"Distressed Property" is a real estate term that describes a property owned by a homeowner experiencing significant financial entanglements such as imminent foreclosure involving the home. The term can also be used to describe homes that suffer from major issues such as structural damage or severe termite infestation.
Call Us for Assistance with Your Akron, Ohio Distressed Property:
Selling a distressed home can prove to be an insurmountable challenge for most homeowners. These homes typically sit stagnant on the real estate market as interested buyers seek out properties in the area with less problematic profiles, and bolstering their appeal also means making thousands in repairs for most sellers.
Required repairs on a property being readied for sale can also greatly increase the timeframe of the listing process as well as cutting into the final profit margin. Worse, these issues are often only discovered during an inspection as a buyer is making final assessments before purchase. Delaying the sale is an option many homeowners take, but in the interim the seller is responsible for daily upkeep and maintenance costs.
Sellers of distressed homes nearly almost always underestimate the time it will take to improve a distressed home to fetch a premium price on the open market. Comprehensive repairs to key components such as the foundation, roof or plumbing of a home can take months, and any financial or legal entanglement is a total deal breaker in the majority of cases.
Homes in relatively good condition can become impossible to sell due to outside factors as well. Problem tenants can do thousands of damage to key amenities and installations in the home upon learning of a sale, and squatters can illegally occupy the home to rule out any sale-related activity.
The Making Home Affordable site (www.MakingHomeAffordable.gov), specifies the following documentation to qualify for a loan modification.
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Ohio, seat (1842) of Summit county, northeastern Ohio, U.S. It lies along the Cuyahoga River, about 40 miles (64 km) south-southeast of Cleveland. Akron is the centre of a metropolitan area that includes the cities of Cuyahoga Falls, Tallmadge, and Stow and several villages. At 1, 081 feet (329 metres) above sea level, it was named for its 'high place' (Greek: akros ) on the watershed between the Mississippi River and the Great Lakes. Laid out in 1825 by Gen. Simon Perkins, commissioner of the Ohio Canal Fund, the town was assured substantial growth by the completion of the Ohio and Erie Canal in 1827 and of the Pennsylvania and Ohio Canal in 1840, linking it with Pittsburgh. Waterpower and transportation supplied by these canals led to Akron's early development as an industrial centre. The abundant water supply and the arrival of the railroads prompted Benjamin F. Goodrich to move a small rubber factory to the site in 1871. This industry rapidly expanded with the advent of the automobile and the demand for rubber tires. Between 1910 and 1920 the city's population tripled to more than 200, 000, and Akron became known as the 'rubber capital of the world' and the international or American headquarters of the far-flung giants of the rubber industry - Firestone, General Tire, Goodrich, and Goodyear; by the late 20th century, however, only Goodyear remained. The city's manufactures are now well diversified and, apart from a wide variety of polymer and plastic products, include farm machinery, automotive parts, toys, power-generating equipment, and chemicals. The city has largely shifted away from a manufacturing economy, however, while the service and trade sectors have grown. In the late 20th century some manufacturing plants and downtown stores were closed, but by the late 1990s several large-scale projects had succeeded in stimulating a revitalization of the downtown area.Goodyear Polymer Center, University of Akron, Ohio. Rick Dikeman The hangar at the city's airport is the site of the Goodyear Wingfoot Lake Airship Base (for airships [blimps]). This hangar is one of the world's largest buildings without interior supports. Akron is an important truck terminal and distribution point between the eastern seaboard and the Midwest.More than 6, 000 acres (2, 400 hectares) in the city are occupied by parks, and surrounding lakes and reservoirs and several golf courses afford recreation facilities; the southern limit of Cuyahoga Valley National Park is just north of the city. The World Series of Golf, played in Akron, is an annual professional tournament. Nearby Derby Downs is the site of the annual All-American Soap Box Derby for homemade gravity-powered cars. The city's cultural centres include the Akron Art Museum and the Stan Hywet Hall and Gardens (with antiques dating from the 14th century). The construction of a new convention centre (1994), the National Inventors Hall of Fame (1995), and a new stadium for the minor-league baseball Aeros all contributed to a downtown renaissance in the late 1990s. The University of Akron was founded in 1870 as Buchtel College; the Akron Symphony Orchestra performs in E.J. Thomas Hall on the university campus. Inc. village, 1836; city, 1865. Pop. (2000) 217, 074; Akron Metro Area, 694, 960; (2010) 199, 110; Akron Metro Area, 703, 200. All-American Soap Box Derby, Akron, Ohio, 1953. Stock footage courtesy The WPA Film Library
The one reality about today's housing market is that many people have more questions than answers. The following information is intended to help you or someone you know better understand your situation.
Do I Qualify For A Short Sale?
The qualifications for a short sale include any or all of the following:
Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall - You have more month than money. A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
What Is A Mortgage Modification?
A mortgage modification is a process through which your mortgage lender changes any or all of the following:
Your interest rate
Your principal balance (through a reduction)
Your loan terms (example: from an adjustable to a fixed rate)
This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.
Why Would A Lender Modify My Mortgage?
Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.
What Do I Need To Qualify For A Mortgage Modification?
According to the Making Home Affordable Web site (http://MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:
Information about your first mortgage, such as your monthly mortgage statement
Information about any second mortgage or home equity line of credit on the house
Account balances and minimum monthly payments due on all of your credit cards
Account balances and monthly payments on all your other debts such as student loans and car loans
Your most recent income tax return
Information about your savings and other assets
Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources
If applicable, it may also be helpful to have a letter describing any circumstances that caused your income reduce or expenses to increase (job loss, divorce, illness, etc.)
How Do I Qualify For A Mortgage Modification?
The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):
Prior to contacting your mortgage lender you can quickly complete an eligibility test at http://MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP).
For a list of mortgage lenders and servicers, visit www.HopeNow.com.
What Is A Home Affordable Refinance?
If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.
What If I Don't Qualify, Can't Afford My Home, And Owe More Than It's Worth?
You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents with the 'Certified Distressed Property Expert' Designation have undergone extensive training in how to process and negotiate short sales.
A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.
What Are The Qualifications For A Home Affordable Refinance?
According to the resources released by the government, following are a list of qualifications:
You are the owner occupant of a one- to four-unit home
The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
At the time you apply, you are current on your mortgage payments (you haven't been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan.
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Closely Related Topics: Take Advantage Of The Real Estate Market.
Related Statewide Reading Topics: Akron - Take Advantage Of The Real Estate Market.