Many homeowners choose to walk away from their mortgage even if they can afford to make payments because the value of their property has declined.  It is called Strategic Default.  They feel it is a beneficial reaction to an upside down mortgage.

The difference between a regular default and a strategic default is that on a regular default, the homeowner has a real hardship due to job loss, divorce, or other circumstances brought about by the current economic condition.  On a  strategic default, the homeowner simply chooses to stop making payments even if they can afford to make payments because they feel that they had made a bad investment.

A default is rarely strategic and causes extreme damage to your credit and carries financial consequences.  Lenders are looking for ways to avoid the foreclosure process as much as homeowners.  The US  Treasury announced new incentives  to simplify the short sale process through the HAFA program which will start on April.

Be sure to consult and educate yourself as to what your options are.  As a CDPE designated agent, I can provide you with a safer alternatives to foreclosure.  I have prepared a free report to educate and help you determine the best route to take. Just call my 24 hour Free Recorded Message at (877)-519-8587 extension 84 to get a copy of the report.

Elizabeth M. Eugenio, (909) 376-8615, Email: Elizabeth@HomesbyLiz.info

Certified Distressed Property Expert (CDPE), Certified Residential Specialist (CRS), Graduate Realtor Institute (GRI)

www.HomesByLiz.com, www.ChinoHillsCARealEstate.com

Is Walking Away The Right Thing To Do? is a post from: Chino Hills Real Estate Resource Center

As we see more and more distressed sales, most homes are being sold “AS IS”.  On a short sale, the sellers have to disclose material facts.  However, on a foreclosure sale, the buyers don’t even get a disclosure so it is more important than ever for buyers to hire a professional inspection company to evaluate the condition of the home they are buying.

Most buyers ask their Realtor to recommend an inspection company and they recommend a company they have had dealings with in the past.  Most Realtors qualify the property inspector we refer to our clients based on experience.  It is a good idea though for the buyers to know what makes a good inspector.  These are some guidelines:

1.  Inspectors should belong to one or more of the three Property Inspection Professional Association.  These organizations are:  American Society of Home Inspectors (ASHI), California Real Estate Inspection Association (CREIA) and National Association of Home Inspectors (NAHI).  Inspectors who belong to these organizations have earned their certification after undergoing advanced training and go through an annual continuing education.

2. A qualified general property inspector should be covered by an active Errors and Ommissions Insurance.

Should you attend the inspection?  Most definitely!  Ask questions.  The inspector will go over the report with you.  If there is something you do not understand, ask the inspector to point it out to you.

While there are costs involved for the buyer to hire an inspector, it is well worth the couple of hundred they will spend to determine the condition of the home.  Based on the results of the physical inspection, the buyers may back out of the transaction rather than get stuck with a home that will require thousands of dollars of work.

Elizabeth Eugenio

(909) 376-8615  Email: Elizabeth@HomesByLiz.com

Certified Residential Specialist, Certified Distressed Property Expert, Graduate Realtor Institute

Century 21 Superstars

DRE# 01126934

Should You Buy The Home? is a post from: Chino Hills Real Estate Resource Center

You’ve seen ads offering you a list of foreclosure properties.  Have you really thought what does it take to get your offer accepted by the bank, especially when  you are competing with several offers?  Yes, the good deals get several offers.  The question most buyers ask is what price should I offer?  Some buyers think that they should offer thousands below selling price to get a good deal.  That may not always be the case.  Bank owned properties are selling 101% of listed price.  That means, buyers are offering higher than listed price

In order to be successful in buying foreclosures where you are competing, most of the time with savy investors who have lots of money to put as down payment is a process.  To start with, work with a Realtor who is a foreclosure specialist and has successfully closed bank owned transactions and worked with lenders in the past and who will educate and provide you their expertise.  Otherwise, you could be writing offers after offers and not get your offer accepted.

Making an Offer on a Foreclosure Home is a post from: Chino Hills Real Estate Resource Center

You have probably heard about it already!  In an effort to aid the ailing economy, the Federal Reserve dropped the interest rates dropped below 5%.  Many homeowoner who are current on their loans can take advantage by refinancing.  However, those who are in danger of foreclosure and need the most help cannot take advantage because excellent credit is required.  

In my opinion, the homeowners who are upside down on the value of their home and those who are behind should be the first priority to get assistance.  There are so many homeowners who desperately need help to get from down under.  When we agents look for listings in the Multiple Listing Service, we find that almost half of listings are either short sales or bank owned.  In Chino Hills, today, there are a total of 313 listings of which 110 are short sales and 3o are bank owned properties.  That goes to show the great need to assist homeowners in danger of loosing their home.

For those who are thinking of buying, they should do it soon and take advantage of the low interest rates inspite of what you hear that prices may still come down.  A 1% drop in interest rates will reduce your mortgage payment considerably thereby allowing you to afford more home.  With interest rates at it lowest probably in your lifetime and the large inventory of homes available. are you living in the house of your dream?  The first step is to have yourself pre approved by a lender. 

If you have any questions and need assistance in getting you to the right direction, just contact me and I will take care of the rest from start to finish.  You may reach me by email at emeugenio@gmail.com or call (909) 376-8615. 

Elizabeth M. Eugenio, (909) 376-8615

Email: Elizabeth@HomesByLiz.com, Website: www.HomesByLiz.com

Certified Distress Property Expert (CDPE), Certified Residential Specialist (CRS), Graduate Realtor Institute (GRI)

Interest Rates are at a 37-Year Low is a post from: Chino Hills Real Estate Resource Center