Real Estate Information Archive

Blog

Displaying blog entries 1-6 of 6

How to buy a home after bankruptcy or foreclosure

by Erna Sigurdsson, Realtor

How to buy a home after bankruptcy or foreclosure

Buying a Home After Foreclosure Going through a foreclosure or a bankruptcy is difficult process and is emotionally tolling. It takes time to recover from those and people who have gone through that have doubts about when and if they can buy a home again.


The good news is that you can buy a home again after going through that process. The bad news is that it takes time, persistence and will. It is possible to get back on the horse and become a homeowner again, by making a financial plan and stick to it. It doesn’t happen overnight, it is a good idea to see a qualified credit counselor or a financial planner to get the best advice for your situation to set a plan and goals to stick to.


Check periodically to see what’s in your credit report, www.annualcreditreport.com is the official site to view what is being reported at the three credit reporting agencies. If there is anything there that shouldn’t be there or is being reported incorrectly then you need to work on fixing it now, rather than later when it starts to affect your ability to obtain credit.


Keep some available credit open. Once you pay off a credit card, do not close that account. Part of what goes into your credit score is how much of your available credit you are using. If you start closing accounts as soon as you pay off the charge, then you could be hurting your credit.


Save regularly, by putting a little bit into savings every month, you are proving that you can plan and stick to it and it shows that you are planning ahead for the future. You can also use the savings that you accumulate towards a down payment on a home.

Cash Is King

Cash is King. An old phrase, but still valid today. If you have the cash to buy a home, then you do not need a mortgage and therefore don’t have to worry about your credit and financial history.


Generally it takes years to be able to buy a home after a foreclosure or a bankruptcy. If you were able to do a short sale on your home and avoid a foreclosure, most often, it is about two years until you can buy a home again.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here. 

Learn How to Avoid Foreclosure, a FREE Seminar for the Public

by Petur Sigurdsson, Realtor

Foreclosure Avoidance SeminarsI hope you’re doing well! I always like staying in touch with the members of my community. I wanted to let you know about a free seminar I’m putting on to inform homeowners in our community about their foreclosure-avoidance options. This seminar takes place from 7:30pm to 8:30 on June 21st, at The Longwood City Community Building at 200 West Warren Ave. Longwood.

If you missed this free educational seminar and would like to know more about avoiding foreclosure, please contact Petur and he will be happy to go over the material one on one with you and assist you with finding out what your options may be.


You may not know this, but I’m a Certified Distressed Property Expert. This means I have an extensive knowledge of all the options available to homeowners facing financial hardship. Personally, I think that one foreclosure in our community is one too many! I know that foreclosure can be prevented with information alone.

Recent statistics show that more than 1 in 7 homeowners are behind on mortgage payments. In this market, chances are you or someone you know could use some help. That’s why this free seminar is so important. I want to help as many members of our community as I can to find assistance and solutions.

Be a hero in our community. Pass along this information to help someone learn how to avoid foreclosure and start a secure financial future.

I hope to see you and your friends there; this seminar is FREE and open to the public.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here. 

Thinking of buying a Short Sale Property?

by Petur Sigurdsson, Realtor

Short Sale propertiesWith approximately 1/3 to 1/2 of short sale contract never closing, you need to choose your Realtor carefully and do your homework.  There is a lot to gain by buying a short sale, the biggest gain is that you will be able to get a larger home for your money or you might be able to get in a neighborhood that you previously could not afford.  Dian Hymer wrote an article on Inman News which sums it all up.  This article is like spoken out of my own heart and is a must read for anyone that is thinking of buying a short sale.  Click here to link to the article.

If you think that you need to sell your home in a Short Sale or that you need help finding a solution to your mortgage problem, then you might want to follow this link to my website http://www.avoidforeclosureincentralflorida.com which explains a lot of the options that a homeowner has today.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here. 

Are the Liar Loans HAMPering loan modifications?

by Petur Sigurdsson, Realtor

Distressed homesWhen the Lenders had ample funds to loan and money was burning holes in their pockets, they were creative finding ways to qualify everyone for a mortgage.  The Lenders had their marketing teams work on creating new and effective ways of qualifying people; it seemed to be the goal of getting everyone over their head in debt.  If someone dared to say something negative about their way of doing business, the response was: You’re old fashioned, he is negative, and you’re pessimistic or something even worse.  In their race to top each others marketing they created other loans like: No income, verified assets (NIVA) loans, no income, no assets (NINA) loans and no income, no assets, no job (NINJA) loans among other.  These are what the industry calls LIAR LOANS, but the loan officer also told the buyer that the equity in the home would go up and they would be able to sell with profit in few years.

Let’s look at where we are now!

According to Housingwire.com we here in Florida surpassed California and now rank number two in the Nation with every 165 homes in danger of being bank owned, California has 180 in danger of being bank owned.

According to the Mortgage Bankers Association, third quarter National Delinquency Survey: The non-seasonally adjusted delinquency rate increased from 8.86 percent in the second quarter of 2009 to 9.94 percent this quarter.  Also they state that percent of loans in foreclosure was 4.47, this means that total14.41 percent of all loans are 30+ days late or in foreclosure, which is the highest ever recorded in the MBA survey.

Then according to CNN Money 1 in 4 mortgages are underwater or up side down (negative equity) or within 5% of being there, a total of 13 million mortgages.

As we can see from the above there are a huge number of distressed homes out there.

What about all these rescue programs out there?

There has been a lot of effort from our government to save our homes, some of these programs are geared to help the public while others like the Neighborhood Stabilization Program are geared towards helping the lenders. Also some lenders have created their own programs to assist their borrowers, the sad things about all these programs is they have not worked as well as their designers were hoping.  The fact that only 1,700 homeowners had pass through the Home Affordable Modification Program (HAMP) in September, tells the whole story. It looks like that some homeowners who got these stated loans (liar loans) are afraid to follow up on the modification and for the first time bring in all their finance documents, like tax returns, all bank statements and so on. Then the government has programs for VA loan borrowers, FHA borrowers, some states have programs in place; there are even some Local Initiatives to assist homeowners that are having problems with their mortgages. In addition to all these programs, the courts have implemented mandatory mediation between the lenders and the borrowers when the lenders are trying to foreclose on a home. The courts are doing this due to the fact that many homeowners have complained to the Court about difficulties with communication with their Lenders. 

What can be done to remove the HAMPering out of the HAMP and other programs?

Well I am a Realtor who has spent a lot of time learning about all these programs and how to communicate with homeowners and lenders, among other things that I have done is to study the most in depth class out there, The Certified Distressed Property Expert class and get the CDPE designation. In addition to this I read a lot about these issues. If you go on my main website http://www.thevikingteam.com/ and click on “Links” you will see that I have gathered a lot of links to the websites of all of these programs. The problem is that when you see all of these links you don’t know where to start, the system needs to be made more streamlined and easier to navigate for the homeowner.  I and many of my fellow Realtors have set up websites for homeowners to look for and learn about what is available of assistance.  My website is called: http://www.avoidforeclosureincentralflorida.com/By setting up websites the Realtor is just showing that he cares and is trying to do his best for the homeowner, but this is not enough, more needs to be done and this is what I would like to see:

  1. Service centers in every county where a homeowner who is in trouble or foreseeing problems could go to and talk to a person face to face that would explain to him/her, their situation and guide them on the right path to recovery.
  2. Lenders streamline their phone system and make it more customer friendly, so that a homeowner in trouble who calls in does not have to be on hold for up to an hour or more, and then when they forward the homeowners call it is sent to someone who can help the homeowner (not to a debt collector) and guide him to a real solution. If this would happen then the banks might be able to collect more of the debt and reduce their losses.
  3. I would like to see the media spend more of their time pointing out solutions and guide the homeowner in the right directions. We have all heard several times about scammers and illegal companies that are making money on other people’s problems, not that I am saying that they don’t need to be exposed.  But I would like to see more time spent in getting homeowners to start saving their homes. Unfortunately there are too many homeowners out there that for some reason do not start the process of saving their homes.

 

After reading this article of mine, you might be asking yourself; why is he writing this?  Well the answer is; I am fed up with seeing all this waste of time, funds and family well being that I see in the system today and I am not the kind of guy that sits in the corner and mumbles.  I will try my best to change things to the better.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here. 

The upside of Florida real estate: 15 market positives

by Petur Sigurdsson, Realtor

I found this article on the Florida realtors website, there are so many good reasons that they point out in this article, that I have decided to publish one reason a day for the next 15 days. Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s Real estate market.

1. Great prices. Statewide, home prices have fallen 20 percent in the past year. FAR statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade: in 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here. 

What is Fannie Mae trying to do?

by Petur Sigurdsson, Realtor

This article in the Orlando Sentinel by Jerry W. Jackson has kept me thinking since I read it.  I have been wandering what is the real goal here. 

 

Is it to reduce inventory?

Is it to help the consumer?

Is it to be able to control value of homes?

Is it to streamline the banking industry and save money for the banks?

Is this experiment deemed to fail?

Can I with good conscience recommend these pre-approved homes? 

 

So I went into the Multi Listing System and pulled up randomly 8 single family homes in Orange County that all are pre-approved by Fannie Mae, on average these homes are in the lower third of the price range of homes in the subdivisions they are located in, same when it came to price per square feet. 

 

So let me try to answer the questions that I have been asking myself since I saw this article. 

I don’t think this will reduce inventory as I can not see a benefit for the home buyer, any home buyer that I have worked with will wait 1 to 3 months to save from $10,000 to $40,000.

The only time that I can see this program help consumers is when the home that they are looking at and decide to make an offer on, is for coincident in this program.

Looking at the square footage price of the eight homes that are all similar in age, have similar subdivisions, and are priced from $77.93 to $144.93 I don’t think they are trying to control values.  With the proven fact that in one incident it was the lowest price and another incident it was the highest price in the subdivision. This price seems to be more in line with what is owed on the homes.

Yes, I think that Fannie Mae is trying to save money, i.e. salaries, legal fees, attorney cost, and so on.

I do believe that this experiment is going to fail, when the buyer sees that he can save up to a years salary by having a little patient.  Also the fact that there are at this moment mainly investors buying and they will only look at location, price and than condition, I don’t see them wanting to pay for time.

 

This is why I can not tell my customers that they should go out and buy a pre-approved Fannie Mae short sale.  I will continue to look for the best deal in the area that they want to live in.  If a pre-approved Fannie Mae short sale, is one of the homes that we come across, than I will tell them how the program works.

 

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here. 

Displaying blog entries 1-6 of 6