Click HERE to view a video of the foreclosure panel

Trena Philo, relocation assistance manager, kicked off the program by commenting on how far reaching the problems have been, “In today’s world, with the recent financial meltdown, we have a lot of questions about foreclosures,” Philo said. She hoped the program would be helpful because of the impact the economy has had on “ourselves, friends and family.”

At the outset of the program, the panel explained that the housing crisis is a complex problem that leaves even experts with many unanswered questions. They described the meltdown as complex and “a combination of a lot of things.”

What if you or someone you know is having problems making monthly house payments?
The panel agreed that doing nothing or waiting was the wrong approach. “See someone right away,” said Paul Ressler of Prudential Realtors.

Renee Underwood, from Independence Bank, offered the bank’s perspective. “Work with the lender that has your loan and let them know your situation,” she said. “Show the lender you are making an effort and are prioritizing your budget.”Underwood felt that banks were particularly understanding of hardships due to the current downturn and that it was the interest of all parties to cooperate and figure out a solution other than foreclosure if it was possible.

However, sometimes foreclosure is the only option. Ressler recommended that homeowners realistically take a hard look at what they can afford. If foreclosure is the obvious answer, it just might be better to do sooner rather than later. “The worst thing you could do is spend your life savings if you’re going to lose the house anyway,” Ressler said.
 

The MWR office recently did its best to tackle tough financial issues with a recent Foreclosure Workshop featuring realtors, bankers and housing experts from the Battle Creek area.

Someone can qualify as a first time home buyer even though they have previously owned a home. A first time home buyer is defined as someone who has not been a homeowner for the last three years.

B.J. Etheridge, from Prudential Realtors, said, “There are some great opportunities out there!” He also offered advice from someone thinking of purchasing a foreclosure as an investment: “Get pre-approved. Have good faith deposit money available. Do a thorough inspection – buyer beware!”

What is a short sale?
-The homeowner is behind one month or more in payment.
-Owner has a hardship (loss/decrease of income, health problems, divorce)
-There is little or no equity in the house.

Does a short sale have benefits over a foreclosure?
-If good credit is re-established, the person can get a loan in three years.
-The seller is on your side. Sometimes with a foreclosure, there is animosity.
-Banks are willing to do a short sale because they lose less money.

Ressler emphasized that buyers need to be patient when pursuing short sales. Not only does it take longer, but “ten percent is the national average for short sale success.”

Neighborhoods Inc. of Battle Creek offers foreclosure counseling
Yvonne Burris, of Neighborhoods Inc., emphasized her organization offers free foreclosure counseling and has served 500 people throughout the state of Michigan. She said that Neighborhoods Inc., was a valuable resource for people in the community.

Additional questions from the panel will be posted online along with a video of the workshop. Employees will be notified when it is available by an All News email.

Foreclosure panel:

B.J. Etheridge, Prudential Realtors
Paul Ressler, Prudential Realtors
Bonnie Widemeyer, Pearse Realty
Ron Burris, Pearse Realty
Yvonne Powell, Neighborhoods Inc.
Renee Underwood, Independence Bank

Michael McCarthy
07-13-09