Stop Michigan Foreclosure

FHA “Short Refi” To The Rescue?

On March 26, 2010 the Department of Housing and Urban Development along with the Treasury Department, in all their infinite wisdom, announced a new FHA refinance plan.  The goal of this plan was to help homeowners who are current on their payments but owe more than their house is worth – in a nutshell, they’re upside-down.

What? But how is that possible? One of the major components of doing a refinance is the appraisal. Without the appraisal proving the home’s worth, there IS no refinance. FHA is telling us they will take a $150,000 loan on a home that is worth $120,000, owned by an individual who is current on his or her payments, and put them into a new FHA loan for only $120,000. But what happens to that $30,000? Where does it go?

The catch – and it’s a very big catch – is that the current lender must agree to forgive at least 10% of the principal balance. What lender would do that? Why would they ever agree to this on a loan that is current? It just doesn’t make sense to me, how about to you? Actually, it apparently doesn’t make sense to HUD either. HUD is the department that insurances FHA loans and this new program they created is not available to FHA borrowers. So HUD is essentially saying “it’s OK for other lenders to reduce the principal balance to do this refi, but we won’t do it for our own loans”. Wow!

Which is why I believe it will fail. The thought process behind the plan was well-intentioned; they were trying to help borrowers stay in their houses while avoiding more foreclosures. The housing market is hemorrhaging money, and from their point of view, something had to be done, even if it’s not really feasible. Now, to be fair, there are incentives, I’m sure, to lenders who agree to this. But most will refuse. It’s letting go of hundreds of thousands of dollars without even a protest and with no financial hardship from the borrower. You and I both know that confrontation and collecting are second (if not first) nature to the banks, and they will not give up their money without a fight.

Thanks, but no thanks, HUD.

Interested in real solutions to your Michigan Foreclosure?  Call us for a cash offer and free short sale negotiation.

Melissa

Can You Believe They Didn’t Call Me?!?

Isn’t it funny how little we really know the people in our lives sometimes? Or how little time we spend really taking an interest? In the last month I’ve talked with two different friends who have gone through the foreclosure process – sheriff’s sale, repossession, the whole bit. You know what they both said to me? I wish I would’ve known there were other ways to get out of my situation.

Well HELLO! I’m the one who spends the majority of the time on the phone with lenders at Great Lakes Home Solutions negotiating the short sales for our team!

In the first instance, the foreclosure happened before we were acquainted, but in the second instance, the foreclosure happened only a few months ago. Hearing that made me feel awful, like I’d failed this person. You see, we don’t have the sort of friendship wherein we talk about work. That was my reason for not knowing – it won’t be an excuse going forward. I realized that we at GLHS have an answer, a possible solution to the foreclosure problem so many people in Michigan are experiencing. So often I think we wait for the phone to ring, but do we have a responsibility to get our message out? When it comes to people I know personally, yes, without a doubt, I have a responsibility to at least offer a solution. It’s my duty as a friend or acquaintance to offer this life preserver to someone who’s drowning financially.

If you’re someone who’s looking for answers or know someone who might, give us a call today. Give us the chance to offer our life preserver and to get our message out so we can get them back to better times faster.

Melissa

When To Consider A Short Sale

People who are facing a Michigan Foreclosure frequently ask me how they should know if a short sale is their best option. That’s an easy answer. When you’ve tried everything else possible, and nothing has worked out (and your expenses exceed your income), THEN, you try a short sale. It’s a last-ditch effort when the only other alternative is foreclosure.

What else is there to try? Well, there’s a loan modification, forbearance plan, repayment plan, refinancing, private loan, getting a roommate to share expenses and even selling it to a friend or family member (not using a short sale). I put together a handy reference for REALTORS® defining these options and giving pros and cons. I included it at the end of this blog for you!

I always tell people to use a short sale as their last option before foreclosure. It doesn’t cost anything to do a short sale with us, we keep everything confidential and we won’t put you in a worse situation so you’re not losing anything if you try. Of course, your situation is unique and you have questions so give me a call and let me explain your options to you and help you figure out what is right for you.

Definitions, Pros and Cons.
1. Repayment Plan: Your lender may give you a fixed amount of time to repay the amount you are behind, plus any late fees, by adding a portion to your regular monthly payment. This may be an option if you only missed a few payments and had adequate income to make regular monthly payments again.

2. Forbearance: Your lender may agree to suspend your payments for a period of time. At the end of this time, you will resume your regular monthly payments, and you may be required to either make one lump sum payment or additional partial payments. This may be a good option if you have a temporary reduction in income and are now able to make regular payments plus lump sum or partial payments.

3. Loan Modification: Your lender may agree to reduce your interest rate, extend the term of the loan, or add missed payments to the loan balance. This may be a suitable option if the terms meet your needs and financial abilities.

4. Deed in Lieu of Foreclosure (voluntary foreclosure): You voluntarily transfer title to the lender. The lender has the option of canceling the remainder of the debt, but we’ve never seen this. But you will lose any equity in the house and may have to pay taxes on the debt forgiven (if any).

The above is referenced from this Michigan Web Resource

5. Refinance: May only be an option if you actually have equity in the house and/or one spouse was not on the original loan and is able to refinance into their name alone.

If you need help sorting through all of this, or simply realize a short sale is for you and want an immediate offer and someone to negotiate the short sale at no charge, give me a call.

Emily

If There Was No Such Thing As A Short Sale….

I had a lady call me the other day and say” “I need to do a Short Sale”.

“Ok” I said, “Tell me about your situation”.

She proceeded to tell me her story and ended with “I will be making a payment to the bank this month so they don’t foreclose”.

Wait a minute, I thought, we won’t do a short sale if you are still making payments because we are setting ourselves and you up for failure. Why? Because if you’ve got income to make payments, your income exceeds your expenses, and the chances of your lender agreeing to a short sale are very slim.

So, I had a question for her, and this is the same question you need to ask yourself: “If there was no such thing as a short sale, and the only option was to stay current or have a Michigan foreclosure, which would you do?” If your answer is “keep making payments”, well, then keep making payments.

If you are like a lot of distressed sellers in Michigan who have had a financial hardship (job loss, divorce, disability, death, etc) the obvious answer is you have no choice but to face a Michigan Foreclosure. These are the people we are best equipped to help with a short sale. While we are sorry that you have had a hardship, we are ready to help you focus on a better future. We will do this without charging you anything and we keep everything confidential. Yes, there are such things as short sales and we have the best team in Michigan to help you navigate through them (since 2005). Give us a call today.

Ann

Everyone’s An Expert, Really?

I’m currently trying to sell my house, and one thing I’ve noticed is that EVERYONE wants to give me advice. It doesn’t matter who they are or what they do. When it comes to real estate, everyone’s an expert. Not really, but it seems that way! Everywhere I turn someone is telling me “this is a tough market” or “people aren’t buying houses right now” or “this is a buyer’s market.” I even had my neighbor tell me that I’m going to “lose my rear” (he used the A-word.) Thanks, neighbor! I constantly have to tell myself that people are just trying to sound knowledgeable, and not trying to be hurtful.

The truth is, with the right REALTOR®, and the right price, houses are selling like crazy (over half of our short sale houses have buyers lined up) and we close on over 80% of them!

If you’re trying to sell your house, I understand your frustrations. And if you’re having a hard time because your house isn’t worth as much as you owe on it (and you have a financial hardship), we may be able to help you with a short sale. It won’t cost you a penny, and we promise that we won’t give you any advice to put you in a worse situation. Give us a call. We’d be happy to discuss your options with you!

Holly

Where Are Michiganders Moving To?

This is possibly one of the coolest websites I’ve seen regarding relocation.

Now I’ve known that people were leaving Michigan, but I never knew where they were going, until now. I’m assuming that most are leaving for employment; especially since Michigan has such a high unemployment rate right now.

The question I have is, what are these people doing with their houses when they move? A few may be able to still afford their payment on their Michigan house and/or want to keep it and that is great. My guess is that most houses are going back to the banks because the family can no longer afford to make the house payment, especially if they are now making a house payment somewhere else.

That is unless we’re able to step in and help the family with a short sale (negotiation with their lender to accept less than what is owed) and providing a cash offer. I’m sure they’d much rather have the home sold than foreclosed upon. If you or someone you know is behind on their house payment, owe more than the house is worth and are facing a Michigan foreclosure, give us a call. We will not put you in a worse situation and there is never a fee.

Emily

Ah Government Programs…

I think most of us can agree that the government’s intentions are always good, and when they take the time to become experts in the problem, they usually end up helping. I think most of us would also agree that they are not experts in a situation, they more often than not “muddy the waters” of that situation.

Approximately 1.24 million homeowners facing financial hardship enrolled in government aid programs to keep or sell their homes. An estimated 340,000 have received permanent assistance and are meeting the terms of their modified loan. That’s less than 3%.

Now, I’m sure that the current administration had the best of intentions; they saw a crisis and felt the need to intervene. That’s all well and good, but many people see it as an imposition, an intrusion into an industry by a group of people who don’t fully grasp the nature of that industry. Think of it this way – it’s sort of like a doctor observing a growing epidemic and deciding something needs to be done. So he takes it upon himself to instruct scientists and pharmaceutical companies how to create a pill to cure the epidemic. The scientists and pharmaceutical companies would understandably be frustrated with the doctor because he would be pushing his ideas about something he really doesn’t understand.

Now imagine if the doctor could pass a law forcing the manufacture of his pill. The results could be unproductive, if not outright disastrous.

For those of us who work with borrowers in need of assistance, these “help for homeowners” programs are frustrating and an obstacle to hurdle. Frankly, it’s almost a joke due to their appalling ineffectiveness. Again, these programs have worked for less than 3% of homeowners in default.

If you’ve tried to take advantage of one of these programs with your lender, and you are finding yourself in the 97% who can’t get results, maybe a Michigan short sale is the right option for you. Give Emily a call today to find out.

Melissa

Pros and Cons of All Your Options When Facing a Michigan Foreclosure

If you’re facing a Michigan foreclosure, there are many reasons why you may be feeling overwhelmed right now. For one, you most likely have a hardship that is making it impossible to meet your financial obligations. You also might be overloaded with information. While it’s important to be informed, too much of a good thing can be confusing. In an attempt to make the big picture much easier to take in, I’ve created a table that shows the options you have when it comes to foreclosure, and the pros and cons of each.

While we can’t help you with bankruptcies, modifications, or deeds-in-lieu, we can help you tremendously if you think that a short sale is right for you. We’ll even take some of the pain away from the cons – we’ll do all of the talking to the bank, and do all of the confusing paperwork for you (we’ve done it so many times that it’s not even confusing anymore!) If you’re not sure which option is best for you, give Emily a call. She’d be more than happy to discuss your options with you, and help you decide which is best.

Holly

Short Sale Q&A’s from My Friends& Family

The other day my Mom asked me a strange question: “So, how exactly does a short sale work?” I guess the question wasn’t that strange, since most people don’t know the answer. But the thing is, I’ve been working here for over a year now, and I’ve explained the process to her about a dozen times.

I explained it when my cousin and her fiancé tried (unsuccessfully) to buy a short sale property. I explained it when my Uncle was contemplating a short sale on his house (he’s underwater, like so many other Michigan sellers). I also explained it when my grandparent’s neighbor sold her house on a short sale. I guess the thing about short sales is that THEY’RE CONFUSING, and unless you spend every day dealing with short sales, you’re probably going to have lots of questions throughout the entire process.

One of the best things about us here at Great Lakes Home Solutions, Inc. is that we have answers, and lots of them! Joel (our President) is the only state certified short sale instructor in the entire state who negotiates short sales full time. This sort of makes him the short sale guru around these parts. You rarely hear anyone say “I don’t know” around here (and when you do, it’s followed by “and I’ll find out!”).

You’ve got questions? We’re more than happy to share our answers with you. If you have a hardship, are facing a Michigan foreclosure, and would like some friendly answers, give Emily a call. She’s a wealth of information about all things foreclosure and short sale!

Holly

Totally Awesome Team

This week we had to make a video for our coaches about our team and business and it made me realize how fortunate we are to have great people working with us. The best part is they are all here waiting to put their talents and experience to work for you. If you haven’t talked to all of them yet, let me introduce them

Holly assists Melissa with all the paperwork and non-negotiation calls to the bank, plus assisting everyone else in our office. When you first come to our office, she will be the friendly person out in front to greet you. She is a “machine” processing all the paperwork we have to collect and submit to lenders so the negotiations can proceed. She does all the behind the scene stuff that is only noticed when she isn’t here to do it.

Emily (aka Mom) is a more visible part of our team taking most of the incoming calls from distressed sellers facing Michigan foreclosures and helping them sort out their options. Emily will tell it to you straight in an empathetic fashion. She has seen her share of hardships in life and is not kidding when she tells you she knows what you are going through. I don’t believe you could find a more understanding person to help you figure out what to do when you are facing foreclosure.

Melissa is the one persistently calling lender after lender, negotiating all of the short sales and settlements. She is the one who sits on the phone, talks to unfriendly customer service people (sometimes who are in a foreign country), takes abuse from unsympathetic lenders and 85% of the time, succeeds in her quest to resolve a sellers situation. Not many people would be willing to dig in their hills and keep picking up the phone time and time again like she does.

Joel solves all the unusual problems that come up along the way. He is also the one out talking to attorneys, title companies, buyer lenders, REALTORS® and the rest of our extended team that help us help distressed sellers. Joel also is our main link to other companies around the nation helping distressed sellers. Joel does not hesitate to ask others for advice if we come up against something new.

Me, well I am dealing with the REALTORS® daily to help get the houses sold. This involves educating them, filling out their paperwork, making suggestions on their marketing and updating them on our progress. If you ever worked with a REALTOR® buying/selling a house, multiply this by about 50 and you will know what my day is like.

All of these people come together daily to help you. We are passionate about what we do and the people we help. If you are facing a Michigan foreclosure, give us a call and let us put our experience and talents to work for you.

Ann