Hot off the press! Michigan lawmakers struck a deal last week to give homeowners facing foreclosure a 90-day window to stay in their house and potentially work out a deal with their lender.

The legislation lets homeowners delay foreclosure proceedings if, after getting a notice of foreclosure, they meet with a housing counselor and the bank. Only homeowners meeting certain financial standards could qualify for loan modification.

There is a list of housing counselors prepared by the Michigan State Housing Development Authority will have to be included in the foreclosure letter for the homeowner to be eligible.

This bill is a great relief to homeowners who are struggling with the prospect of foreclosure. Also, it is a great deal for the banks, who naturally, do not want a long and drawn out foreclosure process which costs both time and money. Everybody wins, the homeowner keeps their home and the bank (and likewise the homeowner) does not have to go through a foreclosure on that property.

The House quickly passed the bills 93-15 after they won approval in a conference committee that had resolved differences. The Senate will send them to Governor Jennifer Granholm soon. However, the legislation will not take effect until 45 days after it becomes law, so homeowners who have already gotten notice of foreclosure will not get a 90-day lifeline. The new law will last for two years and is seen as a compliment to President Obama’s housing plans.

We are sure that as this bill becomes law it will be watched with much interest. We will keep you posted.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Kathy Toth and Diana Holding Achieve CDPE Designation

ANN ARBOR- Kathy Toth and Team REALTORS® announced today that Kathy Toth and Diana Holding achieved the Certified Distressed Property Expert (CDPE) designation from the Distressed Property Institute. Toth and Holding join only 1000 agents worldwide that have earned the certification. Diana Holding also holds the Certified Short Sale Specialist designation.

“Historically, a percentage of the real estate market has consistently been in distress,” said Toth.  “With the recent challenges in the subprime lending market, this percentage has grown exponentially. We feel it is important to acquire the specialized knowledge needed to assist home owners in need.”

Rapid growth in what once was a niche market requires agents to gain specialized knowledge and learn new processes that will allow them to successfully assist homeowners in need. The Distressed Property Institute provides the tools and information REALTORS® need to help distressed homeowners avoid foreclosure and move forward with their lives.

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that REALTORS® such as Toth with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

He suggested owners in foreclosure or pre-foreclosure should seek out the services of a Distressed Property Expert get every option available to find the best solution for their situation. For more information about short sales, contact Kathy Toth at (866) Own-This, or visit her website at www.KathyToth.com or www.AnnArborShortSale.com.

Find out what it means to work with a CDPE in Ann Arbor, watch the video!

To further enhance the ability to assist Ann Arbor, Michigan homeowners, Toth has a division to handle short sales and foreclosure properties in addition to her company’s Retail Residential Real Estate services. She and her team have the expertise necessary to guide homeowners step by step through the review of 11 options available to avoid foreclosure and alternatives to preserve their credit history. In addition, they are prepared to help buyers trying to maximize their home buying budget through the often complex process of locating, evaluating and purchasing a foreclosure or short sale property. To get a list of distressed properties, just email your request to info@kathytoth.com.

About Kathy Toth and Team
Kathy Toth and Team, REALTORS®, are among top agents nationally and the local Ann Arbor Area. They have been helping individuals and families find a place to call home in all price ranges for 20 years. A Certified Accredited Seller Representative (ASR), Kathy Toth has helped over 2,000 people maximize profits and minimize costs in the sale or purchase of a home. Whether you are looking for your first home or your dream home, planning to relocate, or need to sell for the highest value, the Kathy Toth Team can help. For more information, please call 734.669.0337 or visit www.KathyToth.com.

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ANN ARBOR- Kathy Toth and Team REALTORS® announced today that Kathy Toth and Diana Holding achieved the Certified Distressed Property Expert (CDPE) designation from the Distressed Property Institute. Toth and Holding join only 1000 agents worldwide that have earned the certification. Diana Holding also holds the Certified Short Sale Specialist designation.

Congratulations to Diana Holding

“Historically, a percentage of the real estate market has consistently been in distress,” said Toth.  “With the recent challenges in the subprime lending market, this percentage has grown exponentially. We feel it is important to acquire the specialized knowledge needed to assist home owners in need.”

Rapid growth in what once was a niche market requires agents to gain specialized knowledge and learn new processes that will allow them to successfully assist homeowners in need. The Distressed Property Institute provides the tools and information REALTORS® need to help distressed homeowners avoid foreclosure and move forward with their lives.

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors such as Toth with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

He suggested owners in foreclosure or pre-foreclosure, should seek out the services of a Distressed Property Expert get every option available to find the best solution for their situation.  For more information about short sales, contact Kathy Toth at (866) Own-This, or visit her website at www.KathyToth.com or www.AnnArborShortSale.com.

To further enhance the ability to assist Ann Arbor, Michigan homeowners, Toth has a division to handle short sales and foreclosure properties, in addition to her company’s Retail Residential Real Estate services. She and her team have the expertise necessary to guide homeowners step by step through the review of 11 options available to avoid foreclosure and alternatives to preserve their credit history. In addition, they are prepared to help buyers trying to maximize their home buying budget through the often complex process of locating, evaluating and purchasing a foreclosure or short sale property. To get a list of distressed properties, just email your request to info@KathyToth.com.

## About Kathy Toth and Team ##

Kathy Toth and Team, REALTORS®, are among top agents nationally and in the local Ann Arbor Area. They have been helping individuals and families find a place to call home in all price ranges for 20 years. A Certified Accredited Seller Representative (ASR), Kathy Toth has helped over 2,000 people maximize profits and minimize costs in the sale or purchase of a home. Whether you are looking for your first home or your dream home, planning to relocate, or need to sell for the highest value, the Kathy Toth Team can help. For more information, please call 734.669.0337 or visit www.KathyToth.com.

A Short Sale is when the borrower shorts the lender by an amount less than what is owed for the mortgage. The property is sold with the approval of the lender.  The lien is released by the lender at time of sale.  A discharge of debt is shown on the credit statement of the borrower.  A short sale can be negotiated any time before the lender acquires title to the property.  In Michigan we have a 6 month redemption period, so even after the borrower has received late pay notices and a sheriff’s sale has occurred, there is still time to negotiate a short sale.  The lender determines hardship, current market value through a brokers price opinion, and ability to repay vs. taking the property back through foreclosure. If a short sale were easy, all lenders would be approving them, but the lenders do not have to make this easy. There are many proactive steps in securing a successful short sale including filling out all required documentation, meeting the bank’s appraiser with comparables, and constant follow up and communication with the bank loss mitigator.  For confidential consultation, try www.AnnArborShortSale.com.

A major consideration for buyers is to have patience with a short sale.  Because the buyer’s offer is contingent on bank approval, you need to wait for the bank to respond.  This could take 60 or so days. Patience is the key.  Finding out if there is one or 2 loans, and what those amounts are may be important. If they owe a total of $175,000, and the list price is $100,000, how likely is the sale to be approved? It could be approved; you just need to wait for a response. We have 3 buyers’ agents who represent buyers exclusively and have a ton of short sale and foreclosure experience in the Ann Arbor area.  We are here to help.

If you know someone who owns real estate in the Ann Arbor, Michigan area who may be facing foreclosure, please feel free to call for a confidential discussion, 734-906-7671. We have a division of people available – Ann Arbor CPAs, attorneys, & short sale specialists.

Many Ann Arbor Real Estate seller clients are concerned about their ability to continue making their mortgage payments when their home is worth less than their current mortgage.  The site www.FinancialStability.gov may be a valuable pre-foreclosure resource.

The site outlines the US Department of the Treasury “Make Home Affordable” Refinance Program for Responsible Homeowners.  This program is designed to offer assistance to as many as 7 - 9 million homeowners who are current on their mortgage, but may be upside down or facing imminent hardship.

Their motivation is to reduce the amount homeowners owe per month to sustainable levels.

The Program is Designed  For:

• Homeowners at risk, such as those suffering serious hardships, decreases in income, increases in expenses, payment “shock,” (with combined mortgage balance higher than the current market value of the house, etc.)
• Reaching Homeowners BEFORE they have missed payments, where they are at risk of imminent default.
• Only owner-occupied homes with a mortgage limit of $729,750 will be eligible.

Homeowners with “back end” debt equal to 55% or more of their income will be required to agree to enter a HUD-certified counseling program as a condition for a modification.

One of the links from this site takes you to http://www.hopenow.com.  This site provides about 30 different lender loss mitigator contacts with web sites and emails.  We are working to offer solutions and keep up with the updated resources from Washington, along with Washtenaw County.  It is our goal to help Ann Arbor home owners avoid foreclosure, maintain their quality of life, and sustain our communities.

If you know someone who owns real estate in the Ann Arbor, Michigan area who may be facing foreclosure, please feel free to call for a confidential discussion, 734-906-7671. We have a division of people available – Ann Arbor CPAs, attorneys, & short sale specialists.

I want to share an invaluable resource for any US Homeowner, REALTOR® and loan servicer in the US.

This is a training presentation to National Association of REALTORS® from Freddie Mac by Wayne Ferguson, National Trainer, for REALTORS® dealing with options for distressed homeowners with specifics on SHORT SALES.

This is well worth the 35 minutes.  If you are an agent, you may want to share with homeowners directly. There is a quick auto download to make the web-ex work.

Additionally, view the Freddie Mac Pre Foreclosure/Short Sale training slides without audio.

This covers key best practices for short sales and hurdles/barriers for investors and home owners.

A Short Sale is when you cannot sell your home for an amount that will pay off the mortgage loan, whereby the mortgage servicer may be willing to accept a payoff amount less than what is owed on the mortgage balance in certain situations.  The resource for on line information is www.FreddieMac.com/corporate/buydown/english/avoiding_foreclosure/index.html.

The target value of Short Sale recovery is 88 percent or more of BPO (broker price opinion) value.  The BPO is based on 90 day “as is”.

The example helps homeowners understand how the commission is included in the calculations.

PROPERTY VALUE                              150000

AMOUNT OWED                                178000

SALES PRICE                                      148000 99% OF VALUE

COMMISSION/CLOSING COSTS         -13000 9% OF SALE PRICE

ANY SELLER FUNDS                            -1000

PAYMENT TO $20K LIENHOLDER        -2000

NET PROCEED                                   134000 90% OF VALUE

SHORTAGE/LOSS                              -44000

20% MI CLAIM                                    35600

SHORTAGE/LOSS                               -8400

Did you ever wonder why it takes so long for a bank to respond? They work with the seller, housing counselor, junior lien holder (second mortgages), loan servicer , loan servicers, home owners association lien holder, buyer’s lender, mortgage investor, mortgage insurer, and buyer to facilitate the process.

The homeowner’s lender should be able to tell if the mortgage is owned by Freddie Mac.

For homeowners to find out:  Does Freddie Mac Own Your Mortgage?

If you don’t know, you can also contact:

Fannie Mae,

• 1-800-7FANNIE (8am to 8pm EST).
• www.fanniemae.com/homeaffordable

Freddie Mac

• 1-800-FREDDIE (8am to 8pm EST)
• www.freddiemac.com/avoidforeclosure/

There are retention options and liquidation options other than Short Sales.   The refinance calculator tool may be helpful for some homeowners.

For REALTORS®, if you have additional questions for  sellers whose lender/servicer’s original investor is Freddie Mac or Fannie Mae, contact Loss Mitigation Manager, Donna Brandveen 703-918-5144 or Donna_Brandveen@FreddiceMac.com. Wayne Ferguson, Freddie Mac Customer Education Lead is at: Wayne_Ferguson@FreddieMac.com or 571-382-5214.

Let me know what you think.

FOR IMMEDIATE RELEASE:

CONTACT:
Contact Person: Kathy Toth
Company Name: Keller Williams Realty
Voice Phone Number: (866) OWN-THIS
Email Address: Info@KathyToth.com
Website URL: www.KathyToth.com

Diana Holding Joins Kathy Toth and Team!
Listing Partner and Short Sale Specialist (03-01-2009)

Dexter, MI – Kathy Toth and Team (www.KathyToth.com) REALTORS® are pleased to announce Diana Holding as Listing Partner and Short Sale Specialist. Diana specializes in guiding Ann Arbor Area clients in the marketing and communication of home selling. A seasoned sales professional, she is focused on client satisfaction and enjoys connecting with Ann Arbor Area clients to help them maximize their price in the least amount of time with the least amount of hassle.

Diana is active in the Ann Arbor Area Board of REALTORS® and is closely connected to the Ann Arbor community. A Saline resident since 2004, Diana and her pilot husband, Brent, enjoy spending time with their 3 children.

“I am very excited to join a group of top professionals,” said Holding. “I look forward to consulting with families to explore their options and to sell their homes.”

“Diana is seasoned sales professional who brings a wealth of skills and experience to the position,” said Kathy Toth. “Her positive attitude, swift follow through and commitment to client satisfaction makes her a key addition to our team.”

About Kathy Toth and Team: Kathy Toth and Team, REALTORS®, the Triangle’s 4th ranked real estate team, has been helping individuals and families find a place to call home in all price ranges for over 20 years. An Accredited Seller Representative (ASR) http://www.selleragency.com/KathyToth has helped over 2,000 people maximize profits and minimize costs in the sale or purchase of a home. Whether you are looking for your first home or your dream home, planning to relocate, or need to sell for the highest value, the Kathy Toth Team can help! For more information, please call (866) OWN-THIS or visit www.866OwnThis.com.

****

“Foreclosure inventory jumped sharply in the fourth quarter even though the rate at which loans were entering foreclosure remained unchanged,” said Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Economics.  “This is mainly attributable to various state and local moratoria on foreclosure sales, the Fannie Mae and Freddie Mac halt on foreclosure sales announced in late November, a general reluctance by servicers to proceed with evictions in the last few weeks of December and a slowing down caused by an overburdened legal process in some areas.”

See chart below with the ADJUSTABLE RATE MORTGAGES could jump and the percent by which borrowers’ payments could jump.  The trend is upward from this spring through 2011.

Many residents have adjustable rate mortgages that may be up for a change.  We are working closely with Washtenaw County to provide options to those that may be looking at missing payments or even foreclosure.  There are dedicated county resources to help Ann Arbor locals work through the issues they are facing. “Of course, not all homeowners can be helped, but the county is committed to helping all those they can, said, Kristin Judge, Washtenaw County Commissioner. Here are the resources through the County Treasurer’s office:

Mortgage Foreclosure or late payments
http://www.ewashtenaw.org/government/treasurer/MFP
Contact Amber Wells at 734-222-9595

Tax-Related Foreclosure
http://www.ewashtenaw.org/government/treasurer/tr_taxes.html
Call the Treasurer’s Office at 734-222-6600

For a private consultation,  call us 734-906-7671, or visit  www.AnnArborShortSale.com or  just stop by www.KathyToth.com.

Lackluster US housing is contributing to the recession as well as a rising number of foreclosures as pictured below. For me, and my Ann Arbor Real Estate team this is a challenging time.

Because we are seeing many good folks who have become victims of this crisis, we have shifted our resources to help others avoid foreclosure and provide options. Diana Holding, listing partner, just received the blank designation.  We have a division to help Ann Arbor homes sellers.  I would say that so far in January two thirds to 75% of our seller calls are eligible for short sales.  The real heart ache is when they call us too late or they are one month away from losing the house. 

Hardships happen; job loss, medical bills, change of marital state, adjustable rates adjust making payments impossible, and any combination, along with depreciating market values.  What I would like others to know is reach out for help when you think you are GOING to miss a payment.  Washtenaw County Treasurer has a wealth of resources.  See previous post from Ann Arbor News article - Washtenaw County foreclosures hit record in ‘08.  Talk to your attorney or call legal aid for free legal advice.  Call your bank to renegotiate your loan so you can stay in your house. Get as much information as you can.  Ask us for short sale information or resources for loan modifications.

Long term home ownership is still the American dream and still an great long term investment.  According to Warren Buffett, Chairman Berkshire Hathaway, “I don’t think there’s anybody better than you could have had; have in the presidency than Barack Obama at this time. He understands economics. He’s a very smart guy. He’s a cool rational-type thinker. He will work with the right kind of people. So you’ve got the right person in the operating room, but it doesn’t mean the patient is going to leave the hospital tomorrow.”  If you are feeling like the patient, look at AnnArborShortSale.com. 

If you are feeling like you want to take advantage of the buying opportunity of short sales and foreclosures, look at Ann Arbor Area foreclosure deals here.  We will update you with more specific criteria if you contact us with your specific buying needs so you will be the first to see the deal as they come on the market.  We have a servants heart; we are here to serve your Ann Arbor Real Estate needs.

3701 Meadow View, Dexter

Bedrooms:  3
Bathrooms:  1 Full and 2 Half
Square Feet:  1549

Offering three bedrooms, one full and two half bathrooms, this home on a lovely flat lot backs to a treed ravine area. Hardwood flooring adds warmth to this one and a half story Colonial.  Large eat-in kitchen is enhanced by bay window and white Merillat cabinetry. Basement adds extra entertaining space. Patio is ideal for summer barbeques.  Call to buy this deal!  Subject to short sale.

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