Monday, December 28, 2009
How Foreclosure Works
How Foreclosure Works – The Foreclosure Freight Train
When homeowner efforts to refi¬nance, work out a loan modifica¬tion or otherwise avert a foreclosure fail, the lender will file a foreclosure action. Foreclosure is the legal pro¬cess whereby a mortgage lender can take title to the properties of owners in serious default on their mortgages. The lender may take title to the property at the sheriff’s sale and, in most instances, resell the home. If the property is worth less than the total amount owed on the mortgage loan, a deficiency judgment may be pursued against the homeowner. Foreclosure should be avoided at all costs.
A foreclosure under Wis. Stat. Chapter 846 generally takes four to 18 months. Once commenced, foreclosure is like a freight train, always moving forward in a slow and steady progression.
When a property owner has not made any mortgage payments for approxi¬mately 90 days, the attorneys will pre¬pare a summons and complaint that is served upon the owner and all other lien holders. After the homeowner answers the foreclosure complaint, or after the 20 days if no answer is filed, the attorneys will schedule a court appearance. If any defenses are not sufficient to prevent continua¬tion of the foreclosure, the lender’s attorneys will ask the court for a judg¬ment specifying the total amount due on the mortgage loan and ask for a sheriff’s sale and perhaps a deficien¬cy judgment. A deficiency judgment holds the borrower responsible for any amounts still owed to the lender after the proceeds of the sheriff’s sale have been applied to the debt. The foreclosure judgment also specifies the length of the borrower’s redemp¬tion period, that is, the amount of time the homeowner has to pay the entire mortgage debt and thus pre¬vent the sheriff’s sale. For a residen¬tial property, the redemption period generally will be 12 months if the lender seeks a deficiency judgment, six months if no deficiency judgment is pursued and two months if the property is abandoned. At the end of the redemption period, the property is sold at a sheriff’s sale to the highest bidder, typically the mortgage holder.
Here are some helpful resources to avoid the Foreclosure Freight Train
• Learn about Foreclosure Avoidance at the Wisconsin Foreclosure Assistance Resource Center:
www.wisconsinforeclosurekit.org.
• Call the lender. Contact information for various mortgage loan servicers is available on the Making Home Affordable Web site at http://makinghomeaffordable.gov/con¬tact_servicer.html and on the HOPE NOW Web site at www.hopenow.com.
• Speak with a counselor, preferably a U.S. Department of Housing and Urban Development-approved
Visit Wisconsin Foreclosure Resource at www.wisconsinforeclosureresource.com
HUD at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=WI, or call 800-569-4287 (or TDD 800-877-8339) for a listing of HUD-approved housing counseling agen¬cies in Wisconsin.
When homeowner efforts to refi¬nance, work out a loan modifica¬tion or otherwise avert a foreclosure fail, the lender will file a foreclosure action. Foreclosure is the legal pro¬cess whereby a mortgage lender can take title to the properties of owners in serious default on their mortgages. The lender may take title to the property at the sheriff’s sale and, in most instances, resell the home. If the property is worth less than the total amount owed on the mortgage loan, a deficiency judgment may be pursued against the homeowner. Foreclosure should be avoided at all costs.
A foreclosure under Wis. Stat. Chapter 846 generally takes four to 18 months. Once commenced, foreclosure is like a freight train, always moving forward in a slow and steady progression.
When a property owner has not made any mortgage payments for approxi¬mately 90 days, the attorneys will pre¬pare a summons and complaint that is served upon the owner and all other lien holders. After the homeowner answers the foreclosure complaint, or after the 20 days if no answer is filed, the attorneys will schedule a court appearance. If any defenses are not sufficient to prevent continua¬tion of the foreclosure, the lender’s attorneys will ask the court for a judg¬ment specifying the total amount due on the mortgage loan and ask for a sheriff’s sale and perhaps a deficien¬cy judgment. A deficiency judgment holds the borrower responsible for any amounts still owed to the lender after the proceeds of the sheriff’s sale have been applied to the debt. The foreclosure judgment also specifies the length of the borrower’s redemp¬tion period, that is, the amount of time the homeowner has to pay the entire mortgage debt and thus pre¬vent the sheriff’s sale. For a residen¬tial property, the redemption period generally will be 12 months if the lender seeks a deficiency judgment, six months if no deficiency judgment is pursued and two months if the property is abandoned. At the end of the redemption period, the property is sold at a sheriff’s sale to the highest bidder, typically the mortgage holder.
Here are some helpful resources to avoid the Foreclosure Freight Train
• Learn about Foreclosure Avoidance at the Wisconsin Foreclosure Assistance Resource Center:
www.wisconsinforeclosurekit.org.
• Call the lender. Contact information for various mortgage loan servicers is available on the Making Home Affordable Web site at http://makinghomeaffordable.gov/con¬tact_servicer.html and on the HOPE NOW Web site at www.hopenow.com.
• Speak with a counselor, preferably a U.S. Department of Housing and Urban Development-approved
Visit Wisconsin Foreclosure Resource at www.wisconsinforeclosureresource.com
HUD at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=WI, or call 800-569-4287 (or TDD 800-877-8339) for a listing of HUD-approved housing counseling agen¬cies in Wisconsin.
Friday, December 25, 2009
My Christmas Wish
Just a simple wish
May you and yours find and celebrate the true meaning of the season.
"Christ the Lord is born today"
May you and yours find and celebrate the true meaning of the season.
"Christ the Lord is born today"
Monday, December 21, 2009
What is early occupancy?
It is the possession of a property by a buyer prior to the close on the property. It is used when the buyer’s home has already closed and needs housing, or the Buyer is waiting on financing approval. Both situations may use this contract provision. This is established by an agreement in the purchase contract. Early occupancy is considered a form of tenancy until the property actually closes. Pre-conditions of such early occupancy include the payment of security deposits, executing the lease, and providing required insurance policies.
It is the possession of a property by a buyer prior to the close on the property. It is used when the buyer’s home has already closed and needs housing, or the Buyer is waiting on financing approval. Both situations may use this contract provision. This is established by an agreement in the purchase contract. Early occupancy is considered a form of tenancy until the property actually closes. Pre-conditions of such early occupancy include the payment of security deposits, executing the lease, and providing required insurance policies.
Friday, December 18, 2009
What is a contract Contingency?
It is a condition to the sale that the buyer wants meet before they will purchase the property. If the condition is not meet the buyer would without penalty, get back an earnest money deposit upon cancellation.
The types of contingencies vary; here are a few common examples.
• Appraisal.
Buyers who obtain a loan will be required by the lender to pay for an appraisal to substantiate the purchase price.
• Loan Contingency.
Even though a buyer may hold a loan preapproval letter, further investigations concerning the property or the borrower could result in a loan denial.
• Home Inspection.
Buyers have the right to hire a home inspector and conduct a complete inspection of the home.
• Lead-based Paint.
• Many homes built before 1978 contain lead-based paint.
• Wood Destroying Pest Inspection.
The contract should specify who will pay for the pest inspection
• Septic and Well Inspection.
Septic systems can get clogged from tree roots or deteriorate over time. Wells can become contaminated
• Radon, Mold or Asbestos Inspections.
Depending on a visual inspection, sometimes home inspectors will call for additional inspections by licensed entities to check for their presents
• Early Occupancy.
Contracts can be contingent upon the buyer and seller entering into a written agreement that allows the buyer to rent the property prior to close of the sale.
Your realtor will help you with any contingency that may be needed at the time of the offer.
It is a condition to the sale that the buyer wants meet before they will purchase the property. If the condition is not meet the buyer would without penalty, get back an earnest money deposit upon cancellation.
The types of contingencies vary; here are a few common examples.
• Appraisal.
Buyers who obtain a loan will be required by the lender to pay for an appraisal to substantiate the purchase price.
• Loan Contingency.
Even though a buyer may hold a loan preapproval letter, further investigations concerning the property or the borrower could result in a loan denial.
• Home Inspection.
Buyers have the right to hire a home inspector and conduct a complete inspection of the home.
• Lead-based Paint.
• Many homes built before 1978 contain lead-based paint.
• Wood Destroying Pest Inspection.
The contract should specify who will pay for the pest inspection
• Septic and Well Inspection.
Septic systems can get clogged from tree roots or deteriorate over time. Wells can become contaminated
• Radon, Mold or Asbestos Inspections.
Depending on a visual inspection, sometimes home inspectors will call for additional inspections by licensed entities to check for their presents
• Early Occupancy.
Contracts can be contingent upon the buyer and seller entering into a written agreement that allows the buyer to rent the property prior to close of the sale.
Your realtor will help you with any contingency that may be needed at the time of the offer.
Tuesday, December 15, 2009
Check out the NEW home buyers tax credit website. Now truly is the time to buy a home
http://ping.fm/F37uH
http://ping.fm/F37uH
What Is Series VA Loans from Scott Larson
What is a VA loan? Who qualifies?
Banks and other private mortgage companies make a special type of home loan to veterans of the US Armed Services. A portion of each loan is guaranteed by the Veterans Administration (VA), and protects the lender's investment if the borrower defaults.
* The guaranteed amount of a VA loan is called an entitlement.
* The current maximum entitlement for loans up to $144,000 is $36,000, with the exact figure determined by your loan amount.
* The maximum entitlement for VA home loans over $144,000 is $60,000.
An entitlement is not a cash payment to you or to the bank. It is the amount the VA promises will be paid to the lender if you default on your loan. Should that happen, the VA may pursue you to recover those funds.
Here is a list of who is eligible for a VA Loan
Wartime/Conflict Veterans who were not dishonorably discharged, and served at least 90 days.
Peacetime Service
Peacetime service of at least 181 days of continuous active duty with no dishonorable discharge.
Reserves & National Guard
Members who have completed six years of service and have been honorably discharged (or are still serving) may be eligible for a VA loan.
Others
Other types of service that may make you eligible for a VA loan:
* Certain US citizens who served in the armed forces of a government allied with the United States during World War II.
* Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried.
* The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.
Anyone with questions about eligibility should speak with their regional VA office.
The Wisconsin phone contact is 608-266-1311
Here is the Wisconsin website. http://dva.state.wi.us/
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
Banks and other private mortgage companies make a special type of home loan to veterans of the US Armed Services. A portion of each loan is guaranteed by the Veterans Administration (VA), and protects the lender's investment if the borrower defaults.
* The guaranteed amount of a VA loan is called an entitlement.
* The current maximum entitlement for loans up to $144,000 is $36,000, with the exact figure determined by your loan amount.
* The maximum entitlement for VA home loans over $144,000 is $60,000.
An entitlement is not a cash payment to you or to the bank. It is the amount the VA promises will be paid to the lender if you default on your loan. Should that happen, the VA may pursue you to recover those funds.
Here is a list of who is eligible for a VA Loan
Wartime/Conflict Veterans who were not dishonorably discharged, and served at least 90 days.
Peacetime Service
Peacetime service of at least 181 days of continuous active duty with no dishonorable discharge.
Reserves & National Guard
Members who have completed six years of service and have been honorably discharged (or are still serving) may be eligible for a VA loan.
Others
Other types of service that may make you eligible for a VA loan:
* Certain US citizens who served in the armed forces of a government allied with the United States during World War II.
* Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried.
* The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.
Anyone with questions about eligibility should speak with their regional VA office.
The Wisconsin phone contact is 608-266-1311
Here is the Wisconsin website. http://dva.state.wi.us/
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
Friday, December 11, 2009
Bank repossessions – or Real Estate Owned properties (REOs) – are great investment opportunities because lenders are often anxious to sell these foreclosure homes. Lenders don’t want to be in the real estate business. It's not uncommon to buy these properties at 40 percent less than market value! With foreclosures on the rise across the United States, this market is hot, but competitive! If a homeowner defaults on a mortgage, meaning he or she cannot make the mortgage payments, the lender will seek to repossess the home. After the repossession process is complete, the bank owns the property and will try and sell it to recover its losses. Most are listed with local Realtors and acquiring the services of a knowledgeable agent is beneficial in navigating the REO waters. Investing in real estate can be a financially rewarding experience. Whether this is your first real estate purchase or you are a seasoned investor, buying foreclosures, preforeclosures (short sales), bankruptcies, or distressed properties can give you instant savings and equity in your home. Contact Realtor Scott Larson at 608-214-9844. Servicing all of South Central Wisconsin, and nationwide by referral.
Thursday, December 10, 2009
Tuesday, December 8, 2009
What is "Earnest Money"
What is Earnest Money?
An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit. Typically, if the seller terminates the deal, the earnest money will be returned to the buyer. When the buyer is responsible for retracting the offer, the seller will usually be awarded the money.
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit. Typically, if the seller terminates the deal, the earnest money will be returned to the buyer. When the buyer is responsible for retracting the offer, the seller will usually be awarded the money.
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
Monday, December 7, 2009
What is PMI?
What is PMI?
With many personal budgets stretched to the limit and less money in savings, it is more difficult for first time home buyers to accumulate a traditional 20% down payment. Move-up buyers struggle to find down payment funds, too, especially if they haven't been in their current home long enough to see a significant increase in equity.
Private Mortgage Insurance
One home buying aid that nearly everyone can use is Private Mortgage Insurance, or PMI. This special insurance protects the lender if you default on your home loan. It makes it possible for you to purchase a home with as little as 3-5 % down.
Here's How PMI Works
1. You have a 5% down payment.
2. The lender wants to finance 80% or less of the home's value, since studies show that buyers who put less down are more likely to default.
3. The lender secures a private mortgage insurance policy for you and closes on the loan. You pay for the PMI policy at closing or (most often) you pay a fee with each monthly loan payment.
4. If you default, the lender receives the 15% you did not pay at closing.
PMI payments can be significant, so if you can avoid paying private mortgage insurance, that's great.
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
With many personal budgets stretched to the limit and less money in savings, it is more difficult for first time home buyers to accumulate a traditional 20% down payment. Move-up buyers struggle to find down payment funds, too, especially if they haven't been in their current home long enough to see a significant increase in equity.
Private Mortgage Insurance
One home buying aid that nearly everyone can use is Private Mortgage Insurance, or PMI. This special insurance protects the lender if you default on your home loan. It makes it possible for you to purchase a home with as little as 3-5 % down.
Here's How PMI Works
1. You have a 5% down payment.
2. The lender wants to finance 80% or less of the home's value, since studies show that buyers who put less down are more likely to default.
3. The lender secures a private mortgage insurance policy for you and closes on the loan. You pay for the PMI policy at closing or (most often) you pay a fee with each monthly loan payment.
4. If you default, the lender receives the 15% you did not pay at closing.
PMI payments can be significant, so if you can avoid paying private mortgage insurance, that's great.
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
Tuesday, December 1, 2009
What is “Real Estate Transfer Tax?”
What is “Real Estate Transfer Tax?”
Real estate transfer taxes (sometimes called deed recordation taxes) are imposed on the sale or transfer of real property located in the state. The tax is usually based on or measured by the consideration paid for or the fair market value of the real estate. The tax is commonly collected by the local official responsible for recording deeds to real estate, and it must be paid prior to the deed to the property being recorded.
This fee is paid by the seller.
The Wisconsin rates are $.30 per $100 of value, Example a $100,000 Home would cost the seller $300. at closing
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
Real estate transfer taxes (sometimes called deed recordation taxes) are imposed on the sale or transfer of real property located in the state. The tax is usually based on or measured by the consideration paid for or the fair market value of the real estate. The tax is commonly collected by the local official responsible for recording deeds to real estate, and it must be paid prior to the deed to the property being recorded.
This fee is paid by the seller.
The Wisconsin rates are $.30 per $100 of value, Example a $100,000 Home would cost the seller $300. at closing
From Scott Larson of Towne Square Realty in Monroe, Wisconsin
“Your Realtor of the Region”
E- Mail scott@greencountyhomeguide.com
On the web at greencountyhomeguide.com
I think you will be surprised how affordable the Dairyland is,
so come to my land of cows and plows and visit for a day, but stay for a lifetime
608-2124-9844 Direct
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