Let's Chat Indianapolis!: March 2009

If you live in Indiana and are having difficulty making your payments, yet want to remain in your home, there may be help available under the Obama Administration's Make Homes Affordable program.  Visit the Indiana Foreclosure Prevention Network website to see if you qualify for programs to modify your loan, therefore lowering your monthly payments.

If you're currently behind in your payments, or struggling to make your payments and are unable to remain in your home even with a lower payment, a Short Sale or Deed in Lieu may be a viable option.

Short Sale:  When the sales price of a home will be less than the current mortgage balance the lender may be willing to work wth the owner on a Short Sale.  For instance, a property is worth $200,000, but the homeowners owe $220,000 due to decreasing property values.  With the bank's approval, the homeowner may sell the property for $200,000 and often the bank will write off the $20,000 loss and not seek repayment for the deficit .  Why would they do this?  Banks are not in the business of selling homes.  It costs tens of thousands of dollars for a bank to foreclose on a property and then re-sell it.  It is often a good business decision for them to accept less from a short sale than to go through with a lengthy and costly foreclosure.   For the homeowner, they can usually remain in the property through out the sale and avoid the embarrassment of foreclosure.  There may also be credit report advantages to a short sale over a foreclosure.

Deed in Lieu:  A homeowner can no longer afford their home and they sign it over to the bank in lieu of making any further payments prior to it reaching foreclosure.  As with a short sale, this is usually less devastating to homeowner's credit status , but many banks don't want to participate.  They don't want to own homes.  Therefore they are often more willing to work with a homeowner on a short sale.

In both of the above cases the bank will require the homeowner to be in communication with them and provide documentation which explains their current financial situation and why they can no longer afford the property.  This is often called a "hardship letter".  In addition they will request other financial documentation such as bank and investment statements, Income Tax records, paystubs, medical bills, etc

Short sales are lengthy and complicated, so be sure to hire a real estate professional who has prior experience listing short sale properties and working with the banks.  It is also recommended that you contact a tax attorney for advise on the legal and tax implications.  The Hoagland Team has successfully sold short sale properties as well as represented buyers purchasing short sale homes in the Indianapolis and surrounding communities like Greenwood.  Contact us if you have questions or would like more details. Additional resources are available on our website.

Posted: Monday, March 16, 2009 1:00 PM by Tonda & Steve Hoagland

As  residents of Greenwood, Indiana, we know it's a great place to live and work.  Still, it's nice to see what we already know validated in a national survey of business executives.

For the second year in a row, Indiana takes the number one spot in the Midwest as the best place to do business by "Chief Executive" magazine.  Each year the publication surveys over 500 chief executive officers on a broad range of issues and uses those findings to compile a list of the best and worst states for jobs and business growth. 

Indiana ranked 11th in the Nation overall, 3rd in business friendliness, 4th in transportation and 6th in cost of business.   This combined with our ranking as the most affordable place to live in another national survey promotes confidence that hoosiers are on the right track!  For the full report, visit http://www.chiefexecutive.net/ME2/Default.asp.

Posted: Monday, March 16, 2009 10:05 AM by Tonda & Steve Hoagland

It's a tough market these days.  But occasionally something happens that reminds us why we decided to do this in the first place.

Last week someone called wanting to see one of our listings as soon as possible.  We hurried to set up the appointment, not wanting to pass up any business, yet knowing all the while that this could be another wild goose chase.  As we chatted while showing them the home, we discovered they had put money down to build a home and unfortunately, that builder had declared itself insolvent that very day.  They were devastated.  Our new client, a first time homebuyer, was someone who really wanted a new home and their plan had come undone!

They were frustrated with builders and wanted to buy an existing home that weekend.  So we spent  Friday evening and most of Saturday  showing them additional homes that might work.  We answered tons of questions and offered advice, not just on homes - but also on property taxes, resale, hints for negotiating, making offers, and the entire home buying process.   They were already pre-approved and felt confident in the price range they had already established with the builder, yet when they found a home they loved  and we took the time to counsel them on the affect property taxes  would have on their monthly payments they had some real concerns over the monthly payments.  We soon discovered that the builder they had been working with hadn't taken the time to explain how Indiana property taxes work.  Upon further review they agreed that it would have stretched their finances very thin.  We could have easily written the offer and made the sale.  But we wanted to do the "right" thing for our clients.

On Sunday we recommended they look at a brand new Ryland spec home in the Greenwood neighborhood of Brookhaven, where resale is excellent and taxes happen to be lower.  Like many buyers they were surprised to find that we work hand in hand with builders -- helping them evaluate options and select a builder that will not only provide an excellent home,  in an area with great resale, but also take wonderful care of them from beginning to end. 

In this case, the spec home was just what they were looking for and the monthly payments were "just right" too!  They got the brand new home they were looking for without having to wait for one to be built! We met them on Monday to go over the final paperwork.   They were smiling from ear-to-ear!  In two short days they had gone from a devastated "what now" to a very happy place - smiling as their picture was taken next to the SOLD sign in front of their brand new home.

Sometimes in the big scheme of life I wonder, are we really making a difference?  I mean, we work crazy hours, rush from appointment to appointment, never seem to have a day off, yet their excitement and the smiles on their faces was priceless - and it made us remember why we love our jobs!

Posted: Wednesday, March 11, 2009 3:15 PM by Tonda & Steve Hoagland www.PerfectPlaceforYou.com