t care if your friend Sue is the best title officer in the county and her office is only 2 blocks from your new house. Most of the time, they already have a title company and officer designated, and the point is non-negotiable. The best part? The title company is usually out of the area, and unfamiliar with local practices.
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Still want to be part of the foreclosure frenzy taking place in Chico CA real estate? Contact me, and I will work to find you the perfect Chico REO property for your needs.
Sandi Bauman, Chico CA Realtor: 530-864-5407.
Related reads:
Short escrow? Get your ducks in a row BEFORE you make an offer.
What is the Difference between Prequalification and Preapproval?
Why Should I Get Preapproved for a Chico, CA Home?
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 4 Comments »
What’s All This Talk About Short Sales on Chico Homes?
November 10th, 2007 Categories: Anatomy of a Chico CA Real Estate Transaction, Chico CA Real Estate News, Chico Financing
By guest author Mike Wiegert, Broker, Chico Homes
For Chico, CA homeowners that can’t afford to pay their mortgage, there is an alternative to bankruptcy or foreclosure proceedings – it is called the short sale.
The short sale really begins when you finally realize that your house just isn’t worth what it was just a few short years ago.
The next realization is that if you sell your house for what it’s really worth, you’re not going to actually get any proceeds back from the sale. That’s a big pill to swallow, but after you do, you might have the final realization that you’re really just starting from scratch like you did a few years ago. Back then, you’re credit was pretty good, you had your health, all your kids were fairly normal and you had a job. So rather than losing your home in foreclosure AND ending up with a terrible credit report, you think “I wish we could just be back to where we were back then.”
It’s at this point that a “short sale” might be the answer.
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs such as property taxes, transfer taxes and commission.
In other words, what a buyer might be willing to pay for your home isn’t going to cover what you owe on it and what it’s going to cost you to sell it. Unlike a foreclosure, a short sale can keep the homeowners credit intact. The first step is to do some research a find a Chico, CA Realtor that knows the Chico real estate market and has had experience and success in the short sale process. Your Realtor will need special skills and a persistent attitude in dealing and negotiating with your lender.
Banks are not in the business of owning and marketing homes and many would much rather discount the current amount of their loans than have to go through the process of marketing and holding a property in a slower market. This lender attitude will certainly grow as the number of foreclosures and repossessions increase. Conversely, the popularity of buying in the short sale market appears to be spreading rapidly.
Be advised, before you contract with any Realtor to market your home utilizing a short sale concept, you should consult a real estate attorney for the legal implications of the short sale and an accountant about the tax liabilities involved in the short sale.
You must understand everything upfront before the short sale process begins- look to your Chico CA Realtor for assistance.
1. You must prove to your lender that you are unable to afford to pay your mortgage.
If your lender is aware that you possess certain assets such as stocks or bonds, or you have a high paying job, your lender may require you to sign a note promising to repay at a future time any discount of what you owe that they make in the short sale. If you do not possess these types of assets or your job clearly indicates that you would not be able to repay such a debt, it is possible it may be forgiven.
2. Next the lender will appraise the current market value of your home.
The lender, with the help of your Chico, CA Realtor will calculate the amount of the outstanding debt and the customary costs of selling. If the proposed short sale will bring them more money than they would get during auction, the lender will mostly likely agree to it. End result, you didn’t pull the equity out of your home that you might have thought you had, but your credit is still intact, you’re out of a mortgage payment you can’t afford and the dream of once again owning a little corner of this world still burns brightly!
If you find yourself in a situation where your payments are are becoming too much to handle, please contact us at Chico Homes! We may be able to assist you in selling your home and avoiding a credit-destroying foreclosure.
Like what you’re reading?
Click here to SUBSCRIBE to Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 5 Comments »
