Renaissance Realty Group’s Blog: Georgia: Lawrenceville

Foreclosure Homes / Short Sale Homes List

Updated Aug 14 2008

Fulton, North Fulton, DeKalb, County Georgia.

Cities of Decatur, Tucker, Stone Mountain, Lithonia, Duluth, Buford, Lawrenceville, Dacula, Grayson, Snellville, Loganville, Suwanee, Norcross, Winder,

This list is updated daily with Homes added to MLS in the last 24 hours

Due to the nature of Foreclosure Homes and Short Sale Home,

Buyers should act quickly !

For all Your Real Estate Needs Call !

Eric Reid, Managing Broker Renaissance Realty Group Inc.
Office: 404-921-2067 x 102 Fax: 770-513-4443

short sale list click here

Foreclosure list click here 

The Foreclosure Process

 The foreclosure process isn't as mysterious as it may seem. Due to federal and state laws, lenders must follow a specific process in order to foreclose on a property. Understanding the process will help you find investment opportunities.

First, you'll need to understand when a lender is allowed to foreclose. The process starts with the mortgage itself. A mortgage creates five covenants:

The homeowner promises to pay the principal mortgage debt

The homeowner will insure the building against fire or damage to help protect the bank's interest in the property

The building or dwelling cannot be demolished or removed without the consent of the bank

The entire principal will become due in the event of default of payment of principal, interest, taxes, or assessments

The bank will consent to the appointment of a receiver in the event of foreclosure

The first three items are agreements the homeowner must adhere to. If those covenants are breached, the bank must pursue numbers 4 and 5. (Why the word "must"? Because banks are really "trust officers": they aren't loaning their own money, they're loaning money that belongs to depositors. They don't have the right to take risks with other people's money, so they have to follow these covenants.)

The last two covenants give the bank the means to foreclose. One provides for the appointment of a receiver - typically a lawyer - who conducts the sale of the property. The other allows the bank to accelerate payments and ask for the entire balance. If the bank's lawyers take a homeowner to court they want all of the money, and if it can't be paid they want a judgment against the homeowner. Simply put: they want out of the deal because the homeowner has not lived up to his or her obligations.

It's important to note that until a judgment has been obtained the homeowner is not truly under threat of foreclosure. Once the judgment is obtained the homeowner can be put out of the property immediately.

After a judgment has been handed down against the homeowner, a time is set for the public sale of the property at auction. If the homeowner can't come up with the entire amount of the judgment award before the sale... that's it: no more delays, no more compromises - the sale will be held. Often these sales are held at the courthouse, and in many cases are actually held on the courthouse steps.

The court then appoints a receiver - again, typically a lawyer - to conduct the sale of the homeowner's property. Ordinarily, real property can't be transferred without both parties in the purchase agreement signing the transfer deed. Since the homeowner is unlikely to voluntarily sign away his or her home, the receiver has the legal authority to sign a valid deed transferring the ownership to a new purchaser.


Let's look briefly at the stages of foreclosure. To make it simple, we'll pretend you're a homeowner facing financial difficulties.

If you've missed a payment, you're normally sent a letter documenting the missed payment and requesting immediate payment of the past-due amount. Once you've missed several payments, you'll be sent a letter from the bank's lawyer. Receiving a letter from the lawyer means you're in trouble; you haven't just committed an oversight the bank wants corrected but are now considered a serious "problem debtor." When you hear from the lawyer, it means the bank has committed resources (time and money) to getting you to pay on time - so they're serious.

If you can't reach an agreement with the lawyer you'll be served with a summons. (The lawyer has very little reason to negotiate, so normally the only "agreement" you'll be able to reach is that you'll make your loan payments on time... starting immediately.) After "service," which is the process by which you're physically presented with the summons, the attorney will also file papers with the county courthouse. All other individuals with claims against the property - they're called "junior" obligations - like second mortgages, judgments, or other liens, are served with papers so they have the right to try to protect their interests as well. (It's important to note that if the foreclosing party is negligent in notifying junior lien holders, those creditors have a valid claim for repayment against the eventual new owner of the property. That's why purchasing title insurance when buying foreclosure properties is absolutely essential: you protect yourself against subsequent claims you didn't know about. After all, you don't want to have to be responsible for a lack of attention to detail by the foreclosing party.)

To enforce money judgments you have to be served personally. That's one reason foreclosure actions can take so long - the homeowner(s) must be tracked down and physically handed the summons. Often the homeowners won't want to be served and will do their best to avoid the server. Each jurisdiction has different laws and rules, but generally speaking if a person can't be located and all reasonable efforts have been made to find them, a procedure for publication is put into place. This typically consists of a public notice printed in the classified section of the local newspaper.

Most jurisdictions also require public notice whether or not the homeowner has been served. This allows parties with a legitimate claim to come forward to protect their interests.

After the publication process is complete the foreclosure action will proceed. If you can't come to an agreement with the bank's lawyer, and can't come up with the funds to pay off the loan, your property will be sold at a foreclosure auction, and you'll be evicted from the property - if you haven't already left.

The foreclosure process is extremely painful for the homeowner. The legal proceedings can take months to complete. The homeowners are subjected to pressure from banks and lawyers, public notice that their home is in the foreclosure process, and the realization that they will soon lose their home.

 

Pre-Foreclosure Investing

The advantage to buying a property at a foreclosure auction is that you can often pay far less than you would have under normal circumstances. Frequently you can invest in improvements and then sell the home for a much higher price than your cost.

The disadvantages and risks are more numerous. Simply to participate in the auction you must have sufficient funds available (either cash or a cashier's check) to cover 10% of the purchase price. You also must be able to arrange for financing within thirty days to complete the purchase or you risk losing your deposit. Next, you're buying the property as-is, without inspection. The condition of the interior of the home is usually a complete unknown. You'll have to be sure that the price you pay is low enough that you can still afford to make significant improvements or repairs.

Buying at pre-foreclosure has two main advantages over buying at a foreclosure auction. The homeowner may be desperate and may be willing to do almost anything to avoid actual foreclosure. In addition, you can enter the property to inspect it before purchasing, so you'll know exactly what you're purchasing. For those reasons, pre-foreclosure investing is a wave many real estate investors are now riding

Tips for Showing Your Home

 •1.            KEEP YOUR HOME SPARKLING CLEAN.  This is the single most important thing you can do to improve a potential buyer's impression of your home.  A clean home not only is esthetically pleasing, but also creates the impression that you have taken pride in your home and therefore have kept it properly maintained.  Make sure that all tubs, toilets, and counter tops are clean.  Empty the dishwasher and sink.  Keep the floors clean.  Put laundry up or in the washer or dryer.

•2.            ELIMINATE ODORS.  Do not smoke in your house, including your garage or basement.  Keep all trashcans and waste baskets clean.  Avoid cooking foods such as fish, liver or strongly seasoned foods within a few hours of showing your home.  Open windows whenever possible to freshen the air.  Do not over perfume, as strong smells can be just as offensive to a buyer as bad odors.  If you use candles, potpourri or other air fresheners use clean fresh scents such as vanilla for the kitchen and citrus for bathrooms.   

•3.            LIGHT THE HOUSE AS MUCH AS POSSIBLE.  Open all curtains and blinds (depending on the view), and turn all lights on throughout the house.  Dim mood lighting is acceptable in a single room, but as a general rule the brighter a room is the better.

•4.            KEEP PETS CONFINED DURING HOME SHOWING.  Not everyone is going to love your pet as much as you do, and many people perceive a house pet as an indicator of damaged carpet.  If possible, take your pet for a walk during showings or keep your pet outside and confined.  Never leave your a pet in a closed room and ask that the buyer not go inside.

•5.            STORE OR ORGANIZE ITEMS, REMOVE CLUTTER.  Have toys, tools, magazines, newspapers, etc. organized and out of the way.  As a general rule, if it isn't absolutely necessary then put it away.

•6.            HAVE ONLY FRESH, CLEAN TOWELS IN THE BATHROOMS.   If you use decorative towels, make certain to provide clean "everyday" hand towels as well.  Do not leave wet towels in the bathrooms, wet towels not only are an eyesore but also create a damp, musty smell.

•7.            REMOVE PHOTOGRAPHS AND OTHER PERSONAL ITEMS.   A potential buyer needs to have a depersonalized impression of your home so that they can envision it as their own.  Also, when someone is looking at your home, you don't want them to be distracted by looking at family photos, a doll collection, or other collectables.

•8.            LEAVE THE HOUSE DURING SHOWINGS.   The homeowner and family members should never be present during a showing, even if invited to stay.  Your presence will discourage the buyer from freely examining your home and its features and also make them feel as if they are intruding. 

•9.            FRESH FLOWERS brighten up any room, but avoid using heavily aromatic flowers.

•10.        KEEP BEDROOMS NEAT AND CLEAN.  Make all beds, organize closets, and make certain all clothing is put away. 

 

  What are the rules for the first time home buyer $7500 Tax Credit ?

There are a 1001 questions in the air over the new Housing Hope Bill recently passed, Not having all the answers I have been trying to gather the best information at hand form those that might have a bit more knowledge at hand.. now things will continue to change and shift as the "big heads" get to ready the details and over lap them to current tax laws. So for those of you who have been asking what is the first time home buyer credit and who gets it and how ? you might find the article helpful

Tax credit for home buyers works like an interest-free loan
Purchasers can shave as much as $7,500 off their IRS bills, though it must be repaid.  
By Kenneth R. Harney, Washington Post Writers Group
August 3, 2008  
WASHINGTON -- Anyone who's been sitting on the sidelines hesitant to jump into the housing market until conditions settle down should know these dates: April 9, 2008, through June 30, 2009.

They mark the eligibility period for the home purchase tax credit created by the housing bill enacted last week. If you have not owned a house during the last three years -- or are considering buying a first home -- and you close on a purchase before the end of next June, you may be eligible for a credit of as much as $7,500 against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).

The new tax credit is expected to benefit hundreds of thousands of buyers. Here's an overview of the specifics.

* The basic idea: To jump-start housing sales and clear out stocks of unsold real estate, Congress is offering tax credits to encourage new purchasers. Buy any house -- new, old, in any location or condition for any price -- within the designated time period and the IRS will cut as much as $7,500 off your tax bill this year or next.

For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund.

* Eligibility rules: If you own a home now, you're not eligible. If you sold your home more than three years ago and now rent, you are eligible. The same is true if you've never owned a home. Close on a house before next June 30 and you can claim a credit of up to 10% of the purchase price to a maximum of $7,500.

If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down. You cannot claim the credit if you financed the property using a state or local housing agency's tax-exempt bond mortgage, or do not plan to use the house as your principal residence.

* Payback:Unlike some past tax credits, this one must be repaid over an extended period. Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year.

If you sell the house before the end of the repayment period, and you have no gain on the sale, you won't be expected to repay the remainder of the credit from the proceeds. If you have a net gain, the "recapture" cannot exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.

At its core, the new tax credit works very much like an interest-free loan. You pay the principal back in increments over time, but there's no interest charge to you.

Rob Dietz, an economist for the National Assn. of Home Builders, says the credit not only will pull first-time buyers into the market but also will have a powerful "multiplier effect" as thousands of sellers of these credit-assisted houses go out and purchase replacement homes for themselves -- extending the effect of the credit into the move-up segment.

How do you claim the credit? If you qualify, you simply request the credit on your tax return for either 2008 or 2009, which will be modified for that purpose.

Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return. The home builders group is launching an educational website, at www.federalhousingtaxcredit.com, with additional information for consumers.

Eric Reid, Managing Broker Renaissance Realty Group Inc.

Ways to Stop Foreclosure 

There are quite a few ways that a homeowner can stop foreclosure. I thought I would list them here with some brief explanations.

1. Loan Workout- A loan workout is when you negotiate with your lender any kind of plan that will benefit both you and the lender when you are delinquent or in default. This is a broad term used in the industry to cover the different options you may have such as a loan modification, repayment plan, short sale, forbearance plan etc.
2. Loan Modification- This is when the lender modifies your current mortgage in order to work with you and make your mortgage more affordable. In the past this was only used when a borrower was delinquent but now it is being used before someone is delinquent. This will be the hottest term and way to help people avoid foreclosure.
3. Forbearance- This is used most of the time, when a Notice of Default has been filed. You are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions.
4. Short Sale - This is used when all negotiations for a loan workout have failed and you are upside down on your mortgage meaning you owe more than it's worth. The lender basically agrees to cooperate in the sale and take a loss. You place the home for sale and any offers are presented to the bank. Unlike a traditional sale when the homeowner decides what offer to take. The bank controls the negotiations and the homeowner has no say in the process. It's a last ditch effort to save someone's credit from a foreclosure filing.
5. Foreclosure Bail Out Loan - Is a new loan where the defaulted mortgage is paid off. This is usually a hard money mortgage and it is common for interest rates to approach 10-15%. Points can be as high as 5 and terms are usually short. In the 5 year range where a balloon payment will be due for the remaining balance. In order to qualify you must have sufficient equity. Hard money lenders are looking for 65-75% max loan to value and a decent equity cushion. You also have to have ability to repay as in a traditional mortgage.
6. Deed-in-lieu - is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy.In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the current fair market value of the property exceeds the outstanding indebtedness of the borrower. Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.
   Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.
   Retrieved from "http://en.wikipedia.org/wiki/Deed_in_lieu_of_foreclosure"
7. Chapter 13 Bankruptcy - Is primarily used to stop foreclosure of your home. In order to qualify you will have to have a steady income.The bankruptcy petition would need to be filed before the sale date of your property. After filing, you will propose a plan to repay the amount you fell behind on the mortgage. You will also begin to again pay your regular mortgage payments, which under the operation of law must be accepted by your mortgage company. What many lawyers and people do not know is that a forced loan modifcation can be sanctioned by the courts if it is proved that the borrower cannot afford the curent payments.The concept is similar to debt consolidation, but it permits you, the consumer(s), to pay unsecured debt down without accruing interest (student loans are an exception) and without having to deal with those annoying calls from debt collectors. Under a typical plan, you make monthly payments to a court appointed bankruptcy trustee for generally three to five years. The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the extent that you have assets. In exchange for stopping any and all collections activity, one proposes to pay all or, in specific circumstances, a portion of the debt through a Chapter 13 plan. The filing of a Chapter 13 bankruptcy stops ALL collection activity though something called the automatic stay. The automatic stay remains in effect during the life of the case unless the court orders otherwise. You can always refinance or sell your home while under Chapter 13 if you wish to pay off the bankruptcy and move on with your life. The Chapter 13 stops the foreclosure immediately. Often, your only other option would be to refinance, or enter into a repayment agreement with your mortgage company. All too often, they want a double payment each month until you can catch up. If you had that kind of disposable income, you probably wouldn't be in this situation in the first place.

 Eric Reid, Managing Broker Renaissance Realty Group Inc.

Home Loss Prevention Expert

 Short Sale Certified

REO Certified

Graduate Harris Real Estate University

 Office: 404-921-2067 x 102 Fax: 770-513-4443

Search All Georgia Homes for Sale at www.GeorgiaOnlineHomes.com  

 

Residential $109,000 * #:3747958 Active Broker: RRUS01 Area: 63 Map: 698E7 549 Village Run SE FMLS Neighborhoods Media: 7 City: LAWRENCEVILLE State: GEORGIA County: GWINNETT Zip: 30045-5077 Subdivision: Village Gate

The advantage of a short sale for the lender is to get rid of the property before it goes into foreclosure and avoid the hassle and expense of trying to sell a foreclosure.

The benefit for the biuyer, of course, is that he is getting a property at less than market value because he is willing to pay cash or refinance right away.

Another advantage for the buyer is that a house in pre-foreclosure has not been sitting empty and getting in bad repair as a lot of the foreclosed houses do. As this house is being lived in now, odds are that it is in pretty good shape, at least in a livable condition. So a lot of money can be saved on repairs.

An buyer needs to move very fast when he finds one of these deals because once the foreclosure proceedings have begun he will not be able to do a short sale.

The homeowner is being given the chance to sell the property without it going into foreclosure, but with no cash benefit from the deal.

The bank wants the transaction to be fast because he wants to be sure it will not be slowing down the process.

The buyer / investor will get the homeowner to sign a purchase contract and an Authorization To Release Information form so that he can then go to the lender and negotiate a short sale.

The loss mitigation department of the lenders' will then handle the short sale.

A short sale will be good for everyone involved. The homeowner will have a sale rather than a foreclosure. The bank will save the expenses of foreclosing. And the buyer will have made a fast deal which will allow him to pay a lower price for the property.

With so many people going into foreclosure or are in pre-foreclosure, the short sale opportunities are rising.

Sometimes when you have successfully completed a short sale, the lender will be happy to do more short sales with you. He may even contact you when such an opportunity arises again.

There are many opportunities for real estate buyers and you need to explore all avenues. Short sales are fast and profitable and you need to start looking for them. Talk to some bankers and mortgage companies and let them know you may be willing to do some short sales.

A short sale is not for the no money down, bad credit okay buyer. You need to either qualify for a new mortgage or pay cash for the property. But the rewards can be sweet with a successful short sale.

If your selling your home in Gwinnett county Georgia you know price are all over the map right now.

So hhow can you know what lending banks will approve for the sale of your home. One great way is to combine your Realtors recommendation with a  listing appraisal to ensure the numbers supports your asking price

Some sellers take all types of roads to get to a list price, they may take the advice of a friend,base the price  on what you really really hope it will sell for or look at flyer's posted around in the neighborhood, most will not even check the Gwinett county tax assessment reports.?  While all of these methods can be helpful, the only true way to know  what the lending bank will allow is to get a listing appraisal.

A listing appraisal from is a full appraisal of your property similar to one a buyer would receive on the purchase of your home but with a few distinct advantages:

• You'll have a valuable negotiating tool once you have a potential buyer
• You'll be aware of any problems and eliminate last-minute repair hassles that might delay a closing
• Decrease the chances of unknown problems that cause sales to fall through
• You'll have all the current market data with verified status of all the comparable sales so you can differentiate your property from others on the market

And a listing appraisal  gives you an expert opinion, an opinion that is unbiased, from a certified appraiser whos  job is to provide  customers with accurate property values.  Banks and mortgage companies in Georgia always use appraisers to value homes before they approve a loan. Why? Because they want to know what it's worth. And Lenders will not lend more then the apprised value.

So when it's time for you to list and sell your home in Gwinnett County or for that fact any where do your self a service and ask your Realtor to arrange a listing appraisal.

 

 Foreclosure Homes  / Short Sale Homes List

Updated July 24th 2008

Fulton, North Fulton, DeKalb, County Georgia.

Cities of

Decatur, Tucker, Stone Mountain, Lithonia, Duluth, Buford, Lawrenceville, Dacula, Grayson, Snellville, Loganville, Suwanee, Norcross, Winder,

This list is updated daily with Homes added to MLS in the last 24 hours 

Due to the nature of  Foreclosure Homes and Short Sale Home,

Buyers should act quickly !

 For all Your Real Estate Needs Call !

Eric Reid, Managing Broker Renaissance Realty Group Inc.
Office: 404-921-2067 x 102 Fax: 770-513-4443

FOR A PEACH OF A DEAL ON A SHORT SALE CLICK ABOVE UPDATED JUY 24th

 

 FOR A FORECLOSURE A DEAL CLICK ABOVE UPDATED JUY 24th