HUD releases guidance on Protecting Tenants at Foreclosure Act. Follow the link below for the information:
http://www.hud.gov/offices/adm/hudclips/notices/pih/files/09-17pihn.pdf
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Showing posts with label charlottesville va. Show all posts
Showing posts with label charlottesville va. Show all posts
Wednesday, June 24, 2009
HUD releases guidance on Protecting Tenants at Foreclosure Act
HUD releases guidance on Protecting Tenants at Foreclosure Act. Follow the link below for the information:
http://www.hud.gov/offices/adm/hudclips/notices/pih/files/09-17pihn.pdf
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.hud.gov/offices/adm/hudclips/notices/pih/files/09-17pihn.pdf
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Tuesday, June 23, 2009
10 Mistakes Buyers Make When Purchasing a Home
1. Making an offer on a home without being prequalified: Prequalification will make your life easier - so take the time to speak with a lender. Their specific questions in the regard to income, debt. etc., will help you determine the price range you an afford. It is an important setup on the path to home ownership.
2. Not having a home inspection: Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.
3. Limiting your search to open houses, ads or the internet: Many homes listed in magazines or on the Internet have already been sold. Your best course of action is to contact a Realtor. They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.
4. Choosing a real estate agent who is not committed to forming a strong business relationship with you: Making a connection with the right Realtor is crucial. Chose a professional who is dedicated to serving your needs-before, during and after the sale.
5. Thinking there is only one perfect house out there: Buying a new home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.
6. Not considering long-term needs: It is important to think ahead. Will the home suit your needs 3-5 years from now?
7. Not examining insurance issues: Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. Not buying a home protection plan: This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
9. Not knowing total costs involved: Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pr-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.
10. Not following through on due diligence: Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.
Oh, by the way...whenever you come across people who are thinking about buying or selling a home and who would appreciate the kind of service I offer, I'd love to help them. So, as these people come to mind, just give me a call with their name and business phone number. I'll be happy to follow up and take care of them.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
10 Mistakes Buyers Make When Purchasing a Home
1. Making an offer on a home without being prequalified: Prequalification will make your life easier - so take the time to speak with a lender. Their specific questions in the regard to income, debt. etc., will help you determine the price range you an afford. It is an important setup on the path to home ownership.
2. Not having a home inspection: Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.
3. Limiting your search to open houses, ads or the internet: Many homes listed in magazines or on the Internet have already been sold. Your best course of action is to contact a Realtor. They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.
4. Choosing a real estate agent who is not committed to forming a strong business relationship with you: Making a connection with the right Realtor is crucial. Chose a professional who is dedicated to serving your needs-before, during and after the sale.
5. Thinking there is only one perfect house out there: Buying a new home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.
6. Not considering long-term needs: It is important to think ahead. Will the home suit your needs 3-5 years from now?
7. Not examining insurance issues: Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. Not buying a home protection plan: This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
9. Not knowing total costs involved: Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pr-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.
10. Not following through on due diligence: Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.
Oh, by the way...whenever you come across people who are thinking about buying or selling a home and who would appreciate the kind of service I offer, I'd love to help them. So, as these people come to mind, just give me a call with their name and business phone number. I'll be happy to follow up and take care of them.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
Monday, May 4, 2009
The Truth About Hard Money Lenders
So many first time investors are curious about hard money lenders. Who are they? What is it? How do I get some? Is it beneficial? Let me share with you some of the basic principals about hard money lenders. First of all, lets determine what the term "hard money" means. When money is discussed between investors, it is considered to either be "soft" or "hard". Typically soft money is easier to qualify for and the terms are flexible. Hard money, on the other hand, is just the opposite. It is much more restrictive. Not in that it's more difficult to obtain, but the terms are very specific and much more strict. They have to be, because most hard money comes from private individuals with a great deal of money on hand. This is why hard money is also referred to as "private money". The money used for investment purposes comes from people, just like you and I, not a typical lending institution. So their first priority is to protect their investment capital. This is why the terms have to be so strict. If it were your money, you would want the same.
So what are some of the terms of "hard money lenders"? Obviously it varies from lender to lender. It used to be that hard money lenders would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.
It is good to know what the terms are when dealing with a hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it's in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.
Other terms you can expect are high interest rates. Interest rates vary from 12% - 20% annually and terms can last for 6 months to a few years. Many times these rates vary depending on your credit score and experience. In most cases, there will be closing costs or fees to use hard money. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. One point equals one percent of the mortgage amount. So charging 1 point on a $100,000 loan would be $1000. These are all important things to consider when choosing a hard money lender.
Other things to consider are how quickly funds will be available. Many times, when you find investment properties, you need to move quickly. Your ability to get access to money quickly can make all the difference. It's important to begin relationships with potential hard money lenders as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties.
Many hard money lenders today will also require you to fill out a credit application that may ask you for W-2's and or tax returns, your most recent pay stubs, and bank statements. Again, it's all about protecting their assets. Yet, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. Again it all depends on whom you deal with.
When should you use a hard money lender? Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is to long. Using a hard money lender is also a creative way to finance a property. Most like to call it "Nothing Down". If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you've just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards out way the expense.
How can you find hard money lenders? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to find hard money lenders is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online for hard money lenders. Some will lend nationwide - these typically want a credit check. If you find a hard money lender in your area, they may just do a drive by.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
So what are some of the terms of "hard money lenders"? Obviously it varies from lender to lender. It used to be that hard money lenders would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.
It is good to know what the terms are when dealing with a hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it's in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.
Other terms you can expect are high interest rates. Interest rates vary from 12% - 20% annually and terms can last for 6 months to a few years. Many times these rates vary depending on your credit score and experience. In most cases, there will be closing costs or fees to use hard money. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. One point equals one percent of the mortgage amount. So charging 1 point on a $100,000 loan would be $1000. These are all important things to consider when choosing a hard money lender.
Other things to consider are how quickly funds will be available. Many times, when you find investment properties, you need to move quickly. Your ability to get access to money quickly can make all the difference. It's important to begin relationships with potential hard money lenders as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties.
Many hard money lenders today will also require you to fill out a credit application that may ask you for W-2's and or tax returns, your most recent pay stubs, and bank statements. Again, it's all about protecting their assets. Yet, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. Again it all depends on whom you deal with.
When should you use a hard money lender? Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is to long. Using a hard money lender is also a creative way to finance a property. Most like to call it "Nothing Down". If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you've just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards out way the expense.
How can you find hard money lenders? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to find hard money lenders is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online for hard money lenders. Some will lend nationwide - these typically want a credit check. If you find a hard money lender in your area, they may just do a drive by.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
The Truth About Hard Money Lenders
So many first time investors are curious about hard money lenders. Who are they? What is it? How do I get some? Is it beneficial? Let me share with you some of the basic principals about hard money lenders. First of all, lets determine what the term "hard money" means. When money is discussed between investors, it is considered to either be "soft" or "hard". Typically soft money is easier to qualify for and the terms are flexible. Hard money, on the other hand, is just the opposite. It is much more restrictive. Not in that it's more difficult to obtain, but the terms are very specific and much more strict. They have to be, because most hard money comes from private individuals with a great deal of money on hand. This is why hard money is also referred to as "private money". The money used for investment purposes comes from people, just like you and I, not a typical lending institution. So their first priority is to protect their investment capital. This is why the terms have to be so strict. If it were your money, you would want the same.
So what are some of the terms of "hard money lenders"? Obviously it varies from lender to lender. It used to be that hard money lenders would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.
It is good to know what the terms are when dealing with a hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it's in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.
Other terms you can expect are high interest rates. Interest rates vary from 12% - 20% annually and terms can last for 6 months to a few years. Many times these rates vary depending on your credit score and experience. In most cases, there will be closing costs or fees to use hard money. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. One point equals one percent of the mortgage amount. So charging 1 point on a $100,000 loan would be $1000. These are all important things to consider when choosing a hard money lender.
Other things to consider are how quickly funds will be available. Many times, when you find investment properties, you need to move quickly. Your ability to get access to money quickly can make all the difference. It's important to begin relationships with potential hard money lenders as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties.
Many hard money lenders today will also require you to fill out a credit application that may ask you for W-2's and or tax returns, your most recent pay stubs, and bank statements. Again, it's all about protecting their assets. Yet, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. Again it all depends on whom you deal with.
When should you use a hard money lender? Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is to long. Using a hard money lender is also a creative way to finance a property. Most like to call it "Nothing Down". If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you've just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards out way the expense.
How can you find hard money lenders? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to find hard money lenders is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online for hard money lenders. Some will lend nationwide - these typically want a credit check. If you find a hard money lender in your area, they may just do a drive by.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
So what are some of the terms of "hard money lenders"? Obviously it varies from lender to lender. It used to be that hard money lenders would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.
It is good to know what the terms are when dealing with a hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it's in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.
Other terms you can expect are high interest rates. Interest rates vary from 12% - 20% annually and terms can last for 6 months to a few years. Many times these rates vary depending on your credit score and experience. In most cases, there will be closing costs or fees to use hard money. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. One point equals one percent of the mortgage amount. So charging 1 point on a $100,000 loan would be $1000. These are all important things to consider when choosing a hard money lender.
Other things to consider are how quickly funds will be available. Many times, when you find investment properties, you need to move quickly. Your ability to get access to money quickly can make all the difference. It's important to begin relationships with potential hard money lenders as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties.
Many hard money lenders today will also require you to fill out a credit application that may ask you for W-2's and or tax returns, your most recent pay stubs, and bank statements. Again, it's all about protecting their assets. Yet, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. Again it all depends on whom you deal with.
When should you use a hard money lender? Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is to long. Using a hard money lender is also a creative way to finance a property. Most like to call it "Nothing Down". If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you've just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards out way the expense.
How can you find hard money lenders? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to find hard money lenders is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online for hard money lenders. Some will lend nationwide - these typically want a credit check. If you find a hard money lender in your area, they may just do a drive by.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Tuesday, April 7, 2009
M&I Extends Foreclosure Moratorium
Milwaukee, Wisconsin-based Marshall & Ilsley Corporation (M&I) announced this week that it is extending its foreclosure moratorium through June 30, 2009. M&I's initial 90-day moratorium was announced on December 18, 2008, as part of the lender's Homeowner Assistance Program.
In addition to the freeze on foreclosure proceedings, M&I's Homeowner Assistance Program features streamlined assistance for potentially distressed homeowners who the bank identifies as being at-risk and initiates contact to offer assistance. The program also offers several refinancing options, including term extensions and reduced rates, that can be used to reduce homeowners' monthly payments.
Mark Furlong, president and CEO of Marshall & Ilsley Corporation, said, "Through our Homeowner Assistance Program, M&I bankers are available to assist homeowners who may be experiencing financial stress, with the ultimate goal of helping them stay in their homes as they recover from their economic challenges. Our objective is to proactively work with our customers, including offering guidance to families before they are faced with the possibility of foreclosure."
Mayor of Milwaukee Tom Barrett commended M&I for its home retention efforts. "M&I, through this important program, is making noteworthy progress in keeping many families in their homes," Barrett said. "We applaud them for extending the moratorium so even more families can benefit during this challenging economic time."
M&I's foreclosure suspension applies to all owner-occupied residential loans for customers who agree to work in “good faith” to reach a successful repayment agreement. The moratorium covers applicable loans in all M&I markets.
Founded in 1847, Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 193 offices across the state. M&I also has locations throughout Arizona, Minnesota, and along Florida's West Coast and Central Florida. The bank also has a presence in Indianapolis, Kansas City, St. Louis, and Las Vegas.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
In addition to the freeze on foreclosure proceedings, M&I's Homeowner Assistance Program features streamlined assistance for potentially distressed homeowners who the bank identifies as being at-risk and initiates contact to offer assistance. The program also offers several refinancing options, including term extensions and reduced rates, that can be used to reduce homeowners' monthly payments.
Mark Furlong, president and CEO of Marshall & Ilsley Corporation, said, "Through our Homeowner Assistance Program, M&I bankers are available to assist homeowners who may be experiencing financial stress, with the ultimate goal of helping them stay in their homes as they recover from their economic challenges. Our objective is to proactively work with our customers, including offering guidance to families before they are faced with the possibility of foreclosure."
Mayor of Milwaukee Tom Barrett commended M&I for its home retention efforts. "M&I, through this important program, is making noteworthy progress in keeping many families in their homes," Barrett said. "We applaud them for extending the moratorium so even more families can benefit during this challenging economic time."
M&I's foreclosure suspension applies to all owner-occupied residential loans for customers who agree to work in “good faith” to reach a successful repayment agreement. The moratorium covers applicable loans in all M&I markets.
Founded in 1847, Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 193 offices across the state. M&I also has locations throughout Arizona, Minnesota, and along Florida's West Coast and Central Florida. The bank also has a presence in Indianapolis, Kansas City, St. Louis, and Las Vegas.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
M&I Extends Foreclosure Moratorium
Milwaukee, Wisconsin-based Marshall & Ilsley Corporation (M&I) announced this week that it is extending its foreclosure moratorium through June 30, 2009. M&I's initial 90-day moratorium was announced on December 18, 2008, as part of the lender's Homeowner Assistance Program.
In addition to the freeze on foreclosure proceedings, M&I's Homeowner Assistance Program features streamlined assistance for potentially distressed homeowners who the bank identifies as being at-risk and initiates contact to offer assistance. The program also offers several refinancing options, including term extensions and reduced rates, that can be used to reduce homeowners' monthly payments.
Mark Furlong, president and CEO of Marshall & Ilsley Corporation, said, "Through our Homeowner Assistance Program, M&I bankers are available to assist homeowners who may be experiencing financial stress, with the ultimate goal of helping them stay in their homes as they recover from their economic challenges. Our objective is to proactively work with our customers, including offering guidance to families before they are faced with the possibility of foreclosure."
Mayor of Milwaukee Tom Barrett commended M&I for its home retention efforts. "M&I, through this important program, is making noteworthy progress in keeping many families in their homes," Barrett said. "We applaud them for extending the moratorium so even more families can benefit during this challenging economic time."
M&I's foreclosure suspension applies to all owner-occupied residential loans for customers who agree to work in “good faith” to reach a successful repayment agreement. The moratorium covers applicable loans in all M&I markets.
Founded in 1847, Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 193 offices across the state. M&I also has locations throughout Arizona, Minnesota, and along Florida's West Coast and Central Florida. The bank also has a presence in Indianapolis, Kansas City, St. Louis, and Las Vegas.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
In addition to the freeze on foreclosure proceedings, M&I's Homeowner Assistance Program features streamlined assistance for potentially distressed homeowners who the bank identifies as being at-risk and initiates contact to offer assistance. The program also offers several refinancing options, including term extensions and reduced rates, that can be used to reduce homeowners' monthly payments.
Mark Furlong, president and CEO of Marshall & Ilsley Corporation, said, "Through our Homeowner Assistance Program, M&I bankers are available to assist homeowners who may be experiencing financial stress, with the ultimate goal of helping them stay in their homes as they recover from their economic challenges. Our objective is to proactively work with our customers, including offering guidance to families before they are faced with the possibility of foreclosure."
Mayor of Milwaukee Tom Barrett commended M&I for its home retention efforts. "M&I, through this important program, is making noteworthy progress in keeping many families in their homes," Barrett said. "We applaud them for extending the moratorium so even more families can benefit during this challenging economic time."
M&I's foreclosure suspension applies to all owner-occupied residential loans for customers who agree to work in “good faith” to reach a successful repayment agreement. The moratorium covers applicable loans in all M&I markets.
Founded in 1847, Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 193 offices across the state. M&I also has locations throughout Arizona, Minnesota, and along Florida's West Coast and Central Florida. The bank also has a presence in Indianapolis, Kansas City, St. Louis, and Las Vegas.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Tuesday, March 31, 2009
Foreclosure "Rescues" May Be Illegal
Here’s the situation: A beleaguered home owner is in bankruptcy, overwhelmed by debt. The mortgage lender had begun foreclosure proceedings, but they were stayed by the bankruptcy court. That stay, however, is about to end, and the lender may be allowed to proceed. The owner owes the mortgage lender about $170,000. Another $50,000 (representing 13 cents on the dollar) is owed to unsecured creditors under the approved bankruptcy plan.
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Foreclosure "Rescues" May Be Illegal
Here’s the situation: A beleaguered home owner is in bankruptcy, overwhelmed by debt. The mortgage lender had begun foreclosure proceedings, but they were stayed by the bankruptcy court. That stay, however, is about to end, and the lender may be allowed to proceed. The owner owes the mortgage lender about $170,000. Another $50,000 (representing 13 cents on the dollar) is owed to unsecured creditors under the approved bankruptcy plan.
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Tuesday, March 17, 2009
HUD AWARDS $648,612 TO THE VIRGINIA PHAs
HUD AWARDS $648,612 TO THE VIRGINIA PHAs TO BRING JOBS, ECONOMIC INDEPENDENCE TO PUBLIC HOUSING RESIDENTS IN VIRGINIA
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
HUD AWARDS $648,612 TO THE VIRGINIA PHAs
HUD AWARDS $648,612 TO THE VIRGINIA PHAs TO BRING JOBS, ECONOMIC INDEPENDENCE TO PUBLIC HOUSING RESIDENTS IN VIRGINIA
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Understanding the Short Sale Process
Before you consider a Short Sale be sure to contact your lender and any other agency that may be able to help you. Beware of anyone who approaches you to “solve your problems,” or charges you any fees. Use only a licensed realtor who gets paid only when the property is sold. There may be important tax considerations. Be sure to contact a qualified tax accountant to understand how they may affect you. As soon as you get a Foreclosure Notice... If you have missed any mortgage payments the lender will contact you to warn you of a possibility of foreclosure. You will usually be given the option catch up with your payments or perhaps to work out some kind of payment schedule. This is called the REINSTATEMENT PERIOD. If you are unable to do this you will get a notice in writing, usually from an attorney acting on the lenders behalf, warning of the foreclosure and the impending SHERIFF’S SALE.
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Understanding the Short Sale Process
Before you consider a Short Sale be sure to contact your lender and any other agency that may be able to help you. Beware of anyone who approaches you to “solve your problems,” or charges you any fees. Use only a licensed realtor who gets paid only when the property is sold. There may be important tax considerations. Be sure to contact a qualified tax accountant to understand how they may affect you. As soon as you get a Foreclosure Notice... If you have missed any mortgage payments the lender will contact you to warn you of a possibility of foreclosure. You will usually be given the option catch up with your payments or perhaps to work out some kind of payment schedule. This is called the REINSTATEMENT PERIOD. If you are unable to do this you will get a notice in writing, usually from an attorney acting on the lenders behalf, warning of the foreclosure and the impending SHERIFF’S SALE.
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Tuesday, August 26, 2008
Short Sales Becoming Common in Charlottesville
Myself and my group (the Avery Group) have been working short sales for a while now. We have successfully closed 5 short sales this year, have two more under contract, and have three more being listed. Most of them have been in Albemarle County. Despite what people think, or because they can only find 8 or 9 of them in the MLS, foreclosures and short sales are becoming more and more prevalent in our area. Even the Daily Progress has had a couple of articles about them in the newspaper. A short sale is a method of preventing foreclosure. With the exception of loan modification, it is usually the best option. 95% of the time you see a short sale, there is a foreclosure looming. Don't be fooled by terminology. Also, look for key terms in the MLS. For example, "subject to bank approval" is usually a good one to look for if you are looking for a possible foreclosure or short sale.
Short Sales Becoming Common in Charlottesville
Myself and my group (the Avery Group) have been working short sales for a while now. We have successfully closed 5 short sales this year, have two more under contract, and have three more being listed. Most of them have been in Albemarle County. Despite what people think, or because they can only find 8 or 9 of them in the MLS, foreclosures and short sales are becoming more and more prevalent in our area. Even the Daily Progress has had a couple of articles about them in the newspaper. A short sale is a method of preventing foreclosure. With the exception of loan modification, it is usually the best option. 95% of the time you see a short sale, there is a foreclosure looming. Don't be fooled by terminology. Also, look for key terms in the MLS. For example, "subject to bank approval" is usually a good one to look for if you are looking for a possible foreclosure or short sale.
Tuesday, April 1, 2008
Foreclosure Lesson #2 - National Factors - Inflation
Alright, we have looked at interest rates and how they affect your purchasing power, now we will look the the second Nation Factor that affects foreclosures and Real Estate in general. It is important to know all the factors before making any decision to buy, whether it is a foreclosure or any other home. The second National Factor is Inflation.
Inflation is defined by wikipedia as a rise in the general nominal level of prices over time. Inflation is is measured as the percentage rate of change of a price index. The governments main gauge of inflation is the Consumer Price Index.
Basically, inflation tends to follow the supply and demand curve, although it isn't affected by any single factor. Inflation causes prices to rise - whethere its a pair of jeans at American Eagle, or the house you want to buy. The higher the inflation, the less your money will buy.
Without getting really technical about inflation, the thing to realize here is this: Whenever inflation changes moderately up or down, investing in Real Estate is good. Classic case of when to buy and when to sell. If inflation goes down, you want to buy. If inflation goes up, you will want to sell. Pay attention to inflation and figure out where we are in as a nation with inflation. You can look at inflation data here.
Charlottesville Real Estate
Inflation is defined by wikipedia as a rise in the general nominal level of prices over time. Inflation is is measured as the percentage rate of change of a price index. The governments main gauge of inflation is the Consumer Price Index.
Basically, inflation tends to follow the supply and demand curve, although it isn't affected by any single factor. Inflation causes prices to rise - whethere its a pair of jeans at American Eagle, or the house you want to buy. The higher the inflation, the less your money will buy.
Without getting really technical about inflation, the thing to realize here is this: Whenever inflation changes moderately up or down, investing in Real Estate is good. Classic case of when to buy and when to sell. If inflation goes down, you want to buy. If inflation goes up, you will want to sell. Pay attention to inflation and figure out where we are in as a nation with inflation. You can look at inflation data here.
Charlottesville Real Estate
Foreclosure Lesson #2 - National Factors - Inflation
Alright, we have looked at interest rates and how they affect your purchasing power, now we will look the the second Nation Factor that affects foreclosures and Real Estate in general. It is important to know all the factors before making any decision to buy, whether it is a foreclosure or any other home. The second National Factor is Inflation.
Inflation is defined by wikipedia as a rise in the general nominal level of prices over time. Inflation is is measured as the percentage rate of change of a price index. The governments main gauge of inflation is the Consumer Price Index.
Basically, inflation tends to follow the supply and demand curve, although it isn't affected by any single factor. Inflation causes prices to rise - whethere its a pair of jeans at American Eagle, or the house you want to buy. The higher the inflation, the less your money will buy.
Without getting really technical about inflation, the thing to realize here is this: Whenever inflation changes moderately up or down, investing in Real Estate is good. Classic case of when to buy and when to sell. If inflation goes down, you want to buy. If inflation goes up, you will want to sell. Pay attention to inflation and figure out where we are in as a nation with inflation. You can look at inflation data here.
Charlottesville Real Estate
Inflation is defined by wikipedia as a rise in the general nominal level of prices over time. Inflation is is measured as the percentage rate of change of a price index. The governments main gauge of inflation is the Consumer Price Index.
Basically, inflation tends to follow the supply and demand curve, although it isn't affected by any single factor. Inflation causes prices to rise - whethere its a pair of jeans at American Eagle, or the house you want to buy. The higher the inflation, the less your money will buy.
Without getting really technical about inflation, the thing to realize here is this: Whenever inflation changes moderately up or down, investing in Real Estate is good. Classic case of when to buy and when to sell. If inflation goes down, you want to buy. If inflation goes up, you will want to sell. Pay attention to inflation and figure out where we are in as a nation with inflation. You can look at inflation data here.
Charlottesville Real Estate
Foreclosure Lesson 1 - Digg
In light of all the news surrounding foreclosures, I thought we should take an in depth look at foreclosures. Over the next couple of weeks, we are going to define National and Local Factors affecting foreclosures, as well as Foreclosure laws in Virginia, the types of foreclosures, the types of property, and how to make money with foreclosures.
We will start with the National Factors that Affect Real Estate. The first is the interest rate. When most people buy a house, they have to borrow money, this is known as a mortgage. The bank however, doesn't give money away, the bank wants something in return - the interest on the money borrowed. This is the reason for the interest rate. The interest rate is based on the Federal Funds Rate. The Federal Funds Rate is the interest that banks charge each other for overnight loans of federal funds, which are held by the Federal Reserve.
From this we can determine the Prime Rate. The Prime Rate is what banks charge their largest and best customers. Everyone else gets interest rates above the Prime Rate. Interest Rates DIRECTLY affect your purchasing power. Let's look at an example.
Let's say there is a foreclosure going to the courthouse steps for $150,000. Unless you have $150,000 in the bank, the house is going to be financed. If a real estate investor gets a loan from a bank for $150,000 at 6% interest and we will assume a marginal tax rate of 25%, the monthly payment on a 30 year fixed loan will be $899.33. The total payment over the 30 year period will be $323,755 and the total interest paid will be $173,755.
Now, let's say an investor gets a loan from a bank to finance the foreclosure, but this time the interest rate will be 8% instead of 6% and we will assume the same tax rate. The monthly payment on a 30 year fixed loan will be $1,100.65. This is just over $200 more per month than the six percent quote. The total payment over the 30 year period at an 8% interest rate is $396,230 and the total interest paid will be $246,230.
For current investors, people wanting to become investors, flippers, or people looking to buy a home at a great price, need to be aware of interest rates. I could be the difference between making money or losing money. To look at historical interest rates, check out these sites:
Federal Reserve Statistical Release
Interest Rate Trends from Mortgage-X
Wall Street Journal - News and Analysis (Subscription Service)
Of course you can always Google or Digg historical interest rates. Later we will look at the next National Factor Affecting Real Estate and Foreclosures - Inflation.
We will start with the National Factors that Affect Real Estate. The first is the interest rate. When most people buy a house, they have to borrow money, this is known as a mortgage. The bank however, doesn't give money away, the bank wants something in return - the interest on the money borrowed. This is the reason for the interest rate. The interest rate is based on the Federal Funds Rate. The Federal Funds Rate is the interest that banks charge each other for overnight loans of federal funds, which are held by the Federal Reserve.
From this we can determine the Prime Rate. The Prime Rate is what banks charge their largest and best customers. Everyone else gets interest rates above the Prime Rate. Interest Rates DIRECTLY affect your purchasing power. Let's look at an example.
Let's say there is a foreclosure going to the courthouse steps for $150,000. Unless you have $150,000 in the bank, the house is going to be financed. If a real estate investor gets a loan from a bank for $150,000 at 6% interest and we will assume a marginal tax rate of 25%, the monthly payment on a 30 year fixed loan will be $899.33. The total payment over the 30 year period will be $323,755 and the total interest paid will be $173,755.
Now, let's say an investor gets a loan from a bank to finance the foreclosure, but this time the interest rate will be 8% instead of 6% and we will assume the same tax rate. The monthly payment on a 30 year fixed loan will be $1,100.65. This is just over $200 more per month than the six percent quote. The total payment over the 30 year period at an 8% interest rate is $396,230 and the total interest paid will be $246,230.
For current investors, people wanting to become investors, flippers, or people looking to buy a home at a great price, need to be aware of interest rates. I could be the difference between making money or losing money. To look at historical interest rates, check out these sites:
Federal Reserve Statistical Release
Interest Rate Trends from Mortgage-X
Wall Street Journal - News and Analysis (Subscription Service)
Of course you can always Google or Digg historical interest rates. Later we will look at the next National Factor Affecting Real Estate and Foreclosures - Inflation.
Foreclosure Lesson 1 - Digg
In light of all the news surrounding foreclosures, I thought we should take an in depth look at foreclosures. Over the next couple of weeks, we are going to define National and Local Factors affecting foreclosures, as well as Foreclosure laws in Virginia, the types of foreclosures, the types of property, and how to make money with foreclosures.
We will start with the National Factors that Affect Real Estate. The first is the interest rate. When most people buy a house, they have to borrow money, this is known as a mortgage. The bank however, doesn't give money away, the bank wants something in return - the interest on the money borrowed. This is the reason for the interest rate. The interest rate is based on the Federal Funds Rate. The Federal Funds Rate is the interest that banks charge each other for overnight loans of federal funds, which are held by the Federal Reserve.
From this we can determine the Prime Rate. The Prime Rate is what banks charge their largest and best customers. Everyone else gets interest rates above the Prime Rate. Interest Rates DIRECTLY affect your purchasing power. Let's look at an example.
Let's say there is a foreclosure going to the courthouse steps for $150,000. Unless you have $150,000 in the bank, the house is going to be financed. If a real estate investor gets a loan from a bank for $150,000 at 6% interest and we will assume a marginal tax rate of 25%, the monthly payment on a 30 year fixed loan will be $899.33. The total payment over the 30 year period will be $323,755 and the total interest paid will be $173,755.
Now, let's say an investor gets a loan from a bank to finance the foreclosure, but this time the interest rate will be 8% instead of 6% and we will assume the same tax rate. The monthly payment on a 30 year fixed loan will be $1,100.65. This is just over $200 more per month than the six percent quote. The total payment over the 30 year period at an 8% interest rate is $396,230 and the total interest paid will be $246,230.
For current investors, people wanting to become investors, flippers, or people looking to buy a home at a great price, need to be aware of interest rates. I could be the difference between making money or losing money. To look at historical interest rates, check out these sites:
Federal Reserve Statistical Release
Interest Rate Trends from Mortgage-X
Wall Street Journal - News and Analysis (Subscription Service)
Of course you can always Google or Digg historical interest rates. Later we will look at the next National Factor Affecting Real Estate and Foreclosures - Inflation.
We will start with the National Factors that Affect Real Estate. The first is the interest rate. When most people buy a house, they have to borrow money, this is known as a mortgage. The bank however, doesn't give money away, the bank wants something in return - the interest on the money borrowed. This is the reason for the interest rate. The interest rate is based on the Federal Funds Rate. The Federal Funds Rate is the interest that banks charge each other for overnight loans of federal funds, which are held by the Federal Reserve.
From this we can determine the Prime Rate. The Prime Rate is what banks charge their largest and best customers. Everyone else gets interest rates above the Prime Rate. Interest Rates DIRECTLY affect your purchasing power. Let's look at an example.
Let's say there is a foreclosure going to the courthouse steps for $150,000. Unless you have $150,000 in the bank, the house is going to be financed. If a real estate investor gets a loan from a bank for $150,000 at 6% interest and we will assume a marginal tax rate of 25%, the monthly payment on a 30 year fixed loan will be $899.33. The total payment over the 30 year period will be $323,755 and the total interest paid will be $173,755.
Now, let's say an investor gets a loan from a bank to finance the foreclosure, but this time the interest rate will be 8% instead of 6% and we will assume the same tax rate. The monthly payment on a 30 year fixed loan will be $1,100.65. This is just over $200 more per month than the six percent quote. The total payment over the 30 year period at an 8% interest rate is $396,230 and the total interest paid will be $246,230.
For current investors, people wanting to become investors, flippers, or people looking to buy a home at a great price, need to be aware of interest rates. I could be the difference between making money or losing money. To look at historical interest rates, check out these sites:
Federal Reserve Statistical Release
Interest Rate Trends from Mortgage-X
Wall Street Journal - News and Analysis (Subscription Service)
Of course you can always Google or Digg historical interest rates. Later we will look at the next National Factor Affecting Real Estate and Foreclosures - Inflation.
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