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.

Homeowners in Wilmington and Newark, DE who have negative equity and a personal hardship are about to get more help. Starting November 1, 2012, short sales will get easier for mortgages involving Freddie Mac and Fannie Mae. 

The best news for Wilmington and Newark home sellers is that you no longer have to be behind in your mortgage to be considered for a short sale! If you have a personal hardship, you can qualify for a short sale before you are in risk of foreclosure.

For the purpose of a short sale, here are the recognized hardship categories. Bear in mind that having one of these doesn't give you a clean sweep, but gives you a case to apply for a short sale:

• Divorce
• Death of borrower or co-borrower
• Business failure
• Disability
• Job loss
• Natural disaster
• Excessive financial obligations
• Job relocation 50 miles away or more
• Military with Change of Station orders

There are a few more changes taking effect that will speed up the short sale process. Namely:

• Mortgage services will be authorized to directly approve qualifying short sales
• Second-lien holders will be given financial incentive to allow the short sale
• Home sellers in risk of foreclosure will have a streamlined process with reduced paperwork

One caveat: home sellers who have sufficient financial assets will be asked to make a contribution to the short sale. In return, no deficiency judgment will be filed for the difference between the sale proceeds and the outstanding loan balance.

Short sales will become more feasible and a bit quicker under the new guidelines. This is terrific news for the Wilmington and Newark real estate markets, as short sales use current market value in the transaction, unlike post-foreclosure sales that can be deeply discounted. Short sales preserve neighborhood home values and prevent the blight that can follow abandoned homes.

This doesn't mean that short sales are the right decision for everyone. As your professional Wilmington and Newark, DE real estate agent, I understand that selling your home can be a difficult decision, especially when your life has been disrupted by other events. This is why I provide professional guidance with compassion, so that you can make the best decisions.

If you owe more on your home than what it is worth, my experience in short sales and foreclosures can help you! It's never too early to talk to me, so please contact me today with any questions you may have!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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In a housing market where many are having trouble obtaining the financing that they need for a home, short sales are a desirable option. The trouble is that many people have a view of short sales that is less than favorable. They believe that the property will be in bad condition or that the process to close the sale will take far too long. As a Wilmington, DE real estate agent who specializes in short sales, I think it’s important to say that while these two things can be true on occasion, the majority of short sale transactions can actually go smoothly, and that not all short sale properties are in bad condition.

There are a few tricks of the trade that I have picked up in my many years of working in Wilmington, DE short sales that I thought I’d share with you! If you follow these ten steps closely, you can close your short sale quickly and with little stress involved. Just remember one thing: in every real estate transaction, patience is important, so trust your Wilmington, DE real estate agent to guide you and get the job done.

1. Search for short sales in your area! There are plenty of short sales available in the Wilmington, DE area, so use an online database, courthouse listing or legal ads to locate properties that you may be interested in and let your agents know which ones you would like to look at!

2. Take a look at the property. Pictures and ad copy can be misleading, so it’s incredibly important to see the property for yourself before you decide to purchase a short sale. Is the house in decent condition? Will it need major work, or just a few minor repairs? If you’re in a position where you want to buy the property in order to fix it up and put it back on the market, then a house that needs work won’t be a problem. If you’re looking for something more move-in ready, however, then you may need to move on.

3. Do your research and run the numbers. How profitable will this Wilmington, DE short sale be in the long run? Even if you’re a first-time homebuyer who is looking to live in the home, there is a chance that you may want to put this property on the market one day. Is there potential for its value to go up? What is the property worth now? These are all questions that you should ask yourself before making an offer.

4. Find all liens and mortgages. You need to ask the seller or their agent what liens are on the property and who the primary lien holder is.

5. Figure out your financing. Now it gets a little tricky. You need to figure out how you are going to pay for the property. Are you going to be a cash buyer or ask the existing lender to give you a loan? If you’re a good credit risk, the latter may be a great option, and it will expedite the financing process. In order to close a short sale, you need to move quickly, so this stage is not the time to start shopping around for a mortgage.

6. Contact the lender. Either you or your Wilmington, DE real estate agent needs to contact the loss mitigation department of the existing lender and discuss the situation on the property’s current mortgage. Before doing so, get the existing owners to sign an authorization letter stating that you are allowed to contact the lender to sort this out.

7. Complete the lender’s short sale application, if needed.

8. Assemble the proposal. This is where your Wilmington, DE short sale agent will come in handy! Besides the application and authorization letter, you will need several more documents that the lender will use to review your offer. You need the purchase and sale contract between you and the seller, stating that you agreed on a price. You will also need a letter of hardship proving that the homeowner can’t pay what’s due, a statement of the property’s value, a detailed explanation of all of the costs and liabilities and a settlement statement put together by a closing agent. Have everything lined up before submitting anything to the lender.

9. Negotiate. It’s really not uncommon to go back and forth with the lender. They will likely counteroffer your initial, proposed price. Figure out what your highest limit is beforehand and stick to it. If the lender won’t meet your figure, it may be time to walk away.

10. Seal the deal. Once you’ve reached an agreement that you, the seller and the lender all approve of, then it’s time to close and claim your new piece of property!

The process might seem long and drawn-out, but if you go into your Wilmington, DE short sale transaction prepared, then you will find yourself a property owner sooner rather than later. As a Wilmington, DE real estate agent who specializes in short sales, I feel that it’s important to prepare my clients for the process ahead in order to ensure success in their transaction. Hopefully, by breaking down the process a bit, you will see that these transactions are manageable, provided that you have the right real estate agent to help you through it.

If you have any questions about Wilmington, DE short sales, don’t hesitate to contact me! 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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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
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Contact Me
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