Foreclosure/Short Sale/REO

Real T Team has again matched the need in the local real estate market with a new division dedicated to helping homeowners and prospective homeowners navigate the maze of foreclosures and short sales, as well as cut through the various financing options available in today’s market. The Denton Premier Properties Group is here to help you find a foreclosure, short sale or other property to purchase. Conversely, if you find yourself in a challenging financial situation and are concerned about how to handle your home with a change in income, difficult economic conditions, or personal issues that change your focus and your future – we can help!

Our group of REALTORS has 40+ year veterans plus many knowledgeable and aggressive professionals that are waiting and able to cut through all of the hype, legalese and protocol to help you accomplish what you and your family need and want to accomplish without delay. Call us today at 940-384-7200 and find out why you too can rely on the Denton Premier Properties Group at the Real T Team to assist you with fulfilling your dreams by assisting in your purchase of the right property for you and your family, or by helping the family out of a potentially devastating situation when conditions change and it is no longer prudent to hold on to your home. In either situation we are trained and experienced to assist your needs – we can help!

Remember, if you are not fully satisfied you can always go elsewhere, but no one ever has!

Accreditation

What is an SFR specialist and how do I find one?

Some Texas REALTORS® have undergone specialized training to help Texas homeowners avoid foreclosure. The Short Sales and Foreclosure Resource (SFR) certification consists of a rigorous training with periodic continuing education webinars covering topics like:

  • Understanding short-sales regulations and technology
  • Qualifying sellers for short sales
  • Negotiating with lenders
  • Protecting buyers

Following are definitions and explanations concerning distressed property or difficult situations whether you want to sell or purchase.

Short Sales

What is a short sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their home than the home is 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.

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 without the homeowners having a foreclosure against their record.

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 – 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. We have Realtors in our office that are certified in Short Sales and Foreclosures and are ready to help you investigate your options, and when appropriate, assist in the execution of a short sale.

Foreclosures

Are you having difficulty with your payments?

A foreclosure property is a home that has been repossessed by the lender because the owners’ failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Economic conditions affect the number of foreclosures, too. Many people lose their homes due to job loss, credit problems, or unexpected expenses.

Texas Foreclosures are a quick three step process:

A notice of default is provided the borrower providing a period of 20 days to “cure” or pay the full amount owed to bring the defaulted loan current.

Notice of the proposed sale is filed with the county clerk, posted at the court house and the notice is mailed to the borrower.

The third step is the actual foreclosure sale where the property is auctioned on the courthouse steps to the highest bidder.

Texas has no reinstatement period on a foreclosed property. It is critical for the homeowner to quickly identify their options as soon as they know there is going to be a difficulty in making their mortgage payments. If you think you are possibly going to face foreclosure, give us a call. We will help you navigate your options and figure out the best solution for your particular situation.

How do I find a foreclosed property to purchase?

Foreclosure notices in certain instances might be published in the legal notices section of a local newspaper where the property is located or in the nearest city. Also, foreclosure notices are sometimes posted on the property itself, and always in courthouse of the city where the sale is to take place.

Buying a foreclosure property can be risky, especially for the novice. Usually, you buy a foreclosure property “as is,” which means there is no warranty implied for the condition of the property (in other words, you can’t go back to the seller for repairs). The condition of foreclosure properties is usually not known because an inspection of the interior of the house is not possible before the sale. It is also important to know if there are other liens against the property because if you buy before the foreclosure process, you have taken on those debts as well. Sometime a second, third or other lien will initiate a foreclosure action and purchasing the property at that level means any superior liens still exist and must be paid after the foreclosure sale is final.

Buying a foreclosure is not as easy as it may sound. Sophisticated investors generally buy foreclosures “off the courthouse steps” so novices may find themselves among stiff competition and end up with something much more costly than anticipated. In certain instances we will help guide individuals in the purchasing process whether on the courthouse steps or after the property has been foreclosed.

Can I purchase a HUD foreclosure?

If you are strapped for cash and looking for a bargain, you may be able to buy a foreclosure property acquired by the U.S. Department of Housing and Urban Development for as little as $100 down. With HUD foreclosures, down payments vary depending on whether the property is eligible for FHA insurance, the type of buyer and other factors.

You should be aware that foreclosure properties are sold “as is, where is,” meaning limited repairs may have been made and no structural or mechanical warranties are implied.

You can only purchase a HUD property through a licensed real estate broker, and HUD will pay the broker’s commission. HUD requires certain pre-purchase items be completed by the buyer before they will accept an offer. We will be happy to help you locate a property and assist in getting it closed.

What is the Denton, Texas market?

The four counties in the Dallas–Fort Worth area—Dallas, Tarrant, Collin and Denton—had over 32,000 seriously delinquent first-lien mortgages in December 2011, about 1,800 more than the same month the year before, according to the LPS database.

 

Delinquencies (December 2011)
County

Number of loans serviced

Percent past due
(incl. foreclosure)

Percent seriously delinquent
(90+ days and foreclosure)

Denton

111,781

7.09

3.21

 

Excessive inventory of distressed sales has been one reason for the housing market’s sluggish recovery. According to MarketPulse by CoreLogic Inc., in December 2011 about 15.2 percent of homes on the market in Texas were still short sales, foreclosures or real estate-owned (REO) properties. These distressed sales are likely to make non-distressed homes harder to sell without price discounts and may push home values further down. Home prices in Texas did not appreciate as wildly as they did in many other parts of the nation, but they still slumped during the recession, mainly due to the deterioration of economic conditions.

Foreclosures and short sales are real – can you benefit? Call us to see!!

Where do you find government foreclosed homes?

The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale at first to homeowner-occupants and, after a certain time frame, to investors. Owner occupants have a window of opportunity to do an inspection. If you are successful in acquiring a HUD home as an owner occupant, you must occupy the house for 1 year and may not participate in another HUD sale for 2 years as an owner occupant. You can only purchase HUD-owned properties through a licensed real estate broker. Down payments vary depending on whether the property is eligible for FHA insurance. You can see these houses on our web site through MLS, on www.HUDhomestore.com or contact us at 940-384-7200, and we can assist you in looking at HUD as well as conventional foreclosures in the area.

What about Conventional foreclosures?

A large number of conventional foreclosures are available for families and individuals without all of the restrictions of HUD foreclosures, but all have their own specific requirements. The important consideration is matching the property, financing and other criteria to YOUR needs. Let our professionals help you achieve the dream. Become a home owner or add to your portfolio with the best professionals available – call us at 940-384-7200 for a no obligation interview that will set you on a course to accomplish your dreams.

REO

What is an REO?

We have all heard the term, but what does it mean and how can it help me?

REO is a term use for Real estate owned. REO is a class of property owned by a bank, government agency, or government loan insurer after the completion of the foreclosure auction where a third party did not purchase the property being foreclosed. A foreclosing party (usually a financial institution) will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount plus expenses. If there are no additional bidders that are interested, then the bank or lender will legally repossess the property. This is commonly the case when the amount owed on the home is higher than the current market value of this foreclosure property, such as with a high loan-to-value mortgage. The asset manager will generally list the property at fair market value or a little below and take offers until one is submitted that is agreeable to all parties.

In Conclusion

No matter which situation fits your circumstances or your focus, please call the Denton Premier Properties Group Team at 940-384-7200 today and let us help you either sell your property or find a great deal on one you wish to purchase. We have hundreds of happy and satisfied customers and want you to be included among them.

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