Jaclyn Erwin, ABR

It's Certainly About Time!

Finally, someone has realized that our homeowners need help. For months we've witnessed huge bailouts for corporations in effort to boost the American economy. However, at the same time, millions (and note I said millions) of homeowners have lost their homes. Some even took the necessary steps and contacted their lenders in attempts to try to establish a work-out plan and get them back on track with their mortgage payments only to be turned away and/or discouraged. Who will help bailout our homeowners?

This is a questions I often ponder as I witness firsthand the surge in foreclosures and short sales---superseding the actual numbers of new construction and regular listings available. Often when the question is raised in the media, the responses are centered upon the belief that (1) homeowners were irresponsible (2) homeowners got homes they just couldn't afford (3) everyone was greedy in this industry, out to make a dollar.

Now, while all of these did play a significant role leading to the surge in foreclosures, there is a group of indivduals suffering as well and without a doubt, overlooked. We are overlooking the hard-working, responsible homeowners who are losing their homes and suffering as a direct result of the economy! They have lost or are in jeopardy of losing their homes because they have faced a financial hardship: Job Loss! They can't pay their mortgage simply because the economy has gotten so bad companies have closed their doors or layed people off. No one has been spared, no industry is immune!

With the surge in the number of foreclosures throughout Charlotte, NC. and around the country for that matter, I was ecstatic to hear yesterday evening that Fannie Mae and Freddie Mac have devised a temporary relief to foreclosures. Both Fannie Mae & Freddie Mac are temporarily halting all foreclosures on all homes currently in default from November 21st through January 2009.

This means if a current homeowner has a primary Fannie Mae or Freddie Mac based loan and they are in jeporady of foreclosure, have received a hearing regarding a foreclosure, or worst--have their homes scheduled for foreclosure, then these procedures have been placed on hold at least until January 2009.

Now with most good things, there's a catch. The catch here is that the home MUST currently be occupied and NOT vacant. So, homeowners who have made the decision to vacate their homes may not be immune. However homeowners who are considering moving out as a result of their mortgage woes really need to re-consider making the move. If they want to actually save their home from foreclosure or even hire a real estate pre-foreclosure/short sale specialist to short sale their home, then they need to make sure their home is occupied and not vacant to take advantage of this opportunity!

During the dedelayed process, both Fannie Mae and Freddie Mac's plans are to develop new strategies to employ to help homeowners save their home and get back on track, if possible. Their goal is to save as many homes as possible and avoid adding to the expected increase of foreclosures throughout the country projected the first of the year.

For more information about steps you can take to save your home from foreclosure, feel free to contact Jaclyn Erwin, ABR, Realtor. www.TeamJaclyn.com

So, you're a prospective buyer looking to gain a piece of the Charlotte, NC real estate pie. You've done quite a bit of research, viewed homes on the Internet and even watched a few real estate shows on TV. You've spoken to a loan officer, gotten pre-approved and your on your way to obtaining a piece of the American Dream. Your goal: To get a home according to your specifications, within your budget and hopefully for as less as possible.

At this point, your considering a foreclosed home, especially if the home has great potential and will save you tremendously. After all, the more you save, the more money/equity you'll have to do the renovations or repairs necessary to transform that foreclosed house into your wonderful home. Your on your way!

But, wait! There's an additional opportunity where you could benefit even more, and possibly help someone else along the way..... A Pre-Foreclosed (Short Sale) Home!

That's right. A pre-foreclosure provides an excellent opportunity for you to obtain a nice home, at an awesome price! Simply put, a pre-foreclosure is a home that is in jeopardy of foreclosure due to the current homeowner's inability to maintain the mortgage. Often times, the homeowner experiencing the financial hardship will seek the assistance of a real estate professional (preferably one that specializes in pre-foreclosures and short sales) to persuade the bank to accept a short sale (sale of the home for less than what the borrower owes on the mortgage) in order to save the client from foreclosure and further damage to their credit. The agent then lists the home according to the banks protocols and proceeds with the necessary processes to gain the bank's acceptance of the short sale.

FACTS of PRE-FORECLOSURES:

1. Pre-Foreclosed homes are sold at a great price, often times comparable to a foreclosed property, with some being sold even less!
2. The average Pre-Foreclosures in 2007 consisted of homes in very decent shape with minor repairs. Believe it or not, there were some homes less than a year old available!
3. Home Warranties are available at substantial savings, which will further protect the buyer against heating, cooling, plumbing and electrical problems that can occur.
4. The typical pre-foreclosure purchase takes anywhere on average from 30-60 days for the bank's final approval of the short sale once the offer is submitted. This is because the bank has a set of protocols it must follow, with a series of checks and balances to insure that the home and/or the homeowner actually qualifies for the short sale. However, the savings are generally worth the wait!
5. Banks really want to prevent a foreclosure sale, as a short sale typically saves them tremendously and legally they Can Not sell the home themselves!
6. When submitting an offer, it is very important that you submit a fair price. Banks will not be bullied and will not accept a low ball offer. Remember, they have appraisals, BPOs and other price comparisons performed by specialists to provide them with additional insight on the homes saleability.
7. Often times the listed price is a suggested price the listing agent believes, according to their research, that the bank will accept. A few banks will provide the listing agent with an acceptable list price, most will not.
8. It is best to look for an experienced agent who is familiar with or willing to learn what to expect from the listing agent the process to represent your best interests as the buyer.
9. There are a variety of short sale protocols, with different mortgage types having different protocols. For example, an FHA-financed home seeking short sale approval is very different with stipulations not associated with a conventional-based financed home seeking a short sale approval.
10. Short Sales are typically sold "AS IS" with the lender nor the current homeowner offering any repairs on the home. However, this is where a home warranty as well as an home inspection prior to submitting an offer or before approval is necessary.
11. Finally, keep in mind that these homes generally receive offers quicker than the average non-distressed homes on the market. So, if you see a home you really like, you should decide as soon as possible. Some pre-foreclosures receive multiple offers within one day!

Looking for additional information on purchasing Short Sale properties or Preforeclosures in the Charlotte NC. area? Thinking of selling your home as a Short Sale property and want additional information and/or assistance? Contact Jaclyn Today! www.TeamJaclyn.com Jaclyn is the #1 Pre-Foreclosure/Short Sales Specialist for the Charlotte NC. Region.