Metro Denver Short Sales & Foreclosure Information

Don’t be fooled with the recent news that Colorado mortgage foreclosures have dropped 20% in November as compared with October of this year.  And that recorded foreclosures have declined 24% this November when compared with November of 2010.

Home owners are still experiencing tremendous financial stress and difficulty in paying their mortgage payments.  The unreported change in the market that is really happening to homeowners today.  Lenders have determined it is around 18% less expensive for them to allow distressed homeowners to short sell their homes instead of foreclosing on them.  Many lenders like Chase and Bank of America are actually calling their late paying customers to suggest they consider short selling their homes once they determine their borrower is actually in financial distress and will not likely qualify for a loan modification.

So, although property owners throughout the metro Denver area are seeing a reduction of foreclosures, we are experiencing a significant increase of short sale listings and short sale closings. 

Bank of America is the largest holder and servicer of mortgage loans in America today.  In a recent meeting with company senior vice presidents, I was told that the number of short sale they have allowed to go to closing in 2009 was around 45,000 homes.  They approved 90,000 short sales in 2010 with an expected 110,000 throughout 2011.  Just this one lender is expecting to have 125,000 short sales approved in 2012. So, although foreclosures are down, short sales are up as a result of lenders not wanting to experience the additional costs associated with a foreclosure.

Regardless, most financially distressed homeowners I have visited with really want to try and complete a loan modification when the get behind on their monthly payments.  They contact their lender and in almost all cases, after submitting the required extensive paper work documentation, their lender will set them up on a “temporary 30 to 90 day trial loan modification”. This is almost always not the correct step that should be taken.  Here is why:

In all cases whenever you call your lender for any assistance, you will first be required to listen to a recording that clearly states that they are in the business of collecting money and that anything you say will be used to assist them in that goal.  Many owners who I have eventually assisted through a successful short sale have told me they or their lender have finally given up after making anywhere from three to 18 loan modification payments to the lender.  It seems only a very small percentage of borrowers in financial distress ever qualify for a permanent loan modification.  The rest of the homeowners just end up making many additional payments and just postponing the inevitable short sale – or worse a FORECLOSURE.  In the mean time, their lender continues to receive money every month until the lender just stop allowing the temporary loan modifications or the borrower gives up on ever being able to obtain a permanent loan modification.

What homeowners should be doing just as soon as they realize they will likely be falling behind in their mortgage payments is to call the Colorado Foreclosure Hotline to get honest assistance from a non bias third party.  The trained professionals there can help you understand your options and most importantly, understand the required financial loan qualification guidelines lenders will require you to meet before they will ever allow permanent loan modification.  They are also trained to suggest other options for you to consider other than allowing your lender to eventually foreclose on you.  Be sure to ask them about the short sale option while you have them on the line.

COLORADO FORECLOSURE HOTLINE - 877-601-HOPE (4673)

WWW.COLORADOFORECLOSUREHOTLINE.ORG

Opt Out Of Credit Card & Insurance Junk Mail

If you are tired of receiving those "Preapproved" credit card and insurance policy junk mail applications, you can now stop the mailings for five years on-line or stop them forever if you want to print out a form and mail it in.

Just go to OptOutPreScreen.com and to be added to the do not mail me your junk mail list.

50 Year Low Mortgage Rate Record Just Broken

What a market for buyers!
Freddie Mac just released results of their nation wide survey of mortgage interest rates.  They reported that rates are now at the lowest they have been for the past 50 years. 

The 30-year fixed averaged 4.15 %, breaking the previous record low of 4.17% set November 11, 2010.

The 15-year loan rate averaged 3.3% with an average reduction of 0.6 point from a year ago at this time.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08. A year ago, the 5-year ARM averaged 3.56 percent.

Yes... there is no better time to consider re-financing your existing loan.
Absolutely - NOW - is the best time to buy a home.  Your purchasing power has not been this good anytime within the past 50 years and price ranges are still quite reasonably valued with many motivated sellers just waiting for you to write an offer on their home.
Let me know if you need the name of a great lender with the most competitive interest rates to do a re-finance on your present home.
Get in touch with me if you would like to consider buying any metro Denver area home, townhouse, loft, luxury home, new home builder or custom home.  I would be happy to send you a list of homes that meet your specific needs.

HAMP Not Workig - Fannie Mae Breaks Rules To Forelose On Home Owners

Here is an interesting article regarding one of our nations very expensive program that will see some significant changes because it is not working.  Home owners who are more than 12 months delinquent on their loan payments will no longer have the HAMP (re-structuring of delinquent loans) program available to them since FANNIE MAE is now requiring lenders to foreclose on the loan. 

Lenders will start being fined if they delay the foreclosure process.  What this means to delinquent home owners is that they will no longer have years to live in their home without paying their mortgage payment.  Owners will want to get in touch with a Certified Distressed Property Expert (CDPE) to learn about the other various options they have available to them other than being foreclosed on by their lender.

If you or someone you know needs to speak to a Certified Distressed Property Expert (CDPE), call me right away.  Bill Kosena 303-796-0957.

Denver Homes Are Appreciating

Homes in the metro Denver area showed a 2.2 percent increase in the average sales price in July according to Metrolist numbers.  This is remarkable since the average home price in the majority of other major cities in our nation are still showing a decline in average sales values.

Our average sales price has nudged up to $298,0654.  The metro Denver area is showing a drop in the number of under contract properties by just over ten percent year to date as compared to last year.  So far this year Denver has seen the number of active listings shrink to 17,214 listings - a decrease of over 20% from last year. (Approximately 12,690 single family homes and 4,062 condos/townhouses & 462 multi-family properties)

This means that the Denver housing market is continuing to improve with the number of buyers and sellers in the market becoming more balanced.  But, realize we have a long way to go to before we become fully balanced.  We are still experiencing a strong "Buyers Market" throughout most of our middle to upper price ranges.  Single family homes priced under $275,000 in the stronger area of the city are now frequently experiencing multiple offers and a change to a "Buyer's Market".

Correct pricing and condition of the property are still the driving factors for homes that sell.

ASK YOUR BANK TO PROVE IT - Forged Documents Now Showing Up

Our national foreclosure problems have just been kicked up a notch.  Here is a link to a very interesting ABC story revealing a new twist to our national foreclosure issues.  Banks, including Wells Fargo, HSBC, Deutsche Bank, Citibank, U.S. Bank and Bank of America, can not find their mortgage documents. So, being as creative as possible, they or one of their representatives, have been forging loan document signatures to prove they are the mortgage company of record.  As you know, only the mortgage company can foreclose on a loan legally only WITH proof of being the mortgage owner or record.

Take the time to see this very interesting report from 60 Minutes - CBS on Mortgage paperwork mess: Next housing shock?

If you happen to be in financial stress and served with a foreclosure Notice of Election and Demand (NED) by your lender, you might want your lender to send you a copy of your Promissory Note and Deed of Trust (TD).  If they can not, you might find them very willing to renegotiate the terms of your loan. In this case, at a minimum, consult with an attorney before doing anything.

Property owners experiencing financial stress have many more options available to them than they realize.  A trained real estate broker with advanced training and certifications such as CDPE, CNE, CRS, SFR can guide you through the many options available to home owners today - other than foreclosure.

One of the first steps you should explore if you are experiencing financial distress is to call the Free Government Sponsored Help Hot Line -877-601-HOPE (4673)  Your second call should be to a highly trained real estate professional to explore your other options.

Are YOU An "Owner Will Carry" Seller?

Everyone knows that thousands of home owners and renters across our country have been losing their home over the past several years because they can not continue making their mortgage payment - or their land lord can not.  So, what happens to all of these people?  They still need a roof over their head.

Many decide to simply rent a property.  The fact that Denver's vacancy rate has dropped significantly would be one indication that the up-rooted people are turning to renting a home as one solution to their problem.  (Denver metro vacancy rates are now around 4.5% - the lowest they have been for nearly 20 years). An interesting note here is that many landlords have been telling me that it is quite common today for roommates to be doubling up.  NOT only college students and college graduates, but generations of the same family as well as unrelated families.  They are doing what they can to make ends meet.

There are more and more people out there who do not want to rent but would rather own a home after they have lost their last home.  Many of these people have re-established great income or are willing to buy a lower priced property, but are not able to obtain a mortgage since their credit rating has been damaged by a recent foreclosure or short sale.

There is still a way for them to buy a home.  The simplest way is for them to use seller financing.  Or what is called Owner Will Carry financing.  This type of financing may be a great option for both the buyer and the seller.  Sellers who own a property free and clear can loan out their equity and net a higher interest rate than what they can ever realize in if the same money was invested into a Treasure Note or passbook savings account.

Additionally, if a seller if offering financing, they almost always will get a higher sales price for the property - and a quicker sale, than they would with a normal buyer who uses a lender to finance the property. Owner carry financing can add as much as 10% to the fair market value of a property.

Many buyers are very capable of making the payments to the seller since they now have found employment and regular monthly income again.  Simply verifying the buyer's credit and employment may be all that is needed to  selling your property.  Feel free to call and discuss the options and ramifications of adding Owner Carry Financing to your property.  It can possibly produce the buyer you have been looking for.

Did Homeowner's Association Go Too Far By Emails Name & Address Of Sex Offender?

Did my home owners association go too far this time or are they taking proper steps by emailing the Denver neighborhood the name and address of a sex offender?

HOA's typically watch over the neighborhoods by mailing out notices to cut weeds or remove trash from a property when the owner appears to be in violation of the by-laws.  But, is it their function or obligation to notify everyone by email when a sex offender moves into the neighborhood?  Or should HOA's at most remind members of such persons by forwarding the area's Sex Offender Registry?

Here is my previous blog discussing local and national sex offender registry sites.

My thoughts are that my HOA over stepped the scope of their function and should at most forward the sex offender sites.  What are your thoughts?

Buyers & Sellers Voted And Results Are In

J.D. Power and Associates announced today that RE/MAX ranks highest in customer satisfaction, for both buyers and sellers, in its 2011 residential real estate survey.
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Water Conservation Workshops Begin April 7th

Centennial Water & Sanitation District offers free Lunch and Learn workshops held the first Thursday of each month. A different topic will be discussed each month providing attendees with water conservation tips they can implement at home. All classes will be held from noon to 1 p.m. at the Highlands Ranch Library, located at 9292 Ridgeline Blvd., in Shea Room A. Attendees are welcome to bring a brown-bag lunch.

This year’s Lunch and Learn topics include:

·         April 7: A Healthy Landscape with Less Water

·         May 5: Stormwater Basics

·         June 2: The Principles of Xeriscape

·         July 7: Water Conservation for Kids

·         August 4: Landscape Maintenance

·         September 1: Fall and Winter Landscape Tips

For more information about any of the Lunch and Learn workshops, contact Jon Klassen at 720-240-4917.