In all my years of selling Real Estate, mostly in the Elk River area, I don’t recall it being a better time to buy a Home. Let me give you a example of Elk River interest rates. On a $150,000. Mortgage the difference of a monthly payment between 4.75% interest Rate and a 9% interest Rate is around $420.00 per month. Meaning that with these Elk River interest rates you will pay over $150,000. LESS  in total payments in the 30 years of the Mortgage. Just think  with Elk River interest rates what you could do with $150,000. over that time period.  Another BIG factor is what has happened to home values of the past 4-5 years. As most people know we have lost about 25-35 % in value. The good news is that there has NEVER BEEN A BETTER TIME TO BUY AN ELK RIVER HOME. I Really Believe what I do makes a difference in peoples lives. Now more then ever with Elk River interest rates it’s a GREAT time to buy a home.

Mel Beaudry,  Real Estate Agent with  RE/MAX Results

For more information about todays rates fill out the form below and I will get back to you quickly.

Home Affordable Refinance Program

Recently one of my past customers talked to me about the current value of their home. They knew it was down because of the market, but were wondering what I thought it might appraise at because they were going to refinance there home at a 125% Loan To Value.

These past customers were using the Home Affordable Refinance Program (HARP) and it allows customers to refinance their home up to 125% of the value.  In the market area I work homes are down about 30% over 3 years ago so there are a lot of people who don’t think they can refinance.

You might ask why would they want to refinance?  The rates in 2007 & 2008 were in the 5.5% to 7% range.  Now we know the rates are much lower and with HARP this customer got a 5% rate instead of sticking with their 6.125% rate.  The amount they owed on the property did not increase, their rate went down.  Because the value was about $30k less then what they paid the 125% was need to reach the old value.

1.125% is a big payment reduction.  Some of you reading this might want to know if HARP will work for you.  Go to the Home Affordable Refinance Program Website Here and find out more.

A Mortgage professional that I know will do a good job helping you is Stefani Havel with Wells Fargo. Go to her website here.

If you want to lower your payment before the holiday’s now is the time to do it!  I welcome your questions on selling, buyer, and financing a home as well.  So drop me an email with the form below if you need some assistance!

 
I recently have gotten to know Joe Van Orsdol of Right Home Inspectionsand I am very impressed at the options he offers to his buyers.  Our team has used Joe’s services several times for home inspections and if your buying a home in Anoka, Wright, Sherburne, Isanti, Stearns Benton or Hennipen county his is a good home inspection option.

He has SOS Program (Smooth Out Short Sales)that if a buyer is purchasing a short sale home he will do the inspection for HALF PRICE upfront. This way the buyer can get the home inspection right away , but not incure all the costs upfront.  If the sale does not come together for any reason the balance of the inspection fee is waived!

Any listing agent who is selling a short sale would love to have the inspection done upfront. For a buyer its typically a wise thing to do as well because why wait months for an approval only to find that the house has issues on the inspection.  By the way after the months of waiting he will reinspect the property for free! 

Right Home Inspections is a good option for buyers and agents to know about in the Twin City and St. Cloud area of Minnesota.  Check out his website for complete details of what he offers at RightHomeInspections.com.

 

The subject of an email I got this week said Historic Low Rate — 3.625% for Minnesota Houseing Program! WOW! What a time to buy a home for Minnesota home buyers. These are 30 year fixed rates!

Here is the link to the Minnesota Housing Website so you can find out all the details and options for homebuyers in Minnesota. There are different programs available for different buyers and areas so the interest rates overall vary.

According to their website you may be eligible for a Minnesota Housing mortgage if you:

•Are a first-time homebuyer, meaning you have not owned a home in the past three years,

•Have federal income tax return copies for the last three years,

•Have acceptable credit,

•Have an income at or below prescribed Minnesota Housing income limits

◦For basic first-time homebuyer program for a family of one to four, income limits are as follows:

11-County Twin Cities Metro Area – $84,000

Rochester MSA – $77,600

Balance of State – $73,100

•Buy a qualifying home within prescribed purchase price limits as follows:

11-County Twin Cities Metro Area – $298,125

Balance of State – $237,031

I think a lot of loan officers don’t even think to check if this progam is a fit for a buyer. So its good to be aware of and in some of the counties and cities down payment assistance is available for qualified buyers!

 
In this current economic situation there are more and more buyers that are looking for Contract for Deeds in the Twins Cities Metro area in Minnesota.

 
Why or what situation might a buyer want to consider a contract for deed? What do you need to know?

 
1. Buyer is not able to qualify for regular financing. Many people have had credit issues.  Perhaps they have even had a recent foreclosure.  Even in this situation a buyer can consider a contract for deed. 

 
2. If you have had credit problems in the past you should consider a home with a lower payment because you want to avoid getting into a real tight situation again. If you are coming out of a house payment that ended up being a few hundred dollars too high for you. Try to get a payment a few hundred dollars below your cash flow line.

 
3. Save up a down payment. 10% will probably get you high consideration for most contract for deed offers from sellers.  Some will want 20% down and some maybe go with less such as 5% down, but 10% is a real solid amount.

 
4. Saving for the down payment may be tough.  If you have had credit problems how can you do this?  It will likely take focus and discipline, but its really a potential bad situation for buyers and sellers if you have not saved a substantial amount of money up for a down payment.

 
5. Interest rates will likely be higher.  Look for the interest rates to be in the 7-8 percent range on these transactions.  The owner is carrying the financing and is looking for some cash flow for carrying the mortgage.

 
6. Find Realtor who knows whats available for contract for deed.  Some contract for deed homes are listed but may not be advertised that way to the general public,  Other times Realtors know investors who have homes available contract for deed.

 
7. You can negotiate the terms.  On most options the sellers will consider offers.  Certainly they will not be as flexible, but you can offer less then asking price, ask for a lower down payment or interest rate.  Again having a Realtor represent you will be valuable in these situations.

 
8.  Check for potential distress on the house you want to buy.  You don’t want to buy a home and put thousand down and find out that the seller has a loan they have not made a payment on for months.  This can happen if you don’t use a Realtor and a title company for a professional recorded transaction.

 
There are several other things to consider depending on your situation and the sellers situation. We can go into more detail based on your situation.  The Discovery Team can help you find creative financing solutions with a Contract For Deed purchase. if you feel you are unable to qualify for traditional financing and would like to find out your options with Contract For Deed please click here to contact one of the team for more information on how to buy using contract for deed.

It is understandable to have questions when coping with a new and challenging situation, especially when a home is at stake. The reality is that millions of homeowners across the country are finding out that they have more questions than answers. We hope that the following information will help you better understand the circumstances. If you have further questions not addressed below, or would like additional information resources, feel free to Contact Us.

Do I qualify for a short sale?

The qualifications for a short sale include any or all of the following:

1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2. 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.
3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

What is a mortgage modification?

A mortgage modification is a process through which your mortgage lender changes any or all of the following:

• Your interest rate
• Your principal balance (through a reduction)
• Your loan terms (example: from an adjustable to a fixed rate)

This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.

Why would a lender modify my mortgage?

Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.

What do I need to qualify for a mortgage modification?

According to the Making Home Affordable Web site (www.MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:

• Information about your first mortgage, such as your monthly mortgage statement
• Information about any second mortgage or home equity line of credit on the house
• Account balances and minimum monthly payments due on all of your credit cards
• Account balances and monthly payments on all your other debts such as student loans and car loans
• Your most recent income tax return
• Information about your savings and other assets
• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

If applicable, it may also be helpful to have a letter describing any circumstances that caused your income to reduce or expenses to increase (job loss, divorce, illness, etc.)

How do I qualify for a mortgage modification?

The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):

• Loss Mitigation
• Mortgage Modification
• H.O.P.E.

Prior to contacting your mortgage lender you can quickly complete an eligibility test at www.MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP). For a list of mortgage lenders and servicers, visit www.HopeNow.com.

What if I don’t qualify for a mortgage modification, can’t afford my home, and owe more than it’s worth?

You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents like me, with the Certified Distressed Property Expert® Designation, have undergone extensive training in how to process and negotiate short sales. A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.

What is a Home Affordable Refinance?

If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.

What are the qualifications for a Home Affordable Refinance?

According to the resources released by the government, following are a list of qualifications:

• You are the owner occupant of a one- to four-unit home
• The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
• At the time you apply, you are current on your mortgage payments (you haven’t been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
• You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
• You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan

If you have additional questions or would like to discuss your options please fill in the form below and I will get back to you quickly.

WHAT IS A SHORT SALE?

A few years ago you would never have heard the term Short Sale. Now it is as common as New Listing. A short sale means that in order to sell a specific home the bank that has a mortgage on the home has to agree to take less then what is owned on that home. For example, A couple bought a home in 2005 for $225,0000.They financed $218,000. Now because of job loss in the family they can no longer afford the mortgage payments. The home owner needs to sell the home but, because of the economy the value of that home dropped to $175,000. So the only way it will work is for the mortgage company to take far less then they are owed. If they will not do that then the home owner has no choice but to let the home go back to the mortgage company in the form of forclosure. Because it is very costly for the mortgage company to go thru foreclosure they are far ahead to take less now then get it back. I have become a Certified Short Sale specialist and would be happy to meet with someone you know that is in this situation. A home owner is MUCH better off to go thru the short sale process then to let their home go thru Forclosure. Call me and I’ll show you why.
 

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. We hold the CDPE® Designation and we are 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 us for a free consultation.

Understanding your options now could mean all the difference in the world. Contact us today.

Fill in the form below and I will get back to you quickly.

The Discovery Team

Certified Distress Property Experts

 
In this current economic crisis, millions of homeowners facing financial hardship and possible foreclosure action are requesting the help of agents with the Certified Distressed Property Expert® (CDPE) designation. A CDPE is a real estate professional with specific understanding of the complex issues that confront homeowners in distress. Through comprehensive training and market experience, CDPEs are able to provide real solutions for homeowners facing hardships in today’s market.
 

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. CDPEs believe that in almost all cases, the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools necessary to help homeowners find the best solution for their particular situation. While enduring financial difficulties are challenging for any family, the process of finding a qualified real estate professional should not be. Mel Beaudry & Chuck Carstensen have achieved the CDPE designation, ensuring you deal with a professional trained to address your specific needs. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
 

Chances are, you or someone you know is facing the possibility of foreclosure. But you need to understand that you are not alone.
 

Today, 1 out of every 6 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it’s important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
 

Through our experience handling distressed properties at RE/MAX Results, We’ve found that homeowners today have more questions than answers about their circumstances. We have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.
 

You may also have noticed that we are offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and we feel it is vital for you to have all the facts necessary to make an informed decision.
 

As agents with the CDPE® Designation, we have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.
 

We are here to help … in any way we can … if you would like to know more about your options, please call  or use our contact form today. 

The current U.S. housing market and national financial crisis has caused untold stress and heartache for many American families. Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options available to Minnesota residents for foreclosure are many. Following is a brief explanation of these solutions, including their benefits and drawbacks:

 

Reinstatement

A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

• Benefit: Does not require the mortgage company or lender’s approval.
• Drawback: Requires that a homeowner be able to pay all back payments, fines and fees.

 
Forbearance or Repayment Plan

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

• Benefit: Allows the homeowner to make back payments over time.
• Drawback: Requires that a homeowner be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed. Some mortgage companies will require a homeowner to ‘qualify’ for forbearance.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

• Benefit: Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan
• Drawback: Requires that a homeowner ‘qualify’ for the new payment and will often require full documentation. Lender has to be actively pursuing modifications.

Rent the Property

A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.

• Benefit: Allows homeowner to keep property indefinitely.
• Drawback: The issues that can arise with a rental property are many, and rent often does not cover the full cost of property ownership and maintenance.

Deed in Lieu of Foreclosure

Also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.

• Benefit: Many times in a successful deed in lieu, the lender will forego their right to a deficiency judgment.
• Drawback: Requires that a homeowner vacate the property, and a deed in lieu may be reported to credit bureaus as a foreclosure.

Bankruptcy

Many have considered and marketed bankruptcy as a ‘foreclosure solution,’ but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.

• Benefit: Does not require lender approval.
• Drawback: If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall—not stop—the foreclosure process. Bankruptcy can be costly, is damaging to credit scores, and can only be declared once every seven years.

Refinance

If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

• Benefit: In some cases, this will lower payments.
• Drawback: In today’s market, a refinance will almost always raise mortgage payments, and is an expensive process.

Servicemembers Civil Relief Act (military personnel only)

If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.

• Benefit: If qualified, this will lower payments on all consumer debt in addition to mortgage payments.
• Drawback: Must be active military to qualify.

Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

• Benefit: Allows homeowner to avoid foreclosure and harvest some of their equity.
• Drawback: In many cases today, homeowners do not have sufficient equity to sell their property without negotiating a short sale (see next solution).

Short Sale

If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.

• Benefit: A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure).
• Drawback: Short sales can be a trying process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way.

This represents only a summary of some of the solutions available to homeowners facing foreclosure. Please call us today for a free confidential evaluation of your individual situation, property value, and possible options.

 

We can help!

 
Please complete the form below and we will contact you shortly to discuss your options. We can help you stop foreclosure and possibly save your credit score.