WHAT IS THE DIFFERENCE BETWEEN A SHORT SALE AND A FORECLOSURE?

Whether you are a buyer or a seller, Cooper Realty has the knowledge and experience to take you through the process involved in purchasing or selling a short sale/foreclosure. Give us a call, so that we can go to work for you!

 

Over the past few years, I have been approached with many questions about short sales and foreclosures.   People are seeking to understand the difference between these two unfortunate scenarios.  I have always explained that the short sale approach is far better than a foreclosure.  I recently read an article that explains the difference very well (click the link below to read the article).

I have been involved in both types of transactions and have a lot of experience in working with both buyers and sellers in getting the sale to the table.

Whether you are a buyer or a seller, Cooper Realty has the knowledge and experience to take you through the process involved in purchasing or selling a short sale/foreclosure.  Give us a call, so that we can go to work for you!

Seaford:  302 629-6693  Lewes:  302 644-2266  Georgetown:  302 856-6434

AUTHOR ~ CONNIE COOPER/COOPER REALTY ASSOCIATES

CLICK HERE TO READ ARTICLE

HOUSING MARKET IS ON THE MEND!!

After several years of pain, the latest statistics from the Mortgage Bankers Association point to a housing market on the mend.

HOUSING CRISIS:  A SIGN THAT THE WORST IS OVER

mortgage-bankers-delinquency-report.gi.top.jpgAfter several years of pain, the latest statistics from the Mortgage Bankers Association point to a housing market on the mend.

NEW YORK (CNNMoney) — The mortgage delinquency picture is getting brighter, according to an industry report released Thursday, with falling delinquency rates indicating the housing crisis may be at the beginning of its end.

A quarterly release from the Mortgage Bankers Association revealed that mortgage payment problems eased during the first three months of 2011 for every category of default.

The rate of loans past due, unadjusted for seasonal factors, decreased 1.17 percentage points to 7.79% from 8.96% during the last quarter of 2010. It was down 1.59 points year-over-year..

“These numbers point to a mortgage market on the mend,” said Jay Brinkmann, MBA’s chief economist. “Foreclosure starts are at the lowest level since the end of 2008 and had the second largest drop ever. The percentage of loans somewhere in foreclosure is down from last quarter’s record high and also had one of the largest drops we have ever seen.”

He noted the improved performance of loans issued during the years 2005 through 2007, many of which were of the toxic, subprime variety. Those were the mortgages that, he said, “drove the market collapse.” They still accounted for 65% of all delinquencies last quarter, even though they represent just 31% of loans outstanding.

Those loans are performing better now, mostly because many of the worst loans have already been purged from the system through foreclosure, and the remaining ones are now past the age when mortgages usually default.

That, combined with the much stricter underwriting standards for newer mortgages, has improved overall credit quality, and delinquencies should continue to drop.

Coming soon: a mortgage you can understand

Even in their improved numbers, the delinquency statistics may be overstating the problem, according to Brinkmann.

He said massive problems in local markets may dominate national data, obscuring the positive trends happening elsewhere. Florida, for example, accounted for nearly a quarter of all homes in foreclosure during the quarter and 23% of loans there are in some stage of delinquency.

“The state has more homes in foreclosure than 22 states have loans,” said Brinkmann. “That’s why I don’t put too much stock in the national numbers. The problem states have too much impact on them.”

The overall national decline comes despite continuing delays in processing foreclosures stemming from the “robo-signing” scandal in which banks were accused of mishandling legal paperwork.

As a result, foreclosures take longer to work through the system, so they show up in delinquency rates quarter after quarter. In New York, for example, the average length of time between a first missed payment and the final bank repossession is now more than two years.

In Florida, according to Brinkmann, many attorneys no longer handle foreclosure cases; the banks are having trouble finding attorneys to foreclose. If they can work through this problem, delinquency rates could decline faster.

Foreclosures crush home prices

Meanwhile, the nation’s continued, albeit slow-motion, economic recovery is also providing some relief. There’s a close correlation between unemployment and mortgage payment problems. Not only are people with jobs more able to make their mortgage payments than unemployed borrowers, but hiring itself boosts consumer confidence and, ultimately, housing markets.

“People with jobs feel they’re less likely to lose them [when they see other people being hired],” said Brinkmann.

That makes them more likely to form new households and buy homes. Some of those homes they buy are in foreclosure, which clears those properties out of delinquency reports such as this one.

The light at the end of the foreclosure crisis tunnel may still be some distance off, but at least it’s visible again after years of doom and gloom.

LET COOPER REALTY SHOW YOU HOW TO AVOID THIS STEP IN THE SALE OF YOUR PROPERTY

Statistics confirm that a property for sale receives most of it’s activity within the first 30 days of being placed on the market and if priced properly will receive offers shortly thereafter, if not sooner.

Let Cooper Realty Show You How To Skip This Step
PRICE REDUCED ( How to avoid this)
One of the most prominent signs in todays Real Estate Market  (I’m not talking about economic indicators) is the “Price Reduced” Signs.
After careful consideration and continuous research I believe we could realistically do away with this sign.  PRICE, PRICE, PRICE,— PROPERLY, PROPERLY, PROPERLY.  Statistics confirm that a property for sale receives most of it’s activity within the first 30 days of being placed on the market and if priced properly will receive offers shortly thereafter, if not sooner.  So why do we have the “Price Reduced” sign?  Is it because we are not listening to the market, or are we afraid of the truth?  I thought  my property was worth more than that, I think that’s too cheap.  Ouch!  its not what we want to hear but Truth is the beginning of understanding.
After reviewing the indicators that govern today’s pricing in the Real Estate market (Supply, Demand,  Short Sales In Delaware, Foreclosures, Etc.)  I believe that if you price the product properly right from the beginning it will be sold and sold quickly.    Capitalize on Opportunity the first time it knocks.
Whether buying or selling your Lewes Beach Delaware Townhouse, your Delaware Beach Front Property or your Rehoboth Beach Delaware Townhouse, we at Cooper Realty Associates are committed to doing it right and doing it right the first time.  Move from “For Sale” to “Sold” and eliminate the “Price Reduced” step.  Give us a call.   We are the aggressive professionals.
Author~Paul Powalski