Ideas to Help Foreclosure Problems Locally in Murphy NC and the US

Posted by I Love Murphy on

Being a Realtor, I get to see the good, the bad, and the downright ugly. There’s nothing uglier right now than foreclosures. They’re a hot topic among buyers and faux pas amongst owners – and rightfully so. No matter who you are or your situation – a vacation home, a primary home, a speculative investment – I wouldn’t wish a foreclosure on anyone.

It seems the hot topic amongst politicians and the media right now is health care reform . In college, I studied the work of a man named Abraham Maslow who developed a “hierarchy of needs.” Summarizing it, the need for shelter is far more important than the need for security in health care. It seems that we would do a better job of addressing one of the most important aspects of people’s lives.

There are so many opportunities our government and financial institutions should be pursuing to help families in this predicament. Here are a few things our representatives should be actively pursuing:

  • IRS Forgiveness – when a struggling family has a short sale on their home or investment (sell it for less than the bank is owed), do not make the forgiven debt income on their tax return to be turned in to the IRS. If you can’t pay your home mortgage, you won’t be able to pay the coming IRS bill. It’s more of an incentive to go into foreclosure than to have IRS problems. Who would you rather have chasing you? A bank or the IRS? It shouldn’t be this way.
  • Make secondary market mortgages more flexible – loans that are at community banks and owned by community banks are having much more success in getting modifications to help families. Where the major problem is loans that are sold in the secondary mortgage market (most are) are totally inflexible. 3 months late? Foreclosure. Simple. Stupid. Many families want to keep their home and if they are legitimately striving to pay and/or find jobs and have the prospect of it, they shouldn’t be kicked out. Take the payments they miss or payments they can’t make and put it on the back of the loan. The bank or investor makes more money and families get to keep their home. It’s not rocket science, but rarely can it happen because mortgages are not flexible or take too long to change. It will take a literal act of congress to make the change.
  • Time – banks are getting all this money and turning around to use the government loaned money to buy up other banks. So we, the taxpayers, who need help are financing things that do not directly help us. What will help people in foreclosure the most is simply time. People should be able to let their bank know as soon as they see trouble on the horizon and get a modification or other idea that will make the difference between owning their home or losing it. Many banks are trying to do loan modifications, but not fast enough. It can take 30 days for a decision maker at the bank to even look at a loan modification or offer to purchase a short sale! Not only that, they many times claim you must be 2 months or more late before they’ll help. This is not acceptable.

There are so many things our nation’s leaders can do to help us, and it’s important to realize there is no black and white answer for any of it. I’m also not promoting that people who are not paying their mortgage, or intend to, should be able to stay in their home. That’s not right – when you commit to pay back money you borrow to your momma or to a bank, you should make every attempt to do it. What I am promoting is to help people who are in a bad situation and need help. Just throwing TARP money at it will not fix the problem – it will take dedication and work.

In the more than 40 transactions I’ve closed this year, I’m quite thankful to say only a few of them were foreclosures or about to be. Behind every one of them there was a story – a family, and a set of circumstances that no one should have to bear. If our leaders are looking to change our nation one family at a time, here would be a great place to start. Ask your representatives what they’re doing to help – because if they’re doing nothing, they’re not doing a good job.

If you’re in a foreclosure situation or feel one is coming for you, give us or your Realtor a call. Sometimes you feel shamed and embarrassed. It’s tough, but you shouldn’t be. Tackle the situation head on and contact a professional who may be able to help.

Written by: John Poltrock of The POLTROCK TEAM at RE/MAX. You can contact him at JohnP@remax.net or toll free 1-866-687-7496

Facing Foreclosure or feel like it’s coming? Contact Us today!

Understanding a Short Sale in Murphy NC Real Estate

Posted by I Love Murphy on

Short sales in real estate have been a popular topic not only in Murphy NC, but all over the United States. National media has brought attention to this topic, and many people simply don’t understand what a short sale is. A short sale is not like a real estate foreclosure, which is is where a bank has repossessed a home or land parcel because the borrower failed to make their payments.

Need Help with a Short Sale? Get The POLTROCK TEAM!
Need Help with a Short Sale? Get The POLTROCK TEAM!

A short sale happens when the owner (or borrower) still has possession of the property and sells the property for less than what is owed to the bank or mortgage holder.

A mortgage must always be satisfied (paid off) in full in order for a property to sell. In order for that, one or a combination of three things must happen:

  1. The most popular and most talked about is the bank/mortgage holder writes off the loss and “forgives” the borrower. In some instances, it can still negatively impact your credit – but not as bad as a foreclosure.
  2. The borrower brings cash to the closing table to pay for the difference. This rarely happens because if the homeowner had the money to pay the difference, they would likely not need a short sale in the first place. Short sales are generally reserved for when foreclosure seems inevitable and the borrower has no way to pay back the note.
  3. The owner borrows the money to pay the difference. Many times the institution (so long as it is not a mega-national company) will loan the difference or a personal loan can be given from another bank.

Many sellers who are “upside down” in their real estate are trying to attempt this option. On the surface, it seems very easy. The truth is, there are a lot of hoops to jump through and you may not qualify for it. I was working a short sale and had the buyers about two weeks ago. The president of a large local bank told me, “If we did it for these guys, then we would have to do it for everyone. That would say it’s okay to default on a loan you promised to repay and that’s just not right. We’ll foreclose on it before we’ll even consider short selling it.” On the other hand, some banks would far rather a short sale than to have to go through the expensive process of foreclosing. We’ve closed short sales and they do happen.

There are so many things that come into play on these that I will have to save them for a later time. Keep an eye out for more on this topic and I will try to link them together to make them easily found. If you have any questions, call us or email! We’re in business for you and are happy to help any way we can.

Related articles:

Perils and Advice of buying Short Sale Real Estate in Murphy, North Carolina

John Poltrock, Certified Residential Specialist – The Poltrock Team at REMAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Toll Free 1-866-Murphy-NC or 1-866-687-7496

Foreclosure Horror Story Means Your Should Buy Real Estate Safe in Murphy NC

Posted by I Love Murphy on

I met with a man a few days ago who found us by reading our article on “What to Expect When Offering to Buy a Foreclosure in Murphy NC” and “Foreclosure Houses and Tips to Buying Them in Murphy NC“. It was one of the most discouraging attempted real estate purchases I’ve heard of in a long time.

The moral to his story is buy smart – go through a typical real estate transaction that have safeguards built in for your purchase. Read on and you’ll understand better what I mean.

Jim, as I’ll call him, bought a house with several acres adjoining the US Forest Service and absolutely loved it. He bought it from a wealthy friend of his who was a developer in Florida and life treated him well. They agreed to exchange it in a sale for $170,000. His buddy said he didn’t have to do a straight purchase, that he would be happy to finance it for him like a bank would. They did what’s called a Land Contract.

Jim put $40,000 in cash down on the house and has been making payments for several years. He’s put in a new well, done several major renovations, and by this time, he has invested about $120,000 total of cash in the property. Then he came home and found foreclosure documents on the door to his home.

Turns out the seller has a first mortgage and an equity line that’s been over extended on the property and hasn’t paid in months. The bank is foreclosing – simple as that. Since he has no legal ownership, his name is not on the deed, and the mortgage liens far superseed any right he has to the property, he cannot get anywhere. No bank will tell him what is owed on the property or anything else for that matter.

Jim has lost $120,000 in his own cash and now has nothing to show for it. His only option, if he wants to keep the house, is to wait for it to come out the other end of the foreclosure process and buy it. That means he will likely have $200,000 in a home that should be his that worth substantially less than that.

What could or should he have done in this instance? A traditional closing with owner financing in place. The closing attorney would have made sure there were no liens on the property (and if there were, they would have to be paid) and issued title insurance at closing.

Moral of the story again – Be smart about closings and buying real estate. Use a Realtor (namely The POLTROCK TEAM! 😉 and/or an attorney that specializes in real estate closings (you can find real estate attorneys in Murphy NC on our Gotta Guy List). That will give you true professional advice that can ultimately save you thousands, or in this case, over $100,000.

John Poltrock, Certified Residential Specialist – Murphy, NC Real Estate – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll-Free at 1-866-687-7496

February 27th Murphy NC Real Estate Market Update and Report

Posted by I Love Murphy on

TGIF! Thank God it’s Friday! We hope you all have a wonderful weekend planned – and hopefully it won’t be rainy! It’s scheduled to be an 80% chance of raining all weekend here in Murphy!

 There’s a lot of activity and bustle in the real estate world right now! The Cherokee Hills Golf Course is on schedule to be bought by FJ Investments and totally renovated. It is scheduled to close mid-March, which is just around the corner! Frank Johnson (the sole owner of FJ Investments) is in our office practically everyday making plans, scheduling, and all that goes along with his new project. That will create a lot of jobs and excitement in our area!

 On to real world real estate! The average sales price of homes for the past 14 days is at $169,167 with an average days on market of 181 days! NICE! Days on market appears to be falling a bit with the past few closings (the past 30 days has averaged 198- the lowest we’ve seen including all of last year).

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Of those homes sold, there’s an astounding 4 that were foreclosures, which (to the best of my knowledge) makes the highest record of foreclosures sold in this time frame. There’s a lot of opportunity for buyers out right now! There’s no doubt about it, it’s very important for sellers to price their property accordingly to combat the constant challenge of increasing foreclosure inventory. Thankfully we’re no saturated with them!

If there’s anything we can do for you, please don’t hesitate to let us know! We’re in business for you and are very thankful for you! We’d be happy to answer questions or concerns you may have and/or make changes to your listing whether it be pricing or another strategy.

 Have a blessed and safe weekend!

 John Poltrock

The POLTROCK TEAM
RE/MAX Mountain Properties
www.MyMurphy.com
www.iLoveMurphy.com
877-837-3002
We invite and encourage you to leave your thoughts, comments, and feedbacks on this article and the state of the market here. Please click RESPONSE and your reply will be posted the system approves it. Thank you!

What to Expect When Offering to Buy a Foreclosure in Murphy NC

Posted by I Love Murphy on

When you find a foreclosed home in Murphy NC that you want to buy, there are several things you need to know to expect when you go through the process. It will be an interesting experience that is unlike buying a home from a “normal” seller.

You found a foreclosure home you want to buy. Here are some tips and what to expect.

(I also recommend you read our article on finding and buying foreclosures in Murphy NC)

 

  1. Lots of paperwork. You’ll have all the standard paperwork you have when you buy a house and then endless addendums they will send afterward for you to sign.
  2. Crazy Addendums. They’re something else. They will limit the bank from any and all liability and specify how to expect the closing will take place. There will be mold addendums even if the house doesn’t have mold (basically says the bank doesn’t know about any mold and is not liable for any), addendums on other hazards, addendums to the addendums, and addendums to the amended addendum! Trust me though… there’s a lot.  You will find contradictions in the paperwork. For example, in one spot they may say they will pay your closing costs and then in another say you are responsible for them.
  3. Slow paperwork processing. It takes the bank forever to sign your offer to purchase. They have to approve it on many different levels and they are in no rush to sign it. They will give you verbal acceptance pretty quickly and the signed and executed offer can often take a week or more to receive.
  4. Contradictions. You’ll find the left hand doesn’t talk to the right hand on the bank’s side. The listing agent will contradict what the closing agent said and so on. Be prepared for a few “inconveniences” to crop up because of this. You have to remember, “I’m getting a great deal. I must be patient…” and so on to put up with some of it.
  5. Delayed closing. This is a case of the left hand not communicating with the right hand. If you can close in a week and they agree to it on the contract, expect it not to happen. Not because they have ill intent, rather because they have so many steps they have to go through and it just doesn’t “accelerate” well. No need to worry, no matter where you are at, you can get closing documents by mail or UPS.
  6. Attorney costs. Sometimes they offer to pay your closing costs. There is a bit of a catch to this. If you do, they expect you to use their attorney. Many times they will even pay for title insurance for you. If they do, it’s not too bad of a deal. There is a bit of consideration to this, however. Who do you think an attorney that represents the bank and does many transactions for them is most interested in? Especially if they’ve never seen you and don’t know you from Adam, they’re not as worried about you. Hiring your own closing attorney may cost you more, and it may be worth it to know you have someone who is representing your best interests – not the banks. You’ll have to decide which approach is better for you. It may even be worth it to consult an attorney (often a free consultation with many of our local attorneys) to find out the benefits of both ways. You can find an attorney on our recommended contractors list, or Gotta Guy List as we call it.
  7. Get EVERYTHING in writing. When we got to the closing table for the foreclosure we bought, several surprises happened. They told us they would pay for our attorney and title insurance costs. We had this verbally, not in writing. We ended up having to pay for our attorney costs. They told us they would repair some plumbing issues we discovered. They disputed it. We produced email correspondence on it where they agreed to pay it and they did, indeed, end up paying it. Point is, since the right hand doesn’t communicate with the left very well, you need to have everything they agree to in writing.
  8. Remember and always come back to the fact that you’re getting a great deal. Unless the stars align in a way that I’ve not seen, expect closing not to be as smooth as it is with a “normal” seller. There’s a good chance you’ll get frustrated with it, so always come back to and remember that you’re getting a great deal. After all, you’ll be saving thousands and when you look back on it after owning your home for a few years, it will all be worth it.
John Poltrock, Certified Residential Specialist – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free at 1-866-Murphy-NC or 1-866-687-7496

Foreclosure Houses and Tips to Buying Them in Murphy NC

Posted by I Love Murphy on

Foreclosures have become a hot topic in the national real estate market, and that is just as true for Murphy NC. We’ve been fortunate – we don’t have nearly as many foreclosures in Cherokee County NC as much of the country does. The good news is they are still out there and you can still buy them at great prices.

 

Are you looking to buy a foreclosure in Murphy NC?

Then there’s a few things you need to know before you look any further. 

 

  1. There’s no way to get a full list on by searching the Murphy NC MLS on your own. Finding them is rather obscure on my end and almost impossible on your end. If you’d likeForeclosure Sign to a full list of the active foreclosures here, email me now (Copy and Paste into your email program JohnPoltrock@gmail.com). I will respond with a link to all the current ones so you can be up-to-date and save a ton of time.
  2. Banks expect you to be prequalified for financing before you even make an offer. If you’re serious about buying a foreclosure, the very first thing you need to have prepared before you even open the door of a foreclosed house is your financing. Banks won’t even look at your offer in almost every case until they know you have the means to buy it. Simply put, have your financing ducks in a row or buy it in cash. Need financing? Go to our Murphy NC recommended contractor list, or “Gotta Guy List” as we call it, to see several excellent local lenders who can get you started.
  3. Expect multiple offers. There can’t be a “I’m not getting in a bidding war” attitude when you’re buying a foreclosure. Be prepared for multiple people to be looking at the same property while you’re shopping. The last two foreclosures we sold (one of which we bought) had multiple offers on them and it’s just part of it. It doesn’t mean you have to pay too much, and that’s where we’ll help you.
  4. Act fast. This somewhat ties into the last one. The best way to avoid multiple offers is to not waste time. If you find a house that fits what you want to buy – do it! Waiting around to make a decision, consulting lots of friends, and anything else that takes up a lot of time is a good way to loose the house. Remember – there’s lots of people looking at them and you want to beat them to it. There’s a lot to the “early bird gets the worm” philosophy here.
  5. Expect to swing a hammer. By that I mean you’ll more than likely have to do work to it. If you’re not in to working on a house or are unwilling to invest more money back in to it, foreclosures may not be for you. You don’t want to buy one with structural issues. Cosmetic problems are okay and most foreclosures will have their fair share of them. I can tell you a few stories about our house and the challenges it had – and they are all fixable!
  6. There’s no dream homes here. Don’t get me wrong on this one – our house is now rapidly becoming a dream home to us. That’s because we’re putting “our” touches on it just like you will do to your foreclosure house when you buy it. Until that point, you won’t walk in and have that “This is it!!!” feel. You can’t expect to find “The One” when you’re shopping for good deals. You’re going to have to settle on some things, so have your list of things that you have to have and things you would like to have and can live without. If it fits the parameters you set, than you’re good! Just remember, you start working on it and putting your own personal touches in it, it will become a dream home for you once you’re finished with it.
  7. Don’t exclude non-foreclosure homes from your list. There are lots of great properties out there at even better prices. Keep an eye out for ones that are not bank owned too because you can sometimes find sellers that have to move a house. We’ll be happy to help you find these, too.
John Poltrock, Certified Residential Specialist – Murphy, NC – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free at 1-866-Murphy-NC or 1-866-687-7496

New Foreclosure to Hit the Market!!!

Posted by I Love Murphy on

It’s funny I just finished writing an article about foreclosures just earlier today, and wham! A great one hits my desk!

If you’re seriously interested in this great home, be sure to download the information sheets below, and then call me at toll free (866)867-7496 and ask for John.

It’s a HUGE opportunity for someone looking to have a mountain home or for an investment to finish and resell! Basics are its a 2 bedroom, 2 bath chalet home with a full basement on +/- 1.04 acres located in the Ranger area of Murphy, NC. I’ll tell you all the details of what remains to be done to it and we’ll go from there!

I’ll can only share pricing information on the phone, so again, call me toll free at my office or direct at (828) 557-2270.

If you want to receive news and more investment opportunities like this, be sure to SUBSCRIBE to our blog by clicking here. We’re looking forward to helping you make a great investment in the mountains of Murphy NC!

This home is no longer available. Please check out our website for all the active homes and land for sale.

John and Jessica Poltrock – The POLTROCK TEAM at REMAX of Murphy NC – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free (877) 837-3002 and demand the POLTROCK TEAM!

Facing Foreclosure? Tell Your Partner! Work Together and with a Professional

Posted by I Love Murphy on

Foreclosure means a whole lot of things to a lot of people. For a buyer, it means an opportunity to buy a property at a, hopefully, substantial discount. To a property owner, it means their world has been turned entirely upside down. It’s a major loss and invasion to have someone you don’t know come in and take away the place you call home.

In a majority of foreclosures, one of the homeowners hides it from the spouse. Usually, the partner keeping the secret is the person responsible for paying the bills and is (or feels) responsible for causing the problem and fixing it. This partner may feel like a failure for not properly managing the finances or for overspending, or the person may be using the family finances to support an embarrassing and costly habit.

Attempting to sweep the foreclosure under the rug can compound the problem in any or all of the following ways:
·         Makes you more susceptible to becoming a victim of foreclosure rescue scams. One of the con artist’s most powerful strategies is divide and conquer. They will offer ways to avoid foreclosure so your partner “never has to know about it.” They are afraid that the more people “know about it,” the more likely they will get caught.
·         Removes one of your pillars of support. As a couple, you have a much better chance of improving the outcome than by acting alone. Your partner may have some excellent ideas and resources to help save your home.
·         Wastes time. The longer you try to keep the secret without taking positive steps to resolve the problem with your lender, the less time you have to save your home, sell it, or pursue other options.
·         Leads to distrust with your partner, who will eventually find out anyway.
Remember, your partner is going to eventually find out about the foreclosure. It’s always better if your partner finds out earlier from you rather than later from a stranger… like when the sheriff shows up to evict you and your family from your home or the person who purchased the home at auction shows up at the front door.
Communication Is Key
If you and your partner can’t have an honest discussion about household finances and troublesome behaviors, then your entire relationship is already at risk. Look at the foreclosure as an opportunity to become open and honest and build intimacy. Either your relationship will not survive, meaning it was not worth trying to save in the first place, or it will deepen and become more rewarding over time.
Financial Setback + Communication Breakdown = Loss of Home and Equity
What is equity? Equity is the amount of money that you get to keep after you sell your home and pay back the debt you owe on it.
Adding communication back into the equation gives you and your partner a much better chance of addressing the underlying financial shortfall and ultimately saving your home or selling it to cash out enough equity to make a graceful exit.
Whether you’re currently facing foreclosure or have just missed one or two mortgage payments, tell your partner immediately. Losing your home in a vain attempt to avoid an uncomfortable discussion with your partner is the wrong approach.
Avoid the Worst Options
The worst option in foreclosure is to try to sweep the problem under the rug. Well, actually there are three “worst” options:
·         The absolute worst option is to deal with a con artist who’s out to steal your home through some foreclosure scam or strip you of the equity in it.
·         The next worst option is to do nothing. When you do nothing, the lender forecloses, the property is sold, and you’re evicted. You can say “so long” to both the property and any equity you built up in it.
·         Another bad option is choose a solution that puts you right back on the path to future foreclosure. Some people, for example, borrow money to reinstate the loan – that is, bring the payments current with the bank. This is a viable solution if the financial setback was temporary and you will have sufficient income to start making payments on your mortgage and on the money you borrowed to reinstate. However, if you are unable to make the monthly payments, you will probably be better off selling the home and finding more affordable accommodations.
Overcoming Your Fears
If you are afraid of telling your partner, then ask another family member, a close friend, a financial counselor, a marriage counselor, or someone else that you and your partner both feel comfortable talking with and that you both trust to help you break the bad news.
An unbiased third party can act as an intermediary, laying out the facts more rationally, so arguments do not get in the way of a full disclosure. You want to come clean and lay all the facts and figures on the table so you and your partner know what you are dealing with.
Remember, what has happened is in the past. You and your partner can do nothing to fix what has already happened. You can only make things better now and for your future together.

About the Author: Ralph R. Roberts, GRI, CRS and his team of foreclosure experts regularly assist families facing foreclosure and have authored Foreclosure Self-Defense For Dummies (John Wiley & Sons).

Although we don’t face foreclosure very often here in Murphy and the rest of Cherokee County, it does happen. In fact, I have a great buying opportunity with one of my clients in foreclosure right now. If you’d like more opportunities, email me.

If you’re faced with a financial crisis and would like a consultation on what options and opportunites you have, call us and let us know. We’d be happy to help any way we can.

John and Jessica Poltrock – The POLTROCK TEAM at REMAX of Murphy, NC – Homes and Land in the Mountains of North Carolina – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll-Free (877) 837-3002  and demand the POLTROCK TEAM!!!