Foreclosures have Decreased

Expert says decreasing foreclosure rates in Michigan are a bad sign for our  economy Read more: http://www.wxyz.com/dpp/news/expert-says-decreasing-foreclosure-rates-in-michigan-is-a-bad-sign-for-our-economy#ixzz1UoRKwLRy

Satellite Tour of America’s Foreclosures

A Frightening Satellite Tour Of America’s Foreclosure Wastelands From Business Insider Gus Lubin | Jan. 30, 2011, 3:42 PM | 693,239 RealtyTrac is out with the total foreclosure numbers for 2010. On the whole things are getting worse. 72 percent of major metro areas saw an increase in foreclosure volume. Although some of the worst [...]

Foreclosures Rise In Michigan

Foreclosures Rise In Michigan. Foreclosure activity jumps in Michigan. A new report ranks Michigan among the top five states that issued foreclosure filings in 2010. Foreclosure activity in Michigan increased by 15 percent comparing 2009 to 2010. That’s according to Realtytrac, an online database for foreclosure real estate.

Foreclosure Options

Fannie Mae recently launced a new website to provide information and possible options to homeowners who are behind on their mortgage payments.  Knowyouroptions.com features practical information and resources to help homeowners avoid foreclosure by either staying in their home or selling it.  Resources include a list of local foreclosure prevention events, housing counselors, Fannie Mae [...]

Foreclosure Moratorium in Michigan

“The Michigan Association of REALTORS has met with experts in the field and state government to discuss recent national developments on foreclosures and their potential impact on our state. That impact, to date, is minimal or non-existent. Michigan is a “non-judicial” foreclosure state, meaning that Michigan’s legal protections for consumers and homeowners do not involve [...]

What it Takes to Buy a House in Foreclosure

  Foreclosured Homes are usually where people think they will get their best deal which is sometimes the case, but not always.  This article, What it Takes to Buy a House in Foreclosure, is a good read, the recent experience that a buyer had in Atlanta, Georgia.   Your Money By RON LIEBER Published: October 29, [...]

Foreclosure Freeze – Consumers want Answers

Although some banks are resuming foreclosures, at least in part, the issues raised by the foreclosure freeze continue. The following questions are the most common: 1. Judicial vs. non-judicial foreclosures: Why does the distinction matter? 2. Is purchase of an owner’s title policy necessary for buyer protection? Why doesn’t regular title insurance protect the buyer [...]

After Foreclosure: How long until you can buy again?

Local Mortgage Professional, Drew Sygit, has done much research and written several posts to provide consumers the opportunity to make informed decisions.

Drew Sygit
CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MMBA Instructor & Speaker

Recovering From a Short Sale, Deed-in-Lieu, Foreclosure & Bankruptcy
After one of these financial set backs, you must take two steps to rebuild your credit:

1. Have all of your accounts reported correctly on your credit report.
2. Establish new credit accounts to prove your creditworthiness.

Make sure all your accounts show zero balance and that they were included in your bankruptcy. Creditors are also required to no longer report any updates on the accounts included in bankruptcy.

Why is this important? Because many creditors do not follow the law and there’s really no one else that cares to monitor your credit. It’s all up to you. It’s also not uncommon for creditors to sell your debts included in bankruptcy to collection agencies. They’re referred to as “zombie debt” and although illegal the practice appears to be growing.

Also, you must reestablish new credit ASAP after a bankruptcy. Our society is now built on credit and if you don’t rebuild it, you’ll face challenges in the future.

Getting a new mortgage, is often the biggest challenge after a major financial set back. Credit cards and auto loans are relatively easy to get in comparison. Here are the current guidelines regarding getting a new mortgage after various situations.

FNMA: Click here to view guidelines as of 06/25/08.

(FNMA has also published a flowchart worksheet to help navigate options, click here to view)

- Short Sale: 24 months
- Deed-in-Lieu: 48 months with minimum 10% down. Can purchase primary residence, 2nd home or investment property.
- Foreclosure: 60 months with minimum 10% down, primary residence only (36 months with extenuating circumstances)
- Bankruptcy: 48 months for Chapter 7, 24 months after discharge of Chapter 13. NOTE: 48 months if Chapter 13 dismissed.

FHLMC: Click here to view guidelines as of April 2009

- Short Sale: 48 months
- Deed-in-Lieu: 48 months
- Foreclosure: 60 months with minimum 10% down, primary residence only (36 months with extenuating circumstances)
- Bankruptcy: 48 months for Chapter 7, 24 months after discharge of Chapter 13

FHA: Buried in their underwriting guidelines on page 4-C-9 thru 12, are the following timelines:

- Short Sale: immediately if there were no late payments on the previous mortgage, 36 months otherwise.
- Deed-in-Lieu: 36 months
- Foreclosure: 36 months
- Bankruptcy: 24 months for Chapter 7, only 12 months while still in a Chapter 13 with court approval.

VA: Click here to view VA guidelines, credit issues are on pages 4-44 & 4-45

- Short Sale: not specifically mentioned, assume 24 months to treat the same as bankruptcy
- Deed-in-Lieu: not specifically mentioned, assume 24 months to treat the same as bankruptcy
- Foreclosure: 24 months as guides treat the same as bankruptcy
- Bankruptcy: 24 months for Chapter 7, only 12 months while still in a Chapter 13 with court approval.

Drew Sygit,
CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MMBA Instructor & Speaker

The Lending Edge Team
@ First Michigan Bank
Business: 248-356-3739
Fax: 866-215-3755
2301 W Big Beaver, Ste 525
Troy, MI 48084
www.TheLendingEdge.com

How foreclosure impacts your credit score

By Les Christie, staff writerApril 22, 2010: 4:44 PM ET NEW YORK (CNNMoney.com) — If you’re delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much? Read the Entire Article Read more About Foreclosure and Short Sale Effects on Credit Score

Short Sales and Foreclosures can be a Great Buy!