KEEP THE FAITH

Foreclosure rates in Massachusetts and New England are rising, but that does not mean that each of these homes will be foreclosed upon. The term “foreclosure rate” means that a homeowner’s loan is in the very first stage of foreclosure because of overdue payments. (There were 799 foreclosure deeds in January of 2008 compared to 350 in 2007, an increase of 128% in Massachusetts).
We Realtors are now seeing that many of the distressed homeowners are able to sell the home just in time to avoid the foreclosure, thereby avoiding further damage to their credit. While we would much rather see our neighbors and friends remain in the homes they love, when between a rock and a hard place, the goal must be to make decisions today that protect your options for the near future.
Home ownership is the American Dream. It should never be out of an American’s reach for too long. Presently, if a foreclosure is on one’s credit record, some lenders say that it will be at least ten years before that applicant will be granted another home loan. While there is legislation intended to improve the harsh repercussions of our times, the cavalry is still over the next hill.
One such homeowner is a proud and hard working husband and father. He purchased a beautiful home just as the market prices began to decline and he got caught in the crossfire. Like many homeowners, it took him several months before he had reason to understand the mounting pressure of increasing rates and the declining value of his home. By the time he called a Realtor, he was overwhelmed by the cannons in front of him.
It is not easy to discuss sensitive matters with another and he was hesitant to disclose how bad things were to a Realtor he hardly knew. We Realtors wouldn’t like it either, but please let us help now because time is of the essence. We must know certain details in order to map the way home again.
Information critical to a successful outcome include among other details:

Exactly what is the bank owed? In order to close on a property, the bank must release the lien. If there is a second lien, both banks must release both liens. In the event that you owe more to the bank(s) than you can get for the sale of your property, it is best that the Realtor you choose be familiar with the process of “short sale” also known as “debt forgiveness”.
Exactly what is the property worth? The Realtor you choose must interpret that price correctly despite a figure that you would rather hear. It is essential that you not waste valuable time reaching for a price that you will never be able to realize while the cannons are rolling toward your front door.
When the house sells, where will we live if we can not obtain financing right away? Your Realtor should be right by your side throughout the process of transitioning from homeownership to temporary accommodations until the smoke clears. (Fox holes saved my Father’s life in World War Two, so stay put till the bullets stop zinging by overhead). Presently, there are properties on the rental market because the owners have not been able to sell them for the prices they want and they have the option of taking them off until such time as the market changes. In addition, several large hotel chains have answered this growing need for rentals with larger units that are comparable to small homes. Many of these units are pet friendly and this office is providing our clients with the details they require in increasing numbers.
How do I protect or improve my credit after this difficult period? The Realtor you choose should have the names of reputable professionals who can help you with credit repair if you need a referral.
Do not ever lose faith in yourself or your absolute right to the American Dream. Arm yourself with those who know what they are doing and take that leap of faith that bonds us to each other in times of need. We’re standing right on the front line with you.