Earl Boyer's Discussions

Everyone shopping for foreclosures, REO's Short sales etc. should understand that there are a lot of headaches involved. The lender's departments that handle distressed properties are overwhelmed. Many of the listing agents may not fully understand the lender's requirements for submitting an offer. The same is true for buyer's agents. When an offer is submitted there is a review process. Many times a second lien holder is involved. Foreclosures do get vandalized both by people breaking in and the home owners in some cases. Offers, even ridiculous ones, have to be submitted; adding to the paperwork burden for the lenders. Prices have fallen substantially in most areas. If you expect to get a home at an even deeper discount be prepared for the work and frustration.    

I'm sorry to see you have found yourself in such a situation. It sounds as though much of the unhappiness is from buying a home that may have been charming at the time but the reality of owning an older home is maintenance. Living in the country sound good to a lot of people until they actually move there and find out that "getting away from it all' means just that. I've lived in a rural community for 25 years and I've seen several people move here only to regret the decision after a few years. Being far from family, fewer choices in shopping, and entertainment, and limited employment possibilities can become frustrating to those who aren't prepared. I don't know if a long commute will constitute a hardship for a modification. A shot sale could be a possibility but your credit will suffer a substantial hit. See my blog on shot sales . Please be leery of anyone stating they can do a modification for a fee. A lot of people are profiting from the misfortunes of others. You can also see an overview of loan modifications at www.financialstabitlity.gov . Cutting your expenses and renting your home, even if for less than the payment may be a good solution. I believe you will profit in the long run. This market won't last forever. Good luck and I hope you will examine all the aspects of your next home purchase a little more carefully.  

Short sale are never easy. They can help someone who is facing foreclosure but they can have serious draw-backs. Your home will have to be listed. You will have to demonstrate some type of hardship that prevents you from making the payments. any offers need to be approved by the lender(s). The process takes time and many buyers will cancel before a sale is approved. A short sale may appear as a Charge-Off on your credit report. Not as bad as a foreclosure but still far from good. You might want to try http://www.financialstability.gov/ to see if you qualify for a modification. If not approach you lender directly. Avoid anyone charging a fee to modify the loan. To see more on short sales you can visit my blog

I can't comment on the Denver market but in general terms value is defined as the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, neither being under duress to act. If there are a number of homes for sale in an area and few buyers the value will normaly come down. If there are no recent sales in the area it could be an idicator that others aren't willing to purchase there, at least for the present.Recent sales are used by the appraiser to justify an agreed on price but the appraiser doesn't set the value. When picking comps the appraiser will look for the closest available properties in distance, size and style that have had a recent sale. Adjustments are made to account for the difference in those criteria. In a market with few similar sales the appraiser will exceed the normal limits in variation and the chance for a discrepancy is greater.If the last appraisal was 2005 it is of little use today. You didn't mention the reason for your question but if you are considering selling you still have to take the present market into consideration. In most area of the country values have fallen from the 2005 levels.As for improvements it is important to not exceed the average for the neighborhood. A home that does will likely sell sooner than the others but not necesarily for more. Unfortunately, one hard and fast rule of selling anything is that what you spend or invest in an item has no influence on what someone else is willing to offer for it.You have obviously put a lot of time and money into your home. I hope that you are in a position to hang onto it for a while and enjoy the improvements you have made.