5 Steps to Rebuilding Your Credit After a Southern New Hampshire Foreclosure

When you go through a Southern New Hampshire foreclosure, your credit score drops considerably. The good news is that you can rebuild your credit.  Here are a few tips to help:

   1. Create a budget. A budget lets you see exactly how much money you have to spend each month. It also helps you track where you spend your money. Put together a budget that fits your lifestyle and then stick to it.

   2. Build an emergency fund. You never know when an emergency will happen. When you’re prepared for a financial emergency, you’re better protected from financial problems.

   3. Repair your credit.  Review your credit reports from all three credit bureaus.  Dispute any errors you find.  Removing errors from your credit reports help improve your credit.

   4. Establish new credit. This can be tricky after a Southern New Hampshire foreclosure. New credit will give you a chance to prove you can manage debt. However, you certainly don’t want to find yourself owing more than you can possibly pay. If you can get a traditional credit card, your interest rate will be very high, so choose and use your credit cards wisely. An alternative is to apply for a secured credit card, which requires that you put money down as a deposit before credit is extended to you. Use your card regularly but lightly, and you will see your credit start to improve as you make consistent payments.

   5. Have patience. It takes time to rebuild your credit. Don’t expect your credit score to be in the good or excellent range within weeks or even months after your Southern New Hampshire foreclosure. It’s going to stay on your credit report for seven years, so there’s no need to rush.

A foreclosure is not the end of the world. Let me help you plan for and find your next home so it fits your budget. Give me a call at 603-821-1134 or email me at Dave@TeamHeeter.com.

Foreclosures in Southern New Hampshire: A Great Investment or Bad Disaster?

With all the talk of the great deals you can get on foreclosures in Southern New Hampshire, you may be tempted to step into the investment market. Or, you may get the idea that buying a foreclosure is your best bet for a great deal on a home. Well, it’s possible, but remember that the foreclosure market is full of perilous pathways and competitive investment pros who know what they’re doing.

Whether you’re considering purchasing foreclosures in Southern New Hampshire as investments or as your personal residence, here are a few tips that will help you get a great investment and avoid a bad disaster.

●    Gather a Team of Professionals:  Your team of professionals should include a home inspector, a real estate agent and an appraiser.  You may also want to include a professional repairman, if you’re not handy. With foreclosures, you often have to be ready to move on the home immediately, so establish relationships with these professionals ahead of time.

●    Buy a Pre-foreclosure:  According to the experts, pre-foreclosure is one of the best times to buy. The seller will probably be more willing to accommodate you because they want to avoid ruining their credit. Which means you’ll have a much better chance of getting a good deal – something more than the seller owes the bank, but less than market value.  The variant of this where the seller owes more than market value on the property (a short sale) can also be a better option than bank owned, though it takes considerably longer.  Look for properties noted as 'preapproved' short sales.

●    Skip the Auction:  While going to foreclosure auctions is another possibility, it isn’t for the beginning investor. You may find that you’ve done a whole bunch of research for nothing, because the auction was cancelled. You may end up with a trashed property because the previous owners didn’t want to move, or because the house has been empty for a long while.

●    Be Careful Buying Bank-Owned Properties:  This option is seldom as great as it sounds. Not all banks price homes at fair market value. Many of them are trying to get their money back, which, with current depreciation, could be much more than the home is currently worth.  Also, with the current uproar about improperly handled foreclosures, there may be more risk involved in buying from a bank than previously thought. 

If you’re considering buying foreclosures in Southern New Hampshire as an investor or a homebuyer, I can help.  Call me today at 603-821-1134 or email me at Dave@daveheeter.com for more information.

Dos and Dont's of Buying a Southern New Hampshire Home in Foreclosure

Whether you’re looking for an investment property or a home for your family, a foreclosure might be a good deal for you. However, buying a foreclosure is different from buying a home from a seller and requires different considerations.

Before you sign a contract, consider what you should and should not do when buying a Southern New Hampshire home in foreclosure.

·     DO consider the cost of repairs. Foreclosures are sold “as is.” That means the bank will not make any repairs to the Southern New Hampshire home in foreclosure before closing, so you will be responsible for them. For example, if the home needs a new roof, make sure you have enough money to pay for it or find out if you and the property qualify for a FHA 203K rehab loan.

·     DO get a home inspection. In a traditional home sale, the seller is required to tell you about any defects or problems they’ve had with the home. However, a bank does not have to supply a disclosure statement because they have not lived in the house and do not have any information about defects.  Make sure you hire a professional home inspector to check the structural integrity and condition of the home.

·    DO be prepared to wait. Buying a foreclosure usually takes longer than buying through a traditional sale. You will have to look through and sign stacks of paperwork. In some states, banks are required to go through the court system to sell a foreclosure which can take time.

·    DON’T buy a home just because the price is low. Banks like to sell their foreclosures as close to market value as possible. If the price is exceptionally low, there’s a reason why. Make sure you know it. Home repairs can easily add up, turning what you thought was a bargain into a money trap.

·     DON’T expect to flip the home for a quick profit. Despite what the get-rich-quick-buying-foreclosures crowd tells you, foreclosures don’t automatically mean you’re getting a steal, nor can you always quickly sell them. Buy a foreclosure because it’s an affordable home for you and your family, not as a way to build an overnight fortune.

When you take your time and do your homework, buying a Southern New Hampshire home in foreclosure can be a great bargain.  I can help you find well-priced foreclosures.  Call me today at 603-821-1134 or email me at dave@daveheeter.com.

Short Sales: A Viable Option for Distressed Southern New Hampshire Real Estate

I know the words “short sale” may scare you.  But please take just a minute to learn why short sales have become a viable option for your Southern New Hampshire real estate if you’re considering foreclosure.

Once deemed difficult to get, hard to close and rough on the credit score, corrective measures have been taken to improve the valued short sale.  And, the winners are those who understand how short sales work with Southern New Hampshire real estate.

If you are faced with a house underwater and considering foreclosure or a short sale option, please understand the game has changed. 

Short Sales Then and Now

In early 2009, the typical short sale had less than a 50% chance of success.  Banks were skeptical, unprepared and unwilling to accept losses.  No longer!

Thanks to aggressive changes made by the Federal Government, the short sale has become the preferred option for lenders as well as buyers and sellers of distressed property. 

·    The administration has thrown incentives to first mortgage holders, second mortgage holders and new lenders. 
·    Primary lien holders who agree to a short sale can receive as much as $3,000 from the government. 
·    Secondary lien holders, who previously were often asked to step away empty handed, now can receive up to $6,000 for formal releases.

Additionally, there used to be more serious credit devastation for the short sale seller.  In some cases, outright releases were not provided.  The administration has stepped in to protect these distressed sellers.  Today’s short sale has less credit impact on the seller than a foreclosure.

 Now that short sales are a viable option, the market has exploded.  Short sales increased by 4% between November, 2009, and February, 2010.  Activity will only continue to increase.

If you would like to find out whether a short sale could benefit your distressed Southern New Hampshire real estate, give me a call now at 603-821-1134 or email me at Dave@DaveHeeter.com. 

April 5th 2010 – An Important Date for Southern New Hampshire Homes for Sale

April has a lot of important and semi-important dates in it. The tax deadline, Good Friday and Easter are just a few. What is April 5th, though, and what does it have to do with Southern New Hampshire homes for sale? Well, the biggest news is that the government has stepped into real estate and short sales.

While home sales are up nationally and locally, partially due to the Obama administration’s efforts with the first-time buyer’s tax credit, many homebuyers seem to be waiting for a better interest rate or to see if home prices will drop more once the tax credit expires at the end of this month. Meanwhile, owners with Southern New Hampshire homes for sale are preparing for the spring selling season, without any idea whether they’ll actually be able to sell or not.

Part of the reason for this situation is because of the depreciated housing values. For instance, many potential buyers want to take advantage of the repeat buyer’s tax credit, but can’t. They currently own a home that’s facing foreclosure, are trying to sell that home, but can’t because it’s underwater. This is slowing the recovery of the whole market.

The government’s solution is short sales. There’s always been the option for those facing foreclosure to apply for short sale instead, but (thanks, in part, to the many scams out there) few choose this option. The Obama administration has decided that, if they can’t help with foreclosure, they’ll pay people to accept short sale.

As of April 5, 2010, the government is encouraging delinquent borrowers who can’t be helped through loan modification programs to go through a streamlined short sale process. Many potential short sellers have gotten offers the lenders won’t agree to, which this program called HAFA (Home Affordable Foreclosure Alternatives) is geared towards fixing. Here’s how:

·    The servicing bank gets $1,500 for administrative & processing costs.
·    The homeowner gets $3,000 in relocation assistance.
·    The investor is given up to a $2,000 match for allowing a total of up to $6,000 in short sale proceeds to be distributed to junior lien holders (up to 6 percent of the remaining balance of each junior lien).

Even with this program, lenders are wary of short sales. Depending on the price of the short sale, there’s a possibility that lenders could lose a large amount of money. However, under the new program, real estate agents will be working with participating lenders to determine the value of the home and what the minimum price should be. If the short sale offer meets or exceeds that minimum, the lender has to accept it. 

The hope is that this program will slow the tide of foreclosures, free homeowners up to become repeat buyers, sell more homes and, ultimately, improve the flow of the real estate market. The good news about all this is if the program does even a quarter of what the administration plans, there may not be enough Southern New Hampshire homes for sale to go around!

Have questions about the new HAFA program or any other real estate incentive programs?  I’m happy to answer your questions.  Give me a call now at 603-821-1134 or email me at Dave@DaveHeeter.com.

Taking Advantage of Southern New Hampshire Foreclosures

Many potential homeowners are starting to look towards Southern New Hampshire foreclosures as a way to get the home of their dreams without spending their life savings. What they may not realize is that the sheer amount of foreclosed properties can be daunting. Some are so completely overwhelmed by the choices that they give up and walk away.

Southern New Hampshire foreclosures can be great deals, but you’ll have a few decisions to make before you even go looking. Because there are so many options, here and throughout the nation, it’s important to figure out what type of foreclosed home is best for you.

Government Foreclosures
Homes with federally sponsored loans, such as HUD homes, are repossessed by government housing agencies. Because these homes offer a lot of opportunities for discount purchases, they move quickly.

Foreclosure Auctions
One of the most common ways to buy a foreclosure is while it’s on the chopping block of a traditional real estate auction. The auction is public, with homes sold to the highest bidder.

REO Foreclosures
Repossessed by the bank, real estate owned properties have been through a foreclosure auction  without being bought. There’s not necessarily anything wrong with the home itself.  In fact, many foreclosure auctions fail to sell the home.  The primary reason foreclosure auctions do not succeed is that the minimum auction price is more than what the property is worth. When the auction does fail, ownership reverts to the bank and the home becomes an REO.

REO foreclosures also have auctions, but the bidding process is closed and blind – no haggling allowed. You look over the available properties and come up with an offer to buy the home directly from the bank, rather than competing with other buyers in a public sale.

One feature of REO foreclosures is that you can also set up the financing and mortgaging options through the same bank. Often, this gives the bank encouragement to give you a better price for the home, though you should always compare loan terms, conditions, and rates with other lenders.

Whether you’re looking at Southern New Hampshire foreclosures for investment opportunities, or to buy your dream home, you have a myriad of options. Knowing what you want - before you start looking - is one of the best ways to ensure you get the deal of a lifetime!

If you’re unsure which type of foreclosed home is best for you, or if you want help finding a great deal on a foreclosure, I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more information.

Will An Increase in Your ARM Mean Foreclosure for Your Southern New Hampshire Home?

With the current national and local foreclosure woes, and the strains of the economy these days, many people are worried about what they’ll do when their ARM (adjustable rate mortgage) resets.  Here are a few suggestions to help you weather the current financial storm:

What is an ARM?
ARM refers to a mortgage loan that has a variable interest rate.  The amount of the monthly payments will change several times over the life of the loan.  ARMs usually have a lower introductory interest rate than a fixed-rate mortgage.  After a period of time, the interest rate is recalculated in relation to current market rates, and though the amount it can increase is often limited by 'caps' on the number of percentage points it can increase in a given year, the adjustment frequently results in a higher interest rate and monthly payment.

Get Out Your Loan Paperwork
Many homeowners are worried about what will happen to their monthly payments when the ARM resets.  Foreclosure is a real worry.  The best way to avoid foreclosure in Southern New Hampshire is to know exactly what the terms of your loan agreement are.  Look for the date that the interest rate is set to change.  Find out what the cap is on each interest rate adjustment, and what the cap is for interest increases throughout the life of the loan.

After you have gathered that information, you can calculate what your ARM will reset to.  It’s best to know what the worst-case scenario payment could be when your ARM adjusts.  This information can help you determine if you are going to need help getting your loan payments manageable.  The next step is to make a detailed list of your current and future income and bills.  This will give you a better understanding of your financial status.

Call Your Mortgage Company
If, after you make this list, you can see that you are going to have trouble making up the difference in the monthly payments, call your mortgage company.  It’s best to call them before you miss a payment.  They may be able to renegotiate the terms of your loan for you.

If you're ready to sell your home, I can help. Call me at 603-821-1134 or email me at dave@daveheeter.com for more information.

High Southern New Hampshire Foreclosures Equals Great Deals

The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Southern New Hampshire foreclosures. Why?
  
The Law of Supply and Demand
Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.
  
This is what’s happening now, especially with Southern New Hampshire foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:
  
·       Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.
  
·       Foreclosed properties are generally in better condition than they used to be.  In the past, foreclosed homes had a much higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosed homes have been lovingly taken care of by their previous owners.
  
·       Potential buyers of foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one neighborhood. For the careful new homebuyer, the possibilities really are almost endless.
  
Most foreclosed homes aren’t money pits. To protect yourself, make sure your real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.
  
If you’re looking for a great home at a great price, I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more info.

Buy Your Valentine One of the Southern New Hampshire Foreclosures

Valentine’s Day is just around the corner.  Are you wondering what to get your loved one? Buying Southern New Hampshire foreclosures may not be on the top of your list, but maybe it should be. Do you need some extra room? Is it time to spread out? Are you a repeat buyer?

You’ve probably heard the term “buyer’s market” more often than you care to, but if you want to expand your living quarters, you might want to pay attention.

What is a buyer’s market?
The typical reply might be something like, “A buyer’s market is where the supply is greater than the demand; the heavier the supply, the stronger the buyer’s market.” What you really need to know is that a buyer’s market is heavily tipped in your favor. Mortgage rates, housing supply and negotiations are all pointed towards helping you find – and buy – the home of your dreams.

What’s so great about buying Southern New Hampshire foreclosures or other homes for sale now?
Whether you’re a first-time buyer or currently own a home and want to upgrade, there are plenty of reasons to get into the action now:

·    Home prices in Southern New Hampshire are lower than they’ve been in 6 or 7 years.
·    Foreclosures are going for rock-bottom prices as lenders try to stem their losses.
·    The number of programs to help buyers get into a new home is higher than it’s ever been.
·    Between government programs, lenders’ programs and private programs, the chances of getting into a home you can afford are high.
·    Many sellers are eager to find qualified buyers. If you’ve been pre-approved for a mortgage, you have a better stance in negotiations.
·    Mortgage rates are lower than they’ve been in a long time, but are slowly starting to rise again.

These are just a few of the reasons.

Why buy foreclosures?
Foreclosures are selling at much lower prices than other homes. In fact, many expect to save at least 30% when buying foreclosed property and that percentage isn’t unrealistic.

If you’ve been trying to figure out what to buy your Valentine, and you’ve been thinking about buying a home, look around at Southern New Hampshire foreclosures. Not only can you find a fantastic deal, but with the right lender and loan, you could celebrate Valentine’s Day in a new home!  (Most loans take 3-4 weeks to go from contract to closing.)

Saving Foreclosures in Southern New Hampshire with New Fannie Mae Program

As the number of foreclosures rises around the nation, some lenders have held their foreclosures in Southern New Hampshire in private stock, hoping to sell them gradually in a stabilizing real estate market. However, even with the five-month extension on home buying tax credits signed by the President November 6th of this year, lenders are facing a continued increase in REO (Real Estate Owned) properties and need to find ways to reduce the number of vacant properties in their portfolio.

Government-owned Fannie Mae may have come up with a solution - a new version of the Deed-in-Lieu process.

Deed-in-Lieu
Some homeowners facing foreclosures in Southern New Hampshire have additional options beyond foreclosure, loan modification or a short sale. Some qualify for a deed-in-lieu (DIL), where they sign away all their equity back to the lender and walk away “debt free” (except, possibly, for taxes). Unfortunately, a DIL leaves the homeowner without a home to live in, and the lender with a house to sell in an uncertain market.

Deed for Lease Program
Under Fannie Mae’s new Deed for Lease Program (D4L), those who go through the DIL process may be eligible to rent their home back from Fannie Mae at current market rental rates. This may not sound like a great deal, but many families have ended up on the street because of foreclosure. Those who qualify for the D4L Program will be able to remain in their homes for at least 12 months. To learn more, read the entire D4L Program eligibility list.  Here are a few of the qualifications:

·    No prohibitive Homeowner’s Association rental limitations
·    The cost of any required repairs is an acceptable amount, based on the value of the property
·    The income the lender receives from the current rental market should be expected to cover any maintenance/management costs
·    The current rental rates must be less than 31% of your gross income
·    The home must be a primary residence

Whether the D4L Program will actually reduce the number of foreclosures in Southern New Hampshire is still up in the air, but it does give homeowners other options – something they’ve been sorely lacking.

If you’re facing foreclosure and qualify for short sale, I'd love to help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more information.

Why Would Lenders Hold Back Southern New Hampshire Foreclosures?

It’s in the news and has been for several months now; financial institutions may be holding back their inventory of Southern New Hampshire foreclosures and national foreclosures.  Why on earth would they do that?

For those of you who are wondering what would cause lenders to hold back on listing Southern New Hampshire foreclosures, here’s a little information that might enlighten:

•    April 2009, the San Francisco Chronicle published a news article about the state of foreclosed homes. In the article, Rick Sharga, vice president of RealtyTrac said, “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market.” Obviously some areas of the country have more backlog than others, but with an already glutted market, imagine what would happen to real estate if those 600,000 foreclosed properties flooded the market further.    

•    October 2009, CNN Money.com stated in an article, “Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.” According to the report, one in every 136 homes – a staggering 937,840 homes - were in foreclosure.

•    Financial institutions know that the foreclosures could cause a severe drop in the average price of housing. Should prices fall farther, faster, lenders would not be able to recoup their losses.

•    Some may be holding a few properties back for a “rainy day” – for when the prices start to rise again.

Even though lending institutions are holding back on some of their inventory of Southern New Hampshire foreclosures, there are still some great deals to be found.

If you’d like to find a great deal on a foreclosed home, I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more information.