It is important to know that your mortgage company would always prefer to keep you in your home rather than foreclose. They are in the business of providing mortgages, not owning or selling homes. It is in your best interest to talk to a counselor, a lawyer, or contact your mortgage company directly so you can keep your home.

• Talk to a housing counselor

Look for a HUD certified counselor. The Department of Housing and Urban Development has trained and certified loan counselors who will assist you free of charge and can negotiate with the mortgage company’s representative or “servicer” on your behalf. Servicers are often permitted by the agreements governing loans to renegotiate your loan terms, a process known as “work-out” or “loss mitigation.” This process may reduce your monthly payments, give you a few months without loan payments, delay payment of arrears or make it possible to otherwise change the payments on your home loan.

The Department of Housing and Urban Development’s Web Site www.hud.gov/foreclosure , has a nationwide directory of counseling agencies, or you can call them at (800) 569-4287. Services are free. Advice is also available at the Homeowners Hop Hot-line at (888) 995-HOPE.

• Contact a Lawyer

If you were misled or not fully informed by a broker or mortgage company about the terms of the loan, you might be able to “rescind” (cancel) the loan. You may also be entitled to damages. If you cannot afford a lawyer, call your local Bar Association of Legal Aid office and ask them to refer you to a lawyer. Contact information for local Legal Aid Societies can be found at www.dca.ca.gov/publications/guide/legal_index.shtml .

• Call your mortgage company

Ask for the “loss-mitigation” or “work-out” department and try to modify the loan terms. Be smart about modifying your loan. Many properties are worth less than the mortgages they secure; it is in your best interests to keep a property that is worth less than your mortgage? Be realistic about whether you can make the “modified” payments. Keep in mind that most modification documents contain a “waiver”. That means when you sign the modification documents you give up any legal rights you may have and you give up the right to take your mortgage company to court. Before you sign ANYTHING, take the papers to a lawyer or counselor to be sure you fully understand what you are signing. It is a legal document and you will be bound by the terms in the modification agreement.

This information was compiled by The University of San Francisco, School of Law.

Our current real estate market conditions are like no other time in history. Homeowners of distressed properties need the assistance of a Realtor now more than ever as a guide and consultant through a complicated process. The homeowner must determine if there is a way to keep their home or do they need to transfer the property with the least amount of damage to their finances and credit.

Please contact me for a confidential discussion. Let’s talk about the 7 options and find a solution for your situation.

Jana Nelson Paradise Real Estate

Providing excellent customer service, before, during & after the sale. I strive to be your Real Estate Consultant for life!

There are great opportunities to purchase foreclosures in today’s market.  If you are thinking of taking that step, here are some things you should know.

An REO (foreclosure) occurs when the bank that holds the mortgage has taken the property back because of nonpayment.  Some of the advantages to buying a bank-owned property are that the property has clear title, the property may be priced lower than comparable listings that are not bank-owned, and the bank may offer preferential financing terms.  In some cases the bank may have already made some repairs to the property as well.

There are also some disadvantages to purchasing a foreclosure.  The properties often do not last long on the market, which means you have to be prepared to make an offer almost immediately.  Otherwise, that perfect home you saw on Friday may not be available on Monday when you decide to make an offer. Homes are usually sold in “as is” condition, which means the bank is not likely to make cosmetic repairs.  Many banks charge a per day “late fee” if the closing is delayed, so it is important to have your inspections done and stay on top of the whole escrow process.

There are several common mistakes foreclosure buyers should take care to avoid.  They are:

1.  Don’t get caught up in a bidding war over an under-priced property.  The excitement can cause you to pay too much.

2.  Take advantage of the home inspection and get an accurate estimate of what the repairs will cost from an expert.

3.  Know what other comparable foreclosures are selling for so you can keep your bid at market value or slightly lower.

4.  Be wary of buying  in a neighborhood that is flooded with foreclosures.  That could mean further price drops and a loss in value if you have to sell within a few years.

5.  Make sure you have your preapproval in place.  This will not only tell you what credit you have available, but you as a buyer are more attractive to the bank than another bidder that has not secured financing.

If you are interested in purchasing a foreclosure, please explore this web site and use the search tool to find Lake Tahoe foreclosures (bank owned). You can search all active MLS listings for real estate in Lake Tahoe, California and Nevada. You can also sign up for  Get California Listings Via Email, and Get Nevada Listings Via Email, so when a new listing is posted on the MLS in your favorite neighborhood, at the price range you selected, you’re immediately notified. This is a very powerful tool that will help you stay on top and ahead of the current market.

Can it be possible? Despite the housing bust and high foreclosure rates, in some areas real estate agents are complaining that they don’t have enough homes to sell.

In fact in South Lake Tahoe Nv., there is not one bank owned home available on the MLS as of Sunday May 23^rd, 2010 as per Dan Spano from Paradise Real Estate.

There is currently an eight-month supply of homes on the market — meaning that, at the current sales pace, it would take eight months to run through the backlog.

That’s still a lot compared to the six-month supply that is expected in a normal market, but it is much better than it was. In March, there were nearly 2% fewer homes on the market than there were a year ago, and 21.7% fewer than the record of 4.6 million in July 2008.

In some areas, supplies are even bidding-war tight. In Denver, for example, supply has fallen to 5.7 months from 6.2. In Phoenix it has declined to 4.5 from 5.2; and in San Francisco inventory has halved, to 3.2 months from 6.5 last March.

In California, almost all cities have a short supply of single-family homes. That’s especially true in the lower-priced categories, according to Leslie Appleton-Young, chief economist for the California Association of Realtors.

The supply of homes that sell for less than $300,000 is at 3.2 months statewide, down from an already low 3.3 month supply 12 months ago.

Inventory of moderately priced homes, those between $300,000 and 500,000, fell to 4.2 months in March, down from 4.5 months in March 2009.

There are plenty of more expensive homes in California, but this inventory is going quick: inventory for million-dollar-plus homes has dropped from 21.6 months to 10.9 months.

How to buy a foreclosure

Further north, all over the Pacific Northwest, the supply of moderate and lower priced homes is also tight, according to Lennox Scott, CEO of John L. Scott Real Estate. And not even the end of the homebuyer tax credit is expected to ease demand.

“In lower price ranges, prices will stay fairly stable because we’re undersupplied,” said Scott.

In the higher price ranges, sales are slower than they would be because of continued problems in obtaining financing. Right now, most jumbo-mortgage lenders require down payments of 30% to 35%, but as that eases, sales of higher end homes should rise and supplies fall.

Prices go up, supply goes up

Ordinarily, rising prices are an indication of shrinking inventory. But these are far from ordinary times. Never have there been so many properties that could be for sale — but aren’t.

This so-called “shadow inventory” comes from two main sources: properties lenders have not yet repossessed or have not yet put back on the market; and homeowners who want to sell but who have refrained because of low prices.

Lenders are also holding back on foreclosing at all, either because they’re having trouble handling the volume of repossessions or because they want to sell off some of the inventory they already have.

“Notices of default are filed, but they’re not taking the properties back,” said Appleton-Young.

Zillow surveys indicate there’s a big pool of homeowners who have wanted to sell their homes during the past three years but market conditions either prevented sales or kept them from trying. The company estimates that 8% of homeowners are very likely to try to sell their homes in the next twelve months if they see signs of improvement in their local markets.

“These sidelined sellers closely watch the market for signs of a possible turnaround and rush in if there’s a hint of good news,” said Stan Humphries, chief economist at Zillow.com.

And so, as prices increase, inventory could also increase. While that’s not good news for sellers, it is good news for buyers. They can take their time when shopping for a home without having to worry about getting priced out. 

This information is provided by NEW YORK (CNNMoney.com)  and Lake Tahoe Data is provided by Dan Spano, Paradise Real Estate in South Lake Tahoe.

By definition, a short sale occurs when a seller owes more for his property than it can be sold for in the current market.  The lender has agreed to accept less than what is owed to release the existing mortgage. 

Before purchasing a short sale home, here are some things you need to know:

1)  What are the comparable sales for that home?  In order to get your offer accepted it will need to be near market value.

2)  How much is owed on the home and how many loans?  The second or third mortgage holder usually receives very little in a short sale, which can make obtaining  acceptance difficult.   Your Realtor can find out this information for you.

3)  Does the listing agent have any experience in closing short sales?  This is important!  You may be taking a chance that your offer will not be accepted if the listing agent has no experience in this area.

4)  Has a short sale package been completed by the seller?  If not, this could hold up the purchase.

5)  Are there any other offers on the property?  Your Realtor can find out this information in order to help you make a competitive offer.

Paradise Real Estate has Realtors that are experienced with short sales and are available to help you find that perfect home.   Please feel free to contact Paradise Real Estate in South Lake Tahoe if you are interested in short sales or bank-owned homes. We can explain the process of a short sale  or bank-owned home purchase and if it is right for you.