Avoid Foreclosure in Denver

So, How’s the Market? June, 2010

Wed, 16 Jun 2010 18:23:16 GMT

“The Bandy Team’s Five Reasons to Sell and Buy a Home in June of 2010!”

REASON Number One: Buyers have less competition. This looks to be a short term opportunity for buyers, as we would project more buyers entering the market as rates rise.
Sellers - take this opportunity to capture the buyers with creative terms.

REASON Number Two:

Interest rates hit historical lows in June in the mid 4.5% range for a conforming loan rate. The buying power is off the charts for a buyer to really maximize their housing investment. For example, a $300,000 loan at 4.5% = $1514 dollars principle and interest per month. That same $300,000 at 7% = $1984 dollars principle and interest per month or $470 dollars more payment per month or $5640 dollars per year more. The average person lives in their home 5-7 years meaning the savings in payments over 7 years would be $39,480!

REASON Number Three:

Sellers in entry level single family price ranges which is below $350,000, can position their home against fewer properties this year than previous years. The tax credit absorbed quite a few entry level properties making for a unique “Move Up” opportunity for sellers. Sell at close to list price on the entry level home and become a buyer in the upper price range and look for a discount.

REASON Number Four:

The last time the Denver market had 3 consecutive months of sold data that exceeded the previous year was 2005.

Historically, 3 straight months of increased sold data would signal the market is on an upswing. Since the Tax Credit artificially increased sales in April, watching this data over the next 3 months will be good indicators if Denver is on the rebound for appreciation or if we are still bouncing along the bottom of the market.

REASON Number Five:

Denver is considered by numerous experts as the city that will out perform the national market in job growth and job stability for the next several years.

CONCLUSIONS:

Why Should You Considering Selling and Buying in June 2010?

Excellent Opportunity to Buy an Appreciable Asset at the lowest prices in years.
Low Interest Rates Make Your Buying Power Exceptional.
Building Costs are low for those who want to build their dream home.
Sellers are more realistic to the market conditions and their Odds of Selling.
The future of real estate will continue to be a solid investment and buying at the lower end of the market is Smart. Do you wish you would have bought more real estate in 1988? Don’t wish the same thing in 2028 about 2010.

What should sellers do in today’s market?

Only put your home on the market if you understand the Odds of Selling and Positioning Your Home where buyers are buying.
Become a motivated seller by offering attractive terms to buyers
Make your home a STAR Home! Shows Terrific And Realistically positioned.

What should buyers do in today’s market?

Leverage your buying power with the low rates.
Financing Terms could make an offer very attractive for you.
Get Pre-Approved to Buy like a Cash Buyer.

All real estate data taken from Metrolist, Inc, on June 7, 2010. Denver, Colorado.

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Denver Short Sales and FICO Scores - Fair Isaac Reveals The Formula

Wed, 28 Apr 2010 22:38:01 GMT

Denver Short Sales and FICO Scores - Fair Isaac Reveals The Formula

Ever wonder how much your fico score changes with a short sale? The answer is around 85-160 points.

If you're delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much? Until recently, those answers were hard to come by. Credit bureaus were uncommunicative about expressing, in points, just how much impact different foreclosure types of mortgage delinquencies have on scores.

Recently, Fair Isaac, which developed FICO scores, pulled back the curtain a bit, revealing some estimates of point-score declines following mortgage delinquency problems.
Here are the average hit your credit will take:

30 days late: 40 - 110 points
90 days late: 70 - 135 points
Foreclosure, short sale or deed-in-lieu: 85 - 160
Bankruptcy: 130 - 240

To come to these figures, Fair Isaac created two hypothetical consumers - one who starts out with a fair-to-middling score of 680 and the other with a very good one of 780. (FICO scores range from 300 to 850.) The hypothetical person with the 780 FICO has 10 credit accounts versus six for the 580, plus a longer credit history, lower utilization of total credit limit and no missed payments on any account. The other consumer has two slightly damaged accounts. Neither have any accounts in collection or adverse public records. "The lending industry tends to regard an account differently when it has become 90 or more days late," he said. "The likelihood that consumers will resume paying their overdue obligations drops off significantly after the delinquencies have reached 90 days."

One reason credit companies were so closed-mouthed is that they often can't definitively state how much each delinquencies will affect scores because there are too many variables. Some borrowers will fall much more steeply than others for the same payment problem, according to Maxine Sweet, vice president for public education at Experian, one of the nation's main credit bureaus. "If you picture someone who has just one mortgage and one other credit account versus a mature credit user like me with 15 accounts, if they miss one payment that would impact their scores a lot more," she said. "For me, one missed payment would just be a blip."

The point loss also depends on the borrower's starting point. People with very high credit scores have more to lose than low-score borrowers; the impact of a single blemish on an 800 score is more than on a 500.

Of course, it just gets worse when you face foreclosure. Mortgage borrowers can lose their homes three basic ways: a foreclosure; a short sale, where the home is sold for less than is owed and the bank (generally) forgives the difference; or a deed-in-lieu, in which the borrower gives back the property and the bank again forgives any unpaid balance. Sweet said credit bureaus generally slash scores equally for those three resolutions to someone losing their home. The important factor, she said, is that "it's reported that you paid less on a settled account."

Some borrowers may think that because they never missed a payment, they can "walk away" from their homes with relatively little impact on scores. Not true. "When a deed-in-lieu or short sale is reported as a partial payment, it's treated as a serious delinquency," Watts said, "just like a foreclosure." Even if borrowers made payments faithfully for years before short selling or doing a deed-in-lieu, their credit score will still take a hit. The total decline will run about 85 points for the 680 score borrower to as much as 160 for the 780 score.

Mortgage debt, combined with other financial problems, can send borrowers into bankruptcy, the worst thing that can happen to your credit score. The effects are long-lasting, according to Sweet. In a Chapter 13 bankruptcy, which involves partial repayment over several years, the stain will take seven years to remove. A Chapter 7 bankruptcy, which involves liquidation, takes 10 years to get over.

It's gonna cost you

Absorbing a big credit-score hit can make many transactions more costly. It's not just paying more for credit card debt and auto loans, insurance can cost more as well. The average savings for someone with a good versus mediocre credit score is about $115 a year for auto insurance and $60 for home, according to Loretta Sorters, of the Insurance Information Institute. A low credit score can even make it harder to rent a home because landlords often use credit scores to weed out prospective renters.

Despite the problems a poor credit score can cause, Experian's Sweet recommends that people who are in financial dead ends, like totally unaffordable mortgages, it's better to recognize that and cut your losses quickly; don't prolong the problem. "You need to do what you need to do to get your finances back in order," she said. "Don't worry about your credit score."

If you’re a Denver area homeowner who’s evaluating all of your options or even trying to avoid foreclosure, give the Bandy Team a call. We can assist you with finding the best option for your situation, and we’re more than willing to help.

Marianne Bandy
Learn more about local Denver resources

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Who Will The Revised Federal Mortgage Program Help?

Wed, 31 Mar 2010 09:31:14 GMT

Who Will The Revised Federal Mortgage Program Help?

The government's bold new plan to stem the foreclosure crisis and limit damage to the overall economy aims to succeed where previous efforts have fallen flat. However, as before, the odds of hitting those lofty goals are small, the risks are there for taxpayers, and many struggling homeowners in the Denver area and nationwide won't even qualify.

In theory, the effort unveiled March 26th would help millions of troubled borrowers who fall into one of two groups: those who are under water in their mortgages, or those who are unemployed and need a break on their payments. This plan, though, depends on the cooperation of investors and bankers, many of whom have been locked in disputes over whether to reduce the debt owed by homeowners. Because of this, and the likelihood that many homeowners will not fit into either of the two groups the program is geared to help, it will probably only benefit less than half of the proposed 3 to 4 million borrowers (around 1.5 million, according to Mark Zandi of Moody’s Analytics).

The program is designed to reach those 3 to 4 million homeowners by the end of 2012. So far, barely a dent has been made in that number. To date, only 170,000 borrowers have completed loan modifications out of 1.1 million who began the Home Affordable Modification Program since it started in 2009. Right now, estimates are that about 6 million homeowners have missed at least 2 months of payments on their mortgages, and it is expected that 10 to 12 million borrowers are in danger of foreclosure over the next 3 years. These figures don’t even take into account the 10 million (or so) homeowners who owe at least 20% more than their homes are worth, which is where the revisions to this plan come into play.

Under this new plan, mortgage companies can cut the total amount homeowners owe, or they can refinance into loans backed by the Federal Housing Administration (FHA). The reductions (if they’re approved by the lender) will happen gradually over 3 years, and FHA will get $14 billion in incentives from the federal bailout fund for this purpose. In order to qualify, homeowners must owe at least 15% more than their homes current value and can not have missed any payments.

For unemployed borrowers, if they’re receiving unemployment benefits and owe less than $729,750 on their home, their mortgage payments can be cut to no more than 31% of their monthly income for 3-6 months so they have time to find another job. If they do find work, they may qualify for a loan modification that would permanently reduce their mortgage payment - if they don’t, lenders will encourage them to consider a short sale.

To apply, call your mortgage company to see if you qualify, and if you are unable to get in touch with someone, visit www.findaforeclosurecounselor.org. If you’re a Denver area homeowner who’s trying to avoid foreclosure, give the Bandy Team a call. We can assist you with finding the best option for your situation, and we’re more than willing to help.

Marianne Bandy
Learn more about local Denver resources

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Are You A Denver Homeowner Considering Loan Modification? Be Aware That Your Credit Score Can Be Hurt

Fri, 26 Mar 2010 13:05:37 GMT

Are You A Denver Homeowner Considering Loan Modification? Be Aware That Your Credit Score Can Be Hurt

While finding an alternative to foreclosure is certainly a good thing for many struggling Denver homeowners, some who sign up for the government's mortgage-assistance program are receiving a nasty surprise in return: lower credit scores. Before you decide on this route, be aware of the facts so you aren’t surprised later.

If you happen to be delinquent already on any of your payments, damage to your credit has already been done. However, if you are a borrower who has been making your payments on time, but you’re on the verge of default, the Obama administration's loan-modification program can reduce your credit score as much as 100 points. That can make it harder for you to get a loan in the future, and can present a problem when you apply for a new job.

To enroll in the Obama administration's $75 billion "Making Home Affordable" program, borrowers enter a trial period in which they make at least three payments. But some are finding out that their credit score takes a dive during this trial phase. It happens once their mortgage company notifies the three big credit bureaus — Experian, Equifax and TransUnion. This happens because a request for a loan modification is the first sign of difficulty for previously stable borrowers. This means a sharp drop in their credit score.

Even so, the impact of loan modification is far less severe than a foreclosure, where borrowers typically find their credit is in tatters for years. That's due to the cumulative impact of many months of missed payments and the foreclosure itself, which drags down a homeowner's credit by 150 points or more on a scale of 300 to 850.

The good news is that if homeowners get accepted into the Obama program and have loans permanently modified, lenders update the credit bureaus on the new status of the loan. This neither hurts nor helps the credit score, but over time, borrowers who maintain their new loan payments can see their score increase.

If you’re a Denver area homeowner facing foreclosure do you still have questions about the best route for you and your family? Contact the Bandy Team for expert guidance during this confusing and challenging time. We have helped many others who’ve faced the same struggles and we’d love to help you, too! We are your local Denver area real estate pros, and we’re here for you.

Marianne Bandy
Find out more about Denver Metro Area Real Estate

Colorado Foreclosure Filings Increase in Twelve Largest Counties

Tue, 23 Mar 2010 19:19:51 GMT

Colorado Foreclosure Filings Increase in Twelve Largest Counties

Supply is beginning to catch up with demand in the Denver real estate market. According to a report by the Department of Local Affairs’ Division of Housing, foreclosure filings in Colorado's 12 largest counties rose 7% in February, as compared to the same month a year ago. Additionally, foreclosure sales at auction increased 14% during the same period, but remain down 14% from February 2008, according to the same report.

Analysts say that the increase is likely because lenders phased out moratoriums that previously slowed the number of foreclosures. Those foreclosures are now hitting the market. Most agree that these numbers do not reflect a deterioration of the market, just a reflection of the low numbers while the moratoria were still in place.

The largest increase in foreclosures was in Mesa County, where filings rose 223% from the same time last year. Experts believe that Mesa County is just now starting to catch up to the rest of the counties in Colorado because of a recent sharp decline in demand for housing. El Paso and Larimer counties posted the largest decreases in filings from February 2009 to February 2010, declining 16% and 2%, respectively.

When it comes to foreclosure sales, Adams, Denver, and Weld counties saw the greatest drops from February 2009 to February 2010, where sales fell 17%, 18%, and 20%, respectively. The largest increase in foreclosure sales was in Mesa County, which reported an increase of 362%.

Now that the banks are becoming more receptive to working with homeowners on foreclosure alternatives, industry professionals say the number of foreclosures should flatten out. Of course, this depends on the bank and their loan volume, which determines how quickly they’re able to process loan modifications or short sales.

Are you considering jumping into the Denver housing market? Are you already a Denver homeowner trying to avoid foreclosure? Whatever your real estate needs, give the experts at the Bandy Team a call - we are ready, willing, and able to help you! We are your local Denver housing market specialists.

Marianne Bandy
Look for a home in the Denver Highlands neighborhood

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Positive Signs of Recovery Bring Good News for the Denver Housing Market

Fri, 19 Mar 2010 11:25:27 GMT

Positive Signs of Recovery Bring Good News for the Denver Housing Market

According to top economists, the Denver housing market (and that of the nation, in general) should start reaping the benefits of positive signs on employment and national economic growth in the coming several months. This is great news for all who’ve endured what has been a challenging economic climate for the past several months.

First of all, employment is up. The Labor Department reports that there were 200,000 more job openings nationwide in February 2010 (2.7 million) than in the same survey the month before.

Secondly, the expected growth of gross domestic product (GDP), the main barometer of the U.S. economy’s health, is for a very solid 3% during the first quarter of 2010. Top experts are saying these signs are indicative of a labor market, as well as an economy that is in the midst of recovery.

How does that impact the real estate market? Expanding employment, like we’re seeing, that’s created by a momentum-gaining national economy are critical precursors to stimulating high demand and sales. The more plentiful jobs are and the higher buying power of consumers create increased demand for homes, which are already in somewhat short supply. As we’re headed into a traditionally stronger time of the year for housing (spring and summer), analysts are predicting a strong market over the next several months. And, because the federal tax incentives ($8,000 for first-time buyers and $6,500 for repeat buyers) will be expiring at the end of April, sales volume through the spring should be steadily improving to ramp up for the summer season.

As far as home pricing goes, evidence continues to mount that in most parts of the country, home values have either bottomed out or have turned positive. Here in Denver, we are one of just six cities listed in a Standard & Poor’s report last month that showed a year-over-year increase in prices - we seemed to have bottomed out in February 2009, but have been gaining steadily now since September of last year.

Nationally, last week's Zillow home value report found values essentially flat on a national average basis. They were down by just three tenths of a percent, but up in some major markets of note. For example, Boston's home values are up nearly 2% year-over-year, according to Zillow, and Los Angeles, San Diego, Philadelphia and Denver have registered gains after long periods of negative numbers.

Two other statistical hints that conditions are improving:

The difference between listed prices and selling prices of homes nationwide is now smaller than it's been in a year, according to real estate research site Trulia.com.
Realty Trac found that foreclosures, which are clearly still a drag on the market, dropped by 2% last month, which is the second straight month of decline.

Are you ready to jump off the sidelines and

buy in our local Denver market

? If so, call your real estate experts at the

Bandy Team

! We’ll show you some great deals in the Denver metro area, and across the front range.

Marianne Bandy

Look for Homes in Castle Rock’s Founders Village

New Federal Program Will Encourage Denver Short Sales

Mon, 15 Mar 2010 13:24:57 GMT

New Federal Program Will Encourage Denver Short Sales

In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their Denver area homes, and nationwide with their Making Home Affordable program. Now it will take a brand new approach: encouraging underwater borrowers to leave their homes more quickly. This latest program is one of the administration’s most aggressive attempts to grapple with a longstanding problem that has defied solutions.

Upward of five million households are behind on their mortgages and are at risk of foreclosure, and the government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

The new program, set to take affect in about three weeks - on April 5, could encourage hundreds of thousands of delinquent borrowers who have been unable to modify their loan to shed their houses through a process known as a short sale (selling a home for less than the mortgage balance). Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.

To serve as incentive to bring the various parties to the table, the government intends to spread its cash around. Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”
Should the incentives prove successful, the short sales program could have multiple benefits.
For the investment pools that own many home loans, there is the prospect of getting more money with a sale than with a foreclosure.

For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender’s assurance that they will not later be sued for an unpaid mortgage balance.

For communities, the plan will mean fewer empty foreclosed houses waiting to be sold by banks. By some estimates, as many as half of all foreclosed properties are ransacked by either the former owners or vandals, which depresses the value of the property further and pulls down the value of neighboring homes.

In order to curtail fraud, under this new program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.

There are myriad other potential conflicts over short sales that may not be solved by the program, whose details are still being fine-tuned, but the administration is obviously hopeful that it will pave the way for major lenders to more readily work with borrowers in the short sale process.

Are you or someone you know facing foreclosure in the Denver area and think you might benefit from this new federal program? If so, give the experts at the Bandy Team a call. We will let you know what your options are and guide you ever step of the way with our experience and knowledge of the Denver metro housing market.

Marianne Bandy
Search for homes in Littleton

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

So, How's the Market? February 2010

Mon, 08 Mar 2010 16:13:34 GMT

So, How's the Market? February 2010

If you believe real estate is cyclical, then the facts show the Denver real estate market has hit bottom and is on the way back up.

February 2010 has the lowest residential and condo inventory in 7 years. This month also displays the highest number of home under contract for a February since 2006 and although the sold data is lagging behind previous years, the 2010 spring season is showing signs of a rebound.

There are Five Facts why 2010 will be a more consistent year in residential real estate in Denver Colorado

The First Fact: 2010 will be improved over past years as inventories are at historical lows in Denver.

Inventory in February of 2010 is the lowest level in 7 years. With single family and condo units that are for sale totaling 18,716, makes for a 8.7% decrease in the number of available properties over February of 2009 and a whopping 28.1% over February of 2006.

The Second Fact: 2010 will be the Tax Credits extended to April 30th of 2010.

First Time Homes Buyers can receive up to $8000 Tax Credit when buying a home this spring.
Move up homeowners can receive up to a $6500 Tax Credit when buying a home before April 30, 2010.
To take full advantage of the tax credits, the buyer purchase must close before June 30, 2010.
These incentives with low interest rates will create activity the first half of 2010 that was not realize in the first half of 2009.

The Third Fact: 2010 will be improved over previous years as Denver’s pipeline of homes under contract is the highest it has been since 2006 for a February.

The Fourth Fact: A Compelling Reason Denver’s Real Estate Market is on the Upswing is Sold data has hit lows in both Single Family and Condominiums and will start to rise.

Sold data is the trailing indicator of market conditions.
January 2010 is 12% less in single family and condo sales than January of 2009.
Single Family sales decrease by 14% and Condo’s decreased by 5.5% from January 2009 to January 2010.

The Fifth Fact: The Market is bouncing along the bottom and will improve over 2009 as we have reached a new normal in real estate on how homes will be transferred.

Homeowners should seek the advice of a professional broker in dealing with foreclosure and short sales.
Denver’s unemployment is 7.5% compared to 9.8% nationally which makes for a more stable economic condition.

Overall 2010 will bring compelling reasons to buy real estate in Denver.

The $8000 tax credit for first time homebuyers and the $6500 dollar tax credit for existing home buyers will increase demand the first half of 2010.
Interest rates appear to remain low through the first 6 months of the year.
Continued fewer new home starts will create less competition for resale homes.
Prices for the upper end market continue to offer extraordinary concessions making for a perfect time to acquire the home of your dreams.

What should buyers do in today’s market?

Take advantage of your “Move-up Power” Today.
Get qualified before starting your search to become more attractive to sellers.
Consider terms over price in some instances to move into your dream home.

(All data taken from Metrolist, Inc, on February 4, 2010. Denver, Colorado.)

If you're ready to find a great deal on your next Denver metro area home, call us at the Bandy Team! We're ready to assist you with all of your Denver home buying needs.

Marianne Bandy
The Bandy Team
Re/Max Professionals - Denver, CO  
"From Our Heart to Your Home"
303-746-7799 
1-888-740-5850 x-400

http://www.BandyHomes.com
http://www.DenverAvoidForeclosure.com
http://www.DenverHomeSearcher.com

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Stage Your Denver Home for A Quick Sale

Wed, 03 Mar 2010 16:14:27 GMT

Stage Your Denver Home for A Quick Sale

Real estate experts agree that a home is sold faster, easier, and for a higher sale price with careful staging. Next to a highly effective and knowledgeable real estate agent, one of the best strategies for quickly selling your Denver area home is prepping your house inside and out to appeal to the largest possible audience. If you’ve ever walked through a model home and dreamed about making it your own, you understand the concept. Interior designers and home stagers know that the key to making a home as desirable as possible is catering to a large number of buyers’ senses, which helps them to see themselves living in your home.

Still not sure whether staging your home is necessary? Consider that many buyers decide whether to buy a house or not based on their first impression - often within the first 15 seconds of walking through the front door. Follow these tips and tricks when you put your home on the market, and you’ll likely benefit from a higher offer in less time.

1. Eliminate clutter in every room of the house, including closets and garages. Buyers want to see a clean house that is open and feels big enough for them and their things.

2. Take down family photos and anything that is personalized on the walls, so buyers can see themselves in your home. Make sure the colors on your walls are not too taste-specific. You want buyers to feel as though they could live there, not emphasize that someone else already does.

3. Bring a sense of warmth and comfort to your home by adding strategically placed blankets, pillows, coffee table books and vases around the living areas.

4. Refinish hardwood floors and replace worn carpets - this eliminates excuses for buyers not to purchase your home because it is already move-in-ready. Buyers will feel like they will be getting more for their money if updating work is already finished.

5. Capitalize on natural light by making sure furniture and window coverings don’t block incoming light, and use high wattage bulbs to brighten a room (which makes it appear larger).

6. Ensure pet odors or cooking smells are not lingering in your home - buyers will be turned off right away. Open windows for fresh air, utilize air fresheners, and clean carpets and furniture for a fresh look and scent.

For more tips and ideas, read our detailed tips on staging your home, and this helpful article on staging secrets from HGTV. Then call us! The Bandy Team is ready, willing, and able to help you sell your Denver home for as much money and in as little time as possible! And, when you’re ready to purchase your next home, we are your local Denver real estate experts, with experience all across the front range - from Parker’s Stroh Ranch, to Denver’s Washington Park, and all communities in between.

Marianne Bandy
Learn About Our 25 Point Marketing Plan

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Loan Modifications - How Does Colorado Measure Up?

Sun, 07 Feb 2010 14:10:55 GMT

Loan Modifications - How Does Colorado Measure Up?

According to the latest government data, only 1,072 permanent loan modifications have been made to homeowners in the Denver area (and throughout Colorado) facing foreclosure. When you consider that so many more families are struggling in our state, that is barely making any impact at all.

Put into perspective, the latest report from the federal government shows that as of the end of December, there were 11,170 homeowners in “active trials,” for loan modifications. These trial modifications are required before the loan can be made permanent. In the nation, Colorado ranked 19th for the number of active trials and permanent loan modifications, and our 1,072 permanent loan modifications represents 8.8% of the trials. The goal is to provide 3 to 4 million homeowners across the nation with lower mortgage payments through 2012. Nationwide, at the end of 2009 there were 787,221 trial modifications and 66,465 permanent modifications.

Unfortunately, banks do not have much incentive to participate in the program. Consider this example: if a bank writes down a loan so the borrower saves $700 a month for two years, the bank needs to write off $16,800 – 24 times $700. Arguably, the bank is not taking a loss – but it is making less interest on the loan. Typically, over the long run, it actually hurts a bank less to let the home go into foreclosure, and become an REO property (Real Estate Owned). Although foreclosures are expensive, most banks would rather put off the cost to the future, than to take an immediate hit to the bottom line. And that is just what many are doing.

In addition, those banks that are willing to modify loans permanently have been swamped with a huge volume of requests. The wave of temporary modifications began last summer, and many of them only became permanent in the past two months. The good news is that analysts predict a big surge in permanent modifications in the next few months, as banks are streamlining the process and homeowners are taking more initiative to follow all of the bank’s procedures accurately and on time.

If you’re a Denver homeowner facing foreclosure and could benefit from a loan modification, be sure to communicate clearly with your bank and follow all of their guidelines within the prescribed time frames. Also, contact us at the Bandy Team to find out how we can help. We are your local real estate experts, and are ready to assist you with all of your Denver area real estate needs.

Marianne Bandy
Avoid Foreclosure in Denver

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Homebuilders Are Responding To Denver Homebuyers’ Changing Needs

Fri, 29 Jan 2010 16:40:35 GMT

Homebuilders Are Responding To Denver Homebuyers’ Changing Needs

Today, the average Denver homebuyer is different than they were a few years ago - their needs and lifestyles are changing. Prompted in part by a struggling economy, homebuyers have reprioritized their lives and are scaling down, including the size of their home, and home builders are responding. Many builders are introducing new designs, featuring smaller, simpler homes created to appeal to younger, more mobile buyers - many of them first-time buyers.

For example, Shea Homes Colorado is rolling out its first new community at Reunion, in the northeast Denver metro area, in four years, with a focus on less expensive and less expansive houses. Another Colorado builder, KB Home, has launched a new line of paired homes at Stapleton called The Open Series, priced from $204,995 for a 1,159 sf, 2 bedroom, 2 bath home, to $229,995 for a 1,667 sf, 3 bedroom, 2 bath home.

And while their prices and square footage are dropping, the quality of materials remains high. All Shea Homes come with a 42-inch plasma television, stainless steel appliances and a charging station for an electric vehicle in the garage. These new designs no longer contain the traditional elements like formal dining and living rooms, but instead feature a large great room, where the homeowners will do most of their living.

It seems that the combination of catering to the changing needs of homebuyers as well as keeping an eye on market trends has paid off. Traffic for Denver area homebuilders has picked up lately, with November new net sales in new home communities of 10 units or more increasing to 31% higher than the same month a year ago. Some builders are reporting that they’ve seen more customers come through their models in the first two weeks of 2010 than they’ve seen in the same period for the past two years.

Are you thinking about scaling down or buying your first home in Denver and mindful about the value of a smaller, well-designed home? Did you know that the Bandy Team has proven expertise in helping buyers with negotiating with home builders? Give us a call and let us help you find your dream home in Denver or any of our surrounding communities. We are your local Denver area real estate pros!

Marianne Bandy
Read Our Denver Home Buyer FAQ

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Sell Your Denver Home In the Dead of Winter? There Are Some Great Reasons to Do Just That!

Thu, 28 Jan 2010 12:08:09 GMT

Sell Your Denver Home In the Dead of Winter? There Are Some Great Reasons to Do Just That!

Selling your Denver home in the dead of this winter season might seem like a bad idea, particularly considering the current state of the economy, but waiting until spring to list your property could be a mistake. This year,mid- to late-winter could be a great time to sell, particularly if interest rates stay low - and they are historically low right now.

Normally, the inventory of homes for sale in Denver dwindles in December as people focus on the holidays. Sellers who market their homes early in the year often find little competition from other sellers, and this year we are predicting that sales will peak earlier than in the past. We are recommending, in order to avoid competition, that the best time to get your home on the market will be February or early March.

What makes this year different than most? Starting last Fall, investors and first time buyers began scooping up foreclosures due to the low prices, contributing to the low inventory we have now. Government incentives will continue to have a big impact in early 2010. The Feds extended until April 30 the first-time buyer tax credit (of up to $8,000) and added a tax incentive for repeat buyers (of up to $6,500). Thus, many buyers are determined to sign a contract before the April 30 tax credit deadline to make sure they get the tax credits. To safely achieve that deadline, buyers will need to be out looking for a home right away.

For sellers, listing in the next several weeks will ensure that their property will have far less competition - most people wait to put their home on the market in the spring months. Since there is less inventory in the winter than at other times of the year (especially this year), we will be able to make your home stand out with a comprehensive marketing program. And, by selling your home during the winter, you may benefit by being able to more easily hit your moving goals and priorities (you were going to sell your home anyway, right?).

Additionally, the buyers who do look at homes at this time of year may be fewer, but they are usually much more serious about making a purchase. January is typically a month with a lot of corporate transfers, and many people have to buy a home as soon as possible because of this. By starting to market your home early, you may be able to secure a higher price because of the decrease in supply.

Are you thinking about selling your Denver metro area home? If so, call the experts at the Bandy Team and find out what they can do to help you achieve your goals! We have experience helping both Denver home sellers and Denver home buyers - and all across the Denver metro area. We would love to be your local Denver area real estate pros!

Marianne Bandy
Check out our Moving Checklist

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Denver Short Sale Qualifications

Fri, 22 Jan 2010 15:53:03 GMT

Denver Short Sale Qualifications

Distressed Property Institute CEO Alex Charfen explains the three must-have qualifications for a distressed homeowner to qualify for a short sale.

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

FHA 90-Day Seasoning Rule Lifted Great News for Denver Homebuyers and Investors

Fri, 22 Jan 2010 13:23:16 GMT

FHA 90-Day Seasoning Rule Lifted Great News for Denver Homebuyers and Investors

The Federal government is taking action to speed the housing market recovery by lifting the FHA 90-Day Seasoning Rule with the hopes that it will speed the resale of foreclosed properties. This is great news for Denver homebuyers (especially first-time buyers) and investors, who up until now, have been required to wait at least 90 days after the previous sale date before being able to close with any buyer who has an FHA-backed mortgage.

Originally, the Department of Housing and Urban Development enacted the regulation in an effort to discourage investors who were flipping houses and driving up prices during the housing market boom a few years ago. However, the rule’s unintended affect in today’s market has been to reduce the options of first-time buyers who already are competing for a shrunken supply of homes for sale.

Announced on January 15th, the one-year moratorium on the “anti-flipping” rule will begin on Feb. 1st. Affectively, this will open a new pool of homes to first-time homebuyers. It will also give buyers access to a broader array of recently foreclosed properties. As an added bonus, it is not expected that this will have much effect on home prices, further stabilizing the housing market.

Many investors are thrilled because opening up their business to FHA buyers means they can now sell to anybody. That hasn’t always been the case, and FHA buyers have often been left out of finding affordable homes that are move-in ready. Today, next to FHA buyers, cash buyers make up much of the rest of the active market, and many of them are speculators and investors. This new rule will connect the two groups.

The new guidelines do require that investors who are reselling a home do not profit more than 20 percent above their purchase cost, but those limits are excepted if an independent appraiser confirms that renovations and repairs justify the higher price.

It is expected that the suspension of this 90-day rule will grow the number of transactions in coming months, and that will be good for our nation’s communities, as well as the real estate market in the Denver area. More buyers for investors will motivate investors to buy and renovate more houses, which will serve to move the market forward.

Are you thinking of buying a Denver area home, a house in Castle Rock, or in any of our many other gorgeous surrounding communities? If so, the time is now! Let the Bandy Team serve you with our expertise and experience to make your dreams come true.

Marianne Bandy
Read our buyers Tips for Denver Home Buyers

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

So, How's the Market?

Wed, 20 Jan 2010 17:47:15 GMT

So, How's the Market?

Marianne Bandy’s Denver Real Estate Market Outlook for 2010

RE/MAX Professionals – Denver, CO
All data taken from Metrolist, Inc, on January 4, 2010. Denver, Colorado

“Do You Wish You Would Have Bought More Residential Denver Real Estate in 1988? Don’t make the same mistake for 2010.”

2009-2010 will be the time frame known as the bottom of the real estate market in Denver, Colorado and many will ask the question in the future, “Do you wish you would have bought more real estate in 2009-2010?” We see the Denver marketplace improving slightly in 2010 over 2009 and we see prices starting to appreciate in the 4-6% levels for the entry price points for 2010.

There are Three Key Reasons why 2010 will be a more consistent year in residential real estate. These three major factors were not the case the previous three years.

The First Reason 2010 will be improved over past years is inventories are at historical lows in Denver.

Housing Inventory in January of 2010 is the lowest level in 7 years. With single family and condo units that are for sale totaling 16,781, this makes for a 15.4% decrease in the number of available properties over January of 2009 and a whopping 31.5% over January of 2008.

Single family homes for sale are at a low of 12,637 total number of units
Condominium homes for sale stands at 4,144 units available as of January 4, 2010.
The decrease in inventory from December of 2009 to January of 2010 represented an 11.2 % decrease. Normally you would expect decreases in the 8% range from Dec to Jan.
Inventories in the 0-$250,000 range will see appreciation in 2010
Inventories in the $250,000-$500,000 range will outperform 2009 in number of units sold.
Homes priced above $1 million dollars have a large inventory, but this price range typically dwindles faster due to staying power of upper end property owners’ financial ability to wait out the market. Even though today there is lot of upper end inventory, we believe this will decrease at a faster pace than 2009.

The Second Reason 2010 will be improved is that the market is moving from a buyer’s advantage to a seller’s advantage in the starter price ranges.

When inventories dip below 6 months supply normally appreciation occurs.
Be cautious in using a January month supply number as a sole determining factor in predicting the future, because historically inventories are lower in January than any other time of the year.
Different subdivisions will outperform or under perform the numbers below. Real estate is localized to the subarea you are living within. Make sure you know your neighborhood market conditions to predict where the market is going.

The current supply of

Homes in the Denver metro area

per price range is as follows:

Condominiums are lagging behind single family homes in demand for 2009.
As lower priced single family inventory continues to be absorbed, condo inventory will start to be absorbed at a faster pace in 2010.
2009 has experienced appreciation in the lower price ranges. The extension of the $8000 first time home buyer Tax Credit and the addition of the $6500 Tax Credit for existing home owners should continue to cause the lower price ranges to appreciate.
2010 will start to experience the move up buyer re-entering the market in the $250,000 to $500,000 range.
Conversely, 2009 also saw homes priced above $1 million struggle with holding their prices and experience a price declining market in 2009. Overall the average price of these homes dropped 11.2% in 2009.
There are fewer properties to compete with today and serious buyers are buying now, due to the extension and expansion of the Tax Credit, as well as historically low loan rates..
Interest rates are 5% for conforming loans today and more than likely will be a little higher in 2010 causing buyers to make a buying decision early in 2010 versus waiting till later in the year.
We anticipate a slight rise in interest rates in the first half of 2010 to 5.75% to 6%.

The Third Reason 2010 will be improved over previous years is Denver’s economic condition is more stable today than at any time over the last 36 months.

Job stability is stronger in Denver than other markets
An increase in employment will start to occur in the second half of 2010, increasing the confidence of the consumers to buy a home.
2010 will see more stability in the employment sector providing for more buyers willing to buy.

Sold Data is a Trailing Indicator of the Marketplace.

Sold data is the trailing indicator of market conditions. We believe 2009 is the low point in number of transactions. In 2010, month over month closed transactions will be within 1% of 2009 or in some months exceed the previous year.
The number of total sold units for 2009 was 13.8% less than 2008.
Condo sales declined 10.2% from 2008.
Residential sales declined 14.7% from 2008.

Properties under Contract are the Leading Edge of Predicting the Market

The “Under Contract Homes” indicate we have a better pipeline of existing business to open the year than in the last 4 years. More homes that are set to close is a trend of a market starting to move upwards.
We anticipate the closing time frame to shorten in 2010 as banks and Realtors are better understanding the new financing and short sales processes.

What did 2009 bring to Real Estate in Denver?

The $8000 Tax Credit did create more sales in the 4th quarter of 2009 and will enhance sales the first 4 months of 2010.
The number of properties under contract remained at higher levels which indicated a longer closing period and increased buyer confidence to stay with the elongated process of short sales and financing challenges.
Denver Metro saw a decrease of more than 20% of the number of real estate brokers in 2009. Work with a seasoned professional to protect your position.
The average price of a home declined 2.3% in the Denver Metro area. Lower priced properties went up and higher priced properties declined. Know your neighborhood before just assuming the trend affects you and your home.

Overall 2010 will bring compelling reasons to buy real estate in Denver.

The $8000 tax credit for first time homebuyers and the $6500 dollar tax credit for existing home buyers will increase demand the first half of 2010.
Interest rates are at historical lows and will rise. Once that occurs, buyers will move more quickly to obtain the home of their choice.
Continued fewer new home starts will create less competition for resale homes and allow them to be absorbed at a quicker pace than in 2005, 2006, 2007 and 2008.
Alternative marketing methods will be used to avoid foreclosures and move real estate including loan modifications, pre-foreclosure programs, short sales, and property auctions.
Prices for the upper end market continue to offer extraordinary concessions making for a perfect time to acquire the home of your dreams.

What should buyers do in today’s market?

Take advantage of your “Move-up Power” by exploring what it would take to rent your existing home and get an exceptional deal on your next home.
Get pre-qualified for your loan before starting your home search to become more attractive to sellers.
Be creative in your offers to add closing costs, HOA dues or loan points to make the monthly payment more attractive to you short term.

What should sellers do in today’s market?

Know your individual sub area statistics to best position your home.
Have your home professionally staged to capture the eye of today’s buyers.
In the lower price ranges, be the best conditioned to get multiple offers.
In the upper price ranges, offer extraordinary terms to attract the buyers to your home.

If you or someone you know is ready to make a move in this favorable market, call me,

Marianne Bandy

, at 303-746-7799.

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Early Intervention Can Prevent Foreclosure

Mon, 18 Jan 2010 13:53:55 GMT

Early Intervention Can Prevent Denver Foreclosure

Few people move into a new home with plans of defaulting on their mortgage. As they say in the movies, "life happens when you're making other plans." Many who took on a mortgage with the best of intentions now find themselves in trouble when their loan terms change or when their personal income picture changes due to job loss, divorce, or illness. They are late on a payment, or miss one or two, and then find themselves on the receiving end of phone calls from the lender threatening foreclosure. As we have said here before, foreclosure does not have to be the end of the story. What steps, then, can a person take who wants to keep his home after falling behind?

It's human nature to ignore problems in hopes they'll go away or work themselves out, but in the absence of a financial windfall, mortgage delinquency will not disappear. Late payments will show on a person's credit record even after the account is caught up. The best first step to preventing foreclosure is to seek help early, which is plentiful these days.

· Lenders are more willing to work with borrowers these days, so calling the lender directly is one option. Lenders do not really want the property back so they might be willing to help you.

· The Colorado Foreclosure Hotline is set up to counsel delinquent mortgage holders. The housing counselors there can suggest a plan of action.

· A real estate agent like myself with expertise in handling distressed property situations can also work with the homeowner to find alternative solutions to foreclosure in Denver.

Many foreclosures occur because people wait too long to check out their options. While mortgage payments are usually due monthly, the lender will usually just add fees and make calls for three months before starting the foreclosure process. By this time, thousands of dollars could be due. As soon as a homeowner knows he's headed for trouble is a good time to make the call.

As an unfortunate byproduct of the foreclosure crisis, many for-profit companies have sprung up to take advantage of scared and worried homeowners. Scams abound in this area, but so does free advice. The Foreclosure Hotline is non-profit, the lender will work with the debtor to prevent further loss, and a CDPE-certified professional like myself does not benefit from counseling.

Foreclosure has a long-term impact on a person's credit record. Not only do people have to declare a foreclosure on job applications and credit applications for cars, apartments, and mortgages, but their credit scores are hit with a loss of 300 or more points, which may be an obstacle to their obtaining credit or a future mortgage at reasonable rates. Taking swift action is the best way to prevent or minimize damage and salvage not only the home but one's financial future as well.

For a confidential discussion about alternatives to foreclosure in Denver, contact your Denver CDPE advocate today to discuss your options. I'm here to help!

Marianne Bandy

Your link to beautiful Centennial CO homes

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Fearing Foreclosure in Denver? - Don't Trust Your Fate to Late Night TV

Thu, 14 Jan 2010 12:04:05 GMT

Fearing Foreclosure in Denver? - Don't Trust Your Fate to Late Night TV

It’s amazing, isn’t it? The country has been nearly crushed by the foreclosure crisis. All the great economic and social thinkers in the country are struggling to find a solution. Yet, you listen to late night TV or read the flyers stuck on telephone poles all over town and you hear that someone already has the answer! They will share it with you, if you just call for free mortgage help…

When you call, typically, the company promises to solve all your foreclosure problems, a dream come true! Unfortunately, most of these companies are scammers. Some are legitimate, but many are schemers who have pulled names of delinquent homeowners from public records and responses to fast talking ads on late night TV.

Usually they want an upfront payment, often equal to a month’s mortgage payment. The company may pocket the fee, while presenting the homeowner with a phony document that the foreclosure has been set aside. They may even ask the homeowner to sign over the deed to the property. The homeowner may think all is well until he receives a bankruptcy filing in the mail, filed in his behalf, without his knowledge. This leaves the homeowner with more legal bills, a poor long term credit picture as he will have difficulty buying or renting for 10 years, and perhaps, no home if he has signed over the deed. In some cases, the company does not even contact the lender.

Foreclosure scams fall into three main categories:

Phantom help: The company promises to contact your lender, which they may or may not do, regardless of what they tell you. They may fill out some basic paperwork you could have completed yourself.

The bailout: The company offers to buy the home and rent it back to you until you can buy it back. Many times, they pocket what you pay while never dealing with your lender so you end up with no property and no place to live.

The bait and switch: The company may have you sign documents to make the mortgage current, but actually you are signing over your home.

There are many variations on these scams but in any case, you usually end up in worse shape. Not only are you out the money you have paid, but you may have no property or, if you have stopped paying your mortgage on the belief the company was helping you, owe your lender more than you did before you called.

At the moment, we have a free Federal program called Making Home Affordable that will help many homeowners. Even if you do not ultimately qualify for this program, there is plenty of free or very low cost help available from HUD-approved counselors and non-profit groups that will either help you stay in your home or move on to a new stage in your life. Ironically, since the government started its program, foreclosure scams have actually been on the rise.

Some scammers have even set up shop with company names or websites similar to those of reputable organizations. Hope Now Modifications, a flagrant New Jersey company, claimed affiliation with the Hope Now Alliance. Their website www.financialstability.org, which directs customers to a variety of payday loan, stop foreclosure, and debt relief sites, plays off domain-name similarity with www.financialstability.gov, a U.S. Treasury site.

At this point, the scammers have incurred the wrath of the President, the Treasury, the Department of Justice, the Department of Housing and Urban Development, and the Attorney Generals of several states. All have issued warnings to homeowners and have pledged better government cooperation to stop this type of fraud.

Late night TV and telephone pole ads cannot solve your problems. However, as a Certified Distressed Property Expert (CDPE), I am committed to helping you stop foreclosure in Denver. Before you consider paying anyone to help you, check out our Denver avoid foreclosure website for tips on how to avoid foreclosure scams. At Bandy Homes, we can help you arrange a short sale or explore other options.

Marianne Bandy

Centennial Colorado Real Estate & Homes

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Foreclosure: Not the Only Option

Wed, 13 Jan 2010 13:25:47 GMT

Foreclosure: Not the Only Option

Foreclosures in Denver may be statistically decreasing but for homeowners who are slipping into mortgage payment delinquency, the fear of becoming a statistic is strong. As a Distressed Property Expert and Realtor, I insist that foreclosure is not the answer to the current home ownership crisis looming throughout the Denver area.

Foreclosure, not unlike a surgical procedure, should be viewed as the last recourse after everything else has been explored and not the first treatment choice. Many Coloradoans are fearful of their situations and do not realize that there are positive steps that can be taken to avoid foreclosure in Denver. My focus with homeowners facing foreclosure is to give them the hope of a dignified solution to their financial crisis through current lender loan modification, loan refinancing (short or long-term) or a short sale (a lender-approved sale at less than the outstanding loan balance.)

After several years as a top performer at the Bandy Home Team, I recently completed certification as a Distressed Property Expert. I personally view my CDPE (Certified Distressed Property Expert) designation and my commitment to help financially distressed homeowners, as both a responsibility and an obligation to my profession.

Over 85% of the clients served by CDPE real estate professionals avoid foreclosure. Alex Chafren, founder of the Distressed Property Institute, believes that homeowners surrounded by a strong CDPE real estate agent team including legal and financial referrals have the greatest chance of avoiding foreclosure and at minimal financial investment to the homeowner.

My commitment to help save homeowners from foreclosure began after participating in several foreclosures, short sales, and bank owned transactions. Witnessing the helplessness, utter sense of aloneness and guilt felt by homeowners facing foreclosure compelled me to act as a homeowner advocate, lending a helping hand of expertise and compassion. My eight years of real estate experience, my commitment to education, strong marketing, systems development, and checklists, combined with my knowledge of the pre-foreclosure process, have given my clients a huge advantage in this current epidemic of foreclosures.

Not having a clear understanding of the elements and consequences of foreclosure lead many homeowners to just give up. And believe me there is a huge difference in "after foreclosure" as opposed to "life without foreclosure." We may not be able to save every house, but we can offer the saving hand to every financially distressed homeowner.

Need information about alternatives to foreclosure in Denver ? Do you want to receive a free report on how to prevent Denver foreclosure? I'm here to help!

Marianne Bandy

Your guide to beautiful homes in Aurora Colorado

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Hampered by High Payments on your Denver Home? Maybe HAMP Can Help

Mon, 11 Jan 2010 11:33:50 GMT

Hampered by High Payments on your Denver Home? Maybe HAMP Can Help

If you suddenly find yourself with a mortgage on your Denver home that is too high for your income, or if your circumstances have changed since you took it out, you may find help with the government’s Home Affordable Modification Program. The need for HAMP originated with President Obama’s Making Home Affordable program, announced in February, 2009. Created by the U.S. Treasury Trouble Assessed Relief Program (TARP), HAMP seeks to facilitate working with your lender to make the payments affordable. Changing the terms of a mortgage is a complex process that involves a ton of documentation from you and a ton of tedious paperwork that must be filled out accurately. HAMP strives to streamline the process.

The program aims to capture applicants who are either delinquent or on course to be. Meg Reilly from the Treasury Department claims that over 25,000 applicants are processed through HAMP each week. To date, over 500,000 loan modifications are in process. The program got off to a slow start as servicers got up to speed; in July, President Obama strongly urged the lenders to hire more staff to meet the needs of troubled home owners. This year, Wells Fargo, a major loan servicer, claims to have hired over 5,800 people to meet the need, while many other banks have followed suit. Many necessary documents are now online.

To qualify for HAMP, you must have a mortgage payment (including principle, interest, taxes, and insurance )which is currently more than 31 % of the household’s monthly income. If approved, the program will lower the payment to 31% for at least five years. At that point, the interest will increase to a current market rate capped so it won’t exceed a certain level. The process, which starts with you contacting your lender, stating your case, and compiling required documents, ultimately ends with a reduced payment. To arrive at a 31% payment, the lender might reduce the interest rate to as low as 2%, extend the repayment term to up to 40 years, and possibly reduce some principle.

So, does all this mean that HAMP will help you? The answer is “maybe.” You must prove to the lender that you have a good reason to have the loan modified. More importantly, you must have the income to devote 31% to housing costs. If you are unemployed without prospects for a job, the program will probably not work for you.

Will HAMP help you quickly? Here, the answer is “Probably not.” The process itself is lengthy. After you provide all the documentation, your case is reviewed. If you receive preliminary approval, you will be set up for a three month trial with your new payment while the bank reviews and processes your documents. If the bank cannot process your documents in time, you can get a two month extension. Once all the paperwork is processed, you will receive all the documentation in the mail.

Many who have gone through the process claim that it is hard to reach servicers. When they do get through, they complain they get a run around about their eligibility, often have to submit their documents several times, and then be told they do not qualify after starting the process. Paperwork gets clogged in the system, as people are on trials for much longer than three months with a two month extension.

Some critic say this slowness is because lenders are overwhelmed; other take a more calloused view that it is more profitable for banks to do foreclosures than do workouts. In any case, the Federal Government is committed to making this program work. This means they will also continue to help smooth out the process, as well as put pressure on the lenders to step up their processing time and increase the number of people they accept.

If you fear you are on the course to foreclose, do not despair. HAMP is a great place to start to try to work out your situation. You can take the first step by contacting your mortgage company or by visiting the Making Home Affordable site.

This is also a good time to talk to Marianne Bandy, the Certified Distressed Property Expert (CDPE) at the Bandy Team of RE/MAX Professionals. She will discuss other loan modification alternatives with you to avoid foreclosure on your home in Denver, Aurora, Centennial, or anywhere else in the Denver Metro Area. Don't Let Time Run Out - Help Is Available. Contact Marianne today at 303-746-7799.

Marianne Bandy

Magnificent Mountain View Homes in Denver

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Will the New Rules Put the "Short" Back in Short Sales for Denver Home Sellers?

Thu, 07 Jan 2010 11:41:03 GMT

Will the New Rules Put the "Short" Back in Short Sales for Denver Home Sellers?

Up till now, “short sales” have been the real estate agent’s definition of an oxymoron; they have not been short, and, in fact, many have not resulted in sales. The banks have not been crazy about doing them, claiming they are understaffed or overwhelmed. Yes, consumer groups, HUD counselors, and Certified Distressed Property Experts (CDPE) like Marianne Bandy of The Bandy Team at RE/MAX Professionals have continued to promote short sales in Denver as excellent alternatives to foreclosures. Since the early days of the Making Home Affordable program, the Obama Administration has been promising some new rules to make short sales easier to complete.

All parties except the lenders agree that short sales help preserve neighborhood housing prices and keep homes occupied longer, which, in turn, further stabilizes prices. The process is less costly for lenders than foreclosure, though it may not satisfy the investors behind any financing deal. Finally, on December 2, the Administration released the long-awaited rules which attempts to touch all bases and actually get short sales moving.

The new guidelines offer financial incentives for borrowers, mortgage companies, and investors to participate in the program.

$1000 to lenders for administrative costs
$1500 to sellers to cover closing costs or for moving expenses
Up to $3000 towards paying the junior lien holders to release their lien.

To qualify:

The property must be the home owner's principal residence.
The homeowner is delinquent on the mortgage or default looks likely.
The loan was made before Jan. 1 2009 and is less than $729,750.
The borrower's total monthly mortgage payment exceeds 31 percent of before-tax income.

What’s unique about the new program is that it standardizes paperwork and gives the lender 10 days to approve or turn down a request for a short sale. When it’s done, the short sale must release the borrower from the debt. During the process, the lender cannot foreclose on the property or charge fees. The new rules come at a time when at least one major bank has adopted

improved software

to streamline paperwork for short sales.

Click here

for the full text of the new rules.

What pleases sellers (and real estate agents) is that mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt. The rules also prohibit mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings. The deadlines remove a lot of the uncertainty from short sales, a relief to buyers as well as the seller and their agents.

The new rules have the potential to help three groups of Denver area residents, and as always, The Bandy Team is ready to help,

If you are facing

foreclosure in Denver

, and meet the criteria above, contact Marianne Bandy today about listing your home as a short sale.

If you are a potential home buyer, a short sale home is one more choice before you as you are house shopping at a time when the market is crowded with other buyers eager to use the

home buyer tax credit

If you are an investor looking for great potential rentals in

Highlands

Aurora

Centennial

, or other communities in the

Denver metropolitan area

, you can take advantage of great prices and interest rates.

For more information, contact Marianne at

The Bandy Team

today.

Marianne Bandy

Denver has Great Schools

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Banks Are Finally Seeing the Value of Short Sales

Tue, 05 Jan 2010 19:27:59 GMT

Banks Are Finally Seeing the Value of Short Sales

These are interesting times in the Denver housing market, and nationwide. Today, there are a lot of homeowners who owe more than their homes are worth, and up until recently, only one viable option seemed to exist for people who could no longer afford to stay in their homes - banks were foreclosing, leaving the homeowner with nothing and the banks with even less. Now, faced with a housing slump and an economic recession that has cut resale values as much as 30 percent, banks seem to finally be getting smarter about the huge inventory of homes that would otherwise be going into foreclosure - they are starting to approve more and more short sales.

A short sale is when the bank agrees to allow the homeowner to sell the home for less than the balance of the mortgage owed. The process can be lengthy; sometimes the bank will take several months to approve a short sale, so buyers have had to be patient. For every short sale there were 25 foreclosures started or completed during the first half of 2009, which has brought sharp criticism from the Obama administration and lawmakers. They’ve accused banks of favoring foreclosures and delaying short sales to keep losses off their books. Now, lenders and loan servicers can receive up to $2,000 in incentives to close short sales under a Treasury Dept. plan presented on November 30.

But, short sales are increasing - tripling to 40,000 in the first six months of 2009 from the same period in 2008. It seems the banks are finally realizing that they’re better off if they approve a short sale, than if they allow the home to go into foreclosure. And, banks like Wells Fargo, Bank of America, and JPMorgan Chase. have hired and trained more staff this year and developed software systems for expediting short sales and increase marketing of short sales to delinquent borrowers. This is a welcome change, and it is hoped that it will loosen the bottleneck that we’ve seen in the marketplace.

To learn more about the new rules on short sales, read our blog article titled "Will the New Rules Put the Short Back in Short Sales For Denver Home Sellers".

Whether you’re in the market to buy a Denver area home or sell a home in Denver, you want to be sure you’re getting the best value, so let the Bandy Team guide you through the entire process. We are equipped to help you find the right home at the right price in the Denver metro area, and if you'd like to find a house in Stapleton, a Lowry home, a home in Cherry Creek, or a house in many other communities along the Colorado front range, give us a call!

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Colorado mortgage rates drop to 4.65%

Fri, 20 Nov 2009 09:58:37 GMT

Colorado mortgage rates drop to 4.65%

GOOD NEWS for Colorado! Mortgage rates are holding, but for how long??? According to Zillow Mortgage Marketplace, 30-year fixed home mortgage rates in Colorado took a slide to a new recent low of 4.65% as of Tuesday. This is just down a tad from last week's average of 4.66%. Nationally, the average rate was 4.66% on 30-year fixed loans. Zillow says these rates are figured on borrower credit scores over 680 & a down payment of 20% or more. Winter is the BEST time for Denver Home Buyers to buy. Denver Home Sellers that leave their homes on the market are MOTIVATED! Sure it can be a hassle to look at homes when there's so much else to do during the Holidays, but it could be worth it, especially with rates SO LOW!!

Marianne Bandy
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

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Calm before the storm??

Thu, 12 Nov 2009 13:33:59 GMT

Calm before the storm??

Though US foreclosures are down for the 3rd straight month, warning signs still loom. According to foreclosure data provider RealtyTrac, filings are up about 19 percent compared to October 2008. Not a good sign.

James J. Saccacio, CEO for RealtyTrac, said that "high-risk mortgages, negative equity and unemployment" are among the contributors to higher foreclosure activity on a year-over-year basis in most states.

Is the slow down of foreclosures a good sign? Or just the calm before the storm?

Marianne Bandy
The Bandy Team - Re/Max Professionals
Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

Making Home Affordable not reaching as many as hoped

Wed, 11 Nov 2009 16:56:44 GMT

Making Home Affordable not reaching as many as hoped

According to the Daily Real Estate News, the federal loan modification plan, “Making Home Affordable,” has reached about 20 percent of troubled homeowners in the hard-hit states of California, Arizona, and Nevada.

But only about 12 percent of homeowners facing foreclosure in Florida were reached, probably because of the high numbers of investors, analysts said.

Economists think that it is unlikely that the Obama administration will reach its goal of helping 3 million to 4 million borrowers in 3 years with this plan.

Federal officials say they are doing their best and blame loan servicers for dragging their feet. "We are reaching all the places that really got decimated," said Michael Barr, an assistant Treasury secretary.

Whoever is to blame, there are so many troubled homeowners that aren't getting answers. Call Marianne today to talk about your options.

Denver Area Market is looking up! Denver bucks the National Trend!

Wed, 11 Nov 2009 16:45:38 GMT

Denver Area Market is looking up! Denver bucks the National Trend!

Hey, here's some info hot off the presses.

Homes in the Denver-Aurora metro areas gained 1.8% in the 3rd quarter from the 3rd quart 2008 - bucking a national trend of prices falling. According to a report by the National Association of Realtors, the 153 Metro areas it tracks lost 11.2% overall. The Denver-Aurora area saw the median price in the 3rd quarter rise to $229,100 from $225,100. While in Boulder, the median price fell 0.9% to $358,300 from $361,500. However, 3rd quarter home sales in Colorado were down 14.1% from the third-quarter of 2008, while overall sales increased 11.4% for the nation. Hmm, it looks like the effects of the drop in inventory is starting to be seen.