Kat Geralis Home Team Wilmington DE Real Estate News Archives

One year ago, the State of Delaware had one of the highest foreclosure rates in the nation. This prompted our State lawmakers to create the Automatic Residential Foreclosure Mediation Program, which became effective as of January 19, 2012.

In December 2011, Delaware foreclosure filings affected 1 out of every 485 homes, according to data by RealtyTrac.

New Castle County had the highest rate of filings. Foreclosures in the State were also swift, averaging only 106 days to process. The average sale price of a foreclosed home was $121,100.

As of November 2012, Delaware foreclosure filings affected 1 out of every 1,166 homes, according to RealtyTrac. Kent County took over the top spot for the highest rates of foreclosure.

While our foreclosure process remains efficient, the timeline can now range up to 6 months. Meanwhile, the average sale price of a foreclose home has improved to $162,140.

Who gets the credit for the improvement? We all do! There are six things that have helped make a difference for distressed homeowners in Delaware:

• Delaware's mandatory mediation program
• Improvements in the regional economy
• Improvements in the short sale process
• Federal involvement with large banks to promote alternatives to foreclosure
• Improvements in Delaware home values
• Slowing rate of new defaults

It's important to note that it took a combination of the above to bring us to the improvement we have today. We must also acknowledge that foreclosure remains a concern in Delaware, and we will be dealing with distressed properties for the foreseeable future.

If you are a homeowner in Wilmington or Newark who is struggling with mortgage payments, or you want to sell your home but you have negative equity - let me help! I have extensive experience in short sales and foreclosures, and I can guide you through the options that are available. I also have tips on avoiding foreclosure on my website.

Have a few questions, or just want to talk about your situation? Contact me today! I will be happy to help you.

The reality of the current Wilmington, DE real estate market is that homeowners are struggling to stay afloat. While the economy is getting better, many are still struggling with maintaining a steady income to pay their mortgage each month. As a real estate agent who specializes in Wilmington, DE short sales and foreclosures, it is my responsibility to be aware of this issue and use my knowledge of market conditions to help guide my clients through what can oftentimes be a very difficult, hurtful and stressful time. That’s why, when Wilmington, DE homeowners approach me and express that they are in danger of losing their house, I always take the time to sit down with them and review their options.

Since my primary goal is to help people who are in danger of going through a Wilmington, DE foreclosure know and understand all of their options, it’s important to me that I explain each alternative as thoroughly as possible. The better my clients understand what they can do to avoid foreclosure, the more likely it is that we can find the right alternative and come up with a plan to avoid conflict. One of the most popular alternatives to foreclosures is going through a short sale. A Wilmington, DE short sale occurs when a lender agrees to let a homeowner sell their property for less than what is owed on the home, forgiving all other amounts owed after the transaction is complete.

Short sales are far less damaging to one’s overall credit than foreclosures, which is why they are such an attractive option to many Wilmington, DE homeowners. The process, however, is a bit complex and can take a long time if you’re not diligent and persistent. In the interest of helping all of my clients who are in need of guidance, I thought that I’d outline the short sale process briefly. This will allow those who are in danger of losing their Wilmington, DE home get a better idea of one of the main alternatives to foreclosure.

•    Contact your Wilmington, DE real estate agent and lender to discuss policies, procedures and your options. Consulting with a professional before undergoing the process will help you decide if this is really the right route for you to be taking, which can help you avoid more conflict down the line.
•    Compose a letter to release documentation about the loan and the property. The escrow agency and the buyer will receive this information prior to making an offer.
•    The lender will examine the settlement statement. This document will include the selling price and what is left of the loan balance. Other fees, such as closing costs and commissions, will also be included in the statement.
•    Submit a hardship letter to your lender outlining your current financial problems. You will need to explain why it is that you can’t make mortgage payments. Think of this as a brief letter that you will need to use to build your case. You need to make the reader sympathize and understand why you have experienced hardship and realize that it is impossible for you to continue to stay in the home.
•    Include banking statements, investment portfolios, employment paystubs and other financial documents with your letter to prove that you can under no circumstances make your monthly mortgage payments.
•    The lender will consult with the Wilmington, DE real estate broker to evaluate the house’s structure and compare it with other homes in the area to determine its worth.
•    The lender will then examine the purchase agreement and review the commission amount to determine that the short sale transaction would be beneficial to all parties involved.

Broken down, Wilmington, DE short sales are processes that require patience and a lot of back-and-forth; however they also are a very viable option for many homeowners in today’s economic climate. As a Wilmington, DE real estate agent who specializes in short sales and foreclosures, I’d be remiss if I didn’t review each option and alternative with my clients in detail. It’s the only way to ensure that everyone understands their options and comes up with the best plan possible for their particular situation.

If you have any questions about the Wilmington, DE short sale process, don’t hesitate to contact me! I’d be happy to help in any way that I can. I hope to hear from you soon!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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Going through a bankruptcy, foreclosure or short sale is heartbreaking, and for many people in this economic climate, it is a reality. One of the biggest fears of Wilmington, DE homeowners who begin to go through financial hardship is that if they go through one of these three processes, then they won’t be able to ever own a home after the fact. This is not true. You can be a homeowner again. All it takes is two qualities: patience and hard work.

It’s not impossible to buy a home in Wilmington, DE after suffering from a financial hardship, but in order to do so, you will have to clean up your credit and wait for a certain amount of time after the foreclosure, short sale or bankruptcy. As a Wilmington, DE real estate agent who specializes in foreclosures and short sales, part of my responsibility is to reassure my clients that this isn’t the end: they CAN become a homeowner again. It is also my job, however, to let my clients know exactly what they need to do to accomplish this after suffering from a Wilmington, DE foreclosure or short sale. Here are just a few of the more important things they’ll have to keep in mind if homeownership is the goal:

You’re going to have to wait awhile. Those who have suffered a financial hardship in Wilmington, DE could wait anywhere from 1-7 years after the fact before getting a home loan. If you went through a bankruptcy and have a spotless subsequent credit history, then you may have to wait only one year. If you went through a Wilmington, DE short sale or foreclosure and are looking for a conventional loan from Fannie Mae or Freddie Mac, you will most likely have to wait 7 years. In between are 2, 3, and 4 year timelines that all depend on extenuating circumstances surrounding the foreclosure or short sale.

Make sure your credit stays clean. If you miss even one credit card payment after losing your home in a foreclosure or short sale, then you are pretty much ruining your chances of getting a loan in a shorter time span. Make every credit card payment on time and show signs of stable employment. The more spotless your credit is after financial hardship, the more willing banks will be to get you your loan in a shorter time frame.

Consult an expert. Shortly after going through your Wilmington, DE foreclosure or short sale, you need to make sure that you consult a mortgage or loan expert for advice. They can give you a realistic time frame for when you can expect to be a homeowner again, and they’ll also tell you what steps that you need to take before it’s possible to get a loan again. As a Wilmington, DE real estate agent, I know several people in the industry that can help counsel you on a strategy after your foreclosure or short sale.

None of these steps are easy to take, but they are necessary if you want to become a Wilmington, DE homeowner after losing your home in a short sale, foreclosure or bankruptcy. As a Wilmington, DE real estate agent, it is part of my job to help distressed homeowners in the area figure out the appropriate plan for their financial situation and get them on the right track. I also need to help advise them on what steps to take to mend the damage caused after a foreclosure or short sale.

 If you have any questions about Wilmington, DE short sales or foreclosures, don’t hesitate to contact me! I’m happy to lend a helping hand and listening ear for anything that you may need. I’d love to hear from you.

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team
Wilmington Real Estate
Wilmington Homes for Sale
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You hear it on the news every day: this is a difficult economy. Due to high unemployment rates and a poor economy, more and more homeowners in the Wilmington, DE area are falling behind on mortgage payments. This has led to a higher amount of delinquent mortgages and an increase in the number of homes going into foreclosure. This has caused a huge and stressful burden for many Wilmington, DE homeowners. The fear of one's home going into foreclosure can be overwhelming and cause high anxiety levels for those who are behind on their mortgage payments each month.

As a Wilmington, DE real estate agent, part of my job is helping those who are in danger of losing their homes avoid foreclosure. Foreclosure is a painful, lengthy process where the party involved loses their home and typically can’t get another one for several years afterwards. As a real estate agent who specializes in distressed properties, I offer the clients who come to me with advice on how they can avoid the foreclosure process. My years of experience in the Wilmington, DE real estate market allow me to ease the stress for several homeowners who are in danger of losing their homes by offering them viable and better options to foreclosure.

Get a loan modification. Load modifications benefit homeowners because it means that they get to keep their home. The lender agrees to modify any or some of the terms of the mortgage, whether it be by extending the term of the loan, changing monthly payments so that they are more affordable or changing the interest rate. The result is that the mortgage becomes more affordable and they can get their home out delinquent status. This option is viable for those who have both proof of hardship AND sufficient income for the re-calculated monthly mortgage payment. This is the best alternative to foreclosure, however in this economy; it is much more difficult for Wilmington, DE’s homeowners to get through this process. Many might be rejected by their lenders for a loan modification. That is where the next option comes into play.  

Go through the short sale process. When a Wilmington, DE homeowner is facing foreclosure and can’t get a loan modification, the next option that they will want to explore is the short sale. A short sale occurs when the lender gives the homeowner permission to sell their home for less that the outstanding balance owed on the mortgage, producing a quick sale. This helps distressed homeowners avoid foreclosure. While this does put a damper on the homeowner’s credit rating, it’s a lot less stressful than a foreclosure, and you can buy a home much faster after the process is over. Many homeowners in the current economic climate are eligible for a short sale, so this could be a very viable option for you! Contact your Wilmington, DE real estate agent with questions about short sales and see if you qualify for one.

The foreclosure process is trying, stressful and lengthy for all involved. As an expert on Wilmington, DE foreclosures and short sales, I do the best I can to give all of my clients alternative options that are both viable for their financial situation and will cause the least stress or anxiety. I make it my responsibility to make sure that all of my clients are aware of all of their options. If you feel like you’re in danger of losing your Wilmington, DE home, or you have questions about the local real estate market, don’t hesitate to contact me. I’m here to help you through this difficult time, even if it’s only to lend a few words of advice. I hope to hear from you soon!

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
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