If you are considering a short sale or loan modification to prevent foreclosure in Shakopee, MN, here is some basic information you should know:
-Two Months Bank Statements (Checking, Savings, Other)
-Last Two Pay Stubs
-Two Years Tax Returns
First, contact a qualified expert in the short sale/loan modification field in Shakopee, MN to help you with the process. This person is a vital asset to your financial and home ownership future and will work with you to navigate through the process of a short sale or loan modification on your Shakopee home.
In the next step we will contact your lender together, and work through their home ownership retention or foreclosure prevention departments, in order to secure your loan modification or short sale. We will be sending them the general required documentation, along with any other information they request.
Our goal will be to lower your mortgage payment if you want to remain in your home, or do a short sale if you need to sell your home. In order to do a mortgage modification or short sale, you will probably need to prove a hardship to your lender.
-Too Much Debt
-Death of a Spouse or Family Member
-Damage to Property
As a licensed Realtor since 2003, I have built my business on making customer satisfaction my #1 goal. As a Certified Distressed Property Expert, I have the knowledge and understanding of the short sale process and working with your mortgage company to allow you to sell your home quickly. Contact me to today to get started.
Here are some links to the larger financial institutions help departments:
With many homeowners in the Twin Cities metro area upside down on their homes, and facing the threat of potentially getting behind on their mortgage payments, I receive a lot of questions about the short sale process. A short sale is a complex process, which can be greatly simplified by having a short sale listing agent who is experienced in working with mortgage companies in lowering a homeowner’s mortgage payoff. Here is a real life story of a short sale in Savage, MN (names have been changed):
I received a phone call from a homeowner who had come across my short sale help site. Through this phone call, I learned that “John” had purchased a home in 2005 for about $170,000, with two mortgages on a common 80/20 loan program. John and his new wife had since purchased a bigger home nearby for their growing family. Due to the decline in home values, they kept his original home, hoping to rent it out until it appreciated enough to cover the mortgage payoff, and closing costs.
John and Jane quickly learned that being a landlord wasn’t all that it was cracked up to be. There were repair costs due to the carelessness of renters and the difficulty of collecting the monthly rent check. Then the renter fell a month behind, and suddenly, the renter disappeared. Now John & Jane were faced with two mortgage payments, a young child, and a baby on the way.
A decision had to be made…
They could no longer afford to make two mortgage payments, and decided that the rental home needed to go. John contacted me after they were a couple payments behind, and made the decision that we would assist them in pursuing a short sale. Prior to listing the home, we gathered all their current financial information (tax returns, bank statements, pay stubs, etc), and had them write a detailed hardship letter to their mortgage companies describing their financial difficulties, which we submitted for consideration.
We listed their home at it’s current market value, and quickly received an offer. We had found a great buyer, who was willing to wait for the mortgage companies’ approval. Due to all the upfront due diligence in creating the detailed short sale package, we closed within 30 days of signing the purchase agreement! The buyer got a great deal on the home, and the seller’s mortgage debt of over $100,000 was satisfied and released from further obligation!
Here is what John had to say after it was all over:
“When I thought selling my home was impossible being extremely upside down on my mortgage. Jesse dedicated his time and efforts negotiating with my lender to accomplish a very challenging sale on my home. He eliminated a bad investment I was carrying around, satisfied the mortgage company, and prevented a foreclosure on my asset. Jesse successfully did what other agents were not able to accomplish!”
(New Prague, MN) A lone individual recently made waves in the news locally, and nationally for an extremely offensive, racist display. The display depicts a black baby with a noose around it’s neck, hanging from a tree.
News spread quickly via Facebook and other social networking sites. A large group of citizens and friends of New Prague joined the Facebook group “New Prague Against Racist Display”. A quick search of Facebook showed a majority voice against this act. Comments such as “embarrasing”, “sad”, and a concensus of negativity towards this individual.
New Prague is a wonderful, welcoming suburb of Minneapolis. Located in Scott County, New Prague, Minnesota has a population of approximately 7,000 people. It’s citizens pride themselves on their welcoming, friendly nature, and a city rich in history. Community events such as Dozinky Days (a Czech Harvest Festival) bring an estimated 15,000 people to the city each fall.
More updates will be posted as the story evolves.
You are not alone. Tough economic times, coupled with a decline in Scott County home values have forced many homeowners into very difficult situations. Unfortunately, many of these homeowners are not made aware of their options, and never seek the advice from trained professionals until it is far too late. When you are on the edge of losing your home, you have no time to waste.
If you or someone you know is facing foreclosure, here are some of the options available to you:
If you are behind on your mortgage, the quickest way to avoid foreclosure is to pay the entire amount due, including any late fees. This does not require lender approval, and it is possible to “reinstate” your mortgage up to the day before the sheriff’s sale.
This involves some negotiation with your lender allowing you to repay missed payments over a period of time. Typically, a homeowner will make their normal mortgage payment, along with an additional amount to cover the repayment plan.
3) Loan Modification-
A loan modification involves the reduction of either a) interest rate, or b) principal balance of the loan. This option requires lender approval, but typically results in a lower mortgage payment for the homeowner. Consult with your mortgage company to see if you may qualify for a HAMP mortgage modification.
4) Short Sale-
If the three options above do not work for you, consider a short sale. A short sale allows the homeowner to avoid foreclosure, minimize financial damage, and move on from an unaffordable mortgage. In many cases, a short sale allows the borrower to qualify for a new mortgage in as little as 2 years. A HAFA short sale may allow you to receive up to $3,000 from your mortgage company!
5) Other Options-
Other Options available include renting the property to cover mortgage payments, bankruptcy, deed-in-lieu of foreclosure, refinancing, selling the property and paying any deficiency, and Servicemembers Civil Relief Act for someone who may be deployed.
It is very important to consult with a trained professional very early in the foreclosure process regarding the specifics of your situation. A Certified Distressed Property Expert (CDPE) has received extensive training regarding options to avoid foreclosure. CDPE’s have up-to-date education, and the experience to help you and your family.
Historically, January is a fairly slow month for real estate sales in Shakopee. Much of this is because of the cold weather and deep snow. Who wants to trudge through 3’ of snow to go look at some houses? I do!
One of the most frequent questions that we as Realtors receive is, “How is the market?” Here is what happened in the Shakopee real estate market for the month of January:
New Listings (73)
-Short Sale New Listings (14)
-Bank Owned New Listings (22)
Pending Sales (32)
-Average Sales Price ($174,824)
Closed Sales (23)
-Average Closed Price ($168,174)
Total Active Listings (298)
-Average List Price ($215,126)
-Active Short Sales (81)
-Active Bank Owned (55)
Roughly 50% of the new inventory is made up of distressed properties (foreclosures or short sales), which is above average compared to the other cities in Scott County. It is also relatively close to the current make up of the homes on the market in Shakopee, of which 46% are distressed. Many of these are made up of townhomes and duplexes.
There is a fairly sizable gap in prices of current listings at $215,126 and the average price at which homes are selling at $174,824. We’ve been saying it for a couple years, and it is true now, more than ever. In order to get your home sold, you will be engaged in a price war; and a beauty contest.
Although many homeowners cannot compete with the foreclosures and short sales on pricing, they do have a trump card in their hand. Condition. A vacant foreclosure, or worn out short sale just does not have the same emotional appeal to buyers, of a well cared for, pristine home. You can further your chances for success at selling your home by utilizing the tools of a top full-service real estate brokerage, and the services of an experienced, knowledgeable Realtor utilizing the latest technology.
In my last article Good News for the New Prague Market I outlined how commercial development is generally good for future residential sales in New Prague. While January is generally a slow month for home sales, it appears as though buyers are beginning their shopping early this year! Let’s take a look at what happened in January for the New Prague MLS area:
New Listings (43)
-Short Sale New Listings (4)
-Bank Owned New Listings (12)
Pending Sales (16)
-Average Sales Price ($204,907)
Closed Sales (7)
-Average Closed Price ($193,186)
Total Active Listings (177)
-Average List Price ($252,490)
-Active Short Sales (31)
-Active Bank Owned (31)
The good news for New Prague, MN is that only about 37% of the new inventory is made up of distressed properties (foreclosures or short sales), in comparison to Shakopee which is around 50%. It is slightly higher than the current make up of the homes on the market in New Prague, of which 35% are distressed. Although higher, it is not a substantial margin.
There is a fairly sizeable gap in prices of current listings at $252,490 and the average price at which homes are selling at $204,907. We’ve been saying it for a couple years, and it is true now, more than ever. In order to get your home sold, you will be engaged in a price war; and a beauty contest.
Although many homeowners cannot compete with the foreclosures and short sales on pricing, they do have a trump card in their hand. Condition. A vacant foreclosure, or worn out short sale just does not have the same emotional appeal to buyers, of a well cared for, pristine home. You can further your chances for success at selling your home by utilizing the tools of a top full-service real estate brokerage, and the services of an experienced, knowledgeable Realtor utilizing the latest technology. Contact Jesse Schneider of Re/Max Advantage Plus today for expert advice on the New Prague Real Estate Market.
Is it possible to buy a home with no money out of pocket? The short answer is “yes”.
Although each specific loan program has many criteria for qualification (credit score, income, assets, liabilities, etc.) there are several options available in the South Metro Area. Here are three of them:
USDA Rural Development
This is truly a ZERO DOWN loan program. It is available in the smaller communities like New Prague, Jordan, Belle Plaine, Elko/New Market, and Lonsdale. There is an income limitation of 115% of the area’s median income, which ranges from $80,700 to $92,600 for a 1-4 person household.
Federal Housing Administration
An FHA loan is a very common loan, and is available in the smaller communities, as well as the larger cities of Shakopee, Prior Lake, and Savage. There is a 3.5% minimum down payment requirement, but it is allowed to be gifted from a relative. There is a lending limit in place of $365,000 for Scott County, and $271,050 for both Rice and Le Sueur counties.
If you are purchasing a home that would be classified as a “fixer-upper” FHA has a rehab loan available. With a 203k loan, you get a single loan that includes the purchase price, as well as improvement costs. Depending upon location, FHA allows up to 110% of the homes projected value after improvement. It is important to note that the work needs to be done by a reputable contractor of your choice, and must be done within 6 months of closing.
A common way to cover your buyer closing expenses, is to ask the seller to simply pay them for you. Generally buyer closing costs are around 3% of the home purchase price. For a seller asking $200,000 for their home, a buyer could increase the purchase price to $206,000 to keep the net purchase price to the seller at $200,000, OR offer $200,000 and ask the seller to pay the 3% for buyer closing costs. It is important to note that in the second example, the net purchase price to the seller is reduced to $194,000, or in effect, $6,000 less for the buyer!
For additional loan programs, and information on the three outlined above, contact a reputable Realtor with an experienced financing team.