Avoid Foreclosure in Denver

Home Foreclosures Down in Colorado - Good News for Denver Homeowners

Thu, 12 May 2011 21:10:49 GMT

As a Denver homeowner, you may have seen The Denver Post article which reported that foreclosures in Colorado recently hit their lowest level in more than two years. New foreclosure filings fell to just over 8000 in the first quarter of 2011, which is 27% lower than they were last year at this time. This follows national trends which show that the number of homes repossessed by banks in the first quarter of this year was down six percent from the last quarter of 2010. Either way it's good news and we'll take it.

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

If you're experiencing financial difficulty and have been thinking about selling your Denver home, this may be the time to do it. Because there are fewer foreclosed homes coming on the market, you could have a better chance of attracting buyers who are interested in your home. You might also find that the recent economic upswing could mean that you now have a small amount of equity in your home once again. This might make it possible for you to sell your home and avoid going through either a short sale or a foreclosure. Request our Free Market Report to obtain information on homes sold in your area so you can get an idea of what the value of your home might be. Avoiding foreclosure could mean saving your credit, reducing financial burdens, and decreasing stress on you and your family.

If you're one of the lucky people who have already benefitted from the financial recovery, this could be a great time to buy a Denver home. There are still many quality homes available for reduced rates, or short sale or foreclosure pricing. With a little patience, you could find a home that's just right for you (at a great price), settle in, and then watch it increase in value once the economy starts improving more consistently.

As a Certified Distressed Property Expert (CDPE), I have specialized training and resources to help buyers and sellers work through their options when it comes to distressed properties. Sellers can contact me for a free consultation to see what makes the most sense for an individual situation. Buyers can rely on me to help find a quality home at a reasonable price.

If you're thinking about buying or selling a distressed property, the real estate experts at Bandy Homes are here to help. We are your Denver area real estate experts, and we're here to help you learn more about your options. We can answer your questions and show you some beautiful homes in Denver; some great houses in Parker including the Canterberry Crossing Golf Community; or some fabulous homes in Castle Rock including The Meadows.

Marianne Bandy

Learn more about schools in Denver.

Is a Distressed Property Right for You?

Fri, 08 Apr 2011 12:09:11 GMT

Like anyone else, Denver home buyers want to know that they're getting the best possible “deal” whenever they purchase something. The same idea applies to the purchase of real estate, which is why many buyers decide to go with what's known as a distressed property – a foreclosure or a short sale. Last week, the National Association of Realtors^® (NAR) released a report, discussed in the Keeping Current Matters blog, which showed that foreclosures are currently selling at a 22% discount, and short sales at a 17% discount.

This can sound like a dream come true! However, purchasers must be aware of a few added obstacles in any transaction involving a distressed property. For instance, foreclosed properties are often left in less than desirable condition, and some have title issues which must be corrected before the property can change hands. Also, short sales often have multiple loans that must be negotiated before an offer is accepted by all parties to the transaction. This can be a seriously time-consuming process.

So, should you bypass the purchase of a distressed property? Of course not! You just need to know that frequently, when purchasing a distressed property, you'll be faced with a “hidden” additional cost – the cost of your time. For many buyers, that 17 or 22 percent discount mentioned above is well worth the extra time spent on the transaction. Think of that savings as “patience equity.” If you realize from the outset that you're going to have to be patient with the process, you'll come out a winner in the end. And remember, being patient means that you'll need to have faith in your real estate professional; they'll need time to manage any obstacles and challenges.

If you want to reap significant savings – in addition to owning a home that has considerable equity the day you move in – you should seriously consider purchasing a distressed property whether it's a Denver foreclosure or a Denver short sale. Work with a Realtor^® who can explain the process at every step along the way. Marianne is a Certified Distressed Expert (CDPE), and has the knowledge and experience to help you through the process.

Contact Bandy Homes today. The Bandy Team can help answer your questions about our local market and show you some beautiful homes in the Denver metro area, including houses in Aurora, homes in Parker, and real estate in Castle Rock.

Marianne Bandy, CDPE

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

Did Loan Modification Programs Actually Work?

Fri, 25 Mar 2011 12:57:58 GMT

Denver home owners will be interested in a recent Keeping Current Matters article, which discussed the outcomes of the federal government's Troubled Asset Relief Program (TARP). TARP was, in part, funded to help maintain house values in the wake of the nation's economic crisis. The program was intended to help avoid foreclosures, after it was determined that the US economic market would be unable to manage the number of foreclosures that were happening.

Regarding real estate, TARP funds were to be used “…in a manner that protects home values, college funds, retirement accounts, and life savings; preserves home ownership and promotes jobs and economic growth; maximizes overall returns to the taxpayers of the United States.” The aforementioned protection of home values and preservation of home ownership was to be achieved through the Home Affordable Modification Program (HAMP).

In its review of TARP's (and HAMP's) outcomes, the Congressional Oversight Panel (COP) noted that: “…when the President announced the Home Affordable Modification Program in early 2009, he asserted that it would prevent three to four million foreclosures. The program now appears on track to help only 700,000 to 800,000 homeowners.”

In mid-2008, Congress established the HOPE for Homeowners program (under the Housing and Economic Recovery Act of 2008). It allowed the FHA to insure refinanced distressed mortgages, and was expected to help 400,000 home owners. According to the COP report, “...it managed to refinance only a handful of loans. This was likely due to the program‘s poor initial design, lack of flexibility, and its reliance on voluntary principal write-downs, which lenders were very reluctant to make.”

So what's the good news? TARP didn't cost taxpayers as much as it was originally anticipated to cost. The COP report notes that this is because the foreclosure prevention programs, “which could have cost $50 billion, have largely failed to get off the ground. Viewed from this perspective, the TARP will cost less than expected in part because it will accomplish far less than envisioned for American homeowners.”

For people who are having trouble making their mortgage payments, they still have the option of doing a short sale on their house. A short sale means that the lender agrees to take a payoff that is short of the amount owed on the mortgage.

Spring is here and there has never been a better time to find your new Denver home! Call The Bandy Team today; we're ready and willing to help with your transition to a Parker horse property, a Founders Village house, or your dream home in Washington Park.

Marianne Bandy, CDPE

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

American Humane Association's Tips for Pet-Owning Homeowners Facing Foreclosure

Fri, 11 Feb 2011 18:27:42 GMT

The physical and emotional difficulties often suffered by Denver homeowners dealing with the foreclosure process can be compounded when the additional dilemma of what to do with family pets is thrown into the mix. As mentioned in a previous blog, No Paws Left Behind is a Houston-based organization which performs “foreclosure animal rescue,” saving and sheltering animals who are abandoned by their owners. Here are some additional tips and important things to remember from the American Humane Association:

Don't leave your pets behind if you must vacate your home. They can't survive on their own if you leave them in the vacated property, or if you set them loose.

If you can't take your pets with you, take some simple steps to find safe placement for them.

Check with family, friends, coworkers, and neighbors; ask if they are willing to care for your pets until you're settled.
Ask your vet if they're willing to provide low-cost boarding. If not, see if they're willing to set up a payment plan for you.
If temporary placement isn't an option, visit www.petfinder.com to search for shelters and rescue organizations that don't euthanize adoptable animals. This will provide you with peace of mind, knowing that your pets will be safe until they are adopted into a new home. Some shelters may even offer to house your pets for a specified period of time at no cost, or at a reduced cost, while you find new housing, so you can be reunited with your pets. Always ask if this is an option.
Surrendering your pet to an open-admission shelter is always a possibility, but remember, these shelters must accept all animals that are brought in. If the shelter is overcrowded, they may be forced to euthanize your pet.

The Humane Association also points out some of the potential legal ramifications of abandoning your pets:

Whether you choose to leave pets indoors (even with food and water) or release them outdoors, state criminal animal-cruelty laws pertaining to abandonment or neglect may apply.
If you abandon your pets (even if you've arranged for someone to check on them) you may still be in violation of criminal animal-cruelty laws. In addition, when the mortgage lender takes possession of the home, your pets will be removed, leaving them at risk of an uncertain future that may include euthanasia.

Facing foreclosure can be devastating, but there are options. If you're a homeowner who wants to avoid foreclosure in Denver and you need to know the available alternatives, call the Bandy Team today. We're your local experts, and we can help you explore your options. Let us help you find the best possible outcome for your situation.

Marianne Bandy, CDPE

The Bandy Team - RE/MAX Professionals

Denver, Colorado
303-746-7799
www.DenverAvoidForeclosure.com

National Non-Profit Helps Silent Victims of America's Foreclosure Crisis

Fri, 04 Feb 2011 17:15:45 GMT

When Denver homeowners think about foreclosures, abandoned animals are likely not the first thing that comes to mind. An organization called No Paws Left Behind (NPLB), based in Houston, TX, recently announced its 1,000^th “foreclosure animal rescue.” Over 1,000 abandoned pets have been successfully rescued and placed in "no kill" shelters, where foster care is provided until adoptive families can give them a good home.

As the number of foreclosures across the country has increased and upset the housing market, many homeowners have been faced with the trauma of leaving their homes. Often, they lack the financial means to continue caring for their pets, and end up abandoning them. Many pets are found locked in basements, garages, or simply left in backyards without food or water.

NPLB was formed by Cheryl Lang, President and CEO of Integrated Mortgage Solutions, (IMS) a leading provider of REO property inspections and rehabilitation. Lang created NPLB after coming face-to-face with countless abandoned animals at inspection sites. "Sadly, the current housing crisis has severely affected countless homeowners creating a trickle down negative effect on helpless animals," said Lang. "During routine housing inspections, we frequently discover animals left behind in deplorable conditions with no food and at times inadequate shelter."

Nationwide, NPLB has found homes and shelters for over 1,000 abandoned animals found on foreclosed properties. With community support from local shelters, rescue groups, and volunteers, NPLB provides food, shelter, and vaccinations to abandoned animals every day. The organization also provides immediate support to owners faced with the terrible decision of having to part with their pets – from locating a new home for the pet, to providing monetary assistance for pet deposits.

"We receive over 20 calls a week regarding an abandoned pet being left behind," said Lang. "It's just heartbreaking. Our goal is to be the voice of these silent victims and bring greater awareness and solutions to the growing phenomena of foreclosure pets."

As part of their Pet Awareness campaign, No Paws Left Behind recently launched a hardship pet deposit assistance program. This program provides homeowners in foreclosure with financial assistance, if they are unable to pay a pet deposit for a new home.

"We are thrilled and proud to have reached this momentous 1000^th pet rescue milestone," said Lang. "We will continue to strive to help homeowners and their pets through this foreclosure epidemic, so that no one is left behind without a home or shelter."

More people than ever are facing foreclosure, but there are options. Are you a homeowner who wants to avoid foreclosure in Denver and needs to know the alternatives available to you? Call the Bandy Team today. We're your local experts, and we can help you explore the alternatives to foreclosure. Let us assist you in determining the best outcome for your situation.

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

Another Prediction Come True: Holiday Foreclosure Freeze for Denver Homeowners of Distressed Properties

Mon, 06 Dec 2010 10:38:12 GMT

Another Prediction Come True: Holiday Foreclosure Freeze for Denver Homeowners of Distressed Properties

Posted: 05 Dec 2010 11:24 AM PST - reblogged by Marianne Bandy

With all the noise surrounding the “robo-signing scandal” and subsequent foreclosure freeze, it may have taken some by surprise that the banks would issue another “freeze” on their foreclosure processes. But as we predicted, the major banks — as well as Fannie Mae and Freddie Mac — will postpone their foreclosure procedures from Dec 20-Jan 3.

It is our position that this freeze will only mean more time for Denver metro homeowners facing foreclosure to find solutions. Time is only one gift distressed homeowners should have this holiday season … as an educated real estate professional like Marianne Bandy, you can also give them the gift of hope.

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

Robo-Signing Saga Continues

Wed, 01 Dec 2010 10:58:42 GMT

The Robo-Signing Saga Continues

Posted: 30 Nov 2010 01:19 PM PST - reblogged by Marianne Bandy 12/1/2010

Freddie Mac and Fannie Mae have recently ended their temporary ban on selling foreclosed homes in the latest installment of the “Robo-Signing Scandal.” After cutting ties with the law firm that allegedly forged signatures and hid flawed files from auditors, the two government-sponsored entities (GSEs) have given brokers the green light on marketing foreclosures or completing the sales of those already under contract.

Freddie and Fannie own or guarantee about half of all U.S. home mortgages. With 31 million loans worth about $5 trillion, the two GSEs are significant players in the distressed property market. Around 1 percent (250,000) of Freddie’s and Fannie’s mortgages are foreclosures, while another 8 percent (2.48 million) are currently delinquent.

If you are a distressed homeowner with an upside down property, get a free confidential consultation with Marianne Bandy. Get help now! Don't wait until it's too late.

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

New Rules for Wells Fargo Short Sales in Denver

Mon, 29 Nov 2010 12:04:34 GMT

New Rules for Wells Fargo Short Sales

Posted: 28 Nov 2010 03:03 PM PST - reblogged by Marianne Bandy 11/29/2010

Agents working short sales with Wells Fargo or Wachovia should be aware of some new regulations.

With much speculation on this subject in recent weeks, DSNews reported new rules regarding Wells Fargo short sales when foreclosure is within 30 days. The bank’s new policy will allow for only one foreclosure postponement given the following criteria:

Wells Fargo has an approved short sale sales contract in hand (if necessary, approvals from junior lien holders and mortgage insurers as well);
buyer has proof of funds or is preapproved for financing; and
the short sale can close within 30 days of the scheduled foreclosure sale.

Beyond these restrictions, Wells Fargo did note that investors may vary in what they allow, and some states require the courts to approve any delay.

If you find yourself against the clock with a Wells Fargo short sale, there is still hope. The bank expressed its willingness to address situations outside these qualifications on a case-by-case basis.

If you need help with your Wells Fargo short sale, call me. Free and private consultation.

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

Colorado Third Quarter Foreclosure Filings Down from 2009

Fri, 19 Nov 2010 16:45:50 GMT

More great news for Denver homeowners – according to data released last week by the Colorado Division of Housing, new foreclosure filings in the state dropped in the third quarter (compared to 2009 numbers), while sales of foreclosed properties increased. The 2010 third quarter numbers were down 15% from last year's filings for the same period, leading the Division to project total 2010 foreclosure filings falling below the 2009 total. Foreclosure sales figures were up 18% compared to the same period last year.

There are a variety of reasons for the decrease in foreclosure filings. Primary among these is the fact that lenders and loan servicers have been working their way through their non-performing mortgage loans with more scrutiny, which slows down the process. Many major lenders are reviewing pre-foreclosure documents, amid nationwide controversy over paperwork procedures. According to Stephanie Riggi, manager of the Colorado Foreclosure Hotline, "They're making sure documents are right."

One reason foreclosure sales have increased may have to do with the short-sale process. A short sale is the sale of a property in which the proceeds are less than the balance owed on the property. Lenders often opt for the short sale because a moderate loss on a loan is better than taking back the property or pressing the borrower. In addition, more properties are selling at foreclosure auctions due to the fact that many public trustees have shortened the time between a foreclosure filing and foreclosure sale. The process used to take close to a year; it now takes about four months.

A review of the state's 12 metropolitan counties produced the following numbers for the third quarter:

Two counties with recently high foreclosure rates had decreases in the last quarter – Adams County had a 12.4% drop year over year to 1,276, and Denver County reported a 22% decrease to 1,275.

Denver and Adams counties showed the highest number of foreclosure sales. Denver County had 817 sales, up 1% from the prior-year quarter, and Adams County reported 804 sales, up 1.8%.

If you are a homeowner who wants to avoid foreclosure in Denver and you need to know your options, give the Bandy Team a call. We're your local experts; let us assist you in determining the best possible outcome for your situation.

Search homes in Highlands Ranch, Colorado

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

The difference between judicial and non-judicial states …

Mon, 25 Oct 2010 13:37:37 GMT

The difference between judicial and non-judicial states …

Posted: 23 Oct 2010 03:57 PM PDT - reblogged by Marianne Bandy

is relatively simple, but an important and often misunderstood part of the foreclosure process. We’re encountering a lot of confusion among agents and homeowners about this issue, so here’s some clarification.

Judicial

A “judicial” state requires a judicial review of the foreclosure case before it can be officially processed. The foreclosure process actually begins by filing a Lis Pendens (“a lawsuit pending”) document in a court of law. Following are the states that require judicial review: Connecticut, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Carolina, Vermont.

Non-Judicial

In “non-judicial” states, lenders or trustees file a Notice of Default with the county recorder’s office to commence the foreclosure process, and the process does not need to go through the courts. These states include Michigan, New Hampshire, Tennessee, Utah, Washington D.C., West Virginia.

The remaining 25 states allow both judicial and non-judicial foreclosure, though some have tendencies toward one practice or the other.

For some additional clarification, Thomas Lawler, former director and senior vice president at Fannie Mae, recently provided this informative explanation in a post for The New York Times:

“Some states allow both judicial and non-judicial foreclosures. … And in some states, judges have enormous discretion as to how to handle a foreclosure. … In many judicial states, foreclosures can be challenged, and such challenges have increased drastically.”

This distinction has become increasingly visible due to the recent “foreclosure freezes” by major lenders nationwide, most of which initially halted foreclosure proceedings in the states requiring judicial review. As a real estate agent, Marianne Bandy understands the foreclosure process and timelines in Colorado, so I can properly educate a distressed clients in the Denver Metro area. Never before has the counsel of educated real estate agents been in greater need.

If you would like a confidential consultation, feel free to call the number below, or fill in your information below and we will contact you.

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

Is a national foreclosure moratorium on the way?

Mon, 25 Oct 2010 12:58:02 GMT

Is a national foreclosure moratorium on the way?

Posted: 24 Oct 2010 09:22 AM PDT - reblogged by Marianne Bandy

History would say, “Yes. I’ve seen this before.”

Since 2008, talk of foreclosure moratoria has emerged in the fourth quarter around the holidays, only to be lifted part-way through the first quarter with record numbers of foreclosures flooding the market. This is then followed by an increase in short sales as banks and homeowners work with educated real estate agents toward better solutions to foreclosure than not doing them at all.

As we’re seeing in the media lately, history is looking to repeat itself.

In a letter to the editor in the Washington Post this morning, Rhode Island Senator Sheldon Whitehouse spoke out about the benefits of a foreclosure moratorium, if for nothing else than to force major banks, servicers and securitized mortgage holders to reevaluate their foreclosure and modification practices.

Eviction and foreclosure are terrifying, emotionally disturbing events for homeowners, especially when compounded by the holiday season. But the question needs to be asked: Will the housing market recover more quickly if the banks are forced to halt their proceedings?

Here, History would say, “No. Not that I’ve seen.”

For a confidential consultaion, just call us at the number below, or fill in your information and we will contact you.

Marianne Bandy, CDPE
The Bandy Team - RE/MAX Professionals
Denver, Colorado
303-746-7799

www.DenverAvoidForeclosure.com

Ally Joins Bank of America, Lifts Foreclosure Freeze

Fri, 22 Oct 2010 15:51:19 GMT

Ally Joins Bank of America, Lifts Foreclosure Freeze

Posted: 20 Oct 2010 09:46 AM PDT - reblogged by Marianne Bandy

Ally Financial (GMAC’s mortgage unit) has lifted their temporary foreclosure freeze, joining Bank of America in proceeding with the foreclosure processes in the 23 states requiring judicial review. While Bank of America maintains their moratorium in the non-judicial states, Ally is now continuing the foreclosure process for its entire non-performing portfolio, and expects that individual reviews will be complete by the end of the year.

JPMorgan Chase is the last of the remaining major lenders with a suspension in place. While their freeze is currently restricted to the 23 judicial states, the bank continues to review foreclosures in 41 states for any errors or anomalies in procedure.

The moral here is that the country as a whole is moving toward finding solutions to the crisis at hand rather than pushing it off until tomorrow.

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

Wells Fargo Declaration, New York Legislation

Fri, 22 Oct 2010 15:44:34 GMT

Wells Fargo Declaration, New York Legislation

Posted: 21 Oct 2010 09:10 AM PDT - reblogged by Marianne Bandy

Wells Fargo says it has no plans to freeze foreclosures today or in the future. Since the beginning of the “robo-signing” scandal, where large banks allegedly processed hundreds of thousands of foreclosure documents improperly, Wells Fargo has maintained that its processes have been thorough and in accordance with the law.

John Stumpf, Chairman and CEO of Wells Fargo, released the following statement: “We are confident that our practices, procedures and documentation for both foreclosures and mortgage securitizations are sound and accurate. For those reasons, we did not, and have no plans to, initiate a moratorium on foreclosures.”

Also, in a possible sign of what’s to come in the 23 states requiring judicial review for foreclosure, New York became first state to pass legislation requiring attorneys handling residential foreclosures to sign an affidavit that they took “reasonable” steps to review and verify the accuracy of foreclosure paperwork. Jonathan Lippman, chief judge of the New York Court of Appeals, estimated that there are 80,000 foreclosure actions pending in the state’s courts.

We see a great deal of homeowner misinformation regarding what the foreclosure freeze and subsequent actions mean to their individual situations.

Wells Fargo Declaration, New York Legislation

Posted: 21 Oct 2010 09:10 AM PDT

We see a great deal of homeowner misinformation regarding what the foreclosure freeze and subsequent actions mean to their individual situations.

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

What You Need to Know About the Denver Foreclosure Moratorium

Fri, 15 Oct 2010 17:38:55 GMT

Denver homeowners who have been following the news during the past week know that some banks have issued a foreclosure moratorium. Bank of America, GMAC, and Chase have extended their review of foreclosure documents to all 50 states, and have committed to stopping foreclosure sales until their review is complete. Here are some questions and answers which will help to shed some light on the current foreclosure situation. Answers have been provided by Bank of America:

What is a foreclosure sale in Colorado?

After a severely delinquent customer goes through the foreclosure proceedings, their home is put up for sale at public auction. The bank that owns the mortgage may put in a bid. If they are successful and win the bid, the property belongs to the investor or bank. At that time, after needed repairs are made, the property is again put up for sale on the open market, and listed in the MLS for public offering as a bank- or lender-owned property.

What does this mean for customers currently in the foreclosure process?

Bank of America will continue the foreclosure process on delinquent borrowers, but will not proceed to judgment or with a foreclosure sale at this time. Foreclosure sales which were scheduled for October 9 or later will be stopped and rescheduled, as appropriate, at a later date.

Why are banks taking this action?

Due to questions raised about the foreclosure affidavit signing process, these steps are being taken as a precaution. Most lenders are reviewing their processes for handling foreclosure documents.

What is a foreclosure affidavit?

A foreclosure affidavit is a legal document filed with the court that provides a summary of information about the foreclosure, the property and the amount that is owed on the note. In 23 states where the courts have jurisdiction over foreclosures, an affidavit of indebtedness must be submitted before proceeding with the foreclosure. Colorado is a public trustee state and is not included in the 23-state group.

What does this mean for borrowers currently in the foreclosure process and who have been assigned a foreclosure sale date of October 9 or later?

These foreclosure sales will be stopped. Foreclosure attorneys have been informed of this stoppage and a new foreclosure sale date will be scheduled after the completion of the assessment.

Are you a homeowner who wants to avoid foreclosure in Denver and needs to know your alternatives? Give the Bandy Team a call. We can help you explore the alternatives to foreclosure. Let us assist you in determining the best option for your situation.

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

GMAC (Ally) Expands its Foreclosure Review Nationwide

Thu, 14 Oct 2010 15:41:59 GMT

GMAC (Ally) Expands its Foreclosure Review Nationwide

Posted: 13 Oct 2010 08:39 AM PDT - reblogged by Marianne Bandy

GMAC’s mortgage unit, Ally Financial, has followed Bank of America in reviewing its foreclosure proceedings on a nationwide level. Ally continues to halt evictions in only 23 states, but has hired a “specialized team” to review all their foreclosure holdings with special attention given to foreclosure sales. So far, they have found no evidence of improper foreclosures.

This comes at a time of much national debate regarding mandatory moratoriums on foreclosure. The White House has issued statements that it does not support a mandatory moratorium on foreclosures due to potential “unintended consequences.” Most economists and housing experts agree that although this may be a short-term opportunity for distressed homeowners to stay in their homes, a foreclosure freeze would worsen the housing crisis and push recovery further into the future.

The Distressed Property Institute agrees that suspending the foreclosure process will hurt the US housing recovery and urges all of its CDPE-designated agents to educate their clients that even though their foreclosure may be frozen for the time being, lenders are still able to consider short sales. This extra time to sell their homes should not be taken for granted.

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

What Foreclosure Freezes Mean for Distressed Homeowners

Thu, 14 Oct 2010 15:26:49 GMT

What Foreclosure Freezes Mean for Distressed Homeowners

Posted: 10 Oct 2010 12:52 PM PDT - reblogged by Marianne Bandy

It’s hard to miss the news in Denver Metro real estate today: major lenders are investigating issues in their foreclosure processes. To date, GMAC (now Ally Financial), JPMorgan Chase and Bank of America have announced foreclosure freezes to review how their companies are handling the process. While most lenders have stalled foreclosure procedures in roughly half the nation, Bank of America recently extended their freezes to all 50 states, including Colorado.

However, few are talking about what this means for distressed homeowners and the agents who can help them. While these major lenders evaluate their foreclosure processes, delinquent and seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure. Real estate professionals, particularly CDPE-designated agents, have an opportunity to reach out to these homeowners and educate them about their options.

Not every distressed homeowner may qualify for a short sale. But in this economy, the real estate agent has the opportunity – some might say, the responsibility – to find solutions for homeowners in need, even if it does not result in a sale. This will help to stabilize community values and salvage financial futures for those facing true hardships.

It’s important to note that time may be short in these foreclosure freezes. GMAC was even quoted as stating their halt could extend through the end of the year, but may be as short as a few weeks.

FHA Throws a Lifesaver to Underwater Homeowners in Denver

Mon, 13 Sep 2010 13:18:03 GMT

Last Tuesday, a new lifeline was thrown by the federal government to Denver homeowners. In an effort to help those who owe more on their properties than the homes are actually worth, the Federal Housing Administration is allowing lenders to offer these borrowers new, refinanced loans backed by the government. Participating lenders will be required to forgive at least 10% of the original mortgage amount, thereby giving a greater number of responsible borrowers the opportunity to remain in their homes.

The new program reflects a new approach by the Obama administration to address the foreclosure crisis, which, at first, was driven by sub-prime mortgages going delinquent, and now is being fueled by unemployment. The program is funded by $14 billion from the administration's existing $75 billion foreclosure-prevention program. A qualified homeowner's existing mortgage company receives incentives to lower the principal balance. The program will also reduce monthly payments for unemployed homeowners for up to six months.

According to the FHA, the following conditions (among others) must be met in order for a loan to be eligible for the new refinancing program:

The homeowner must be in a negative equity position;
The homeowner must be current on the existing mortgage;
The property must be occupied by the homeowner as their primary residence;
The homeowner must have a “FICO based” credit score greater than or equal to 500;
The existing loan to be refinanced must not be a FHA-insured loan;
The first lien holder must write off at least 10% of the unpaid principal balance; and
The refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 %.

The government estimates that between 500,000 and 1.5 million homeowners could be helped through the new program. Although more people than ever are facing foreclosure, there are alternatives. Are you a homeowner who wants to avoid foreclosure in Denver and needs to know your alternatives? Give the Bandy Team a call. We can help you explore the alternatives to foreclosure – including the new FHA refinancing program. Let us assist you in determining the best option for your situation.

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

Warning to Servicers: Fannie Mae is Watching for Delays on Parker and Aurora Foreclosures

Tue, 07 Sep 2010 11:25:40 GMT

Warning to Servicers: Fannie Mae is Watching for Delays

Posted: 03 Sep 2010 07:07 AM PDT

Fannie Mae has put loan servicers on notice: take too long to complete foreclosures and you could face fines.

Through a recent announcement, the government-sponsored enterprise has created timeframes for completing foreclosure proceedings (see their foreclosure timeframes for more information on a state-by-state basis). For servicers unable to provide a reasonable explanation for delaying proceedings, Fannie Mae may levy what it’s calling “compensatory fees for breach of servicing obligations.” However, delays beyond the control of the servicer will not be held against them.

Regarding these delinquent loans, Fannie Mae stated it would monitor “all whole mortgages, participation pool mortgages, and MBS pool mortgages with a special servicing option referred to an attorney or trustee to initiate foreclosure proceedings on or after July 1, 2010”. In its National Delinquency Survey, the Mortgage Bankers Association reported 13.97 percent of all mortgages were either delinquent or in the foreclosure process in the second quarter of 2010.

Here are some additional highlights from the announcement:

With this Announcement, Fannie Mae:

has updated the allowable foreclosure time frames for four states;

is monitoring all delinquent loans in Fannie Mae’s portfolio or MBS pools, and will begin notifying servicers of delays in processing delinquent loans;

may begin conducting reviews of servicer loan files, processes, or procedures;

requires accurate and timely reporting on the delinquency status of mortgage loans; and,

will exercise its remedy to assess compensatory fees as deemed necessary.

The announcement also includes a chart of compensatory fees for specific circumstances. We’ll continue to post updates and results from this initiative as they happen.

Warning to Servicers: Fannie Mae is Watching for Delays

Posted: 03 Sep 2010 07:07 AM PDT

Fannie Mae has put loan servicers on notice: take too long to complete foreclosures and you could face fines.

Through a recent announcement, the government-sponsored enterprise has created timeframes for completing foreclosure proceedings (see their foreclosure timeframes for more information on a state-by-state basis). For servicers unable to provide a reasonable explanation for delaying proceedings, Fannie Mae may levy what it’s calling “compensatory fees for breach of servicing obligations.” However, delays beyond the control of the servicer will not be held against them.

Regarding these delinquent loans, Fannie Mae stated it would monitor “all whole mortgages, participation pool mortgages, and MBS pool mortgages with a special servicing option referred to an attorney or trustee to initiate foreclosure proceedings on or after July 1, 2010”. In its National Delinquency Survey, the Mortgage Bankers Association reported 13.97 percent of all mortgages were either delinquent or in the foreclosure process in the second quarter of 2010.

Here are some additional highlights from the announcement:

With this Announcement, Fannie Mae:

has updated the allowable foreclosure time frames for four states;

is monitoring all delinquent loans in Fannie Mae’s portfolio or MBS pools, and will begin notifying servicers of delays in processing delinquent loans;

may begin conducting reviews of servicer loan files, processes, or procedures;

requires accurate and timely reporting on the delinquency status of mortgage loans; and,

will exercise its remedy to assess compensatory fees as deemed necessary.

The announcement also includes a chart of compensatory fees for specific circumstances. We’ll continue to post updates and results from this initiative as they happen.

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

Warning to Servicers: Fannie Mae is Watching for Delays

Posted: 03 Sep 2010 07:07 AM PDT

Fannie Mae has put loan servicers on notice: take too long to complete foreclosures and you could face fines.

Here are some additional highlights from the announcement:

With this Announcement, Fannie Mae:

has updated the allowable foreclosure time frames for four states;

is monitoring all delinquent loans in Fannie Mae’s portfolio or MBS pools, and will begin notifying servicers of delays in processing delinquent loans;

may begin conducting reviews of servicer loan files, processes, or procedures;

requires accurate and timely reporting on the delinquency status of mortgage loans; and,

will exercise its remedy to assess compensatory fees as deemed necessary.

The announcement also includes a chart of compensatory fees for specific circumstances. We’ll continue to post updates and results from this initiative as they happen.

Warning to Servicers: Fannie Mae is Watching for Delays

Posted: 03 Sep 2010 07:07 AM PDT

Fannie Mae has put loan servicers on notice: take too long to complete foreclosures and you could face fines.

Here are some additional highlights from the announcement:

With this Announcement, Fannie Mae:

has updated the allowable foreclosure time frames for four states;

is monitoring all delinquent loans in Fannie Mae’s portfolio or MBS pools, and will begin notifying servicers of delays in processing delinquent loans;

may begin conducting reviews of servicer loan files, processes, or procedures;

requires accurate and timely reporting on the delinquency status of mortgage loans; and,

will exercise its remedy to assess compensatory fees as deemed necessary.

The announcement also includes a chart of compensatory fees for specific circumstances. We’ll continue to post updates and results from this initiative as they happen.

Warning to Servicers: Fannie Mae is Watching for Delays

Reblogged by Marianne Bandy - Originally Posted by CDPE: 03 Sep 2010 07:07 AM PDT

Fannie Mae has put loan servicers on notice: take too long to complete foreclosures across the nation, but more importantly, right her in Parker and Aurora, and they could face fines.

Here are some additional highlights from the announcement:

With this Announcement, Fannie Mae:

has updated the allowable foreclosure time frames for four states;
is monitoring all delinquent loans in Fannie Mae’s portfolio or MBS pools, and will begin notifying servicers of delays in processing delinquent loans;
may begin conducting reviews of servicer loan files, processes, or procedures;
requires accurate and timely reporting on the delinquency status of mortgage loans; and,
will exercise its remedy to assess compensatory fees as deemed necessary.

The announcement also includes a chart of compensatory fees for specific circumstances. We’ll continue to post updates and results from this initiative as they happen.

Short Refinance Program Initiated to Denver Metro area Homeowners

Tue, 07 Sep 2010 10:52:17 GMT

Reblogged by Marianne Bandy, Originally Posted by CDPE site: 06 Sep 2010 02:01 PM PDT

In an effort to help Denver area homeowners who owe more on their homes than they’re currently worth, the government will initiate its “short refinance” program on Tuesday, September 7, 2010.

According to an August 6 Mortgagee Letter released by HUD (click here to download the entire letter), the program will allow “borrowers who are current on their mortgage to qualify for an FHA refinance loan provided that the lender or investor writes off the unpaid principal balance of the original first lien mortgage by at least 10 percent.”

While lender consent is required and program participation voluntary, the FHA has stated the program could modify between 500,000 and 1.5 million upside-down mortgages.

Following are a few of the eligibility requirements detailed in the Mortgagee Letter:

Homeowner must have negative equity, be current on the existing mortgage, and have a FICO score greater than or equal to 500

It must be for the homeowner’s primary residence

Existing loan can’t be FHA-insured

First lien holder must write off at least 10 percent of the unpaid principal balance

Refinanced mortgage must have a loan-to-value ratio (LTV) no greater than 97.75 percent

Second liens must be re-subordinated so the new loan does not exceed a combined LTV of 115 percent

Because of this last requirement, this program may have difficulty when confronted with situations involving second lien holders.

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

Short Refinance Program Initiated

A Season of Real Estate Statistics for Denver & Parker

Thu, 02 Sep 2010 17:00:23 GMT

A Season of Real Estate Statistics for Denver & Parker

Reblogged by Marianne Bandy from CDPE.com blog
Posted: 27 Aug 2010 06:34 AM PDT

Some of the most valuable assets for agents assisting distressed homeowners in the Denver/Parker/Aurora area are statistics … and industry players have released a ton of them lately. Following is a breakdown of some of the major, recent reports on the real estate industry:

CoreLogic’s August 2010 Short Sale Research Study:

Short sales have more than tripled since 2008, and multiple indications point to short sales continuing as a significant factor in the industry.
Investors involved in short sales are good! They provide the industry with necessary liquidity.
1.9% of short sales studied were part of an egregious flip.

The National Association of REALTORS® (NAR) existing home sales data though July 2010:

Existing-home sales (single-family, townhomes, condominiums and co-ops) dropped 27.2 percent.
Seasonally adjusted annualized rate of existing-home sales dropped to 3.83 million (down from 5.26 million) – the weakest showing in 15 years.
Single-family sales are at their lowest levels since May 1995.

The Mortgage Bankers Association’s Second Quarter 2010 National Delinquency Survey:

13.97% of loans are in foreclosure or at least one payment past due (or more than 1 in 7 mortgages).
Foreclosure starts for prime fixed loans – previously the safest loan product (based on historic default rates) – increased to 0.71 percent, tying the survey’s record high.
Year over year, the non-seasonally adjusted delinquency rate increased for: prime fixed loans, prime ARM loans, subprime fixed loans, and subprime ARM loans.

Downward pressure on the real estate market primarily comes from high unemployment and slow economic/business growth, and this is now more apparent with the release of these reports. Real estate agents, armed with this information, have an unprecedented opportunity to help struggling homeowners avoid foreclosure.

If you are a homeowner in need of help, just call for a confidential consultation.

Test Short Sale Program from Bank of America

Mon, 16 Aug 2010 19:35:39 GMT

Test Short Sale Program from Bank of America

Reblogged by Marianne Bandy from CDPE.com blog

Posted: 14 Aug 2010 07:11 PM PDT

REO Insider recently reported on a new short sale program being tested by Bank of America. This cooperative short sale initiative has targeted just 2,000 pre-screened homeowners, mostly in the hard-hit states of California, Florida, Nevada and Arizona. Here are some more details of the program:

For homeowners considered for modifications under HAMP and short sales under HAFA … having fallen out or failed to qualify
No new documents are needed
Deficiencies are waived
The real estate agent will work with a short sale specialist appointed by the bank to market the property for 120 days
The bank will not be selecting agents to work with the homeowners
6% commission guaranteed
$3,000 relocation fee for homeowner

Stay tuned … we’ll post more news about this program as it gets released.

Search all Castle Rock homes

Strategic Foreclosure in Denver: Rarely The Best Move

Sat, 07 Aug 2010 12:30:36 GMT

Strategic Foreclosure in Denver: Rarely The Best Move

As the nation's economy continues to flounder, some Denver homeowners are seriously considering walking away from mortgages. Three words to the wise: DON'T DO IT. A recent report from Realtor Magazine notes that while there are many reasons not to default on your mortgage, one of the most significant is the potential effect on your creditworthiness – in both the present and the future. According to the report, individuals who default can take an immediate hit to their credit score of as much as 200 points. Worse yet, that note remains on your credit report for a full seven years. The implications of such a move can be personally devastating, as we will discuss below.

There's a lot of hype in the news touting the possible benefits of “strategic foreclosure,” but a two-minute news piece is not going to spell out exactly what you may be considering. In a nutshell, a homeowner looks down the road, sees that he will end up paying more than the house is worth, and moves to take advantage of the situation by “beating the clock.” Why do this? The usual reason is that the value of the home has dropped far below the owner's mortgage debt. The homeowner believes they can walk away from the property, usually after banking a few months of mortgage payments, then use those funds as a down payment on a new home, or as a security deposit on a new rental property.

But let's look at the effects of such a move. Freddie Mac (which, along with Fannie Mae, is one of the largest mortgage-backing institutions in the nation) notes that foreclosures, and their often-resulting vacancies, reduce the property values of every other home on the block, as well as in the entire neighborhood.

On the personal side, there's the negative impact on an individual's credit score, as we previously mentioned. That strike means you'll have a hard (if not impossible) time buying a car, or getting any kind of personal credit. Lower credit scores also affect your ability to rent a home, and will raise your insurance rates; they may even affect your ability to get hired with some employers. And, Fannie Mae is putting new regulations in place – regulations which are very simple, serious, and straightforward, with the potential to be truly crippling. If a homeowner has the means to pay their mortgage, or if they fail to make a good-faith effort towards a workout alternative with their lender, the seven-year hit literally hits home. If you fall into one of those categories, you're ineligible – for seven years from the date of foreclosure – for a new Fannie-Mae backed loan.

Today, more people than ever are facing foreclosure, but there are alternatives. If you are a homeowner who wants to avoid foreclosure in Denver and needs to know your alternatives, give the Bandy Team a call. We can help you in exploring and determining the best option for your situation, and we’re more than willing to help.

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

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