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Get the Facts on Foreclosure from a

Colorado Foreclosure Expert

Lou Lefkowitz is a nationally published writer and expert on short sale negotiations & foreclosure avoidance. He is also a neighbor and a long time resident of Douglas County.

Lou has teamed up locally with Parker Colorado Real Estate Broker Steven Beam at RE/MAX Alliance, to institute a free counseling service for Douglas County residents who are facing the possibility of foreclosure. We have set up a free E-mail site for you to “ask the expert”. [email protected]

Send in your questions in regard to foreclosure, short sales or any other question you may have in regard to difficulties or issues related to your mortgage or other items related to your bank or lender.

The first step in solving a difficult problem is getting all the facts. We look forward to helping you answer any questions you may have in regard to this important issue for you and your family.

Get Started Now by Finding out What your Home is Worth.

Have we hit the bottom in Parker Colorado Real Estate Market?

Jan 20th 11

filed under: Colorado Short Sales, Highlands Ranch Homes, Homes for Sale, Lone Tree Colorado Homes, Real Estate Answers, Real Estate Stats, Stonegate

New Stonegate Neighborhood Clubhouse

“Have we hit bottom?” This is the question I and most Realtors get on a daily basis.

How about a 6.35% value reduction in Stonegate home prices from 2007 to 2010. See below.

The ANSWER IS YES we have BUT it also depends…on what your bottom is and what happens going forward with interest rates.

The only way I can show this is through actual real estate sales data from a specific neighborhood here in Parker Colorado. The data I will show you is from actual home sales in the Stonegate Neighborhood in Parker Colorado. I sell a lot of homes here, live here and know the neighborhood is one of the areas that many Parker Colorado Home Buyers will look in and want to live in.

Stonegate is a larger neighborhood in Parker CO that has a long history of steady sales. It isn’t a new neighborhood. It was started in the 1980’s and has homes as new as 2005. There are about 3000 homes in Stonegate.

You can see from the data below that the market has settled down and seems to have stabilized for the past two years. Over the past 3 years we can see a definite trend of steady sales prices and a more predictable market.

Stonegate home sellers make sure you price your homes reasonably within the market or you may be in for a long road before you sell.

Total Sales by Year: (2007 was obviously the down year for home sales in Stonegate.)

2007 = 79

2008 = 173

2009 = 121

2010 = 131

Average Total Days on Market: (No real difference)

2007 = 70

2008 = 82

2009 = 82

2010 = 76

Average NET Sold Price: (6.35% decrease in Value from high to low year.)

2007 = $329,191

2008 = $308,770

2009 = $308,292

2010 = $308,938

This is so true because I was completing a market analysis earlier this week and basically told the seller of a Stonegate home that their home was worth about $23,000 less than they paid for it in 2006.

Total Volume of NET Sales By Year in Stonegate: (Two years of consistent sales volume show a market that may have leveled out)

2007 = $26,006,053

2008 = $53,417,205

2009 = $37,303,358

2010 = $40,470,934

Average NET $ or Price per sqft Sold: (Seems to have settled around the mid $130 per sqft mark)

2007 = $143

2008 = $138

2009 = $135

2010 = $138

Parker Colorado has Four Blackeyes

Home for Sale in Stonegate

Be a Voyeur in Your Neighborhood

posted by Steven Beam // 3 Comments »

A clear and marketable title passes to the new buyer through a Short Sale

Oct 29th 10

filed under: Colorado Short Sales, Real Estate Answers

A clear and marketable title

passes to the new buyer through a Short Sale

With all the recent news reports and discussion regarding the alleged fraud and inappropriate paperwork processing many lenders have been accused of in their foreclosure filings it raises an interesting questions in regard to the marketability of the titles issued to subsequent home buyers of these properties.

A real estate transaction needs to have guarantees and assurances that the new buyer is purchasing a property with a clear title. This clear title is guaranteed by the Title Co which handles the transaction and insures that the property is transferred without any clouds on the title. This transfer of title is guaranteed by an insurance policy issued at the time of the transaction called Title Insurance.

With the questions being posed today in regard to fraud there remains a possibility that a new buyer of a foreclosed property assumes the risk of the previous owner suing for a reinstatement of their property rights on their foreclosed property. This issue needs to be addressed by the courts and it may be many months, if not years before a final legal decision will be in place to finally put this issue to rest.

When this same property is sold with a short sale the title is transferred at the time of the sale by the present owner before any foreclosure action is finalized. This eliminates the possibility of the previous homeowner raising any question in regard to a fraudulent foreclosure of their home. The title is transferred by the Title Company with the appropriate Title insurance policy and the new owner is issued a clear and marketable title without protest from the previous owner.

Email Lou for quick answers to your short sale questions.

posted by Steven Beam // Please leave a comment.

Short Sales and your Credit Score?

Oct 29th 10

filed under: Colorado Short Sales, Real Estate Answers

My credit score is taking a hit!

The following is one of the most posed questions I get on a regular basis from my clients. “Is the hit on my credit really less if I do a short sale opposed to letting my property go through foreclosure”?

With the secrecy surrounding the credit reporting agencies and their rating criteria I don’t believe that anyone really knows the true answer to that question, but this is what I do know.

Email Lou for quick answers to your short sale questions.

FHA loans insured through the Department of Housing and Urban Development have a requirement that persons applying for a new loan with a foreclosure on a previous mortgage on their credit report will need to wait a period of up to five years before they can be eligible for a new FHA insured loan. Applicants who have a negotiated short sale settlement on their credit report from a previous mortgage will regain their FHA eligibility after a period of only 36 months.

The critical question which needs to be asked is, can I find a lender to lend to me when I regain my FHA eligibility after the required waiting period?

No one can say what the lending requirements will be in five years or even in 36 months. By negotiating a short sale with your lender it is reflected as a negotiated settlement on the credit report. One school of thought is this. If you negotiate a settlement with the lender, avoid a deficiency judgment and begin to repair your credit at the time of the short sale moving forward there is a much better chance to qualify for a new FHA insured loan after the required waiting period. The wise individual would make the choice to minimize the negative impact and begin repairing their credit at the earliest possible opportunity.

posted by Steven Beam // Please leave a comment.

Short Sale Home Buyers in Parker Colorado

Oct 29th 10

filed under: Colorado Short Sales

Parker Colorado Real Estate

An influx of Short Sale buyers in

the Parker Colorado Real Estate Market.

As Foreclosuregate heats up in the upcoming months one thing remains clear. Buyers of foreclosed homes will be unsure if their property rights and entitlement to a free and clear title will be absolute.

With all the class action lawsuits and other legal actions by the Attorneys General of 49 of the states and The District of Columbia pending it is unclear how things will play out in the near or distant future.

A recent article in the New York Times, and posted by Mai Ling at MSN Real Estate says: If former homeowners can prove their foreclosures were incorrectly processed, the new buyers of their foreclosed properties could get stuck in the middle of a legal mess that we can’t even fathom at this point. One thing’s for sure: We’re going to be seeing a lot fewer homeowners willing to consider buying foreclosed homes.

Email Lou for quick answers to your short sale questions.

One thing is clear, these same buyers looking, for good value in a home purchase, are already flocking to the short sale market to provide them with a family home or investment property with a guaranteed marketable title.

If you are looking to sell your home in this market there is no better time to consider a short sale listing to attract these buyers and provide you the relief you are looking for from a pending foreclosure. Most lenders have their own specific requirements and federally insured loans require their own set of submittals. It is my recommendation to use a Realtor experienced with the processes and requirements specific to short sales.

posted by Steven Beam // Please leave a comment.

How To Buy A Foreclosed Home in Parker Colorado

Oct 26th 10

filed under: Colorado Short Sales, Highlands Ranch Homes, Lone Tree Colorado Homes, Real Estate Answers, Videos

Here is a Top 5 in Real Estate video on “How to buy a foreclosed home. ”

posted by Steven Beam // Please leave a comment.

Should I Short Sale My Parker, CO Home Before Foreclosure?

Oct 13th 10

filed under: Castle Rock Homes, Colorado Short Sales, Highlands Ranch Homes, Homes for Sale, Lone Tree Colorado Homes, Real Estate Answers, Stonegate, The Timbers

Parker Colorado Home Values

“Will a short sale help me sell

my Parker Colorado home?”

In today’s changing and declining real estate market it is becoming increasingly more difficult for many homeowners to sell their homes and fully satisfy the mortgages on the property as well as pay all the closing cost related to the sale.

Email Lou for quick answers to your short sale questions.

More and more Parker, Colorado homeowners are looking to short sales to enable them to sell their properties. Not everyone can qualify for a short sale on their property. The lender typically is not willing to provide a discount on a performing mortgage with a strong borrower. Certain conditions must be met before a lender will qualify a borrower for a short sale.

Here are the general conditions for a short sale qualification:

• You must provide proof that you are experiencing a hardship through such things as unemployment, marital problems or medical issues.

• You must show that the value of your property has fallen so the lender can justify the sale of the property at the present market value.

• You must provide evidence that you are behind or about to fall behind in your mortgage payments.

• You must not have substantial assets that the lender can view as a resource to pay your ongoing mortgage obligation.

• You must have a qualified buyer to purchase the property. Your Realtor can provide a buyer from their listing and marketing of the property. This typically is not a problem.

• The lender must agree to the short sale.

By pricing the property in relation to a negotiated short sale discount the homeowner is able to attract qualified buyers who are looking for a competitive price on their new home or investment. With the multitude of short sale and bank owned properties currently listed for sale a short sale discount may be the best avenue for a homeowner to market and sell their home.

Short sales are a specialized form of real estate transaction. A homeowner should work with an experienced and qualified Realtor who specializes in this type of transaction. Your Realtor and their staff will insure that all of the elements of this transaction will take place properly.

posted by Steven Beam // Please leave a comment.

Common Foreclosure and Short Sale Terms-Parker Colorado

Oct 12th 10

filed under: Colorado Short Sales, Highlands Ranch Homes, Lone Tree Colorado Homes, Real Estate Answers

Parker Colorado Short Sales and Foreclosures

Understanding the terms used in foreclosure.

Every Parker, Colorado homeowner facing a possible short sale or foreclosure needs to know this information about options and possibilities that can help you take control of your situation.

Too often in Parker and Douglas County Colorado I see homeowners to ashamed or embarrassed to seek out help before it’s too late. Don’t let your home go to foreclosure when there may be another option to get you out in one piece. Short Sale.

When homeowners are facing hard times and need to consider a work out with their mortgage lender there are a number of directions that can be taken. Understanding the terms associated with those options is critical if you are going to begin discussions with your lender.

There are two roads you can take when doing a work out with your lender.

Options when you can keep your home.

Reinstatement or Cure:

Your lender may allow you to make a lump sum payment to bring your mortgage current if you can show that funds from a tax return, bonus, or other source may be available in the near future. Many homeowners facing a family hardship typically do not have this option available to them.

Forbearance:

When a hardship has been overcome and the borrower’s income has returned, a forbearance may be available from their lender. This forbearance provides for the borrower to restart making the original payments on the existing note. An additional fee is added to the base payment in an effort to repay the delinquent principal and interest to the lender. This added payment can be added for a period of a few months to a few years depending on the amount of the deficiency and the ability of the borrower to repay.

Partial Claim:

This remedy is only available for an FHA insured loan. HUD/FHA has a provision which provides a onetime relief for the borrower to agree to an interest free loan for the deficiency amount. This loan is a second position note and does not have to be repaid until the property sells and the original FHA loan is paid.

Loan Modification:

The primary loan modification program in place today is the Making Homes Affordable program. This program is administered by HUD and provides incentives to the lender to modify federally insured & guaranteed loans (FHA & VA). The arm of this program associated with moan modification is called Home Affordable Modification Program or HAMP. Typically a HAMP modification will require the borrower to enter into a temporary arrangement with the bank to modify the mortgage for a period of typically 9 months. If the borrower is able to comply with the temporary program thy may be permitted to enter a permanent modification on their original loan. The borrower must be employed and able to show a verifiable income and the ability to pay to be accepted into this program.

Options when you cannot keep your home.

Foreclosure:

A foreclosure is the end result of the process the lender takes to recover the property after a loan default and all the legal remedies have been exhausted. The foreclosure will result in the most negative impact on the borrower’s credit and remains on his credit report for a period of up to seven years. The foreclosure also does not restrict the lender from perusing a deficiency judgment against the borrower for any deficiency left on the loan after they resell the property and all the fees and expenses have been paid. The only relief the borrower would have from this judgment would be bankruptcy.

Deed in Lieu of Foreclosure:

A remedy offered from the lender to the borrower in a situation where the lender is perusing a foreclosure on the borrower’s property. The Deed in Lieu of foreclosure gives immediate title and possession to the property to the lender so they can begin marketing it for sale. The benefit to the borrower is that, if they leave the property in good condition, the lender can pay them for some or all of their moving expenses and agree not to file a deficiency judgment against them personally.

Short Sale:

A very commonly used vehicle to provide for the sale of the property to a new buyer before the lender takes back the property through the foreclosure process. Most lenders have become very receptive to working with the borrower and their Realtor to facilitate the short sales so they are not additionally burdened by an increase to the number of properties they now own and are trying to sell in this market. The short sale will cancel any foreclosure action by the bank and typically provide for a quicker credit recovery for the borrower.

posted by Steven Beam // Please leave a comment.

Parker Colorado Short Sales – Beware of Scams

Oct 12th 10

filed under: Colorado Short Sales, Homes for Sale, The Timbers

Short Sale Scams Beware.

Beware of scammers when you list

your next Parker Colorado Short Sale

Before you get ready to list for sale or buy your next Parker Colorado short sale please read this.

As with all crises, there creates a money making opportunity for the scam artists of the world. The vulnerability of homeowners facing one of the most stressful situations in their lifetime brings out the worst of the worst in people. In the case of financial hardship and rescue schemes it has come to bear that these individuals and companies have shown their ugly heads yet once again.

We see them on late night TV and their offers pop up while doing internet searches. These are individuals or out of state companies offering unrealistic solutions to “stop foreclosure Now” or to “buy your home in two weeks or less”.

Many homeowners today who are facing a financial hardship and are facing the likelihood of losing their homes to foreclosure are reaching out in desperation to whomever and whatever opportunity presents itself in an effort to remain in their home and continue to keep their family in a stable environment.

Your lender now has many tools to assist you through a multitude of federal programs available to them today. Whether you are looking to negotiate a loan modification or another type of work-out such as a short sale or forbearance, contact a professional local Realtor who is knowledgeable and specializes in these types of work outs. They are the folks who understand all the options you have today and there will never be a front end fee, never. Discuss your personal situation with these local professionals and get the facts before committing your time and financial resources to someone requesting money up front and making promises which sound too good to be true.

posted by Steven Beam // Please leave a comment.

Tax consequences of a short sale

Oct 6th 10

filed under: Colorado Short Sales

short sale tax issues

Tax consequences of a short sale

As strange as it may seem the IRS code requires that a borrower defaulting on a loan and having all or part of their debt relieved is subject to a capital gains tax liability on the amount forgiven by their lender.

Taxpayers who are defaulting or negotiating reduced settlements on their mortgages are precisely the folks who are not able to pay the capital gains taxes due per the tax code.

Congress did act on this issue on December 20, 2007. They enacted the Mortgage Forgiveness Relief Act of 2007.

The act currently provides for the following provisions.

Debt that is now canceled or forgiven by the lender is now excluded from the capital gains tax liability if it meets the following conditions:

The debt is forgiven in calendar years 2007 through 2012

The amount of forgiven debt does not exceed $2,000,000.00 for taxpayers who are filing jointly or $1,000,000.00 in the case of taxpayers who are married and file separately in calendar years 2009 to 2012.

The qualified property must be the primary residence of the borrower.

The debt must be forgiven as a direct result of the decline of the value of the property.

The lender is still required to issue a 1099-C for the amount of forgiven debt to the borrower. It is the borrower’s responsibility to attach and file an IRS form 982 along with their federal tax return for that year. The tax credit will not be allowed without the Form 982 provided at the time of the filing of the tax return.

The borrower should contact their accountant or tax preparer or go to WWW.IRS.Gov to learn more about this relief from the capital gains tax on the foreclosure, refinance or short sale of their principal residence.

posted by Steven Beam // 4 Comments »

Short Sale? What Type of Loan Do You Have?

Oct 6th 10

filed under: Colorado Short Sales

What kind of loan do I really have?

When facing difficult decisions in regard to a change of status in your income as it relates to remedies for relief on your mortgage it is imperative that you know what kind of loan you really have on your residence.

Although there are some variations within the basic categories there are three general types of loans.

FHA:

This type of loan provides an insurance policy issued by HUD and paid for by the borrower, included in their monthly mortgage payment to the lender. It insures the lender that in the instance of a default the lenders principal balance and fees of collection will be paid by the FHA insurance. Currently, borrowers who qualify, can borrow up to 97% of the property’s appraised value.

VA:

VA loans are guaranteed by the Veterans Administration and only available to veterans of the armed services. Similar to FHA insured loans the lenders principal balance and fees of collection are paid by the Veterans Administration. Under VA guidelines, borrowers who are veterans of the armed services can borrow a full 100% of the appraised value of the property.

Conventional Loans:

This type of loan, which does not have any federal insurance or guarantees, is issued by individual lenders. This type of loan typically is only issued for 80% of the value of the property. Borrowers who do not have a 20% contribution to bring to closing can apply for a junior, or 2nd mortgage on the property. These junior loans are issued at a higher interest rate and can require a Mortgage Insurance policy to be issued on this junior loan to minimize the lenders risk of default.

It is important, when evaluating your options for an alternative to foreclosure, to know what remedies are available to you for a loan modification, short sale or deed in lieu of foreclosure.

There has been a great deal of discussion in regard to the new federal relief programs available to borrowers in recent months. It is important to note that these programs only apply to federally insured loans. The Making Homes Affordable program and the HAMP programs for loan modifications only apply to FHA and VA loans. The federal short sale assistance program, HAFTA, only applies to non federally insured or guaranteed loans.

posted by Steven Beam // Please leave a comment.

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Helpful Parker CO Links

Short Sales Info

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Colorado Short Sales

Short Sales

Get the Facts on Foreclosure from a

Colorado Foreclosure Expert

A clear and marketable title

passes to the new buyer through a Short Sale

My credit score is taking a hit!

Parker Colorado Real Estate

An influx of Short Sale buyers in

the Parker Colorado Real Estate Market.

“Will a short sale help me sell

my Parker Colorado home?”

Here are the general conditions for a short sale qualification:

Parker Colorado Short Sales and Foreclosures

Understanding the terms used in foreclosure.

Options when you can keep your home.

Options when you cannot keep your home.

Beware of scammers when you list

your next Parker Colorado Short Sale

short sale tax issues

Tax consequences of a short sale

What kind of loan do I really have?

FHA:

VA:

Conventional Loans:

Social Networking Profiles

Living in Parker Colorado

Video Gets a Home Sold

Steven Beam Marketing System