March 2, 2011

THE TOP 7 FORECLOSURE MYTHS for ATLANTA HOME OWNERS & THEIR TRUTHS REVEALED….

Posted in Uncategorized tagged , , , , , , , , , , , at 7:55 pm by winterbaserva

THE TOP 7 FORECLOSURE MYTHS for ATLANTA HOME OWNERS & THEIR TRUTHS REVEALED….

I come across some of the same questions and “myths” from home owners over and over about Atlanta foreclosures. Its quite interesting how far these myths have spread over time and how inaccurate some of them are……I’m going to debunk a few of the common myths that seem to be circulating among consumers…

Myth #1: The bank really wants your home back.

THE TRUTH: Believe me, the LAST thing the bank wants is your home back. It’s important to understand that the banks are not brokers, property managers, or agents, and they do NOT want that business. It’s not your home they want, BUT THE MONEY LENT FOR ITS PURCHASE that they want to recover. Foreclosure is a time-consuming, last-resort process for banks, and most will do everything possible to work things out with a homeowner in order to avoid it.

Myth #2: Filing for bankruptcy stops a foreclosure.

THE TRUTH: This one stumps everyone. First, you have to look into the different types of bankruptcy and what you will find is that they vary as much as the color of socks in a sock drawer. While many think they can “cheat” the system this way, bankruptcy creates only a temporary delay in the foreclosure process, so using it as a strategy for stopping it altogether will ultimately fail.

Myth #3: The Atlanta Home Owner is NOT Responsible for Paying the Bank’s Legal Fees.

THE TRUTH: SURPRISE……as an Atlanta Home Owner in default, you actually are responsible for ALL THEIR LEGAL FEES. All of the details are in your mortgage agreement, so take a close look at the fine print…I think the revelations might ASTOUND you.

Myth #4: Even if I pull together the money I owe after the foreclosure process has begun, it’s too late to stop it.

THE TRUTH: : It’s NEVER to late to work out options. I have had some Atlanta foreclosures stopped the DAY it was supposed to be foreclosed on. Banks and lenders do not want borrowers to lose their homes and they REALLY don’t want another asset on their books. They consider the foreclosure option to be the ABSOLUTE last resort.

The truth is that lenders can expect MOST of the time to lose money in the foreclosure process. Even if foreclosure proceedings have begun, it’s not too late to be considered for a loan modification, short sale or other foreclosure alternative. Borrowers should contact a REALTOR®  to find out what their options are as soon as they know their mortgage is becoming a difficult thing for them to pay. The best way to avoid a foreclosure is to put yourself in contact with the people who can help you along the process. YOU DON’T HAVE TO GO AT IT ALONE.

 MYTH #5: The bank will take all my stuff along with the house.

THE TRUTH: All personal property is yours to take; however, fixtures, floor coverings, appliances and anything else permanently attached to the house must stay.

MYTH #6: My involvement with the property is over once the bank takes it back.

THE TRUTH: After Atlanta foreclosure, if the bank sells the home for less than you owed on the mortgage, you’ll still be responsible for the difference, or “deficiency.” What’s more, they can collect interest on that amount. A deed in lieu of foreclosure or chapter 7 bankruptcy may clear you of owing a deficiency, so consult a bankruptcy attorney if you have questions about your status and options.

AND, ONE OF THE MOST COMMON FINAL MYTHS IS…..

 Myth #7: If you’re foreclosed on, you will not be able to get another mortgage.

THE TRUTH:  Will a foreclosure hurt your credit…YES and it’s true that it may take a several years to qualify for a mortgage after a foreclosure, but it can be done with some effort and planning. If the default was caused by extenuating circumstances, such as a job loss or serious illness, then Freddie Mac guidelines state that the borrower must re-establish an acceptable credit reputation for at least the most recent 36 months before applying for a new mortgage.

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January 6, 2011

192+/- Atlanta Homes MUST BE SOLD! The REDC HOME AUCTION COMES TO ATLANTA JANUARY 23, 2011

Posted in Uncategorized tagged , , , , , , , , , , , , , , , , , , , , at 5:36 pm by winterbaserva

192+/- Atlanta Homes MUST BE SOLD!!! The REDC (Real Estate Disposition Corporation) HOME AUCTION COMES TO ATLANTA JANUARY 23, 2011!!! (edit/delete)

  That’s right! The REDC Home Auction in Atlanta is coming back on Sunday, January 23, 2011.

Many will flock to this event in the hopes that they will strike it rich with their “deal of a lifetime“!! As an owner of FOUR properties bought at the REDC auction, can I please give you one, tiny, little piece of advice??? Go, BUT DON’T EXPECT TO FIND YOUR DEAL OF A LIFETIME!! If you haven’t already done so, YOU MUST read my blog about the 10 Biggest Mistakes Buyers Make in Today’s Market, of which Mistake Number 7 is trying to find your bargain at an auction.

Don’t get me wrong, I got a fairly decent price on the four properties I bought at the REDC Home Auction. But, by the time you add the auction fees, lender fees, closing costs, repairs (of which all of my homes needed between $10,000-30,000 worth of work), I realized that if I just would have been better off buying the home down the street directly from Mr. & Mrs. Seller……and FOR LESS. Of course, this was early off in my investing portfolio and just a little mistake I made that I have the privilege of sharing with you, so you don’t make the same mistake. I see it too many times; people getting caught up in the labels of “auctions, foreclosures and short sales” and miss unbelievable buying opportunities that are staring us in the face.

 Now you HAVE to read my blog about auctions…….

 Here are a Few Other Recommendations if you Plan to Buy at an Auction:

  • Do Your DUE DILIGENCE-no inspection contingencies here, you get what you get and sometimes that can be substantial. Do your research BEFORE you bid.
  • DON’T let your emotions take control-decide your highest and best bid BEFORE you go and don’t go over it under ANY circumstances. 
  • Practice PATIENCE throughout the entire process-from the winning bid, to the paper work to closing, you will need patience. Imagine how busy the closing attorney’s are with the amount of Atlanta homes being sold.
  • Don’t be surprised about the disorganization-these events move fast and they are not always well orchestrated.
  • Keep Your Eye on the Prize and WAIT-if the auction property you want ends up going to another bidder, WAIT, 40% of the homes come back around and you can get it on the second go round and maybe for LESS!!!
  • Despite everything if you still want to buy at an auction, GET A QUALIFIED REALTOR to represent you. It’s great to have a non-biased, non-emotional third party representative there to help you with the bidding, interpret the price point, explain the risks, as well as walk you through the process and paperwork. Your job is JUST starting once you leave the auction. There is a mountain of items that have to be handled and an agents fee is paid for by the auction house, so this service is completely FREE to you!

One thing is certain DEALS OF A LIFETIME are out there…..lots of them… And, if you REALLY want a good deal, call me and let me show you how to offer in on the property NO ONE’S offering on, instead of putting you in a room with hundreds of other buyers all going after the same one.

If you are looking for a Nationally-Recognized, top producing real estate agent that understands the Atlanta home auction process, then CALL ME immediately. I’ll be happy to represent you FREE.

 BUT, don’t wait!! I will need to make sure that you are registered properly!

 The REDC (Real Estate Disposition Corporation) HOME AUCTION

 When: Sunday Jan. 23, 2011

Where: Georgia International Convention Center – Exhibit Hall D  2000 Convention Center Concourse, College Park, GA 30337

Time: Registration Starts Promptly at  8:00 a.m. Auction starts promptly at 9:30 a.m.

What to bring: Last 2 yrs W-2 , $2,500 Cashier’s Check ($5,000 for each subsequent) , Checkbook for balance of 5% Earnest Money Deposit (15% for each subsequent)

Properties open for inspection from 11AM to 4PM on 1/8/11, 1/15/11 & 1/16/11.  Please check individual property for specific open house information.

P.S. Did you know you can buy properties “auction-style” ONLINE from auction houses that are not as popular and have many less people bidding on them??? I can help you with that as well!

 

December 29, 2010

How Have Atlanta Short Sales Evolved Over the Past Year???

Posted in Uncategorized tagged , , , , , , , , , , at 9:31 pm by winterbaserva

Re-blogged 0 times   How Have Atlanta Short Sales Evolved Over the Past Year???

Quite honestly, they haven’t….much. If anything, I’ve seen the Atlanta short sale market continue to digress. So, what is the reason?? For one, the HAFA program. In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and sunsets on December 31, 2012.

 HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP (including HAFA) is available at: www.makinghomeaffordable.com/contact_servicer.html.

The problem is that most lenders aren’t even aware of how this program works. So, they don’t know what they need to do to execute it. And, if you’re looking to short out a first and a second mortgage, most people aren’t aware that the second mortgage doesn’t allow the HAFA program. So the seller will sit and wait for a “dream” of getting money to move out of the home, while the buyer is the one who REALLY suffers. They wait and wait only to find out that the home could never qualify for the HAFA program and by then delinquency in mortgage payments catch up, the home ends up going.

The other reason that short sales are getting worse in their turn around time is that seller agents and sellers are pricing the homes too low for the reserves to be met at the bank. The banks are NEVER going to agree to the terms that are out there by the agents and sellers and its VERY MISLEADING to the buyer. Not all do it intentionally, they just don’t know the process and NO ONE knows what the bank is going to do. So, what exactly is a short sale? 

One of the most common questions I’m asked is “What is a Short Sale?”

When a property is labeled as a “short sale” this means that the buyer is in default on their mortgage payments and has asked the lender to work with them in accepting less money than is owed on the current mortgage.  Although the seller is still technically in possession of the property, it is the lender who will determine whether or not the home will sell.  The lender will require the owner to submit a “hardship” application proving that the seller does not have the financial capacity to pay for the home or make up the difference in what the home might sell for versus what is owed.  Once approved, the lender orders a BPO (broker price opinion) or an appraisal to determine what price would be fair for them to accept knowing they are going to take a loss.

Buying a home that is labeled a short sale at a good price is possible. I would say about less than 10% of the short sales where I am representing the buyer end up actually closing. TEN PERCENT!?!?!

 The most typical issues you will encounter are primarily time for acceptance, lack of firm pricing decisions, additional liens and multiple mortgages.  Quite often, lenders can take 60 days or more to respond to an offer due to the approval process they must go through once an offer is received, especially with certain banks who will remain nameless. If you would like a detail on each bank and my experience with them, I would be happy to share at another time.  I’ve seen short sales in Atlanta take up to 6 months before there is even a response. This lengthy and exhausting approval process can very frequently result in even “full price” offers being rejected.  Sellers and lenders are under no legal obligation to accept even a full price offer.  They can change their mind at any time and they often do.

I’ve seen many homes listed at “incredible” prices and labeled short sales, only to find out that the price was never even in reason of being accepted by the bank.  The seller/agent may have been trying to just create interest and get an offer to see if the lender would act on it.  In the end, this creates frustration for everyone from the lender to the buyer, and the purchaser. 

If you DO decide that a short sale is an option that you would like to pursue, be sure to get a qualified realtor who understands the process, the best way to present your offer, and the skills to know how to follow up with the bank and other agent….I’ve dealt with many short sales in my career and would be happy to pass along my findings. Katerina Gasset also specializes in short sales in her area of Florida on the listing side.

There are still several Atlanta short sales on the market right now. But, what’s even better are overall there are STILL just a ton of GREAT ATLANTA HOME DEALS right now whether they are short sales, foreclosures or just MOTIVATED SELLERS. I know the economy seems scarce, but Atlanta never saw the over-inflation of home prices the way other areas did and therefore is already starting to stabilize. Home prices have been slightly increasing over the months. Expect this trend to continue. No one’s going to ring a bell at the bottom!!

 So, get in on one of the biggest discount sales events this country has ever seen and let me help!!!

April 18, 2010

Where Have All the Atlanta Foreclosures Gone?

Posted in Uncategorized tagged , , , , , , , , , , , , , at 2:35 am by winterbaserva

Where Have All the Atlanta Foreclosures Gone?

Are you an agent who is constantly frustrated by showing a foreclosure only to find out within hours its gone under contract?

  Or, an Atlanta first time home buyer that needs to “think” about the purchase before putting in your offer to find out its been taken underneath you? Or, even the Atlanta investor, who gets how fast they move and put in offers sight unseen only to find out so did 20 other investors???Where have all the Atlanta Foreclosures gone?? We’ll according to the National Association of Realtors  buyers and sellers report, they are being BOUGHT, and bought very quickly. Did you know that in 2009, 47% of home buyers were first time home buyers with a median household income of $73,100?? And, that half of home sellers traded their current homes to a large size and higher priced home?? There’s a lot of buyers out there, and although the media continue to label us as in a ‘down market’, these statistics show anything but….                                                       

Here are the facts….the plethora of Atlanta buyers capitalizing on the first time home buyer tax credit addition to the Atlanta Short Sales and Atlanta Foreclosures are soaking up the inventory…Have you seen the GMAC sign that sits on 1-85? Homes that are currently for sale are DOWN! In record numbers. Despite that 1 out of 3 loans are being denied, with an average income of $73,100, your home sale could run 4 times a persons income. So, yes, there is still money out there for qualified buyers……And, the banks books are lightening, so despite that YES, we will see some more foreclosures hit the market, they will not be in record numbers like they were in 2008.

So, how DO you snag up a foreclosure, especially when they are fewer and farer in between?

•1)  Get yourself a good deal specialist One that understands the Atlanta Foreclosure and Atlanta short sale market and can help you find ALL types of properties–including the ones NOT currently on the market…..77 percent of buyers purchased a home through a real estate broker and real estate agents were viewed as a VERY USEFUL SOURCE OF INFORMATION by 81 percent of those buyers in 2009. That speaks VOLUMES to our abilities to protect and educate you.

2)    Act first, think later. Put an offer in, tie up the property and then THINK LATER. Your due diligence period allows you 7-10 days to decide if you want to keep it. Don’t let the other Atlanta Vultures beat you to the punch. I’m an Atlanta real estate agent that specializes in good deals and selling homes for top dollar, but I’m also an investor. I wrote 45 offers to get the 7 homes I ended up buying. Good deals are a numbers game, thinking will slow it down.

3)    Work with someone who “SPEAKS THE BANKS LANGUAGE” and knows how to structure your contract to protect you. Foreclosures and short sales CAN be good deals, but they don’t come without trials, you better be sure the agent you choose knows how to protect you.

4)    Know that if it “sounds to good to be true”, it is and know what you consider a “good deal to be”. I get a lot of folks wanting to find a home for “50 cents on the dollar”…And, my question is “50 cents on WHAT DOLLAR?” The appraised value? The purchase price? The sale price? If you want a home worth $500,000 for $250,000, you are not going to find it. Deals like that just don’t exist and if they did, there would be something really wrong….Have you ever found a $50,000 car worth $25,000? Exactly.

•5)    Call the Atlanta Home Vultures team today and find out how we have successfully made over 24 good deals happen since the beginning of 2010 when your average agent only does 4 transactions….A YEAR!!!!

October 27, 2008

Atlanta Short Sales: The Facts

Posted in Uncategorized tagged , , , , , , , at 7:00 pm by winterbaserva

Atlanta Short Sales: The Facts
When a property is labeled as a “short sale” this means that the buyer is in default on their mortgage payments and has asked the lender to work with them in accepting less money than is owed on the current mortgage. 

Although the seller is still technically in possession of the property, it is the lender who will determine whether or not the home will sell. The lender will require the owner to submit a “hardship” application proving that the seller does not have the financial capacity to pay for the home or make up the difference in what the home might sell for versus what is owed

Once approved, the lender orders a BPO (broker price opinion) or an appraisal to determine what price would be fair for them to accept knowing they are going to take a loss.

Buying an Atlanta home that is labeled a short sale at a good price is possible, but generally not without some challenges. 

Typical issues you will encounter in negotiating an Atlanta short sale:

  • Time for acceptance-Quite often, lenders can take 30 days or more to respond to an offer due to the approval process they must go through once an offer is received. In the meantime, all the other buyers are snagging up the good deals!!!
  • Lack of firm pricing decisions- I have seen many homes listed at “incredible” prices and labeled short sales, only to find out that the price was never even in reason of being accepted by the bank.  The approval process can very frequently result in even “full price” offers being rejected.  Sellers and lenders are under no legal obligation to accept even a full price offer.  They can change their mind at any time and they often do.
  • Sometimes the short sale hasn’t even been approved it was just the seller/agent may have been trying to just create interest and get an offer to see if the lender would act on it. 

In the end, this creates frustration for everyone from the lender to the buyer, and the purchaser.  A lot of time and effort goes into something that a good portion of the time will never be put together.

Be wary of something that looks too good to be true and make sure you deal with a realtor that understands the short sale process. Having representation doesn’t cost you a thing, but it could end up saving you a fortune.
 

 

October 24, 2008

The REDC Auctions Atlanta Foreclosures–The ATLANTA HOME AUCTION CONTINUES!!!

Posted in Uncategorized tagged , , , , , , , , , , , , at 10:06 pm by winterbaserva

The REDC Home Auction is Back in Atlanta This Weekend…The ATLANTA HOME AUCTION CONTINUES!!!

The REDC (www.ushomeauction.com) will be auctioning off its last round of Atlanta homes this weekend at the Georgia World Congress Center.

Having bought several properties at an auction, I learned that the “labels” aren’t always what they appear to be. Bottom line, I ended up overpaying for my properties because I thought ALL auction properties were good deals. If you haven’t already done so, YOU MUST read my blog about the 10 Biggest Mistakes Buyers Make in Today’s Market, of which Mistake Number 7 is trying to find your bargain at an auction.

Nevertheless, I attended their latest auction to offer support to buyers who wanted information on the process and make sure I was up-to-date with what was happening in the Atlanta home auction market.

Not surprisingly, 95% of the people I spoke with and interviewed were disappointed with “deals” they thought they would get, the mark up fees, and the overall the auction process. Mr. Jay Canon explains he felt that he was paying “retail” prices and didn’t see the value in buying a property and having to bid against 200 other people to get it.


 
 
I always encourage my buyers to attend the auctions FOR FUN!!! BUT DON’T EXPECT TO FIND YOUR DEAL OF A LIFETIME!!!  One thing is certain DEALS OF A LIFETIME are out there…..TONS OF THEM… And, if you REALLY want a good deal, call me and let me show you how to offer in on the property NO ONE’S offering on, instead of putting you in a room with hundreds of other buyers all going after the same one.
Here’s a little taste of what you would expect to find at an auction.
 

REDC-Real Estate Disposition Corporation
Lender Foreclosure Home Auction in Atlanta, Georgia

  • Atlanta Area Homes: October, 25 2008
  • Atlanta Area Homes: October 26, 2008

P.S. Did you know you can buy properties “auction-style” ONLINE from auction houses that are not as popular and have many less people bidding on them??? I can help show you how to find your deal of a lifetime!