The following article was provided by Realty Trac:

An important shift is occurring in the real estate market: Short sales are outnumbering foreclosure sales in many markets.

In Q4 2011, there were 88,303 short sales, also known as pre-foreclosure sales, accounting for 10 percent of all sales during the fourth quarter, according to the latest RealtyTrac U.S. Foreclosure Sales Report. Short sales increase 15 percent from year ago.

Meanwhile, bank-owned (REO) sales decrease 12 percent from year ago. While third parties purchased a total of 115,777 REO homes in the fourth quarter, that share was down 10 percent from the previous quarter.

"We continued to see a shift toward pre-foreclosure sales, or short sales, and away from REO sales in the fourth quarter," said Brandon Moore, chief executive officer of RealtyTrac. "Nationally, pre-foreclosure sales increased 15 percent from a year ago while REO sales decreased 12 percent. Pre-foreclosure sales outnumbered REO sales in several bellwether markets, including Los Angeles, Miami and Phoenix, where REO sales had outnumbered pre-foreclosure sales a year ago. That trend will likely show up in more local markets in 2012 as lenders recognize short sales as a better option for many of their non-performing loans."

For the 12.5 million borrowers struggling with an underwater mortgage, this shift could mean good news. Moreover, a new federal policy change could make short sales a lot quicker this summer under revised rules that will require lenders to respond to short sale offers within a month.

Increasingly, private lenders nationwide are coming to the conclusion that the short sale process is more cost effective than foreclosure sales. Lenders are realizing that forgiving the difference between what is owed on the mortgage and what the home is currently worth is a smarter disposition strategy than selling REOs. Bank of America, for example, has a new 22-day short sale process known as the "Cooperative short sale program."

The Federal Housing Finance Agency, the regulatory overseer of Fannie Mae and Freddie Mae in conservatorship, has announced new steps designed to speed up the short sale process.

Lenders and loan servicers that collect payments for Fannie Mae and Freddie Mac will be required to make decisions within 30 days after receiving an offer to purchase a short sale. If the lender needs more than 30 days, it must provide borrowers with weekly status reports and a decision within 60 days of the initial application. This extension gives lenders more time to determine the value of the property or to get the approval of a mortgage insurer.

Freddie Mac was the first government sponsored enterprise (GSE) to issue new guidelines on April 17, shortening short sale timelines. On April 25, Fannie Mae outlined their short sale guidelines.

Stating in June, these new short sale rules should kick start the short sale machinery, increasing short sales nationwide.

Article provided by: 

Stephanie Danielson, Broker/Owner (CDPE Certified)

Acuity Group Real Estate Professionals

601 Main St. Elk River MN 55330

Office:  763-633-3535

www.ACGProperty.com

 

Stephanie Direct: 612-242-8747 or Stephanie@ACGproperty.com

 

Acuity Group Specializes in Traditional Buyer/Seller Transactions, Short Sales, REO Sales and Service, Investment Property Consulting and Management, Rentals and Property Management.

Traditional Listings, Buyer Representation, Short Sale Listing Experts, Certified Distressed Property Consultants & Specialists serving the following Minnesota Cities: Elk River MN, Zimmerman Minnesota, Big Lake MN, Rogers Minnesota, Otsego, MN, St. Michael Minnesota, Albertville MN, Princeton MN, Ramsey Minnesota, Anoka MN, Nowthen Minnesota, Monticello MN, Otsego MN, Oak Grove MN, Burns Township Minnesota,  Champlin Minnesota, Dayton MN, Hassen Township Minnesota, Coon Rapids MN, Blaine Minnesota, Fridley MN,  St. Francis Minnesota, Livonia Township MN, Andover MN, Becker Minnesota, Baldwin Township MN, Orrock Township, Minnetonka, Chanhassen, Chaska, Excelsior, Wayzata, Plymouth, Maple Grove, Golden Valley, St. Louis Park, Hopkins, Edina, Eden Prairie, Crystal, New Hope, Bloomington

 

 

 

Major news in the short sale and housing industry! On Friday, March 9, the Obama Administration announced updates to the Home Affordable Foreclosure Alternative (HAFA) program. Created in 2009, HAFA is a government-sponsored initiative assisting all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure through short sales and deed-in-lieus.

The HAFA updates will go into effect on June 1, 2012, and will allow more distressed homeowners to seek assistance. Most importantly, the deadline for submitting for HAFA eligibility will be extended a full year, from December 31, 2012, to December 31, 2013.

Other major changes from March's updates to the HAFA program include:

• The removal of occupancy requirements. Previously, HAFA required homeowners to have lived in the property within the last 12 months.
• $3,000 relocation incentives will be limited to properties occupied by an owner or tenant at the time of the short sale.
• Mortgage payments will be allowed to exceed 31% of the homeowner's gross monthly income. This update will allow a homeowner to stay current on her mortgage and still qualify, minimizing the overall impact to her credit.
• Secondary lienholders may receive up to a maximum of $8,500, up from $6,000 previously.
• And one of the most dramatic changes: The Credit Bureau Reporting will be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), as applicable.

With these updates, a homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!

Is Your Mortgage Out of Balance With Your Budget?

This scenario can happen quickly.  An expensive car repair, illness, job loss and your finances begin to feel out of balance.   No one is immune from the housing crisis in this country.  The foreclosure crisis has hit every income, every region and every education level.  Take a look at these numbers:

·         Number of consecutive years home prices have fallen:  5

·         Number of homes lost to foreclosure since 2007:  7.9 million

When you find yourself in financial distress because of an unaffordable mortgage you DO HAVE OPTIONS.  REMEMBER:  DOING NOTHING DOES NOT SOLVE ANYTHING!

Foreclosure results from non-payment of a mortgage and is the final step in a delinquency proceeding.  Far too often, homeowners don't reach out for help.   The fact is foreclosure almost never needs to happen-especially today. 

If you would like to receive a list of your options to avoid foreclosure I've be happy to email, fax or mail upon your request, a detailed list of 8 options to foreclosure.  Email:  Stephanie@acgproperty.com or call direct:  612-242-8747.

Fear of foreclosure is a national epidemic!

Millions of homeowners fell behind on their mortgage payments last year, and then proceeded to fall further behind every month.

These are tough times and there are no easy answers.

The fact is, major lenders, the federal government, and local agencies across the country have stepped up their efforts to stem the tide of foreclosures. More help is available than ever before.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am knowledgeable and adept at navigating among the full range of solutions for helping financially distressed homeowners to make a fresh start.

Looking to learn more? Check out my free report: "Tipping the Scales Toward Foreclosure? Resolve to Shed the Weight of an Unmanageable Mortgage in 2012.".  This report can be accessed at a special site created just for you!  Visit today!  www.ShortSaleAcuity.com. 

And if you, or someone you care about is looking to tip the scales back into financial solvency, contact me today for a confidential consultation!

Author:  Stephanie Danielson, Broker & Short Sale Specialist (CDPE Certified)                            

 Stephanie Direct:  612-242-8747 or stephanie@acgproperty.com

Acuity Group Specializes in buyer/seller transactions, short sales, investment property, rentals and property management.   Located at 601 Main St. Elk River WWW.ACGPROPERTY.COM

Short Sale Experts, Consultants & Specialists:  Elk River MN, Zimmerman Minnesota, Big Lake MN, Rogers Minnesota, Otsego, MN, St. Michael Minnesota, Albertville MN, Princeton MN, Ramsey Minnesota, Anoka MN, Nowthen Minnesota, Monticello MN,  Otsego MN, Oak Grove MN, Burns Township Minnesota, Monticello MN, Champlin Minnesota, Dayton MN, Hassen Township Minnesota, Coon Rapids MN, Blaine Minnesota, Fridley MN, Oak Grove MN, St. Francis Minnesota, Livonia Township MN, Andover MN, Becker Minnesota, Baldwin Township MN, Orrock Township"

Stop. Don't walk away from your mortgage.

A recent study estimates 36% of Americans think walking away is a viable option when they owe more on their home than what it's worth. Clearly, few know the financial consequences of these actions. Even fewer understand the options available to them.

If you or someone you know is at the crossroads of deciding whether or not to walk away or "strategically default," you'll find nothing strategic about foreclosure, especially when there are solutions to avoid it. Find out more at:

www.ShortSaleAcuity.com

Giving the Green Light to Financial Stability.

Fortunately, there are options to avoid foreclosure and protect your financial future.  From short sales and loan modifications to renting your home, it's vital that you know what you can truly do to avoid the financial damage of foreclosure.

Most homeowners who decide to strategically default face the burdens of:

·         Credit issues

·         Current employment challenges

·         Future employment challenges

·         Issues with security clearance

·         Possible debt collections

·         And more

To find out more about how to avoid these types of issues, download an informational brochure I've created here:

www.ShortSaleAcuity.com

Author:  Stephanie Danielson, Broker & Short Sale Specialist (CDPE Certified)                             

Stephanie Direct:  612-242-8747 or stephanie@acgproperty.com

Acuity Group Specializes in buyer/seller transactions, short sales, investment property, rentals and property management.   Located at 601 Main St. Elk River WWW.ACGPROPERTY.COM

Short Sale Experts & Specialists:  Elk River MN, Zimmerman Minnesota, Big Lake MN, Rogers Minnesota, Otsego, MN, St. Michael Minnesota, Albertville MN, Princeton MN, Ramsey Minnesota, Anoka MN, Nowthen Minnesota, Monticello MN,  Otsego MN, Oak Grove MN, Burns Township Minnesota, Monticello MN, Champlin Minnesota, Dayton MN, Hassen Township Minnesota, Coon Rapids MN, Blaine Minnesota, Fridley MN, Oak Grove MN, St. Francis Minnesota, Livonia Township MN, Andover MN, Becker Minnesota, Baldwin Township MN, Orrock Township"

 If you've spent too much of 2011 living under the dark cloud of an unaffordable house payment, you're in good company. Current estimates are that more than 25 percent of all homeowners in this country would net less on the sale of their home than the amount they owe on their mortgage, and 6.3 million homeowners are in some stage of foreclosure.

The good news is that you have options. Helping homeowners to avoid foreclosure has actually emerged into the spotlight of as a national priority, with major banks, the Federal government and many state and local agencies offering more assistance than ever before to financially strapped homeowners.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am tapped into the full scope of solutions for helping financially distressed homeowners to make a fresh start. If you'd like to learn more, I invite you to access my free report: "Mortgage Payments Weighing You Down? Give Yourself the Gift of a Fresh Start."  Visit a site created with you in mind:  www.ShortSaleAcuity.com. 

I am here to assist homeowners avoid foreclosure and get on the path to financial security in the Elk River Minnesota and surrounding areas; Big Lake MN, Zimmerman MN, Princeton MN, Anoka MN, Ramsey MN, Becker MN, St. Michael MN, Albertville MN, Monticello MN, St. Francis MN, Rogers MN, Hassen Twp MN, Corcoran MN, Maple Grove MN, Osseo MN, Andover MN, Nowthen MN, Champlin MN, Dayton MN, Buffalo MN, Oak Grove MN, Cedar MN, Blaine MN, Fridley MN, Isanti MN

Contact me today and let's get started! Stephanie Danielson, Broker/Acuity Group Real Estate Professionals. Direct: 612-242-8747 or stephanie@acgproperty.com

Acuity Group

601 Main St Elk River MN 55330

Company website: www.ACGPropety.com

Waiting Period to Purchase After a Short Sale or Foreclosure

Depending on which lending institution you ask you will receive different timeframes allowed to purchase again after a short sale or foreclosure. The reason is some lenders have credit overlays, which translates into stricter underwriting guidelines than Fannie Mae and FHA have published. The following guidelines are as written in the governmental agencies published underwriting

There are lesser timeframes allowed if there are documented Extenuating Circumstances involved. These are events beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the foreclosure. Divorce, loss of employment, inability to sell the property and job transfer or relocation does not qualify for extenuating circumstance. All other events are known as Financial Mismanagement.

Fannie Mae

Foreclosure: 7 Years

Deed-in-Lieu/Short Sale: 2 Years with 80% LTV /4 Years with 90% LTV

FHA

Foreclosure: 3 Years

Deed-in-Lieu/Short Sale: No Waiting Period *

*If the borrower was current on their mortgage and all other installment debt for the 12 months preceding the short sale, the subject property is not in the same geographical area as the short sale and the short sale lender accepted the short sale as payment in full.

Deed-in-Lieu/Short Sale: 3 Years*

*It is treated as a foreclosure if the borrower was late on the mortgage and other installment debt for the 12 months preceding and at the time of the short sale. In addition, if the borrower pursued the short sale to take advantage of the declining market or purchased at a reduced price a similar or superior property within a reasonable commuting distance.

To learn more about short sales visit:  www.ShortSaleAcuity.com - free reports available!

Author Stephanie Danielson, Broker/Owner Acuity Group.  Certified Distressed Property Expert, Short Sale Specialist. 

Stephanie Direct:  612-242-8747 or stephanie@acgproperty.com   www.acgproperty.com

Help! I need to rent my home in Minnetonka Minnesota! Due to the current market conditions, many homeowners who must move out of their home for one reason or another are forced into renting their home to avoid a short sale, foreclosure or bankruptcy. This places the homeowner into the highly involved world of property management, landlord duties and responsibilities.

Renting and self-managing your rental property is not as simple as advertising it, signing a lease and collecting rent. There are many unforeseen circumstances and requirements that a new landlord needs to be aware of to avoid property damage, lost time and/or money, as well as potential costly fines and legal proceedings. To effectively rent and manage your rental property, you need to have an application process, proper tenant screening capabilities, and a formal rental contract. Where do you turn to get critical tenant history and screening information such as criminal violations, issuance of bad checks, unpaid utility bills, fraud, eviction, residence history, bankruptcy, foreclosure, and credit reporting and scoring? You also need to comply with rental licensing regulations, move in and move out procedures, security deposit management, year-end tax reporting, bookkeeping management and the list goes on!

Do you have the time, knowledge and patience to deal with disputes and negative issues such as; bounced checks, late payments, no payment, unpaid utility bills, property damage and eviction proceedings? Are you familiar with the latest landlord/tenant laws for your city, state and federal governments?

Are you having second thoughts about self-managing your property? If so, turn over these tasks to an Experienced Property Management Brokerage, and give Acuity Group a call.

We have all the tools, time, knowledge and experienced staff to successfully and effectively manage your rental or investment property. This will save you time, money, and give you the peace of mind you deserve!

Call Acuity Group to schedule your free rental analysis and to learn about our services: 763-633-3535 or email us at rentals@acgproperty.com. Learn more at: www.acgproperty.com

Wells Fargo Foreclosure and Short Sale Assistance in Princeton MN

If you are behind on payments, upside down on your property value, and facing foreclosure we know life is stressful for you and your family.  And even more frustrating is trying to get a straight answer on which way to turn.  You may have already received good and bad advice about your foreclosure options, but still do not feel informed to make the right decision.  Acuity Group's Real Estate Team has foreclosure options that we will privately and confidentially discuss and share with you, empowering you with the knowledge to make an informed decision.  Our goal is to provide you peace of mind as you move towards a successful financial future. If you need Foreclosure and Short Sale information and/or assistance, contact Acuity Group's Certified Distressed Property Experts today!   Call Stephanie Danielson, Real Estate Broker at 612-242-8747 or email:  Stephanie@acgproperty.com

Acuity Group:  601 Main St Elk River, MN  55330   www.acgproperty.com

Wells Fargo Foreclosure and Short Sale Assistance in Rogers MN

If you are behind on payments, upside down on your property value, and facing foreclosure we know life is stressful for you and your family.  And even more frustrating is trying to get a straight answer on which way to turn.  You may have already received good and bad advice about your foreclosure options, but still do not feel informed to make the right decision.  Acuity Group's Real Estate Team has foreclosure options that we will privately and confidentially discuss and share with you, empowering you with the knowledge to make an informed decision.  Our goal is to provide you peace of mind as you move towards a successful financial future. If you need Foreclosure and Short Sale information and/or assistance, contact Acuity Group's Certified Distressed Property Experts today!   Call Stephanie Danielson, Real Estate Broker at 612-242-8747 or email:  Stephanie@acgproperty.com

Acuity Group:  601 Main St Elk River, MN  55330   www.acgproperty.com