As predicted, we saw a drop in Inventory from April from 13.3 months of inventory to 10.7 months of inventory. This is a pretty dramatic drop, but it is a reflection of the First Time Home-Buyer tax credit ending at the end of April so we did expect to see this happen.
What does it mean when inventory drops? Read more
December ended with 8.4 months of inventory in the Atlanta Real Estate market based on the 39 MLS areas we track. Fundamentally this is good news because the closer we get to 6 months of inventory, the faster we will see prices start to increase again. There is nothing I would rather see more than prices start to increase so that I can share good news with my Sellers again, but I think we are going to see that this is a false trend and here is why: Read more
| This was a very interesting 60 minutes story. I’m not posting it to spread bad news, but rather to provide some background on the sub-prime mortgage issues that are partially responsible for all of the foreclosures we are seeing today, and also a look at what may be coming, and why I have spent so much time and effort to get my Certified Distressed Property Expert certification. In addition to helping people buy and sell property in the traditional sense, I am also working with people who may be facing foreclosure now or in the near future, and helping them to avoid the devastating affects of a foreclosure by working with them and their lenders to negotiate short sales. If you or anyone you know would like some more information on how to avoid foreclosure, contact Mike. I will also be adding a page in the next week or so that will be dealing with Avoiding Foreclosure, so stay tuned!
Keep the Faith! |
Atlanta’s market in April seemed to resemble March quite a bit. Number of homes sold and level of inventory all remained relatively the same as the month before, which is not a bad thing, but it’s not particularly remarkable either.
While earning my Certified Distressed Property Expert designation, I learned a few surprising consequences that a foreclosure can have on a person’s employment situation that I thought would be important for people to know. The table below highlights a few Employment issues that a person facing foreclosure may encounter and illustrates how those consequences can be mitigated by negotiating a short sale instead of letting the home go to foreclosure:
| Issue | Foreclosure | Successful Short Sale |
| Current Employment | Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is a ground for immediate reassignment or termination. | A short sale is not reported on a credit report and is therefore not a challenge to employment. |
| Future Employment | Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant have and in many cases will challenge employment. | A short sale is not reported on a credit report and is therefore not a challenge to employment. |
| Security Clearance | Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a person has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated. | A Short Sale on its own does not challenge most security clearances. |
If you or someone you know is facing foreclosure, please give me a call so that we can set up a time to meet and discuss your options. I may be able to help. I can be reached at 404-969-1580 or by email.
Keep the Faith!
Did you know that having a foreclosure on your credit report may lower your credit score by anywhere from 250 to over 300 points and will typically affect your credit score for over 3 years? This, along with the fact that foreclosure will remain as a public record on a person’s credit history for 10 years or more, causes most people facing foreclosure to lose hope and just give up and let the foreclosure happen.
One possible alternative to having the bank foreclose on your home is to negotiate a short sale with the bank. From a credit reporting perspective, only late payments on a mortgage will show up on your credit report and, when complete, the mortgage will show as “paid in full, settled” or sometimes show as “full satisfaction of loan” which is what any mortgage that was paid off in the traditional sense will show up as. This may only lower the score by as little as 50 points if all other payments are being made. A short sale’s affect can be as brief as 12 to 18 months. Short sales are not a solution to every situation, but for those who are candidates, it is a MUCH better alternative to foreclosure and will make it so much easier for an individual or family to recover from their hardship and be able to get back on their feet in far less time and with far less pain.
I have recently been awarded the “Certified Distressed Property Expert” (CDPE) certification by the Distressed Property Institute and am taking a very active approach to helping homeowners who are in trouble or may be facing trouble in the near future with their home, to avoid foreclosure. I will be posting much more information on Short Sales here over the next several days and weeks and am happy to answer questions or comments. If you know anyone that needs my help in the Atlanta market now, please don’t hesitate to email me.
Keep the Faith
The Obama Administration announced its two-pronged “Making Homes Affordable” program on March 4th. One piece of this relates to loan modifications for those in danger of foreclosure, but the other pronge is a refinance piece that is supposed to help people who are current on their mortgages and have a history of making all of their payments on time, but due to declining home values, are unable to refinance into the great interest rates that we are seeing today. Some of the details are still a little fuzzy and how this will work in the real world has yet to be seen, but if you are current on your mortgage and your Loan to Value ratio is between 81% and 105%, then you may qualify for this program. This link: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html will take you to the Government sponsored website with more details. The loan must be held by Fannie Mae or Freddie Mac to qualify. Most conventional loans are held by Fannie Mae. This link: www.fanniemae.com/homeaffordable will take you to a site that will help you determine if your loan is held by Fannie.
Keep the Faith
Dennis from NJ said on Home Affordable Refinance - Wells Fargo Update :
Mike Minihan said on Home Affordable Refinance - Wells Fargo Update :Mike Minihan said on Home Affordable Refinance - Wells Fargo Update :Mike Minihan said on Home Affordable Refinance - Wells Fargo Update :
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