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

 

 

 

YES You Can...Buy A Home Immediately After You Short Sale Your Home!

Short Sale Today....Buy Another Home Tomorrow...

Here's how:

FHA allows borrowers to be eligible for a new FHA loan even if they just recently sold their principal residence with a short sale.

Almost every lender will tell you there is a 3 year waiting period as most lenders will not allow this program to be used due to credit overlays they have. There are specific guidelines that must be met for borrowers to purchase again without a waiting period.

See Guidelines below that must be met in order to purchase sooner than 3 years FHA

Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:

·         Take advantage of declining market conditions

·         Purchase at a reduced price a similar or superior property within a reasonable commuting distance

In order to qualify for this program:

·         All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale

·         All installment debt payments for the same period were also made within the month due

NOTE:  Borrowers in default of their mortgage at the time of their short sale (or pre-foreclosure sale) are not eligible for a new FHA mortgage for three years from the date of the pre-foreclosure sale.

As you may have determined already from reading these guidelines that interpretation is subjective to how an underwriter views a borrower's reasoning and motivation. It is prudent to secure loan approval prior to making an offer on any property.

Author: 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, 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.

HAS THE HOUSING MARKET HIT BOTTOM? IS IT TIME TO BECOME A LANDLORD-INVESTOR?

It is clear that housing has hit bottom for most of the country. (Yes, in some markets there will be an additional 3-5% loss in value over the next 12 months.) All the 'bubble appreciation' has now evaporated and home values stand where they were back in 1999-2002.  The only question now is how long will it take for the housing market to fully recover? A complete housing recovery will mean there is a 4 month supply of homes for sale.

Before there is any sort of sustained recovery the 6,000,000 homes already foreclosed upon (or in some state of foreclosure) will have to be sold. Facts to remember, 30% of all homeowners (with a mortgage) are now underwater. If you were to factor in the owners that would be underwater if they had to sell (selling fees etc) the actual percent of underwater owners is actually 50%. Bottom line, 50% of ALL owners with a mortgage are underwater.

Many previous owners are now becoming renters. Needless to say, NOW a great time to be a landlord (investor). If you have considered owning rental property, give Acuity Group a call.  We are an Elk River based Full Service Real Estate Company that can assist you with all of your real estate needs including; locating and purchasing your Investment Property, Property Management, Rental Services, Short Sales, Traditional Buyer and Seller Services. 

If you are underwater on your mortgage and can no longer afford your mortgage or must move, visit a website that will educate you about Short Sales:  www.ShortSaleAcuity.com, then give me a call to discuss your options.  My office also specializes in Short Sales. Once your short sale closes we will assist you in locating a suitable rental home.

Author: 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, 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, 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, Minnetonka, Chanhassen, Chaska, Excelsior, Wayzata, Plymouth, Maple Grove, Golden Valley, St. Louis Park, Hopkins, Edina, Eden Prairie, Crystal, New Hope, Bloomington

 

 

 

 

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall - In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.  Understanding your options can make all of the difference in the world!

Author: Stephanie Danielson, Broker/Owner (CDPE Certified)

Acuity Group Real Estate Professionals

601 Main St. Elk River MN 55330

www.ACGProperty.com

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

Acuity Group Specializes in Traditional Buyer/Seller Transactions, Short Sales, 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, 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, Minnetonka, Chanhassen, Chaska, Excelsior, Wayzata, Plymouth, Maple Grove, Golden Valley, St. Louis Park, Hopkins, Edina, Eden Prairie, Crystal, New Hope, Bloomington MN

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