Unfortunately, the word foreclosure has become a commonly used word in the vocabularies of consumers and REALTORS® alike. Foreclosure transactions are challenging and often confusing and difficult for the parties involved on all sides. Below are resources to help you prevent foreclosures, work with foreclosed properties, and help limit their effect on communities.

REO DEPARTMENT:

We work with serveral large lenders  and asset management companies to manage and market their properties.  From pre-marketing , occupancy checks, cash for keys, securing the property, trash outs, bids for maintenance and repairs, property checks, reports, marketing and through the closing, Century 21 Riverpointe's REO Department will handle every step of the process. Learn more at RiverpointeREOS.com.

INVESTORS:

Century 21 Riverpointe carries a large inventory of REO properties and work with many investors to get them the properties they desire.

CERTIFIED SHORT SALE SPECIALISTS:

Many of our agents have taken extensive training to become certified and specialized in pre-foreclosure and short sales.  We are very knowlegeable and experienced in explaining options available to you and then taking you through each step of the short sale process.

LOAN SOLUTIONS from hud.gov
Explore Loan Workout Solutions with Your Lender

First and foremost, if you can keep your mortgage current, do so. But if you find you are unable to make your mortgage payments, you might qualify for a loan workout option. Check with your lender to see which option may be available. Some options may not apply to your loan if it is not insured by FHA.

If your problem is temporary - call your lender to discuss these possibilities:

• Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
  Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund.
• Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up. If it appears that your situation is long-term or will permanently affect your ability to bring your account current - call your lender to discuss options:
  Mortgage modification: If you can make payments on your loan, but don’t have enough money to bring your account current or you can’t afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable.

Your loan could be permanently changed in one or more of the following ways:

• Adding the missed payments to the existing loan balance.
• Changing the interest rate, including making an adjustable rate into a fixed rate.
• Extending the number of years you have to repay.
Partial Claim: If your mortgage is insured, your lender might help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan. You qualify for an FHA partial claim if:
• Your loan is between 4 and 12 months delinquent.
• You are able to begin making full mortgage payments again.
When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must sign a promissory note, and a lien will be placed on your property until the promissory note is paid in full.
The promissory note is interest-free and is due when you pay off the first mortgage or when you sell the property.

MICHIGAN FORECLOSURE FACTS from MSHDA
Michigan-Part of Dramatic National Rise in Foreclosures

• A third-quarter report by the Mortgage Bankers Association shows that Michigan home foreclosure rates are among the highest in the nation.
• Many experts have suggested that due to the sub-prime mortgage effect, foreclosure filings could double in 2008.
• A significant portion of the increase in foreclosure filings will likely come from the approximately 212,000 subprime mortgages in Michigan.
  Foreclosures vs. Home Loss
• RealtyTrac reports Michigan’s foreclosure activity increased dramatically during 2006 and 2007 and is expected to get worse with the rate resets and economy-driven losses associated with future defaults on mortgage loans
• Foreclosure filings in Michigan rose during 2006 from 35,635 in 2005 to 80,919 in 2006. These numbers continued to rise to 124,561 through November 30, 2007
• There are multiple stages of the foreclosure process, the filing number may double-count households that are going through foreclosure. However, these aggregate filings have gone from 1 in 119 households (2005) to 1 in 36 households (2007)
• In Michigan the number of home sales due to foreclosure climbed from 1,108 in 2005 to 14,961 during eleven months of 2007.

PRE FORECLOSURE SALES FAQ’S from hud.gov
The Preforeclosure Sale (PFS) Program allows the mortgagor in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed.

Question 1 : Can a mortgagee utilize the buyer’s appraisal to review the property that is accepted into the PFS or must the mortgagee acquire an independent one?
Answer: If the buyer has secured an FHA-insured appraisal, use of the buyer’s appraisal would be allowed.

Question 2: Mortgagee Letter 2008-43 incorporates guidelines for varying minimum net sales proceeds based on the length of time a property has been competitively marked for sale. Please advise the correct Tiered Net Proceeds Requirements and the length of time the ratio is valid.
Answer: The mortgagor(s) must be willing to make a commitment to actively market their property for a period of four (4) months.

• For the first 30 days of marketing, mortgagees may only approve offers that will result in a minimum net sale proceeds of 88% of the “as-is” appraised Fair Market Value (FMV).
• During the next 30 days of marketing, mortgagees may only approve offers that will result in minimum net sale proceeds of 86% of the
“as-is” appraised FMV.
• For the duration of the marketing period (60 days), mortgagees may only approve offers that will result in minimum net sale proceeds of 84% of the “as-is” appraised FMV.

Question 3: Mortgagor is deceased, his father has been making the payments, property was tenant-occupied for eight months, and now the father wants to know if he can acquire the property under the PFS Program?

Answer: Mortgagee Letter 2008-43, Paragraph I, bullets 1 and 5 state respectively:
Use of Real Estate Broker - ….”The broker/agent selected should have no conflict of interest with the mortgagor, the mortgagee, the appraiser or the purchaser associated with the PFS transaction. Any conflict of interest, appearance of a conflict, or self-dealing by any of the parties to the transaction is strictly prohibited. A broker/agent shall never be permitted to claim a sales commission on a PFS of his or her own property or that of an immediate family member (e.g., spouse, sibling, parent, or child).”

Arms-Length Transaction - “Mortgagors and mortgagees must adhere to ethical standards of conduct in their dealings with all parties involved in a Preforeclosure Sale transaction. The Preforeclosure must between two unrelated

WORKING WITH YOUR LENDER TO STOP FORECLOSURE from freddiemac.com
When you call your lender, be sure to have your account information handy and be ready to give a summary of the financial problems you are having. You should also have recent income statements and your household budget with you.

Be prepared for more than one conversation. Your lender may require that you complete a “loan work-out” package – you may not be eligible for help without it, so complete it as soon as you receive it.

Questions to ask:
• How much time is the lender willing to give you to complete a work-out?
• What are your obligations under the work-out package?
• What are the specifics? Be sure to ask what is due and when.
• Will a foreclosure sale of your property be put on hold while your lender looks at the possibility of a work-out package?

Preparing for Your Conversation
Be ready to provide a short explanation of why you are unable to make your mortgage payment. Did someone lose a job? Is there a medical emergency? Are you current on your loan but have not been able to refinance into better terms?

You’ll also need to provide your servicer with important information about your property, income, and debt obligations.

Being prepared for this conversation will help your servicer understand your case and see if you qualify for a loan modification or other mortgage workout.

If you need assistance and cannot reach your servicer, you can contact one of the local HUD approved counseling agencies in your area.

Have These Documents On Hand
• Last two pay stubs and most recent tax return
• For a self-employed borrower, complete signed federal income tax return for the previous year or year-to-date profit and loss statement.
• Bank statements
• Proof of other income like alimony or Social Security
• Information about any second mortgage on the property
• Completed Form 4506-T [PDF], Request for Transcript of Tax Return
• Completed Form 1126 [PDF 91K], Borrower Financial Information

Helpful Links:

Tax Relief for Struggling Homeowners
Save the Dream Brochure from MSHDA
How to Keep Your Home from MSHDA
Stages of Foreclosure from MSHDA
Find a Homeownership Counselor