Archive for tag Foreclosure
August 17, 2011 at 10:24 AM · Posted under Pat Tasker
When considering a Short Sale or Foreclosure, there are more consequences to consider than just the effect on your credit! For example if you hold a government security clearance for a military, CIA or police position, that clearance will be revoked.
Current and future employers monitor your credit scores, and a short sale can cause a reassignment or termination.
A deficiency judgement can be placed against you for the amount of the shortage, or deficiency after a foreclosure, leaving you on the hook for that amount in the future.
According to the Distressed Property Institute here is a chart outlining the issues and effects of shortsales and foreclosures. Please the click the chart below to enlarge.
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| Credit: Distressed Property Institute |
If you find your family having a hard time making the house payment, it might be time to talk about your options. How to relieve the stress and hardship and keep your financial standing in the best possible position. Call me to confidentially discuss your options! I can be reached by phone or text at 414-588-4907 or .
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Pat Tasker
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March 18, 2011 at 11:04 AM · Posted under Pat Tasker
10 years ago, foreclosures were not that common. Unfortunately with the changes in the economy, they now exist in every community and price range. That's right, from the city to the suburbs of Greater Milwaukee, they are out there. From $10,000 to over a million dollars, from Milwaukee to River Hills. At Shorewest, our closing department reports that distressed sales (short sales and foreclosures) have creeped up to as much as 1/3 of our closings.
You may have noticed some in your own neighborhood, and wondered how they might affect your own values. At first, the effect was minimal. Now with record numbers of them, they definitely can, in two ways, PRICE & DEMAND. Steve Harney one of my favorite Real Estate experts nationally, explains this all so much better than I can in his recent post.
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PRICE: Appraisers may consider them in valuing properties. They can definitely lower the values of homes which are not distressed sales. Note in Steve Harneys post, the comments from Chip Wagner, an appraiser, on this tough situation.
DEMAND: I have seen some neighborhoods that used to sell very well to first time buyers, and now draw very little if any interest from buyers. Many homes are foreclosures, and when Mrs Jones who lived in her house the past 40 years tries to sell, she gets no showings. The foreclosures bring down the appearance of the area as well as price. It is sad to see.
While the forclosure numbers are starting to slow, the banks still have a lot of inventory to release onto the market. It will take some time to get foreclosures back to "normal" numbers and marketing time.
If you are wondering what market activity and prices are in your area, and how they have been affected by foreclosures, call me! I can help you figure out if now is a good time to sell your home. I can be reached via email at or text/call me at 414-588-4907.
Posted by: Pat Tasker
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March 10, 2011 at 04:55 AM · Posted under Pat Tasker
2010 is a year that will have a lot of highlights, in real estate it was the year that Short Sales and Foreclosures were as much as 30% of our market. Those two terms are very popular, but sometimes misunderstood. Once I had a buyer ask why they call them "short" sales, when it takes so LONG to get to closing!
Many are still not exactly sure what is the difference between a short sale and a foreclosure. Both are challenging transactions both for buyers and sellers, and no question, both take a lot of patience to get to closing.
The main difference is who actually owns the home. In a short sale, the owner is a real person, mr or mrs "smith," while in a foreclosure the owner is the bank, who took the home back in a foreclosure action.
SHORT SALES are situations where an owner must sell their home, and the amount they owe on mortgages is more than the amount they can sell the home for in the current market. A short sale is only attainable, if the current owner is suffering a hardship that requires a sale. Hardships include: divorce, loss of job/income, or death of an spouse. A short sale is not necessarily a "deal" or a great buy, it is normally the market value; unfortunately the owner owes more than what that market value is, at this point in time. Once an offer is accepted, it can take anywhere from 1-12 months to close. It all depends on who the bank is, and how far the sellers and the bank have gotten through the short sale approval process.
FORECLOSURES are properties that are owned by the bank. They were in foreclosure, and after the proper timing and procedures the home was sold in a sheriff sale in order to pay off the current mortgage. The home then goes on the market as an "REO" or Real Estate Owned by the bank. There is an asking price, and once an offer is accepted, it takes 2-4 weeks to get to closing. I had some great tips on buying a foreclosure in a prior post.
It takes an extreme amount of patience to buy either type of distressed properties. A recent buyer, Meg & Tim Zei have this to say about their recent foreclosure purchase: "I wanted to walk away more than once. Once you make the decision that you CAN walk away if you need to, it's much easier to sleep at night."
If you are looking for a new home and considering a short sale or foreclosure property, call me for a list of 11 tips on getting to closing.
Posted by: Pat Tasker
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January 19, 2011 at 06:00 PM · Posted under Colleen Kuchta
Most homeowners believe that Spring is the perfect time of year to put their house on the market. It makes sense, many leases end in spring, allowing tenants to purchase a new home. Spring symbolizes a new beginning, who wouldn’t want to start fresh in new surroundings in the spring? All of the emotion surrounding the purchase of a new home, timed perfectly with the symbolism of Spring make selling a house this time of year a great idea. Or is it?
It is no secret that we are in a Buyer’s market right now. Many Buyers are writing low offers and getting low interest rates, which equals a great low payment. It is also common knowledge that banks are telling us that there are millions of properties that are about to come on the market in the form of a short-sale or foreclosure. So how will all of these distressed properties effect your ability to sell for top dollar? Well, its simple: the more distressed properties out there competing for an offer, the lower your sale price will be. Many Buyers don’t mind putting in a bit of sweat equity, they were going to make changes on their new home anyway - why not pay even less and and make a couple extra changes?
You want to make a move, but need top dollar to make it happen? Then the time to sell is today. Waiting even 2 weeks can lower the sale price of your house by $1,000 or more! This may seem a bit ridiculous to you, but trust me, it is true. I see it everyday; a Buyer writes an offer, the Seller says they want more money - and the Buyer walks away. A few weeks later, a new Buyer decides they want to write an offer, but this Buyer offers less than the previous Buyer. Why? Buyer’s believe that the longer your house sits on the market, the less money it is worth. If you are serious about selling, always act as if the first offer is the only offer you will receive, and do your best to come to terms.
Now, back to distressed properties for a moment. How are those properties going to effect you, even if a Buyer is willing to pay a bit more because your house is move-in-ready? Simple: the appraisal. Distressed properties are driving the appraised value of properties down. Let’s say a buyer offers to pay $200,000 for your house, but their lender orders an appraisal and the value comes in at $185,000. Will the bank still finance the property for the agreed upon price of $200,000? No way! You will have 2 options at this point: lower the sale price or wait and see if you get a different Buyer with a different lender that has the appraisal come in higher. Most Sellers are lowering their sale price.
So, to answer our original question: Should You Sell Now, Or Wait? If you want/need to make a move this year - then move now! Don’t wait for more distressed properties to drive your value down. If you are in no hurry to move, then stay put. Experts are telling us that values won’t be back to todays pricing until late 2012 or 2013. Who knows, if you can hold out until 2014, we might even be back in a Seller’s market by then!
If you are looking to buy or sell, contact us, we are here to help. Our clients needs and wants always surpass our own - you come first! The Kuchta’s, Kelly & Colleen.
Posted by: 
Colleen Kuchta
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November 29, 2010 at 03:31 AM · Posted under Colleen Kuchta
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Thinking of taking advantage of the large number of low priced houses in the city of Milwaukee, but don’t know where to start looking for loans and grants? Well, you are not alone. That’s why the City of Milwaukee will be holding an Open House on Saturday December 4th, from 9am-2pm at the Italian Community Center, 631 E. Chicago Street. There will be a special presentation from 11am-11:30am as well.
If you attend, you can expect to learn about:
- The great resources that are available when you purchase a foreclosed home, including information on receiving forgivable loans up to $30,000.
- The special loan and grant programs for purchasing a house that you may qualify for.
- The new program for purchasing City owned forclosures.
There are a large number of foreclosed, single family and duplex, properties to chose from. Make sure you attend the Open House and take advantage of this great opportunity to to own your own home. For more information, please contact us. We are Accredited Buyer’s Agents, ready to make your dream of owning a home come true! The Kuchta’s - Kelly & Colleen
Posted by: 
Colleen Kuchta
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April 10, 2009 at 09:42 AM · Posted under Colleen Kuchta
Friends of ours recently lost their home to foreclosure. We can’t help but ask ourselves ‘How and why did this happen?’
As Realtors, we know that, in most cases a foreclosure can be avoided.
We have experience in negotiating with banks to help home owners avoid a foreclosure. If you are feeling overwhelmed, or can’t keep up with your mortgage; please contact us; The Kuchta’s - Kelly & Colleen. We are happy to help. As always, there is no obligation to use our services. Our advice is free and confidential. ckuchta@shorewest.com or (262)894-6512.
A short sale in Real Estate occurs when the owner of the property owes more on the property than what it sells for. This can happen when a home owner sells after property values have dropped drastically, or when an owner has taken out equity loans on top of the mortgage loans and the loans equal more than the value of the home.
Before you proceed with a short sale, the first step would be to contact your lender and find out what their requirements are for the short sale package. Most commonly, you will be required to complete a financial worksheet and compose a hardship letter explaining why you are not able to pay the balance you owe in full. There is also an authorization letter that you will need to supply, allowing us to communicate with the bank on your behalf. In many cases, commission will be negotiated by the bank as well.
If you decide to sell, and are facing a short sale/foreclosure situation, be sure that the agent you select to list your home has experience in dealing with short sales. Each bank has their own requirements. Kelly & I are very familiar with the short sale process/foreclosure process and have helped many sellers, as well as buyers. Feel free to contact us for a no obligation, consultation.
If you have a question that you would like answered, drop us, The Kuchta’s, Kelly & Colleen, a line.
We are here to help. We are easily reached at (262) 894-6512 or by email: ckuchta@shorewest.com,.
The Kuchta’s, Kelly & Colleen
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Colleen Kuchta
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