Tag Archives: foreclosures

The “S” Word is much less impacting than the “F” Word!

Posted by Michael Hughes

“The sclerotic process of short sales will become streamlined in the future. Streamlined meaning will take only 2-5 months.”

Are you late on your mortgage payement(s)? Do you have a hardship? Either medical, divorce, loss of job, family issues or any of the multiple others? Why do a Short Sale? That’s easy because it is 5-8 years less (credit) impacting than a foreclosure. Do you qualify? Call me;  in about 20 minutes I will know whether you have a great chance of qualifying or not. Regular Boulder real estate or Luxury Boulder real estate many are in danger of foreclosing because of financial and other hardship.Do you think this will impact the market for sellers and buyers?

A Short Sale as opposed to a Foreclosure is much more advantageous for the Seller. Credit reports typically show it as “settled.” Any tax implications to the seller/home owner should be reviewed by their independent real estate attorney or accountant. A 1099C may be issued for the short fall and is handled somewhat differently than a 1099. Pre-foreclosure or short sale involves the sale of the property by the borrower to a third party for less than the amount owed (short sale) to satisfy the delinquent mortgage, as agreed to by the lender, investor and the mortgage insurer. I underline investor as this is where most of the delay happens. While this is getting better all the time due to delegated authority to the lender. Short sales are getting faster and there is no reason to go into foreclosure. Together we can explore all options to foreclosure: Refinance, Financial Counseling, Modification, Short Sale, Deed in Lieu and lastly the “F” word Foreclosure.

If you or anyone you know are 30 days or more late on your/their mortgage payment call me or give them my name and number lets see if we’re a good fit.

If you have questions regarding this article or have any questions about Boulder, Boulder real estate or would like information about Boulder Luxury Real Estate check out my website. You may also call or TEXT me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO. 

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Boulder Real Estate Housing Shortage

Posted by Michael Hughes-Sotheby’s International Realty-Boulder, CO

Everyone is focusing on the fact that there are foreclosures and cheap housing to be had; all things being relative that doesn’t really relate to Boulder real estate because we have so few foreclosures. Ok yes we have some foreclosures and some short sales. But everyone is looking “over there” and not looking at the impact of what may likely be the biggest housing shortage of all time.  The thought right now is with fires, teardowns, lack of new builds and worn out properties, we need at least 1.6 million new homes (in the U.S.) right now to just keep up with the population growth. Housing starts are down. The population is growing. When we have job growth; Lookout!

According to RealtyTrac 315,716 properties had foreclosure filings last month. The filings included default notices, auctions and bank repo’s. Mortgage rates are very low. Mortgages are not difficult to find if you have a solid job and good credit. Investors and savvy buyers are snapping these properties up to add to their portfolios. Smart buyers are buying now. When you think of vineyards you think of micro-climates. Boulder is one such micro-climate in the U.S. real estate market. Boulder is the beacon of value and prices staying at a good and sustainable level. Once the job creation is back in place we will have some double digit years of appreciation coming in the Boulder real estate and the Boulder luxury real estate market.

If you have questions regarding this article or have any questions about Boulder or would like information about Boulder Luxury Real Estate check out my website. You may also call or TEXT me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO.

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Banks Resume Foreclosures…

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I can help

Posted by Michael Hughes

It is important  in today’s Boulder real estate market that you know what a short sale is In order for these people to sell their house and move on they either have to come to the closing with money or negotiate with the bank who hold the mortgage to accept less than they owe (short sale).

The Basics: A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan (mortgage).  It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower into foreclosure. A short sale is better for the borrower because it does not impact them as severely (or nearly as long) as a foreclosure does. Both parties (lender and the owner) consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency..

Owners View: These would be sellers are stuck.  They would like to (need to) sell their house in Boulder, but for any number of reasons (bought at the peak of the real estate market, or negative amortizing loans, or ARM’s, or second loans, or HELOC’s or, or,or) they cannot find a price a buyer will pay for the home and that will also pay off the existing loans and closing costs.  Convincing the lender is not an easy job to take less than they are owed.  First of all there must be a compelling hardship where the seller absolutely cannot keep up the payments nor come up with cash to close.
So they must have a proveable hardship (and write a letter in detail regarding what the hardship is). Once all of the documentation is complete a package including the sales contract signed by buyer and seller is sent to the bank for approval.   This is the tough part, it takes patience.  It can take up to 6 or 7 months but usually no fewer than 8 weeks to get an answer from the bank.  If the short sale is approved and  the sale goes through at a lower amount,  the sellers credit is hurt (although not as bad as a foreclosure) and the bank still has the right to claim and try to collect a deficiency.

Buyers Perspective: Short sales provide a unique value opportunity.  If you have the patience of Job. Many times banks approve a price which is a great deal for the buyer.  The main downside for a buyer is the uncertainty.  The bank has the right to accept other offers so even if you were the first offer in to the bank, by the time they get around to reviewing it there may be multiple offers.  It might take two or more months to figure out that the bank will not approve the list price of the house.  Buying a short sale is not for someone who has a certain date in mind or is not willing to be patient while the weeks tick by without any word.  There is no countdown, there are no numbers.  You hear when you hear and the news is not always what you had hoped for.  For the right buyer it is a good opportunity but it is certainly not for everyone.

If you have questions about this article or anything Boulder TEXT or give me, Michael Hughes a call at 303-359-6627 and you can also visit my website or the Boulder MLS. You can also facebook me.

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Banks Halt Foreclosures

Posted by Michael Hughes

Bank of America has recently announced a halt on all the foreclosures it is processing throughout all of the United States including some house in Boulder. They said that they were taking these measures in order to investigate a “few flaws” in the process that they might have found, according to a statement made by the banking giant.

Bank of America decided to freeze all foreclosures only 7 days after one of the biggest banks in America announced it was doing the same thing in 23 states that require a court approval in order to proceed with a foreclosure.

The foreclosure process will still continue on, however it will stop before it gets to a judgement ruling or a foreclosure sale. Somewhat like traffic on highway 36 going out of Boulder at 5 pm. To say that the pipeline is clogged would be putting it mildly. This was the process that was going to put our housing market back on track. When you have a fever you take ibuprofen or something to keep the fever down until your bodys’ natural defenses can kick in. In this case you work your way through all the foreclosures when you have an ailing housing sector until they are all but diminished to a natural level. The freeze is only supposed to last a few weeks. I guess we’ll see. The banks are having a tough time working through all these foreclosures. Does that mean that the short sales will take an indefinite detour or backseat? This is not a good thing for the housing community. We need to continue to work through these foreclosures and get them done as quickly as possible. JPMorgan Chase also halted foreclosures on 56,000 people who own homes in the U.S. they also said they would be reviewing how the approval process was working. Apparently some of the employees who review and approve the files were not following the guidelines. In the past few days most banks have followed suit. This is not only bad news for foreclosures but also for short sales of Boulder real estate in the county. Short sales were on the back burner and took a very long time, until this is sorted out  and untangled they will not be moving forward.

We have been very lucky with Boulder Real Estate. There are not a Tsunami of foreclosures like the sand states. What do I say? Get it done. Of course follow the proper procedures but pull the band aid off quickly and move along! Read the entire story.

If you have questions about this article or anything Boulder TEXT or give me, Michael Hughes a call at 303-359-6627 and you can also visit my website or the Boulder MLS. You can also facebook me.

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Solution Housing Bubble

Posted by Michael Hughes  April 10, 2010

This is how we solve the current housing crisis. Encourage, no make the bankers take less as in short sale (currently known by Realtors ® as “long sales”) or foreclosures (REO’s) as bankers reduce inventories of foreclosed properties and slash prices in order to sell them more quickly it will result in the average value of a home going upward. This will drive the market to a stronger position and increase market value as the supply diminishes, even if the demand is static (Economics 101 CU-Boulder- Rezza Ramazanni). If you would like to sell or buy a home in Boulder give me a call today.

If you have questions regarding this article or are thinking you will Buy A Home In Boulder please call me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO

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Major increases in foreclosures at end of 2010.

Posted by Michael Hughes    April 9th 2010

Bank of America now currently forecloses on 7,500 homes every month, soon they will see that number rise to 45,000 by December.

JPMorgan Chase is forecasting bigger foreclosure numbers in the coming months. According to a presentation at the end of February, JPMorgan expects the amount of real estate owned (REO) properties in its portfolio to reach between 33,000 to 45,000 in 4th Quarter 2010.

Read the complete Story

The focus remains to prevent as many foreclosures as possible through both its private modification program and the Home Affordable Modification Program (HAMP). If you are going to buy a home in boulder county buy a foreclosure. Prices are right on.

If you have questions regarding this article or are thinking you will Buy A Home In Boulder please call me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO

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Private Investors and Foreclosures

Posted by Michael Hughes-Sotheby’s International Realty-Boulder   March 22, 2010

Housing markets boasting luxury foreclosures are ripe for investors. The secret is to know a realtor who has relationships with area bankers and buy the properties before they are able to get out on the public market.  There are many legal details I won’t bore you with but the thing to do is find someone (like me) who knows the mid to high end market and all the legalities involved in purchasing these properties before they hit the market. Discretion is key. Buying a property this way will keep you out of bidding wars and of course “cash is king.” If you are looking to invest in Colorado or buy a home in Boulder, give me a call.

Foreclosures may increase in the next few months, as lenders foreclose on late loans that couldn’t be saved by modification programs (HAFA) or other means.

The best way to buy a foreclosure is with a realtor (that would be me) privately between bidders and bankers.

Realtors, who know foreclosures can do the homework and give knowledgable advice to investors. Investors are interested in the best price, and those are often foreclosures. Please leave a comment.

If you are an investor or a buyer and have questions you can call Michael at Sotheby’s International Realty or visit my website to visit the MLS or my listings.

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