Strategic Default / Short Sale / Foreclosure in Phoenix Area

Strategic Default / Short Sale / Foreclosure

 

 

  Since 2006 Arizona Elite Properties - AZhomes4u.com has specialized in assisting homeowners who are behind on there mortgage payments and facing foreclosure or are already in foreclosure. I can and WILL help you with your options, HELP you identify your options weather it's Short Sale, Strategic Default. Deed in Lieu or HELP you with Loan Mod. Let me Help you identify your options.

 

What Is A strategic default? (Video)

 

A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house's price such that the debt owed is (considerably) greater than the value of the property — the property negative equity or "underwater" — and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called "walkaways."

This occurs when a homeowner is able to pay their mortgage but because they are underwater or simply sick of the level of deficiency they decide to stop paying. If you voluntarily walk away from your mortgage because you owe more than the home is worth, are you a bad person? Should you even care?

 

 

Why Should I Do a Short Sale?

STOP FORECLOSURE NOW!!

Linda Wieczorek 602-391-8246

Luck doesn't save you from Foreclosure   Knowledge and Experience Does!

 

The answer is pretty simple: To secure your financial future, point blank!  Let's look at your other options...

1.  Do Nothing:  Your lender will file for foreclosure against you, and eventually attempt to sell your home at a sheriff sale, where the will not receive anywhere close to what you owe on the property.  They will sue you and obtain a deficiency judgement for the difference between the total amount that was owed (including fees) and the amount they were able to sell it for.  You will have a completed foreclosure on your credit for 7-10 years or more, and will not be able to buy another home with conventional financing for MANY MANY years.

2.  Get a Loan Modification:  IF your lender grants you a modification after many months of deliberating, they will take the amount you are behind and add it to your balance (this puts you further behind since you probably ALREADY owe more on the house than it is worth).  IF you're lucky, they will drop your interest rate a couple of points.  However, due to the amount they put back onto your balance, your saving will not be very significant.  A study of modified loans showed that close to 90% of the homeowners were in foreclosure again within 2 years!

3.  Just give the house back to the bank:  This is known as a deed in lieu of foreclosure.  The bank still may have the right to pursue you for a deficiency judgement and if you have a second mortgage company, they will most likely not agree unless you sign a promissory note for the balance.  You still must pay the second mortgage!!!  This will also have a VERY negative impact on your credit rating!

"So what do I do???"

A Short Sale!!!

This truly is your BEST option!  AZPrideProperty.com  with your lender to try and make sure that you do not receive any deficiency judgements or promissory notes by actually increasing our purchase offer to the lender!  If we make a little less, than so be it!  We want our clients to walk away free and clear!  

Questions ?? Linda Wieczorek  AZhomes4u@gmail.com

 

Another Slam Dunk !! Surprise, AZ Short Sale Just Closed

             Just Closed Short Sale..
SELLERS, Don't let your Home slip into Foreclosure!
Get your HOME SOLD!! Pay nothing out of Pocket

I am dedicated to helping people with the short sale process. 97% of the short sales I have done have CLOSED!! Are you facing a foreclosure here in Arizona, not sure where to turn? Do you want to sell your Phoenix area home, but owe more than it is worth? WE CAN HELP! We help people avoid foreclosure and save their credit.

*DO NOT PAY SOMEONE TO NEGOTIATE YOUR SHORT SALES FOR YOU* YOU NEED EVERY DIME IN YOUR POCKET! NO COST SHORT SALE!!

Reasons you should consider our  Short Sale Services:

1. NO UPFRONT MONEY OR FEES REQUIRED
2. You owe more on your property than it’s worth
3. You want to avoid the credit devastation of a foreclosure
4. Your moving to a new area and can’t sell your home or afford double payments
5. You are an investor who got over extended with properties or payments
6. You lost your job or experienced a significant decline in income
7. Foreclosures in your neighborhood or area have destroyed property values
8. You want to avoid a default judgment from your lender
9. Your payments have significantly increased due to an ARM interest rate adjustment

Let Me help you 

Linda Wieczorek CNE,CSSN
Arizona Elite Properties
REALTOR®
ARMLS-MLS Home Search
602-391-8246

AZHomes4u@gmail.com 

Why is it time to Buy a Home !!!!

3 Reasons Why Real Estate is Superior to Stocks

Foreclosures

Phoenix,Gilbert,Goodyear,Avondale 60K-150K

Real estate and stocks are two popular investment vehicles. It is always important to have a balanced portfolio, therefore it is worthwhile to invest in both. However, if you are trying to decide between the two, you might find that real estate provides the better returns more consistently.

Here are the top 3 reasons I believe real estate is a better investment than stocks:

1.) Real Estate is a Tangible Asset. It is a physical investment that you can see and touch. Shares in a company are nothing more than a piece of paper giving you an interest in the underlying company. Although a company’s shares can be valuable, because real estate is tangible it generally provides more value because people can use it in everyday life, and more importantly it is essential!

People must have homes to live in and businesses must have places to operate from. You can live in a house or an apartment, but you cannot live in a share of stock from Google. You can operate a business in a retail shopping center or an office building, but you cannot open and operate your business just because you own stock in Wal-Mart (unless of course you bought the stock way back when and your capital has increased 20X!).

2.) Real Estate allows for Leverage. Now leverage can be a double-edged sword, and over-leveraging a property can cause your asset to become a “money pit” faster than you can say “Bubble”. The over-leveraging of properties coupled with greed is the primary reason why we are experiencing the effects of the recent real estate market crash.

However, responsible leveraging can allow an investor to put up 20-30% of the purchase price of a property and borrow the remaining 70-80% of the purchase price. This leverage will generally allow the investor to realize gains much higher than that of the stock market. For example if you have $100,000 dollars to invest in real estate, you can generally leverage that into a $500,000 property. So your $100,000 will serve as a 20% down payment on a $500,000 property and you will get a mortgage for the remaining $400,000.

If the property appreciates at 5% ($25,000) over the course of a year, that is an unrealized gain of 25% on your invested capital of $100,000. In addition, if the property was generating a positive income, which is always advisable, then your returns would be greater.

Now just to be straight forward, this is the broad view of the investment. It doesn’t take into account closing costs, loan costs, illiquidity of the investment, etc. So there are more costs that would be associated with this investment that would take away from that 25% return and you would still have to sell or refinance the property to realize that 25% return, however, over the course of a few years with responsible leverage, real estate returns far outpace stock market returns. Feel free to contact me if you would like me to justify that claim in more detail. :-)

Stocks can generally only be leverage at a 50% – 100% ratio if you are trading on margin. So if you have $100,000 to invest, you can generally purchase $150,000 – $200,000 worth of stock. Assuming you purchased $200,000 worth of stock and it appreciated 5% ($10,000) over the course of a year, that is an unrealized gain of only 10% on your invested capital of $100,000. And similar with the real estate investment you still have additional fees that will take away from this gain, primarily brokerage fees and interest on the borrowed capital in your margin account.

3.) Real Estate allows for more Control. When you invest in real estate, you generally have control in how that investment is to perform. You can implement strategies to operate the investment more efficiently in order to maximize returns. Unfortunately, with stocks you really don’t have any control in how the company operates in order to maximize your returns on your investment. At best you can submit suggestions to the board of directors, and maybe they will implement some of your suggestions….MAYBE! Great article by Khary Reynolds

Can I Purchase A Home If My Spouse Does A Short Sale?

Via David Krushinsky (Mortgage Professional - Phoenix, AZ - NMLS 202115):

Short sales, in most cases, are one of the most economical solutions for all parties involved when a borrower can no longer afford their home.  The bank typically incurs a smaller financial loss than would result from an ultimate foreclosure or continued delinquency on the mortgage payments.  Borrowers may be able to soften the overall damage to their credit, and potentially settle future deficiency judgments. The big question on hand is.......What is life like after a short sale?? 
If you're married and your spouse has recently had a short sale, you may still be able to purchase a home. 
For the majority of married couples, their homes are purchased together using joint credit, income and assets. This article will address the following situations; the spouse purchased a home before the couple was married in his/her name, or the spouse purchased a home, qualified on his/her own qualifications and the other spouse disclaimed their interest in the property.
Let's take a look at an example of what a typical scenario might look like for a typical borrower.
Mr. Smith bought a home in 2002.  He was forced to do a short sale in 2008 because he lost his job and could only find employment that paid 50 percent of his previous income. When Mr. Smith purchased his home, he was able to qualify on his own and Mrs. Smith was not included on the loan.  Mrs. Smith signed a disclaimer deed at the closing.  Mrs. Smith has since graduated from medical school and returned to the workforce.  Mr. Smith and Mrs. Smith would like to purchase a new home together. Unfortunately, Mr. Smith's credit will not allow him to be part of the loan due to the short sale.  Even if Mr. Smith's credit score has rebounded from the effects of the short sale, Mr. Smith still must wait 2-3 years before he can buy using most traditional financing.
Mrs. Smith can qualify for a home on her own even though Mr. Smith had a short sale less than 2 years ago, provided she meets the standard qualification standards.  Mrs. Smith would like to purchase the home with a FHA loan.  In community property states, such as Arizona, Mrs. Smith can still purchase the home even though the lender will review Mr. Smith's credit history.  However, any additional debts which appear on Mr. Smith's credit report will have to be included in her qualifying ratios.  As long as she can qualify on her income alone, she will be able to purchase a home.  Mr. Smith will have to sign a disclaimer deed, relinquishing all of his rights to the property.
Please note: This article was written per Arizona State laws and other states may differ.  Please consult your mortgage consultant to discuss the laws and regulations applicable to your state.

 

Phoenix Arizona Short Sale Help

If you find yourself in a position where you can no longer afford your home and you owe more on in it than it is worth, then a short sale may be your best option. Simply put, the short sale is a means to sell your property for less than what you might owe to a lender, provided you acquire the approval of the lender. In most cases, it serves as a mean to avoid foreclosure, as most homeowners facing financial hardships or even bankruptcy qualify for this service. The short sale is a viable alternative to bankruptcy and foreclosure, as it offers a legitimate means to deal with the economic pressures you might be facing.

What reasons qualify me for a short sale?

* If you owe more than your house is currently worth, then a short sale might be the best course of action for you.

* Financial hardships, such as divorce, loss of a job, or a decline in income are also reasons to consider this option.

* If you are nearing foreclosure, then the short sale offers an alternate route that isn’t as detrimental to your credit.

* Finally, if you lack equity but are still forced to move, a short sale might be your best option.

Regardless of the reasons; pre-foreclosure consultation is an invalid and important service, and the sooner you receive it the better. Time only acts against you in this situation, so please take the time to speak with a real estate/foreclosure specialist as soon as possible. It will serve as your life vest in these troubling economic times, so don’t waste another moment worrying what to do.

Why do I qualify as a short sale specialist? Why should you call us?

I work on a team that specializes exclusively in short sale negotiations and pre-foreclosure consultations. We are all fully licensed realtors, each with years of experience. In that time, we have built relationships with all the major banks, offering invaluable contacts through which to serve and help you, the homeowner. Above all, we exist to serve you, and offer honest, confidential advice about short sales and pre foreclosure options. Contact us today if you have any questions whatsoever, and remember that we, as a team, exist for your own personal benefit.
Please call today for your FREE NO OBLIGATION CONSULTATION. We would love to work with you. Linda 602-391-8246