"I have 7 buyers right now and 3 of them lost their homes in foreclosure during the past 2 or 3 years," she told me. "2 of the buyers were referred to me."
Chrisia, who is my sister, told me how it's possible for buyers who lose their homes to purchase again in a couple of years.
Q: What's unique about representing these buyers?
A: The ones I'm representing have lost their homes to circumstances that spiraled out of control for them. One couple had major health problems and the husband lost his job. Their home went into foreclosure, but we're out house hunting now and we've found 4 homes that are suitable for them.
I believe we're seeing the beginning of the foreclosure wave in Western Pennsylvania, so I anticipate more buyers in this category.
Q: What's important to know about foreclosures?
A: For people who lost their homes, or are in the process of losing their homes, to what I call "legitimate reasons" - health problems, loss of jobs and the like - I urge them to keep good records of their situation that led to foreclosure. There are companies who can help them get "foreclosure forgiveness." I'm learning about this myself and will pass along more information.
So one of the couples I'm representing has an attorney and they've approached a firm to assist them in obtaining the "foreclosure forgiveness." If they succeed then they're looking at an interest rate of 7.5%. Otherwise, they can expect a rate of about 12%.
This couple also was able to purchase a mobile home after they lost their primary home. They bought it for cash and now they've sold it for cash. So they have $25,000 cash on hand. They documented their situation to show they didn't spend recklessly to get themselves in trouble.
Q: What else should people know about foreclosures?
A: Learn how the banks and appraisers work. There was a mother who got divorced and refinanced her home. Then she ran into problems and she wanted to get her house listed on the market before it went into foreclosure. Here's what happened:
She bought her home for over $250,000 and she went to refinance a year later. She had an appraisal come in for over $400,000. But it shouldn't have been higher than $325,000. However, she refinanced her home for the higher amount thanks to an unscrupulous appraiser and the home wound up selling in foreclosure 2 1/2 years later for $160,000.
I've told her go to the state attorney general.
I'm also surprised banks don't do more to work with sellers facing foreclosure.
This case took place in Mt. Pleasant. The mortgage lender, a national lender, wanted $240,000 for the home. I took the lender an offer of $250,000 and it was going in to foreclosure in 24 hours. They turned down the offer I brought them.
Perhaps there's someone who can comment on why this may have happened.
If you're facing foreclosure, then know how the banks work and stay on top of them. You need to take responsibility to know when your home actually goes into foreclosure becase the banks won't tell you.
In Pennsylvania, foreclosure is a full 90 days past the due date and then it can take up to a year to start foreclosure proceedings. Properties can be empty for 2 - 3 years as it works through the system.
Editor: Chrisia Simkovich can be reached through Northwood Realty.
1 comment:
Interesting article..foreclosure forgiveness is something I dont think we have here, at least not that I know of.I realise sometimes people lose their homes due to things they cannot control, its tragic.At least if they have legitimate problems, they can be addressed and helped, at least there in USA.You have some wonderful and interesting posts, Don...how do you do it ! :)
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