Western Mass Homes Lesley Lambert

foreclosure

Foreclosures Drop in Massachusetts

While we are certainly not out of the woods for foreclosure rates in Massachusetts,  Banker and Tradesman reported that in October, 557 foreclosure deeds were recorded, down more than 39 percent from 914 in October 2009.

Is this good news for home owners in Western Massachusetts?

Well, certainly any time the number of foreclosures and filings drop, it is better than if they rise, but it probably isn’t time to celebrate just yet.

As quoted from the article referenced above,”While the decreases in foreclosure volume are welcoming, we should not be fooled into thinking that foreclosure problems are behind us,” Warren added. “Due to job and economic conditions, many homeowners are delinquent on their mortgages and those problems will eventually find their way into foreclosure statistics.”.

The temporary decrease may be connected to lenders forestalling foreclosure proceedings to double check their paperwork, but I am tying my wagon on hope’s tail and thinking positive that we may have an indication of better times ahead.

In the meantime, if you are in danger of foreclosure in Western Massachusetts, I am here to help.  I have years of experience in short sale assistance and would love to help you move on past this financial trouble.  Give me a call:

Lesley Lambert, real estate agent in Western MA with Park Square Realty

413.575.3611 or lesleylambert@parksquarerealty.com

photo courtesy of Colleen Lane on flickr.com

The Circumstance of Short Sales and Foreclosures

Life isn't about finding yourself. Life is about creating yourself. - George Bernard Shaw

Going through distress in home ownership is one of the most stressful things a person can endure. Whether you are attempting a short sale, entering foreclosure or have already suffered a foreclosure on your Western Massachusetts home, these events do not define you.

These events are pivotal, yes, but they are also circumstantial and will run their course and be complete. It is your reactions and decisions made from these circumstances that will define who you are, not the event itself.

Circumstances are things that are very often beyond our control and can be defined very simply as “what is”. We needn’t be victims to these circumstances or even stay stuck in the circumstance unless we choose that.

George Bernard Shaw said, “People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can’t find them, make them.” Smart man that Bernard Shaw…we are all in charge of our destiny, why not be in charge of circumstances, too?

If you are in a situation where you think you may need some help with a short sale in Western Massachusetts to avoid foreclosure, be proactive. Don’t make excuses, don’t hide from the reality. Face it head on and decide what your future will be. Take those circumstances and shake them up and find something that you can look forward to at the end of this circumstance.

For me, I looked forward to being able to manage my bills again, which a smaller home in Western Massachusetts would allow. I also looked forward to less home and land to take care of, thereby freeing up some time to enjoy. I had to move to a much smaller condominium when I sold my house, but it was mine to decorate as I pleased and create a nest for my daughters and I.

You can move beyond this circumstance and I can help you, if you like. Just reach out and ask.

photo courtesy of jeff mcneill on flickr.com

Is there home ownership in Western MA after a foreclosure?

Is Anybody Home? Free Girl Looking in Window Creative Commons
So you have suffered through a foreclosure and are considering when you might be able to be a homeowner in Western Massachusetts again. Most foreclosures are situational, meaning the reason for falling behind was caused by job loss, death or divorce. Once these events are over, most people focus on re-building their financial security.

It is possible to become a homeowner again after going through something catastrophic like foreclosure, but it will take diligence and planning.

In an article for REALTOR.COM a list of five steps was given by REALTOR® Linda Kemp:

“1. Stick with a job after foreclosure Did you fall into foreclosure because of the lack of a steady job? If you did, the first step toward home-ownership after foreclosure is finding and holding one. And if you already have one–stick with it, unless you can move to a better one. Note that potential lenders will require stable employment before they’ll give you a new mortgage loan after a foreclosure. Even if it means taking a lower-paying job, it’s worth it.

2. Rebuild your nest egg after foreclosure Establish a safety net. Financial planners generally recommend three to six months of living expenses in a liquid account, but since you’re coming out of foreclosure, six is a minimum to show stability and that you’re able to pay your bills–including your mortgage–for an extended period if you lose your job.

3. Raise your credit score after foreclosure. This is the hardest and most time-consuming part. After foreclosure, your credit score, according to myFICO, probably dropped by about 150 points. You’ll need to raise it back up with perseverance.

Pay bills on time and keep your credit card balances below maximum levels. The foreclosure will stay on your credit report for seven years, but if you prove your money management skills have matured, it will become less of a red mark as years go by.

Tip: Consult a housing counselor. The U.S. Department of Housing and Urban Development (HUD) offers free housing counseling for distressed homeowners with a foreclosure in their past. A counselor can help you with money management and budgeting. Counseling works — an evaluation of a program in Indianapolis discovered that credit scores greatly improved because of education and counseling, and increased average borrowing power by $4,500 per family.

4. Reduce your waiting time for a mortgage after foreclosure Normally, you would have to wait seven years after foreclosure before you can apply for a new mortgage under Fannie Mae rules. Note: Fannie Mae changes rules frequently. You can check the latest rules at Fannie Mae’s site.
However, you might wait only three years if you can show extenuating circumstances for your foreclosure, which are defined as “events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.” These include:

•Losing a job

•Getting divorced

•Having unexpected medical expenses

There’s one last alternative if waiting isn’t your thing–you can obtain seller financing, essentially bypassing the traditional mortgage. If both parties are amenable, you can enter into a lease with an option to buy, or take a mortgage directly from the seller. You’ll most likely have to show some hefty reserve funds, but if you’ve turned around your financial situation quickly after your foreclosure, it’s worth a shot to deal directly with the seller.

Keep in mind that sellers may be motivated to agree to this if they need to sell and the potential buyers they’ve met with can’t obtain a conventional mortgage–perhaps because they’ve been through foreclosures, too.

5. Be honest about your foreclosure
When you’re ready to apply for your new mortgage, don’t try to hide your foreclosure. On the contrary, be proactive and reveal the steps you’ve taken to remedy the problems that led to your foreclosure.

Tip: Try a mortgage broker, who can work with a variety of lenders to find you a loan. When you work directly with a retail lender, like a bank, they have a limited pool of loans to offer you. But a good mortgage broker–one with a vast network of lendersóhas many options, and may be able to find a mortgage solution if the foreclosure in your past is creating challenges in obtaining one.”

These are all great tips, but I think that the most important thing is to reduce your spending and expenses. Discipline yourself to save money to pay down credit and increase your savings. This will give you confidence in your own ability to re-enter the home owner market and will give the lender assurance that you are responsible. You will be surprised how many things are just not that essential when you start giving yourself a spending diet. Austerity can be very refreshing.

Above all know that you are far from alone in this situation and there are lots of kind and knowledgeable people out here willing to help you repair the damage done and move on to the next chapter of your life. Please let me know if there is anything I can do assist you. I am just a phone call away: 413.575.3611.

photo credit Pink Sherbet Photography on flickr.com

The Jones Family Lived Here: A Western MA Foreclosure Tale

Recently I wrote a post inspired by an NPR story that I listened to during a commute. It stirred up memories and feelings and inspired me to write a few posts on what I experienced. Today I want to share the story of the Jones Family.

Black American GIs, Park Street, Bristol - During World War II

The Jones Family is not their real name and my story is imagined, not factual, but the foreclosure and what I saw and how I felt was very factual and very real. The Jones Family is with me every day in my heart and in my home, as you will see if you read along.

About six years ago I was assisting my mother with a foreclosure in Springfield, MA for Freddie Mac. She had already had a sheriff involved to verify the occupants were evicted and contracted a vendor to change the locks. My job was to take the company camera and catalog the house contents for the lender’s “trash out” quote. Normally this was a quick job as these foreclosed properties usually contained not much beyond trash. Today, however, would prove very different.

I entered the home and immediately felt the difference. This wasn’t the normal foreclosure. There was no sledge hammer holes in the walls or destroyed kitchen. There was no pile of trash in the middle of the living room or missing light bulbs. This home was as if the family left to run errands and would be home soon. Fully furnished and very lovely, this home was still THEIR home.

It took me awhile to shake off the feeling of being a trespasser. I had a job to do and being moody about it wouldn’t help, I tried to convince myself. I started to snap pictures and take notes. The dining room set was solid wood and while it wasn’t modern, it was good furniture and still looked ready for a holiday meal. The living room had a velvet couch that was dated and somewhat worn, but clearly expensive in it’s prime and set beside a table with a porcelain lamp and books.

Opening closets and peering at family photos was what finally got my emotions and imagination involved.

Mr Jones was a World War II Veteran. His uniform hung with pride, pressed as if ready for action in his closet. On the floor, in a pile of photographs and documents was a box with a medal for valor. Underneath that box was a photo of Mr. Jones proudly wearing his Army uniform with his lovely wife on his arm.

Looking down the hall I see from the certificates on the wall that his service didn’t end with the Army. He was a Shriner and a civic volunteer. He worked in engineering and retired with honors from his company.

Then what happened? This was a stand up citizen, a man who strove his whole life to do the right thing and worked hard to give his family a lovely home. Well…I don’t know how it happened, but Mr. Jones passed away.

It seems an adult child or maybe two moved home to help their mom who seems to have passed away not long after Mr. Jones. Now, I have to really imagine the threads of this tale, but here are at least two of the three children, or perhaps grandchildren, living at their deceased parents house, which is paid off by the life insurance.

Someone decides to refinance the place and they buy cars (left on the site) and drugs (found paraphernalia) and goodness knows what else goes on. Time marches on and the foreclosure happens and instead of packing up the medal of valor and treasured uniform or preserving the collected items and lovely clothing, they simply leave.

Well, I can tell you, I sat in the middle of a bedroom in the Jones Family house and cried. I clutched the photo of Mr. and Mrs Jones in his uniform and sobbed as if my own family had passed. How could their lives have come to this?

I spoke to them while I was in their home. I asked for their absolution and understanding for my part of what must be done and for my snooping. I prayed that they were at peace and their children would be alright. “Please, I beseech you to accept my loving thoughts for you and yours,” I offered. As I sat there, a peaceful feeling came over me. Mr and Mrs. Jones were grateful. Glad that someone honored their life. Call it my imagination if you will, but that is how I felt at that moment.

The “trash guys” were coming the next day with a dumpster to put the Jones’ belongings in the landfill. I began to feel that I had to do something to preserve them, somehow. Before I had gone to the house, my mother had mentioned the dining room set. I had just moved and had no dining room set, nor could I afford one. In a flash it seemed the right thing. I made a request to Mr. and Mrs. Jones and promised that every time I sat at my table I would remember them and all they had accomplished.

Many family meals have gathered at that table since. It is where I sit when I am working from home and where my friends and family gather at special occasions. Every time I sit myself down at that table I honor this hard-working, patriotic family.

A toast: To Mr. and Mrs. Jones.

photo courtesy of Stuart Jones on flickr.com is not actual family member, but merely evocative of my tale

Foreclosure Photography

Abandoned

Today during my commute I listened to an NPR interview with Paul Reyes, author of Exiles in Eden, who was discussing the emergence of “foreclosure photography” during our housing crisis.

It isn’t often that I hear something new in this vein, so I was intrigued and wanted to delve into his writings and of course the photographs themselves. As someone who is inside the foreclosure process far too often and has shown foreclosure property to many buyers, this hit home.

For well over ten years I have been working with foreclosure properties in one capacity or another. When my mom still owned a real estate company, she was the Freddie Mac representative in Western MA and I worked to assist her with the properties. Our jobs included vacancy checks, “trash outs”, repairs, winterizations and re-keying. Usually the homes were emptied of anything of value (but still filled with trash), but sometimes there were homes left intact. It is spooky to find a home like this, as if the owners just stepped out to run an errand and will be right home, except they can’t get in because the locks have been changed.

There was this one property in particular that was filled with good furnishings and all the family mementos. I had to go through everything to take photos and inventory the house for the lender. At first I felt a bit awful doing this, as if I was a peeping tom, but then I started to feel the presence of the people and pieced together what I thought their story was. I felt very connected to them and it brought me some peace in the terrible process in which I had to participate. It is funny how things trigger memories, today’s NPR story brought my feelings in this home rushing back.

I wish I knew where the photos were that I took that day in their lovely home.

In listening to Paul Reyes today and then looking through the photographs he mentions in his blog post, I felt a strange connection. Not just to Mr. Reyes, but to the people who lived in these homes. That is, I presume, what the photographers were trying to drive home to the viewer. That we are connected, that people from all walks of life are impacted by the foreclosure crisis, that this could happen to us or someone we know.

Foreclosure statistics show that one in five homes are foreclosed upon. This epidemic is real and it pays to be empathetic to those going through the very stressful process. I hope that if you are a homeowner in Western MA who is faced with potential foreclosure that you will reach out to me and let me help if I can.

photo courtesy of James Jordan on flickr.com