Marianne Avila - Berkshire Hathaway HomeServices Verani Realty


Marianne Avila of Keller Williams Realty in Andover, MA has successfully completed the Loss Mitigation Certification Course (LMC) of the Massachusetts Association of Realtors® held recently in Boston, MA.

Due to the challenges facing many Realtors® today in representing a buyer or seller who is working in a transaction involving foreclosure, short sales, properties at auction or bank owned; this comprehensive one-day course was developed to educate Realtors® on all the issues surrounding properties facing these complicated transactions. Participants earn lifetime usage of the LMC logo and continuing education credits necessary for real estate license renewal.

The course is taught by national and local experts in loss mitigation and is designed to equip attendees with the tools needed to counsel and advise with the challenge of short sales on both the buying and listing side; the process, ethics, laws, contracts and credit issues involved; and how to best approach lenders. Lastly, this course also addresses the human element of these transactions as consumers potentially face losing their homes. Marianne is equipped to assist property owners who find themselves in this position and need help ensuring a smooth transition and a fresh start.

If you or someone you know would benefit by Marianne’s expertise in this daunting process please call her at (978) 984-3188 or contact her at .


What is a Foreclosure?

When a bank or lender attempts to recover monies owed to them based on a promissory note by selling the property it is called a Foreclosure. Simply, consumer has borrowed money from a bank or mortgage company in order to purchase or refinance a home or to open a line of credit against the equity in their property. In exchange for lending the money, the consumer made a promise that if they could not pay the bank the loan when the lender could foreclose and take title to the property.

What is REO or Bank Owned Property?

“Real Estate Owned”

“REO” stands for Real Estate Owned. It refers to properties that are owned by the lender as a result of a foreclosure or deed in lieu of foreclosure. An REO property is different than a property in short sale negotiations. The Lender owns the REO property; whereas the borrower is still the owner in short sale negotiations.

What is a Short Sale?
The term Short Sale refers to a specific type of pre-foreclosure transaction in which the owner of the property sells the property to a third party for an amount that is insufficient to pay off all of the entities having a lien on title to the property. In a short sale, the owner negotiates with some or all of the various lien holders to accept less than the full amount they are owned in exchange for a release of the lien. Short sales are often confused with REO sales, which are post-foreclosure sales and involve the lender as owner of the property.

What is an Auction?
A real estate auction is an alternative method of selling real estate. It is an accelerated real estate marketing process that involves the public sale of real property. In recent years auction sales of non-distressed property have increased tremendously. With the help of a Realtor a Seller through a specific review process will determine what the right kind of auction is for them and the best marketing strategy.
More Questions? Call Marianne Avila at (978) 984-3188 or e-mail her.

Pre-Foreclosures & Auction Process
When does the process start!
The process can start at 31 days, but typically starts at 90 days. Be prepared to be patient.

What can the homeowner do?
• Call the lender
• Make the payment
• Sell the house.
• The Work Out Process.
• Non Profit foreclosure prevention agencies
• Bankruptcy

The Process
Non payment through Foreclosure Sale
• Soldiers & Sailors actively serving cannot be foreclosed upon
• Scheduling of Auction – money is distributed after the auction is complete
• Newspaper Postings
• Auction Sale
• Bidders
o Must register & have certified funds to bid
• Bank
o A representative will be there to bid in if the price is too low.

Foreclosed or Bank Owned Property
(When the Bank takes in the property it is formally a Foreclosure)
• Assign to a Sales Rep or Asset Manager
• Assign to a Real Estate Broker
• Property is secured & Appraisal is ordered
• Pricing is usually market price, slightly discounted if condition is poor.
• Repairs are not usually done unless they are safety issues.
• Offers usually require up to 72 hours for a response (Don’t hire the movers!)
• Sales Agreements are corporate and do not allow for changes
• Contingencies can be negotiated
• Closing penalties apply if the Buyer cannot close on time
• Title & Deed will be Clear & Marketable or Insurable

Bargains and Opportunities - Pre Foreclosure
The pitfalls!

How to Capitalize on your opportunity.
• Get a Broker Price Opinion of Value done on the property
• Research the current mortgages & liens
• Check Municipal liens
Is there value or equity opportunity?
If the answer is no: Walk away
If the answer is yes: Do a Full Title Review
• Secure financing:
o CV
o Hard Money
o Cash

Assume: There will be no access to the property, No appraiser, no title 5, no compliance certificate
• Have a certified check in the amount quoted to be a registered bidder
• Have a maximum figure and DO NOT go over. It is easy to get caught up in the frenzy.
• If you are the successful bidder, 30-45 days for closing.
• You must have funds available. Do not plan on financing if you cannot access the house.
• Rarely are extensions given.
• Plan on eviction.

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