Short Sale or Foreclosure? Which is the better option?

Losing your home to foreclosure due to an inability to keep up with your monthly mortgage payments is one of life’s most unpleasant experiences. It is also an event that keeps on affecting you long after your home is history by devastating your credit score. Regrettably, most people cannot be 100% sure that they will remain safe from foreclosure because they can’t foresee the unexpected. Occurrences such as serious illness, a major accident, divorce or job loss can happen to anyone. So it’s a good idea to understand the available alternatives such as short selling your home should the worst occur.

The one best tip I can give you: Don’t attempt to do a short sale alone.

Having an experienced real estate agent working on your behalf with your bank can make all the difference. Experienced short sale agents know who to talk to and know how to handle all of the paperwork to get the short sale approved by your lender.

See the chart below “ Short Sales vs Foreclosure”. (courtesy of Short Sale Expeditor Melissa Zavala). It will help you to better understand the differences and consequences of short sales and foreclosures.

I am an experienced short sale Real Estate Agent. Please don’t hesitate to give me a call for any assistance with your short sale!

Short Sale vs. Foreclosure Chart

Short Sale vs. Foreclosure

The New HARP Program is Here…..Almost.

By Renee Massey

 There has been a lot in the news lately about the government refinance program HARP (Home Affordable Refinance Program).  The program was recently revamped by FHFA (Federal Housing Finance Agency) and lenders should be receiving the new guidelines this week.  The biggest difference in the new program is the removal of the loan to value limit of 125%.  Homeowners in many hard hit areas including San Diego did not qualify for the previous HARP program because of the 125% cap.  Although lenders now have the new guidelines, it is unclear when they will be adopting the changes.  If you are unfamiliar with HARP, listed below are the current guidelines from the making home affordable website: http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx.

 Eligibility*

You may be eligible to apply if you meet all of the following:           

*Eligibility criteria are for guidance only.  Contact your mortgage servicer to see if you qualify for HARP.

Program Availability

The HARP program is offered by many servicers.  Homeowners should check with their mortgage servicer (the company to which homeowners make their mortgage payments) to determine if they are participating in HARP.  If their mortgage servicer is not participating, the homeowner may contact other lenders that participate in HARP to determine if they are eligible for a refinance.

Steps to HARP Refinance         

• Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup tools.
• Contact your current mortgage servicer or another that is approved by Fannie Mae or Freddie Mac to inquire about HARP.
• Compare rates and costs with additional mortgage companies to ensure best refinance terms.

For More Information          

• Visit FannieMae.com or call (800)7Fannie.
• Visit FreddieMac.com or call (800)Freddie, Option 2
• If you have additional questions about getting mortgage help, contact one of our housing advisors at (888) 995-HOPE (4673).  These HUD-approved housing counselors will help you understand your options, design a plan to suit your individual situation, and prepare your application.  Research shows that homeowners who work with housing counselors like these are more successful and have better long-term outcomes.  There is no cost to you for this valuable, around-the-clock service.  Help is available in more than 160 languages.

Renee Massey has been with Ken May Insurance services since February 2011.  She is our customer service representative and also works as a Realtor® throughout San Diego County.  If you are interested in buying or selling your home or have any real estate questions please contact her by phone or email.

Our May “Cover All Your Bases” Multi-Policy Contest Winner

Ken and May's Contest Winner Adrian Echevarri

Adrian won two field-level tickets to the June 25, 2011, San Diego Padres home game against the Atlanta Braves.  He was entered in the drawing after purchasing home insurance from Ken May Insurance Services through Mercury Insurance.  By purchasing home insurance with Mercury he also saved an additional 15% on his auto insurance with the Auto + Home multi-policy discount.  Please call or email us to discuss ALL your insurance needs.  The “Cover All Your Bases” contest runs now through the end of August.

For more information  follow us on Facebook     and visit our website www.kenmayinsurance.com.

Discounts Are The Key To Saving…..But Be Careful!

I’m always reminding the staff that it’s all about the discounts! People seem to be obsessed with the idea of getting discounts on their auto insurance policies. But this leads to two problems that we’ve encountered.

First, it’s not about the total number of discounts you get, it’s about the bottom line. If you’re getting 10 discounts from company A and only 5 discounts from company B but the premium with company B is lower for the same amount of coverage, why would anybody choose company A just because of the number of discounts? But many do! We have actually had clients move to another carrier because they were offered a discount that their present carrier didn’t offer, even though they ended up paying more for the policy! They feel like they have won the battle but actually, they have lost the war. And then they complain about the cost of their insurance!

The second problem that really gets under my skin are the large companies like Progressive and Allstate that offer discounts in a national ad campaign that are not legal in California or simply not offered in this state. A great example of this is Progressive’s current campaign for the Snapshot discount where technology can report to the company a person’s driving habits such as annual mileage, how hard a person brakes, how fast a person accelerates, etc. Though it is being advertised, Progressive does not offer the Snapshop discount in California. So why are they allowed to show this commercial every two minutes (tic) in California? I am regulated down to the font size of every ad. So, why are these misleading ads allowed to be shown?

My point is for you not to get too enamored or sucked into a decision based on a slick national advertising campaign and rhetoric that may not even apply to Californians (though I too enjoy watching comedian and actress Stephanie Courtney portray Flo in the Progressive ads).

So what are some of the discounts you should be looking for?

• Good Driver – If you have one or less tickets or one at-fault (no injury) accident in the past 3 years and have been licensed at least 3 years, you should receive a 20% discount. This is mandated by state law.
• Multi-Policy – If you have more than 1 policy with the same insurance company, this discount can be huge. In fact, depending on the types of policies and the company you are with, these discounts can be anywhere from 10 to 25%.
• Good Student – Usually reserved for those who are 24 or younger, a full-time student (12 or more units) with a grade point average of at least 3.0 qualifies for this discount which offsets a lot of the surcharge they are receiving for being inexperienced (and it makes for a great bargaining tool for you parents out there). And hey, it all helps to keep costs down!
• Alumni and Professional – If you are a college graduate, many companies now offer an alumni discount. Also, there are many occupations that receive a professional discount.
• Vehicle Safety Features – Many of the safety features of your car result in discounts which are automatic once your agent types in the vehicle ID number (VIN) of your car.

There are countless other discounts available that are too numerous to name here but if you have a good agent, he or she should ask the right questions to insure that you are receiving all of the discounts that you are entitled to.

**If your agent tries to give you discounts that you don’t deserve or tries to alter your personal information to artificially lower your insurance rate, run away as fast as you can!

A good agent should be able to give you a proper rate with the right amount of coverage with a financially stable company as well as offer top-notch customer service without putting you at risk of insurance fraud in the process (I will talk more about this serious problem which puts you at risk in a future blog post).

Finally, your insurance company should send you a list of available discounts with your policy declarations page and policy jacket. Look at the list and if you see a discount that you feel you should be receiving but you’re not currently getting, call or stop by to see your agent and he or she should be happy to go over it with you.

There are advantages of using an independent agent as opposed to simply purchasing a policy online. Coverages can be complicated, insurance can be confusing, and you may be leaving money on the table that would be better off in your pocket (or helping pay for gasoline). And, you may be missing vital coverage that leaves you and your assets exposed. If you have any questions or comments, feel free to visit us at www.kenmayinsurance.com.

Ken May has been serving North County since 1982 offering quality insurance products with strong carriers. He is currently the president of the American Agents Alliance of California as well as the local chairperson of the North San Diego County Chapter of the Alliance. He can be contacted at ken@kenmayinsurance.com.