Wondering what a homeowner in the Morgan Hill area should expect when payments are missed? The most important thing to know is that no matter what stage of default a homeowner is in, there is almost always a way to avoid foreclosure. That being said, the quicker a homeowner does something about the situation, the less challenging it will be to resolve.

First, here’s what a distressed homeowner in Morgan Hill should expect to happen when payments are missed:

30 Days Late: The lender will attempt phone contact or send a notice in the mail.

60 Days Late: The lender will attempt to make contact by phone and follow up with another letter in the mail.

90 Days Late: The lender will send a letter demanding all past due amounts within 30 days and start the foreclosure process.

120 Days or More Late: The lender’s attorneys will take over and the homeowner will be responsible for their fees in addition to missed mortgage payments and the loan amount due.

Not late yet, but about to be?

Homeowners that are not late but foresee missing payments should communicate this to their lenders as soon as possible. In the past, many banks wouldn’t work with homeowners unless they were one or more payments behind. In light of the mortgage crisis, most lenders would rather take a proactive stance and decrease their loan losses. They are more willing than ever to work with homeowners to avoid being late.

If you are visiting my website, you or someone you care about may miss mortgage payments in the near future. I can help navigate the process and put you back on a path to financial stability. Contact me today and alleviate the stress that comes with unaffordable mortgage payments.

We recently helped a homeowner that was over a year late on their mortgage paytments, and another that was just 67 days away from the foreclosure sale date…and we can help you!  Call us today!

Not ready to talk, but want more information about the options to avoid foreclosure and save your credit?  Visit the Homeowner Relief Center.

Federal Trade Commission Disclosures

1. 1.        You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services.
2. 2.        The above brokerage is not associated with the government, and our service is not approved by the government, and our service is not approved by the government or your lender.
3. 3.        Even if you accept this offer and use our service, your lender may not agree to change your loan.

Have more to add?  Leave a comment.

You make the call!

I get the question from people all the time: short sale or foreclosure, which is the better option? My knee-jerk reaction is always “Are you kidding? Short sale, of course!” This has been mostly because I was always under the impression that a short sale, although still a ding on your credit, was gentler on the score than a foreclosure.

But according to a recent blog post by FICO Banking Analytics, there is no real difference in the affect a short sale or a foreclosure has on your credit score. Both the impact in points and the time to fully recover is about the same for both events.

This put me in a precarious situation. All this time I had lauded the short sale as vastly superior to foreclosure, largely because of its less adverse affects on credit. So I was forced to do further research into which was the better option. In doing so I learned about benefits of a short sale I wasn’t even aware of, and found that the FICO blog was way off.

Each borrower’s credit situation is different, and the way that a creditor reports a short sale to bureaus is different. The reality is that hundreds of thousands of distressed homeowners who have chosen a short sale have experienced a lesser impact on their credit than those who have chosen foreclosure.

In a short sale, a distressed homeowner may be able to obtain another mortgage sooner than someone who has a foreclosure on his or her record. Also, more and more employers pull credit before hiring a potential employee, and a foreclosure can keep you from getting a job.  Some employers pull credit reports on existing employees, and a foreclosure may not bode well in certain industries.

 These benefits stacked against the negatives of foreclosure, including the embarrassment of public announcement and literally being kicked out of your home, make, in my opinion, short sale the reigning champion.

Now you make the call!

See a new report comparing short sales to foreclosure, as well other useful information and resources.

I’ll be doing an open house from 1-4pm on Saturday and Sunday at 837 Talbot Drive in Morgan Hill.  This is a fantastic home featuring an open floor plan of 3,373 square feet in a highly desirable neighborhood.  The home has 5 bedrooms and 4 1/2 baths, and is ready for its new owner.  At a list price of just $629,000, this home is a steal.  See more pictures of 837 Talbot Drive in Morgan Hill as well as all the details. Coffee, tea and cookies will be provided…stop in and say hello.

REALTOR® Nationwide Open House Weekend, June 4-5!

 Energize your home search on Saturday and Sunday, June 4-5, by taking advantage of the 2011 REALTOR® Nationwide Open House Weekend. Santa Clara County REALTORS® will hold open houses region-wide for this special event – the largest-ever of its kind.

The weekend is a fun, no-pressure opportunity to check out the great variety of homes available in the Santa Clara County market at attractive prices. By holding open houses, REALTORS® with Bluefin Realty and elsewhere aim to answer your questions about homeownership, communities and what housing options best fit your lifestyle.

6 Tips Morgan Hill Home Buyers Need To Know When Considering Buying A Home In A Short Sale!

I was recently asked by a client of mine looking to purchase a larger home, what can I rent my home for if I choose not to sell it?

Just a few days ago this homeowner was on Zillow.com to see what was listed as a value, called a “Zestimate,” for his current home.  I informed him last night that he should head back to Zillow.com where he can now check his “Rent Zestimate.”

What you have to understand, is Zillow is pulling their info from public records, comparing properties, and then using mathematical equations to determine the rent zestimate…it’s not going to be 100% accurate every time.  Zillow will be the first to tell you whether you’re trying to determine the value or the rent of a property, it’s best to contact a local real estate agent.  Every market is different, and even every neighborhood, and only local professionals are going to have the specific knowledge necessary to ultimately determine fair market value.

For those looking to get a general idea of both value and rent, Zillow.com remains one of the best sources and most visited websites.  Check out Zillow.com to determine your Rent Zestimate and Zestimate.

A question I am often asked, and seems to have some confusion in the industry, is of up most importance to homeowners facing foreclosure or seeking a short sale is the following:

Do I have to pay taxes on the forgiven debt after a short sale or foreclosure?

While I am not an attorney or tax professional, and I highly recommend seeking the advice of one of these professionals, it appears that you can exclude cancelled debt from income if it is “qualified principal residence indebtedness.”  According to the IRS Publication 4681, the maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately).  However, this is the federal law, and the California law differs slightly in the amounts.  In California, the law limits the amount of qualified principal residence indebtedness to $800,000 ($400,000 if married filing separately); see the 2010 California Tax Law Changes.

Chances are you will be well under these limits and will not be liable for taxes on the forgiven debt.

A more “reader friendly” article about the Mortgage Debt Relief Act of 2007  and the details about forgiven debt can be found on the IRS website.

Real estate agents with the CDPE designation have valuable training in short sales that can offer homeowners much better alternatives to foreclosure.  See the letter below that one homeowner recently received from CHASE Bank recommending they contact an agent with the CDPE designation to help them sell their home.  When you’re ready to sell your Morgan Hill or San Jose home, give me a call.  Not ready to sell and want more info about your options and avoiding foreclosure, visit the Homeowner Relief Center.

John Fagan, CDPE
408-718-0264
John@SuperiorRealtyServices.com

http://HomeownerReliefCenter.info

Letter to Homeowner from Chase Bank

 Letter courtesy of Patty Da Silva (http://bit.ly/kmQ5sq)

If you’ve been thinking about buying a home in the San Jose area, but have been waiting for prices to hit rock bottom, you may have missed your chance.  Well, maybe it’s not too late.  We’re still seeing some good deals out there, especially with the short sales and REO (bank owned homes – foreclosures) market.

Don’t miss your chance!

However, if you wait much longer, you run the risk of chasing the market upward.  Forbes has ranked the Top 10 Best Cities for Home Values in 2011, and San Jose is #1.  If that holds true, San Jose area home prices are set to begin inching upwards.  So if you’ve been sitting on the fence, waiting for home prices to hit rock bottom, you might not get a better or bigger sign than this.

Read the full article here:

http://www.forbes.com/2011/01/21/cities-home-values-prices-real-estate-personal-finance.html

The FBI reported a jump of 71% in mortgage relief fraud investigations from 2008-2009, and expects this number to have grown in 2010.

That’s why it’s my duty to educate homeowners in my community on the cautions they need to take, and what the government has recently done to protect you from unscrupulous individuals and companies who want to take advantage of their desperate situations.

What you need to watch out for if you are looking for mortgage relief assistance:

1.       Upfront fees—just don’t pay them! In fact, they are now illegal!
2.       A request to sign over your deed (this only spells trouble)
3.       Lots of paperwork without the opportunity for review
4.       The claim of government-affiliation

These are just a few red flags you need to be wary of. I’ve created a free report on the homepage of my website that details more of what you need to watch for.

If you are struggling with an unaffordable mortgage and are looking for help, educate yourself. These scammers can be very shrewd and will say almost anything to steal your money.

The Federal Trade Commission has required disclosures of anyone offering mortgage relief services. If you’d like to see an example, check out any of the pages of my website. If a company you are dealing with has not provided these disclosures, please ask why they are not compliant, and proceed with caution!

As a CDPE, you can trust that I have the tools to be in full compliance of FTC regulations, and will always work with your best interests at heart.

If you want viable alternatives to foreclosure, give me a call today. I’m always here to help!

http://HomeownerReliefCenter.info

John Fagan, CDPE, SFR, ePRO
408-718-0264