For the times they are a-changin’…Bob Dylan

I have good news for you!!!keith

Since the beginning of the Great Recession in 2008, some of my clients have gone through short sales, foreclosures and even bankruptcies. If you
have experienced any of these difficult situations in the past few years, I have good news for you! The lending environment is changing significantly, so I wanted to share some new loan products with you.
foreclosureFirst of all, the traditional waiting period to get Conventional and FHA loans after these events is as follows:

Conventional – 7 years after a Foreclosure and 4 years after a BK

FHA – 3 years after a Foreclosure and 2 years after a BK

I now have several lenders that will offer you a loan 1 day out of foreclosure and 1 year after a BK! This is NOT a typo!!! Less than 2 years ago, the only other option for borrowers with these events in their past was a “hard money” loan at an interest rate of 8-12% and 4-8 discount points and these loans had a “due in 2 years” clause in almost all cases.

I also have good news for self-employed borrowers who write off expenses to lower their income and taxes, but can also have problems with conventional financing.

Before the crash in 2008 we had “stated income” loans. If the borrowers had good credit, some reserves and a large down payment, they could getshort-sale conventional financing. What a mess that got us all into! Now instead of providing tax returns for a loan, these lenders will accept 24 months of bank statements and average the deposits and use that for income! This enables borrowers who don’t show the necessary income on tax returns to qualify for a home loan when just 2 years ago they would not.

These loans have slightly higher rates and fees, but the end result is you can get back in the real estate market and be a home owner again. If you, or someone you know is in this situation, don’t hesitate to call me to discuss these new loan programs. As always, I am at your service.

Oh yeah, and who would have thought Bob Dylan would be awarded a Nobel Prize in Literature???

Keith

KEITH’S KORNER All is well with the Wenger family! Margie and I recently spent a week in Tempe, AZ visiting our daughters Jessica and Charla who are attending Arizona State University.

While in AZ we went to a brand new butterfly exhibit that was unbelievable and we visited Botanical Gardens that have every kind of Cactus and plant that grows in the area. We even made time to attend an Octoberfest celebration that gave me a mean hangover.

Brent is headed off to Chico state after the Christmas break to finish his last 2 years as a business major, Elise is engaged to be married in Oct 2017, Bethany is really busy with Sierra college, work and swimming for the Sierra College swim team and Stuart got 4 A’s and 2 B’s at Bear River. He is a sophomore and is playing on the Water Polo Team.

Stay tuned…

The Real Estate Auction

The Real Estate Auction

auctionThe real estate auction or foreclosure auction can be a very rewarding place for those that do their homework. There are huge investment opportunities with discounts as much as fifty cents on the dollar. When buying foreclosures at the auction, it’s critical to know the steps involved so you’ll have a good experience.

Keith Wenger of Imperial has successfully purchased and resold over 100 hundred homes purchased at real estate auctions. Complimentary consultations are available, so contact Keith today!

Pre-Foreclosure Short Sale

Pre-Foreclosures with Short Sales

Investing in pre-foreclosures with short sales has never been better. Working with Keith Wenger at Imperial, he will walk you step by step and introduce you to a creative technique called a real estate short sale. Short sales allow the real estate investor to discount the loan from the lender. You must know this technique if you want to be competitive in today’s market.

Foreclosure Investing

The Foreclosure Investing Process

The foreclosure process contains 3 stages: Pre-foreclosure, foreclosure auction, and bank owned properties REO.  Having specialized in this area for the last several years, Keith Wenger, at Imperial has a wealth of industry knowledge to share. Contact him today for a complimentary consultation.

Service Members

Service Members Civil Relief Act

(Military Personnel Only)

militaryIf a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Service members Civil Relief Act. The American Bar Association has a network of attorneys that will work with service members in relation to qualifying for this relief.  Imperial can help guide you through this process.

 

Benefits
  • If qualified, this will lower payments on all consumer debt in addition to mortgage payments.
Drawbacks
  • Must be active military to qualify.

Deed in Lieu

Deed in Lieu of Foreclosure

Also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.  Imperial can advise you on this option.

Benefits

  • Many times in a successful deed in lieu, the lender will forego their right to a deficiency judgment.
Drawbacks
  • Requires that a homeowner vacate the property, and a deed in lieu may be reported to credit bureaus as a foreclosure.

Bankruptcy

bankruptcy

Many have considered and marketed bankruptcy as a ‘foreclosure solution,’ but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.  Consult with a professional like Imperial before you proceed on this path.

Benefits
  • Does not require lender approval
Drawbacks
  • If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall (not stop) the foreclosure process. Bankruptcy can be costly, is damaging to credit scores, and can only be declared once every seven years.

Reinstatement

Reinstatement/Repayment Plan

paid_in_fullA reinstatement is the simplest solution for a foreclosure; however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.
A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

Benefits
  • Allows the homeowner to make payments over time.
Drawbacks
  • Requires that a homeowner be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed.
  • Some mortgage companies will require a homeowner to ‘qualify’ for forbearance.

Short Sale Property

short_saleIf a homeowner owes more on their property than it is currently worth, then they can hire Imperial to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation.

Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.  Imperial has significant experience in assisting homeowners with Short Sales.  Because the company is also a licensed mortgage broker, we have great relationships with the banks and lenders in the region so we are more often than not able to negotiate agreeable terms.

 

Benefits
  • A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 18 months (as opposed to five years for a foreclosure).
Drawbacks
  • Short sales can be a very trying process in which a homeowner has to deal with the loss of the property and their hope of a successful investment.  In addition their credit status is adversely affected, just not as severely as losing the property to foreclosure.
Want more info on Short Sales? Find out here.

Rent the Property

for_rentA homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.

Benefit
  • Allows homeowner to keep property indefinitely.
Drawback
  • The issues that can arise with a rental property are many, and rent often does not cover the full cost of property ownership and maintenance. If a homeowner is now vacating the home to a renter, they still need enough funds to rent a place for themselves.