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Some tenants are better than others. Yet no matter how ethical a tenant might be, or how diligent in paying the monthly rent, even terrific tenants can get badly hurt by a foreclosure.

Landlords don’t usually discuss their financial problems with their renters. Why would they? If the property owner is falling behind on his/her mortgage payment, they fear that if the tenant finds out, the tenant might just follow suit and quit making the rent payment. And the landlord, headed for foreclosure,  needs money badly. Tenants of rental properties are often among the last to know about a pending foreclosure.

A landlord’s  foreclosure leaves a tenant in a precarious position and can potentially have a lasting effect on the tenant’s future ability to rent as well as throwing the tenant’s life into disarray while they scramble for housing unexpectedly. The scramble for a new home is a short-term problem. There are other pitfalls for renters, that can last for years beyond the foreclosure, and have a much more significant impact on the renter’s future.

When a lender “takes back” a home through foreclosure, the lender’s primary goal is to sell the property as quickly as possible. Empty properties are easier to sell than occupied properties. The lender, determined to sell quickly, must take steps to make the house as sell-able as possible. These steps often include emptying the house of it’s occupants. In other words, and eviction takes place. And here is where tenants can get hurt.

An eviction is a formal, legal action. Many legal actions are part of the Public Records. And Public Records are part of a Credit Report. So a tenant can end up with an Eviction on their Credit report! This can happen even if the tenant does not fight the eviction. Many lenders will “follow protocol” just to be sure future litigation cannot happen. Protocol in this case is a legal eviction. The lender, wishing to have a perfect “paper trail” of documents, can insist on following the letter of the law with regards to an eviction. They insist on following the process to it’s bitter end.

The ripple effects of the current mortgage market continue to surface in unexpected ways.  If you are a renter and find yourself in this unpleasant situation, document everything (make copies of any communications, and make written notes of any verbal conversations). You might want to consider speaking with legal counsel just to be safe. And make copies of all your rent checks (front and back) in case you ever need to prove that you made all your rent payments on time.

Posted in Credit Bites, Foreclosure, Miscellaneous, Real Estate Bites | 1 Comment »

Tags: bremerton real estate, kitsap real estate, port orchard real estate, poulsbo real estate, silverdale real estate, washington state foreclosure

Life can be overwhelming at times. It happens to us all. There’s information overload, the mounting costs of everything from gasoline to college educations, the internet explosion, health care cost increases, international strife, the whole political tennis match, FHA reform, rising foreclosure estimates in America and the day-to-day business of living while raising families. Have you tried to help your children with their homework lately? It’s no wonder many Americans consider “letting the house go back to the bank” as a viable solution to the ever-present stress of living life.

As a solution to debt problems, Foreclosure may not provide the financial relief some homeowners are seeking. Rather than ending up with a more managable budget after foreclosure, many consumers are horrified to find they must still make payments to a lender on a home they no longer own. The problem didn’t get better, it got worse.

Homeowners with significant equity in their homes tend to fight vigorously to save them. Homeowners who believe they have little to lose in equity, are more apt to “throw in the towel” when financial times get tough. These homeowners often get hurt the worst. And its not uncommon.

A deficiency balance occurs when the proceeds of the sale are insufficient to cover all the costs associated with the property being sold. First, there is the mortgage (sometimes there are more than one). Then there are late fees, attorney fees, court cost and any penalties that were assessed during the Foreclosure process. Sometimes there are back taxes that must be paid and unpaid utility bills. Once all these amounts are added up, they often exceed the amount of money generated by the sale of the property by tens of thousands of dollars. Now the homeowner is a renter with a huge liability owed on a home they no longer own as well as the cost of rental housing.

One of the hardest things for any of us to do is to keep a clear head while under financial pressure. It is the one time we can ill afford to make a poor decision. A decision to allow a home to be foreclosed that results in this scenario, does nothing to alleviate the stress a homeowner with financial trouble is under. It just prolongs the misery. Think twice before “throwing in the towel”. Is there ANY other way to work your way out of this tight spot?

To make matters even worse, if the Lender decides to “Forgive” the deficiency balance, don’t be surprised if the IRS labels this as Income and demands taxes on the money. They have done it many times in the past.

Posted in Bites of Washington, Credit Bites, Foreclosure, Miscellaneous, Mortgage Bites | 5 Comments »

Tags: Foreclosure, kitsap real estate, washington state foreclosure

Recently I had the opportunity to see first-hand what a wonderful high school and an exceptional staff we have in Silverdale. I got to see it through my clients’ eyes.

I have always raved about our school district to clients relocating into the area, especially when they have school age children and are trying to decide in which area to buy a home. My older son graduated from Central Kitsap High School in 2000 and went on to Gonzaga University on scholarship. The year he graduated, Central Kitsap High School was rated in the top 4% in the nation. I recall going to awards night and being just amazed how many academic scholarships the seniors had received. My younger son is a sophomore at CK and is learning how much support is available from teachers, tutors and guidance counselors. I felt I could talk about the school from firsthand experience. Now I have even more experience to draw from.

I am currently working with a military family that is relocating here from Maryland. There are two teenage daughters. They were going to be in Silverdale for a couple of days to get an idea of the area, the prices of homes, and to show the girls their soon-to-be new home. In corresponding with them, I learned that schools were very important and the girls were not having a very good experience with the school in Maryland. I thought it would be a great idea to get them a tour of the high school while they were here, and it might also help the girls transition. Military life can be very difficult for the children.

I called the school, spoke with the main office and explained what I needed. The secretary was very friendly and helpful. She told me that Mr. Cervinsky, the principal, would do the tour and if I left him a message, he would return my call as soon as possible. (I have to digress a moment and say that recently I had to call my old high school in Massachusetts for my records and let me tell you the voice on the other end was rude, abrupt, and not very helpful. I ended up not getting what I needed and sent for my college transcript instead. Now I remember why, after moving here from Massachusetts where I was born and raised, I stayed!!)

Mr. Cervinksy did return my call and we set up an appointment for 9 AM on Friday; my clients’ first day in Kitsap County. I very much appreciated it as the school was just wrapping up WASL testing and getting ready for spring break. What a great visit we had!  Mr. Cervinsky first talked to my clients a bit before the tour to tell them about the school and programs available. We then set out on the tour. Along the way he introduced us to passing faculty members and students. Everyone was extremely friendly and obviously very proud of their school. My clients thanked me a few times during the tour saying how wonderful and helpful it was and how great for the girls.

One of our last stops was at the gymnasium where students and staff were getting ready for a pep rally. We were invited to stay for the pep rally and told the dance team was going to perform. My interest peaked as recently my husband and I have been taking dance lessons (that is a story for another day!). I thought maybe they could show me how it is done. Unfortunately we had to decline as we still had a full day of  looking at homes and neighborhoods.

Once outside, my clients again said they couldn’t believe how friendly everyone was compared to the East Coast, and how incredible it was to have the view of the water from the school. I realized that we take things for granted sometimes and don’t realize how lucky we are. I also learned more about the school through their visit. Central Kitsap High School is now rated in the top 2% by Newsweek! There are 300 tutors available if the students need them. My sophomore and I will be having a chat soon. I have been paying for a private math tutor!  I hope Mr. Cervinsky, I have that number right if you should read this story. 

In closing, I would like to extend my thanks to Mr. Cervinsky and all those we met that day and issue a warning; I will be back!

Posted in Guest Writers, Silverdale WA Real Estate | 3 Comments »

Tags: central kitsap high school, ckhs, kitsap county schools, kitsap real estate, Silverdale WA Real Estate

Did you know that real estate in Kitsap county is on the same latitude as France? France is known for being an incredible gardening country. Just think of all the wine that is produced each year!

Dahlias can “make” a garden. In my humble opinion they can make any garden better. They are vigorous, colorful and very easy to grow. No matter what color scheme you have going in your gardens, there is bound to be a dahlia to match or contrast your scheme.

Each spring Kitsap County Dahlia Society has a tuber sale for all the dahlia lovers in the community. This year’s event is coming up soon. The Society was originally formed in 1923 and is one of the oldest Dahlia Societies in America.

The sale this year is scheduled for:

There will be a second sale for Port Orchard property owners and those that miss the first one on:

Saturday, April 14th from 9 am to 4 pm.

This sale will be held at:

the Kitsap Saddle Club.
1470 Saddle Club Road, Port Orchard

So if you have seen these glorious flowers growing in a neighbors’ yard or you’ve enjoyed the Dahlia display at the Silverdale Post Office, here’s your chance to add to or begin a collection of your own. One warning though; If you are anything like me, you’ll need a bigger budget than you thought you needed once you get to the sale!

Posted in Miscellaneous | 6 Comments »

Tags: kitsap dahlia society, kitsap homeowners, kitsap real estate

It seems like every time I turn around on the Internet, I come across another article on the demise of zero down home financing and the impact it will have on the Real Estate industry and First Time Homebuyers.

These articles run the gamut from shocking to discouraging. Many of the articles blame this situation on the sub prime lending practices in recent years. Many of the articles predict that First Time Homebuyers will no longer be able to attain the American Dream! Many say that 100% financing is gone for good. I say: Don’t believe everything you hear (or read). Zero Down Home Loans are alive and well.

This article is not about the current subprime situation. Subprime situations are a significant portion of the overall mortgage market, but they are nowhere close to being in the majority. The majority of the mortgages that get approved, each and every day in America, are the garden variety, middle-class, blue-collar type of transactions that we share with our neighbors, co-workers, friends and families. This segment of the mortgage market has had access to 100% financing for years and still does today.

Probably the best-known zero down home loan is the VA Loan for Veterans. 100% financing has been available to Veterans for a long time. There is no news that this will change. VA mortgages will actually allow a Veteran to finance not only the price of the home, but the cost of purchasing it (closing costs) as well!

If you are not a Veteran, you still have access to zero down financing. Fannie Mae (FNMA) and Freddie Mac have been supporting 100% financing for home buyers for years. Here are just a few loan programs that your loan officer has access to:

Freddie Mac Programs

• Home Possible® 100
• Home Possible Neighborhood Solutions® 100
• Affordable Merit Rate Mortgage
• Guaranteed (Section 502) Rural Housing (GRH) (this program allows 102% financing)

Fannie Mae Programs

• Flexible 100
• MyCommunityMortgage™
• Pledged Asset Mortgage

This is far from a comprehensive listing of available 100% loan programs. Many lenders have their own programs in addition to those offered by the government.

Just remember the next time your read an article or hear a radio ad about the demise of 100% financing in the mortgage industry; “You can’t believe everything you hear!” Good news just doesn’t sell as many newspapers as bad news.

Posted in Buyers, Miscellaneous, Mortgage Bites, Real Estate Bites | 3 Comments »

Tags: bremerton real estate, kitsap real estate, port orchard real estate, poulsbo real estate, silverdale real estate