But to be technical, here's a more official definition:

• A homeowner is "short" when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the home owner's mortgage company (or companies) to accept less than the full balance of the loan at closing.  A  buyer closes on the property, and the property is then "sold short" of the total value of the mortgage.  For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

1. Financial Hardship:  There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall:  In other words:  "You have more month than money."  A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency:  The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage. This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.  I hold the CDPE Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.

This:  "73% of homeowners that go to foreclosure do so without ever asking for help."

This statistic kills me.  The ramifications of foreclosure can be devastating and in most cases, it is so unnecessary!  People who have worked hard for what they have their whole lives and because they don't know what to do, they do nothing, leading themselves into the worst possible consequences. 

If you or someone you know is in this position, they are often too tired or overwhelmed to ask for help. 

HAVE THEM CALL ME!!

We also have a website with lots of up to date important information and FREE REPORTS, www.BlockDallasForeclosures.com

Real Estate is my passion, helping people is my purpose, and negotiating is my Olympic event!!  No excuses...

Lisa

The Certified Real Estate Owned Specialist Designation has been invaluable as I work with banks and lenders on complicated REO assignments.  In Dallas county, more than 2,000 homes are in some stage of foreclosure and it is happening with homes of every price range.  It is so rewarding to be able to help banks rehabilitate these homes, get them back on the market, and find eager homebuyers so we can improve the condition of our neighborhoods.  My designation has enabled me to work with more lenders, move more properties and get some of these vacant homes sold!!

If you feel you are in need of more information about REO properties, or if you are a lender looking for a certified Bank Owned Property Realtor, contact me for more information, 214-904-9129.

No one can call the bottom of the market.  Once you "know" the market has bottomed, guess what?  It has already started to move up, and you have missed it.

Real Estate Myth #2:  The Longer A House Is On The Market, The More A Home Buyer Can Negotiate On It.

In Dallas, homes average 160 days of marketing time.  A home seller who has been on the market longer than that may just be holding out for their price.

Real Estate Myth #3:  You Must Be Able To Put 20% Down To Buy A House

Wrong.  With the new and improved FHA home mortgage loan program, you can put down as little as 3% AND you can ask the seller for assistance with closing costs.

Real Estate Myth #4:  A Home Buyer's Credit Needs To Be Perfect

Not true.  Once again, the new and improved FHA is to the rescue.  They often lend money to those with less than perfect credit.

Real Estate Myth #5:  All Of The Home Sellers Today Are Desperate

Not so.  It is true that many sellers are motivated, but there is a limit to their motivation.  Stop watching infomercials and get your real estate advice from someone who is in the trenches of real estate everyday.  The media is in the business of selling ad space, not accurately disseminating information.

Now that we have defined a distressed property, what is a Certified Distressed Property Expert, CDPE?  This is not only a designation earned by a licensed Realtor, but it is also an acronym that signals to the public that the person displaying it has gone through extensive training to successfully mitigate a foreclosure.  This can be done by negotiating mortgage terms, helping to negotiate a refinance or the most likely, help sell the property.

Sometimes these properties have lost significant value either by physical damage, changes in the zoning, lack of curb appeal or a host of other factors, one of which is occurring today is market conditions.  If the value of the property drops below what one could sell the property for, then the property is said to be short and any sale would be considered a "Short Sale", which has become very common lately.  Negotiating a short sale is where a CDPE really shines.

These transactions are extensively time consuming and tedious.  They require diligent follow up, tons of paperwork and detailed analysis.  Not to mention, all the work that goes into drafting market reports and gathering all the information to convince the bank to accept a sales amount that will net them less.  Not an easy task.  Some of these sales can take anywhere from 6 to 12 months to close.

All this is done in addition to the normal marketing efforts required to sell the property.  You can see why less than 1% of Realtors nationwide have the training and knowledge to successfully negotiate a short sale.  I am one of those in the less than 1% that has dedicated my time, effort and finances to educate myself in this sector of the market.

If you have a distressed property, you cannot chance your home sale on someone who doesn't have the tools to get things done.  This market is going to be here for sometime.  Experts predict 2 to 3 years.  I predict closer to 8 years.

Buyers are not immune to the phenomenon.  They are getting great deals on these distressed properties but guess what?  If they are dealing with someone who doesn't know the mechanics of a short sale, the deal will fall apart after waiting months.  It is equally important to buyers and sellers of distressed property to use a person who can get these transactions to the closing table.

Here are a few options and a quick list to block foreclosure.

1.  Reinstatement:  This is where the homeowner reinstates the mortgage by paying up all missed payments and fees and becomes current with the mortgage.  After all the fees have been paid, the homeowner can continue to make regular mortgage payments.

2.   Forebearance:  Commonly known as a repayment plan.  This allows the homeowner to negotiate a re-payment of missed payments and fees to reinstate the mortgage.

3.  Sell the Property: If there is equity in the property, then the property can be sold and the foreclosure can be "cured", preventing foreclosure.

4.  Rent the Property:  The property can be rented, however the mortgage must be made current. A rental agreement will not stop the foreclosure process.

5.  Refinance:  If the credit rating hasn't been too badly damaged,a refinance may help especially if the monthly payments can be reduced.

6.  Deed-In-Lieu of Foreclosure:  Commonly known as the friendly foreclosure.  The bank agrees to foreclose without the lengthy process.  This is not recommended if there is equity in the property because the owner gives up the right to the property and any equity. This option is technically still a foreclosure and will show up as such on your credit report.  Sometimes the bank will forego any other recourse, but that will have to be negotiated.

7.  Bankruptcy:  May allow the owner to reorganize debt.  Can postpone foreclosure. Drawback is it makes it difficult to sell the property and nearly impossible to negotiate with 3rd parties.

8.  Short Sale:  When the homeowner owes more than the property is worth, a sale can be negotiated and an approval from the bank to accept less that the amount owed.

Most of these options involve negotiations with the bank and a decent credit rating.  If the credit has already been tarnished, a short sale is the only real option.  In my experience, when homeowers use the other options available, they wind up in the same predictament a few months down the road because the underlying cause of their situation was never resolved.

If you have not owned a home in three years, you qualify as a first time home buyer.  If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit.  Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify.  It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit.  In other words, you take $7,500 off your tax bill.  But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years.  You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment.  You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year.  If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house?  You pay the balance back at the closing.  So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house.  What happens if you do not make enough money when you sell your house?  They forgive the rest of the debt. 

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you’d like to learn more about this program, please call me!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability.  Even though interest rates have gone up in the last six months, they are still near historic lows.  Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life.  It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.”  To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.

"With an estimated population of 6.6 million peopel, the Dallas-Fort Worth area is expected to grow to more than 9 million people by 2020."  Texas has grown 12.7 percent in the last seven years and continues to attract businesses and people on a daily basis.  In 2006, 16 major companies left California and moved to Dallas!  Last year Texas surpassed New York to take the place of the state with the most Fortune 500 companies (we have a total of 24).  What does this mean?  More people...More houses!!

What factors do companies, families, or individuals look for when relocating?

• Housing Market
• Quality of Schools
• Shopping and Restaurants
• Diversity of Cultural and Recreational Activities

According to Dr. Niemi, "Dallas provides perhaps the best overall combination of these factors among all major cities in the country."

And although the Fed cutting rates may not directly affect long term rates in the housing market, it will put more money into the hands of consumers!  So get ready for 2008!