Sabine's Blog

Finally, something positive to write about!  Dare I say it?  A return to a healthy real estate market is really happening?? I was always told it would take 5 years and life would normalize again.

Currently our inventory of available homes & condos is at an all time low.  Feb 2006 we saw 6,544 single family homes for sale in Pinellas County. This jumped to 11,003 in 2007. Inventory painfully, slowly decreased each year. In 2011 there were 6,153 active listings…but what is dramatic…in Feb 2012 our inventory was ONLY 3,718!!  This is a 39% decrease of inventory in one year; 66% decrease from the height in 2007.  Sales, however, have been holding steady.

So, what does this mean?  If your property is priced right, it will not sit on the market for an indefinite amount of time. If you have a short sale, buyers don’t care!  They are making offers and waiting…because there is nothing else! I can’t keep inventory on the shelves. Almost as soon as it is listed, it is under contract.  I am hearing this from other agents as well. The challenge is still getting to the closing table…for a variety of reasons that would be another blog.  But I am telling you, if you have been on the fence about buying a house, you will miss your opportunity if you don’t get in while prices & interest rates are still low.

If a seller, considering listing…just keep your house priced right. You are practically guaranteed to have multiple offers and you can once again ask for highest & best…then chose the best offer, which many times is over the list price!  Still, if you are greedy and think because of the feeding frenzy out there you can price your house high and expect to sell, you are still wrong. Buyers are not jumping at everything…just the best stuff or the best deals. Just like sellers refused to believe their property values are dropping, buyers are not accepting that the time for deals is over.

Looking over the contracts I have from the previous month, I can say that about 90% had multiple offers and we have had to go over the list price. No lie. One offer submitted last night was rejected. Ours was one of three. One offer was list price, the other was identical to our offer…price (over list price, mind you!), down payment, financing, etc…identical. Why was their offer accepted and not ours? Because the first buyer walked and this buyer wrote a letter to the owner stating how much they love this house, the area, and how they see the potential to turn this house into something grand for their growing family. They also promised they would stay committed to the end and purchase it, no matter what.  This is a short sale, it has been neglected & vacant for over two years because the seller became ill. There is a lot of work to do. The price was great for this neighborhood, even if someone had to put $50k into the house, it would still be a deal. This buyer saw that potential and wrote a letter to the owner, tugging at the heart strings, and won the bid!

A new day is dawning…the game is changing…and I can’t wait to play!

Since 2007, 8.9 million homes have been lost to foreclosure and millions more are headed in that direction.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to ensure that you or anyone you care about does not add to that statistic.

The unfortunate fact is that so many homeowners who have played by the rules and never imagined that they could be facing foreclosure are now in a very tough situation.  More than one in four homeowners owes more on their mortgage than their home is worth. On top of that staggering statistic is the fact that millions of homeowners are unemployed, or underemployed and falling further behind every month.

Sound familiar? Rest assured you are not alone.

If you feel that you are headed toward foreclosure, or if you are avoiding facing that fact, the sooner you reach out for help, the better your options.  As a CDPE agent, I help distressed homeowners to work through every aspect of the denial and discouragement that accompanies a mortgage which is no longer manageable, and in the process, to move toward financial solvency.

If you or someone you care about is ready to tip the scales back toward financial solvency, contact me today and let’s get started.

As recently as a few months ago, if you would have told a real estate agent who specialized in short sales that they’d be raving about a lender’s stellar service and rapid approval times—not to mention significant cash incentives for financially strapped homeowners for pursuing a short sale—you’d have gotten some strange looks.

That’s all changed.  And it’s changed faster and to a greater extent than most real estate professionals ever could have imagined.

With a glut of bank-owned properties dragging down the recovery of the real estate market, as well as the national economy, major lenders are more eager than ever before to avoid foreclosure. So they’ve sharpened their focus on short sales. Big time.

The biggest lenders in the country have staffed up to ensure rapid processing of short sale applications. They’ve ponied up with cash incentives at closing for homeowners who pursue a short sale. And they’re proactively reaching out to CDPE agents and putting them in touch with delinquent borrowers.

This is big news and the media has not really caught onto it yet. What’s important for you to know is that whatever you’ve read or heard in the past about long lag times and frustrations with short sales is probably no longer the case.

As a member of the CDPEAdvanced community, I’m tapped into major lenders and on top of major developments affecting short sales and bank-owned properties.  I invite you to visit my website www.PinellasForeclosureOptions.com to learn more and feel free to contact me any time at 727-828-4470 or Sabine@HeartHomeRealty.com  if you or anyone you know is struggling with an unmanageable mortgage.

The real estate world in Florida is all a twitter over Bank of America’s new test incentive plan for homeowners underwater on their mortgage. Currently in Florida only, they are offering 5% of the unpaid mortgage balance (not the sales price) with a minimum of $5,000 and a maximum of $20,000 to homeowners that have their home listed for sale between September 26 and November 30, 2011 that close before August 31, 2012.

Sounds like a wonderful plan, especially since one does not need to be delinquent on their mortgage to qualify.  But before everyone gets all excited, let’s look at this a bit further. Government backed loans (that means FHA, VA, USDA or Ginnie Mae loans) are not included in this program.

So if you were buying your first house, or were a veteran buying a house, used an FHA or VA loan to buy the house with very little money down, you won’t qualify.  I suspect if you are paying mortgage insurance, this also means you.  But if you put a large enough down payment on your house (to avoid paying mortgage insurance) you will qualify.  In essence, Bank of America will be giving you a portion of your down payment back just to sell your house short and avoid all the cost (to B of A) of you staying in your house without making a payment until they finally foreclose.

Remember also, you will still have to go through the short sale process. The bank will still need to approve the short sale price and they will be calculating your “take away” against their net. In the end, I wonder how many sales will actually get approved, of if approved, will they appraise?  If they don’t appraise (by the new buyer’s lender) will B of A come down in price, or will this “take away” now be used as a negotiating tool to meet B of A’s net need?

It is a good idea B of A – but you are still rewarding a select few people from my perspective. Especially if you are willing to consider allowing homeowners that are not delinquent to participate.  “I am surviving, but I want to give up on my house and just rent something for less, plus use my “take away” to pay off some debt.”

The folks that really need help like this are those with the government backed loans! They struggled to finally get their dream house and it is now turning into a nightmare. But their loans are government insured and B of A will be paid when foreclosed. B of A wins, little guy loses. How are these people any different and why can’t they receive a cash incentive?

I think until something can be done on a blanket level, we are still not treating everyone fairly and we are still not on the right track.

It will be interesting to watch what happens in the next few months. How many more banks will jump on this band wagon and how many will actually be helped by this? Is this just another way the banks can say “look at the good deed I have done!”  (But it only helps 1% of the people!)

Note:  Complete details have not yet been revealed – so beyond the first two paragraphs, this is simply my humble opinion.

Whenever I research the latest foreclosure and distressed property statistics, the sheer number of Americans facing the stress of losing their homes amazes me. It is my goal to help as many homeowners I can either stay in their homes or relieve the burden of their mortgages. Knowing that there are so many that need my help is a driving force for me to continue doing what I do.

In fact, I just released a report that I’ve made available on my website today. It explains the CDPE designation and lists 10 options that homeowners can take advantage of to relieve the stress that comes with owing their mortgage lenders more money than they can afford to pay.

The report also draws a contrast between short sales and foreclosures. Unfortunately, there’s a growing trend of “strategic defaulters” who think it’s smart to let their home go into foreclosure. Unfortunately, there is nothing strategic about foreclosure; it’s one of the most long-lasting, negative financial challenges you can go through.

I’m excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners who may need my help, have them contact me immediately! Together, we can put them back on the path to financial stability.

Can I say, I hate technology!  All those silly passwords you have to keep straight. God bless my husband, the techy.  He knows how I always forget passwords, so he bought me a cute gadget called RoboFormsToGo (or something like that).  It has all my websites with login & password info, but you have to know my password to get into it to find the way into all my sites. Yes, I can remember THAT password!  But once in, if I am moving too fast and in a hurry I may somehow enter a password wrong and then hit YES on the RoboForm guy that asks if I want to save my new password.  You know what that means…multiple passwords for the same site!

So that is what happened to me and my blog.  Somehow there were multiple passwords and NONE of them worked! I couldn’t ask for my password, because whatever I was using as an email address was coming up invalid.  I would go mad!  I tried a few times, even tried calling for WordPress 24/7 support.  You know how well that went!  But somehow the other day, I was showing a web designer my sites and he fiddled with the WordPress site.  I remembered what my password should be, so he tried it and it worked!  Seems I was logging into the wrong site!  Go figure! But here I am.  Back at it!  Thanks Toby.

Saw a commercial the other day that started “Remember when we only had 3 channels on TV?”  Well I do!  Life was so much simpler then.  If there was nothing to watch, we went outside to play.  No matter what the weather was!  We always had other kids to play with. We made stuff up, built forts in the dirt, played football barefoot, loved splashing around in the rain during a summer thunderstorm, hunting lizards…whatever.  We had a blast! 

Now, after flipping through thousands of TV channels with nothing on, we go to the computer and see who is online (oh…maybe the cell phone now…I hate technology, remember? I still go to the computer), play some dumb video game, text our buddies who are also bored, and we wonder why we have a nation of fat slobs, or over acheiving, stressed out Type A’s that must take their kids to a multitude of activities so they can’t sit still.

I say we all just start over again with 3 channels and I Love Lucy!  (It would be her 100th birthday today for those that remember who she is). I think we were in a better world back then.

In this world there are Givers and there are Takers.  I am definitely a Giver.  I always have been and I pray I always will be. I love helping people with my actions, deeds & finances as I am able.

The problem with being a Giver is that it is quite difficult to be a Taker.  I live by the belief that it is better to Give than to Receive.  You have to Give in order to Receive. Etcetera.  I am sure you have heard those all too familiar phrases.  But if you can’t be a Taker, how will you ever Receive?

Something I was told by a friend many, many years ago was brought back home to me this weekend.  I was driving us to somewhere far and we stopped at a gas station to fill up.  When finished she handed me a $20 to pay for the gas (yes, I said many, many years ago…you could fill up a tank on $20!).  I told her “No, I offered to drive and that meant I am paying for the gas.”  Remember, I am the Giver.  She insisted.  We “argued” a bit and she finally said, “How can I receive my blessing if you don’t accept my gift?”  I humbly accepted the money and paid for the gas.

This week has been amazing. It feels like all things are coming together and just waiting to break forth in abundance. 

It began with a listing finally going under contract.  I am also representing the buyer.  Both families are wonderful humans to work with and are so excited about their respective changes in life from this transaction. 

Next, I was able to completely shock a friend by telling her that she was going on a cruise with me in May.  She has worked hard since entering the country, she brought all four of her children here, they all became citizens, and she purchased a house. She did this by working multiple jobs and missing holidays. She is losing her house, her roof leaks & she found out there is now a major plumbing issue. To boot, a fabulous relationship had to end due to job relocation. She is having a crappy year, to say the least.  It was wonderful to hear how excited she was to hear she would go on a cruise.

A few days later, I was informed I may get some money back on the cruise to help pay for my friend. I didn’t want it; I said it was not necessary.  But it was insisted that I accept.

Then I was at a lunch and was waiting for my bill to come.  I was about to ask the waiter and the person sitting next to me said that her company picked up the tab.  What?? Why???  “Because of the referrals you have given us and for all you do.”  I tried to argue about it…but it was done.

Then the big one.  My daughter sent a birthday card with a rather large check in it.  I was stunned.  “What the heck??  Are you nuts!?!”  Really, I said this to her. “You should keep this, it is over the edge.”  Her response was “No mom, I have been dying to give you a really amazing gift ever since college. You deserve this. I love you.” I stuck the check in the envelope and left it lying on my desk.  Unable to do anything with it.

Do you see a pattern here?  Giving is easy.  Receiving is not.  I realized this morning that by not accepting the gift, I am denying the other person their blessing.  I had remembered the gas money from many years ago.  Why is it so hard to graciously receive blessings as they come to you?  Silly me!

By writing this, I am sending out my apologies to the universe!  You are sending me gifts and I am not receiving them as well as I should have.  I am humbled by all that has come my way, I give my sincere thanks.  I promise I will do better in the future!  To my darling daughter, would it be rude to ask if I can use that money to go to Germany this year instead?  That would be truly amazing!  I love you and I am so proud of you for all that you are accomplishing!  You go Girl!

A short sale occurs when you owe more on your mortgage than you can get in today’s market.  But what kind of people have to do this?  Typically, they are just like you and me.  Something happened in their life, they lost a job, had a death, illness or divorce, they had a baby & job transfer.  Any number of reasons.  They struggle and try to make the payments for as long as they can.  Once they miss a payment and see the dark tunnel ahead, they finally begin a conversation with the bank and quickly realize this is an exercise in futility. They run into conflicting instructions because you never talk to the same person twice on the phone.  Letters come, phone calls daily demanding payment, and panic sets in.  A small number may ask for help, but most keep fighting on their own – too embarrassed to reach out.

If you take only one thing from today’s blog – realize that you do NOT need to do this alone.  The embarrassment is real and pride goes deep.  But if you would reach out to professionals for help, you will realize you are not at all alone and your embarrassment and frustration will be short lived.  You just need to decide first if you want to stay in the house, or if you want to give up and move on.

If you want to keep the house, contact a local HUD counselor. Their services are free.  In St Petersburg, FL, you can go to St Petersburg Neighborhood Housing Authority.   They have classes on how to avoid foreclosure and will have counselors available to help you through the process of loan modification.

You may also jump straight to getting some legal advice (remember initial consultations are free.)  The following video does an excellent job of explaining how an attorney can help you. Avoid Foreclosure

If you want to give up and move on, your best option is probably a short sale. Contact a Realtor to help determine the current value of your home, then contact an attorney to get the legal advice needed to determine if this is your best option.  Some Realtors will help process and negotiate your short sale, but I caution you on this front.  Legally, they can’t negotiate the terms of the final agreement from your lender.  With an attorney representing you, there is a far greater chance of you receiving more favorable terms.

If the bank escalates the foreclosure process because your Realtor has been unable to obtain a viable offer on your house, you defitintely want an attorney on your side.  They can help to delay and stretch out the process.  Starting with an attorney in the early stages will make the entire process much smoother and possibly faster.  Don’t short change yourself at this time! Also be sure the attorney you chose is someone you see face to face and that you have a written agreement that spells out what will be done on your behalf.

If any of this applies to you, please know you are not alone. Reach out for help and stop fighting so hard. So many have struggled longer than necessary and felt such relief once they got help, then wondered why they waited so long. Reach out, there are people that want to help!

When asked why I am a Realtor, the number one reason that pops into my mind is that I like helping people and building relationships with them during what is probably one of the most stressful, yet exciting times of their lives.  I am especially blessed when that relationship continues beyond the closing and blossoms into something more.  That is when I know I have done my job perfectly!

One such client developed into 3 other family members making a purchase.  I have also been invited to birthdays, house warmings, baby christenings and I am now counted as one of the family (and expected to attend all events!)   

My family originated in Germany and my parents were the first (and only) to immigrate to the U.S.  We have always only had each other.  My first marriage was to a man who estranged himself from his family and my current husband immigrated from Germany ten years ago on his own.  My children are grown and on opposite sides of the country.  My siblings are in San Diego, Phoenix & Germany.  So there is still no family around.  My idea of family holidays comes from watching TV or the movies.  This is all I know of how the family dynamic works – or doesn’t work (as is generally the case in the movies!)  So, to be with my adopted family is always a treat!

Recently however, Oma (grandma in German) was diagnosed with lung cancer.  This came as a shock to everyone in the family.  Everyone came together to be with her and make sure that she is taken care of.  December brought two great grandchildren’s first birthdays and Oma’s 72^nd birthday.  It was a month of celebrations and I was, of course, present.  Oma’s birthday was the last one before Christmas and the smallest, with just family present.  So I was extremely honored to be invited.

This celebration truly touched me and I had a tough time to hold back tears on several occasions during the course of the evening.  I was in awe of this family because there was no fighting.  There never has been, just family coming together to celebrate an event.  No matter how many times I have been at a family event, there is no fighting or talking badly about someone else.  I marveled at this, knowing it is not like this all the time.

When I arrived, Oma was looking quite beautiful with a new hair cut and a beautiful red blouse that made her glow.  As the evening wore on, I could see her getting weaker and sinking into the sofa, withdrawing.  I watched her husband of 50+ years bring her food and try to get her to eat, whispering silly things to her to coax her to have a taste at the very least.  I saw the children cast a concerned glance toward their mother while continuing with their conversations.  They all know that their mother does not want them to make a fuss over her.  Yet the children know she must eat to keep her white blood cell count up so that she can receive the chemo therapy that could save her life. Grandchildren came to her randomly and gave her hugs & kisses, telling her that they loved her.  They were not told to (at least not that I saw), they just did it because they loved their Oma and they wanted to.

It was a beautiful evening that I was truly blessed to be a part of.  I am thankful that I was able to step back, outside of myself, to view the private moments and see beyond the surface.  It made me appreciate the family I do have – even if it is not what I have always longed to have.  I am content to know that I am a part of this family and that I will be back to celebrate with them again in the future.  I hope that you enjoy the time that you have with your family, however that looks.  Appreciate it and be thankful – for they are your family.

Black Friday, Cyber Monday and everyday thereafter before Christmas is a crazy, wild, exciting fun time hunting around for the just the right gift for everyone on your list.  Are you one of those that is spending like there is no tomorrow?  Or are you being careful to not overspend this year?

 Not to be a downer, but keep in mind that you could be one step away from financial disaster.  Someone loses a job.  Someone gets sick and insurmountable medical bills start snowballing toward you. Someone gets divorced. Someone dies. Any number of events can change your life (or those around you.)

 Some you will know, others you may meet in passing. Some will tell you of their problems, others may only hint at their situation, but most will just keep quiet, put up a good front and try to fight through their problems on their own.  Millions in this country are losing their homes because of these types of situations.  They try to reason with their lender and are frustrated with the lack of any sane system or organization.  Good people, just trying to get someone to listen to them to help them through this situation, only to be told they can’t be helped until they have missed mortgage payments!  This is exact thing they are trying to avoid!  It makes no sense.

 If you are in this position, I know you are embarrassed, frustrated and not sure where to turn.  There is help and you don’t have to do this alone.

 If you are strong enough and want to try to fight the battle with some guidance, there are local HUD certified counselors that will help you through the process.  In St Petersburg Florida there is St Petersburg Neighborhood Housing Services.  They are a non-profit organization and hold regular foreclosure workshops that give you the necessary forms and procedures to help yourself.  Every city has a similar organization, just do a Google search for HUD foreclosure prevention or go to the HUD website.

 If you have already tried to reason with your lender and can’t bear any more of their contact, it is time to recruit the services of professionals.  Whether you want to sell or whether you want to stay in your house, a Realtor can give you some solid advice on what the real estate market in your area looks like. This way you have a realistic view of what your house is worth if you were to sell it.  You probably already know you are upside down, that’s fine.  Get the facts in line.  Next, you will want to speak to a real estate attorney that specializes in foreclosures & bankruptcy.  You need to know – right from the professional (not your well meaning friends & family) what your options are.  I have worked with Yesner & Boss, PA and have had great success.

 If you hire an attorney, the first thing they will do is have you write a letter that tells your lender they are now representing you and any further contact should be made through them.  Do you know what a relief it is to have the harassing phone calls stop?  This is the biggest weight lifted off your shoulder and you will immediately begin to feel there is a light at the end of the tunnel!

 I typically attend the initial meeting with the attorney if my client wishes.  It is an emotional step.  I am there only to provide input I feel is pertinent (through our conversations) and to ask questions you may not be thinking to ask.  The first meeting is just to go over your situation and then you will be presented with your options and what the cost will be. It can take as long or as short as you need.  They want to make sure you understand what will happen.  Yesner & Boss has an excellent short video on the various options.

 Once your decision is made, a short sale may be your best option.  This is where the Realtor will again come into the picture.  They would get your house listed on the MLS and begin a marketing strategy to get your house sold.  Don’t worry about the real estate costs, they are typically included in fees that the lender will include in the deficit statement. You will have to pay legal fees to the attorney, but they should be reasonably attainable. At Yesner & Boss they even have a payment plan.  If you are already in foreclosure & are just waiting for the day the bank tells you it is time to leave, an attorney can help stall this time through legal measures.  Again, another great reason to have one on your team during this time!

 Just know there are solutions and you don’t have to fight this battle alone. Whether it is you or someone you know, I hope you can set aside the pride and reach out for some real answers and some real help.  There is nothing to be ashamed of, it is the time we live in and you are caught in the middle.  Now, let’s help get you out!