A foreclosure sale from a bank seems like the perfect option for many San Diego home buyers, but if you are considering a foreclosure sale, then there are a few things you have to be aware of first.

1 – The Bank DOES Make a Profit on a Foreclosure Sale

A common misconception about buying bank-owned properties is that banks are not allowed to make a profit. At the initial stage of foreclosure when loan payments are falling behind, banks can only try to recover the loan amount, plus fees and expenses that result from the collection of loan payments. However, when they gain full ownership of the properties, they can set any prices they want, and they will most likely try to make a good profit from the sales.

2 –Bank-Owned Properties May Be in Disrepair

Generally, banks don’t take care of their properties as well as individual owners. Bank-owned properties are mostly sold “as is,” which means that you get what you see, and the banks will not do additional repair work.

3 –It’s Might Be Awhile

Buying a foreclosure from a bank may take longer than it would when you buy from a property owner, because banks are corporations and they have a lot of administrative work to do. On the other hand, through an auction you can gain ownership of a property in just a few minutes.

Property prices in Southern California are falling and foreclosures are becoming more common. This combination provides San Diego home buyers with a huge selection of foreclosed properties.

Contact San Diego County Short Sales to find out if buying a home through a foreclosure sale is the best option for you.

We at San Diego Short Sales ASAP realize you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to Contact us or call directly at 760-576-4357.   If you or someone who you know could use are help contact us

DRE Lic 01788274

Going through the home foreclosure process can be an emotional time for many San Diego families. No matter how stressful the experience, understand that you are in a position to start fresh and handle your home loan mortgage better the next time around. We know this to be true because we see our clients go through this process often.

Follow these four steps to rebuild your life after the home foreclosure process.

Step one – Patience is a virtue

With a foreclosure on your record, you will not be able to purchase a home for the next three to seven years, unless you can pay cash for a home. In the meantime, just be patient.

Step two – Become a renter

In an ideal situation you will have enough money in savings to pay for a deposit and two months rent. If you don’t have this kind of savings, then there are several programs in the San Diego metro area that can help, including these:

Step three – Repair your credit

A foreclosure could stay on your record for up to 10 years, which means your credit is likely in bad shape right now. You can’t change the foreclosure, but you can do other things to improve your credit, like paying off debt. If you feel a credit repair counselor or a lawyer will help you with this process, then ask for referrals from friends or even from San Diego Short Sales ASAP. Before you begin to work with anyone, always check the counselor’s credibility with the Better Business Bureau.

Step four – Learn from the home foreclosure process and build your savings

It’s important to continue paying off debt and repairing your credit, but it’s also important to have money set aside for emergencies, and of course, your future home purchase. Make it your goal to save 10% of your after-tax income.

If you’ve gone through the home foreclosure process and are ready to start again, contact us to speak with our home foreclosure specialists.

According to a RealtyTrac US foreclosure report, close to 400,000 Californian homeowners defaulted on their mortgage and received foreclosure notices from January to June 2009, which was a 15% increase from the number of NODs recorded during the first half of last year.

What is a Notice of Default?

After homeowners have been delinquent in mortgage payments for a couple of months, a notice of default (NOD) is issued. In the state of California, you are given 90 days to bring due loans current after receiving an NOD by certified mail, and if you don’t bring your payments up to date, then a notice of trustees of sale will be issued. At this point, mortgage default is official.

What is a Notice of Trustees of Sale?

This notice serves to inform delinquent homeowners their properties will be put up for auction. The notice is published on the property and in a local newspaper once a week for three consecutive weeks. Homeowners will also receive a copy of the notification by certified mail.

What to Expect at an Auction?

A representative from the lending institution will conduct a public auction at the place stated in the notice of trustees of sale. The trustee’s deed will be handed over to the successful bidder once the total amount of the bid is paid. Payment has to be made in cashier’s check or cash immediately after the bidding is over.

Can You Prevent Any of This from Happening?

When your property goes to auction, it’s too late to save it, but you can prevent an auction by acting fast after you receive the NOD. Here’s how:

• Using equity, you can try to refinance your mortgage
• Work with your lender to modify your loan
• Hire a San Diego agent to get you going on a short sale

If your mortgage is in default, the best thing to do is to consult a real estate expert at San Diego  Short Sales ASAP.  We look forward to hearing from you.

We at San Diego Short Sales ASAP realize you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to Contact us or call directly at 760-576-4357.   If you or someone who you know could use are help contact us DRE Lic 01788274

Pre foreclosure begins after you have fallen two or three months behind on your mortgage payments and the lender issues a notice of default (NOD). Usually, you will have 90 days to catch up on your payments before foreclosure is official.

Instead of losing hope, you should take advantage of pre foreclosure and try to avoid actual foreclosure. Here are a few tips to do that.

Pre Foreclosure Tip #1 – Learn What You Can

Look for foreclosure prevention tips on the Internet or seek advice from relatives and friends who have gone through pre foreclosure themselves. SDShortSalesASAP.com as well as HUD.gov and FDIC.gov provide information on how to handle pre foreclosure. The goal is to become educated and make smart decisions.

Pre Foreclosure Tip #2 – Refinance or Modify Your Loan

If you have enough equity in your home, you may be able to refinance your loan. Ordinarily, you will need about 10% to 25% equity as well as a good credit record to get refinancing. Your chances of getting refinancing are also dependent on how far behind you are on your payments.

Another thing you can think about is a do-it-yourself loan modification with your lender. This involves changing the terms of the loan so you can get back on schedule again.

Pre Foreclosure Tip #3 – Find the Right Agent and Consider a Short Sale

One of the most effective ways to deal with foreclosure is to short sell your home. Here at San Diego County Short Sales we can help you negotiate with your lender for permission to do a short sale and then we can help you complete the sale too.

FREE REPORT

Homeowners Per foreclosure is not the end of your home ownership. It’s only an opportunity to avoid a foreclosure, which is final

We at San Diego Short Sales ASAP realize you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to Contact us or call directly at 760-576-4357.   If you or someone who you know could use are help contact us DRE Lic 01788274

Foreclosure impacts thousands of homeowners in San Diego County every year, and the process can be an emotional and financially difficult time for everyone involved.

Technically speaking, the term foreclosure refers to the termination of a homeowner’s right to redeem a mortgaged property, and it results in the transfer of full property ownership to the lending institution.

The foreclosure process usually begins when a homeowner fails to meet his or her financial obligations for home mortgage. After a certain period of time whereby the homeowner has not made payments, the lender will send a Notice of Default (NOD). The grace period for late payment varies from state to state, but in California the grace period is usually about three months.

The notice is a threat to terminate rights to the property if payment for the total amount owed is not made within a specified period of time. If you are still unable to make payment after receiving the NOD, the lending institution will proceed to put the property up for sale and you will be forced to leave your home.

Don’t panic if you receive a NOD. There are a number of things that you can do to keep your property. One of the best ways to deal with foreclosure is to ask your lender to reinstate your home loan. Explain to them politely that you were going through a rough patch for a few months, and you are now in a better position to meet your financial obligations. If they are considerate enough, they may allow you to make a lump sum payment or scheduled payments to reinstate your loan.

Another way to solve the problem is to look into a San Diego loan modification or try to refinance your home. If you have enough equity in your property, you can ask the lender to give you refinancing on the existing loan and the late payments will become part of the new loan.

Last, consider listing your property with San Diego Short Sale ASAP. Assuming you have not gotten too far into the foreclosure process, you may still be able to short sell your property and start new.

We at San Diego Short Sales ASAP realize you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to Contact us or call directly at 760-576-4357.   If you or someone you know could use are help please give us a call

New Rule adopted by the Federal Reserve

Penalize  borrowers with weak credit    

This new rule increase the interest rate for High risk borrowers and Bar lenders from making a high cost mortgage without verifying that a borrower could repay the loan in the conventional way and not simply through foreclosure sale.

Since the Federal Reserve is the largest buyer of  U.S. Mortgage Back Securities “MBS“.  They want to protect their investment in the American housing market.  More rules to come.

Four Key  Rules to Protection for Home buyers

The final rule adds four key protections for a newly defined category of “higher-priced mortgage loans” secured by a consumer’s principal dwelling.  For loans in this category, these protections will:

• Prohibit a lender from making a loan without regard to borrowers’ ability to repay the loan from income and assets other than the home’s value.  A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a “pattern or practice.”

• Require creditors to verify the income and assets they rely upon to determine repayment ability.

• Ban any prepayment penalty if the payment can change in the initial four years.
• For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
• Require creditors to establish escrow accounts for property taxes and homeowner’s insurance for all first-lien mortgage loans.

This rule does not cover the more profitable Option ARM loan or the Adjustable Rate mortgages.

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