Real Estate Information Archive


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Montgomery AL Foreclosure Trends - January 2011

by The Hat Team

There were 1,381 Montgomery AL foreclosure homes for sale with 129 new foreclosures in January 2011. The average selling price of a Montgomery AL home was $158,604 and the average foreclosure selling price was $71,482 a $87,122 savings, according to

Foreclosure Activity and 30 Year Interest Rate

Montgomery interest rates averaged 4.76% in January while the number of foreclosed homes increased from 119 in December to 129 in January.

montgomery al foreclosure

Foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or bank repossession – each month. Interest rate is based on the average 30-year fixed rate from Freddie Mac Primary Mortgage Market Survey.

Montgomery AL Foreclosure Geographical Comparison

Montgomery foreclosure activity was 0.07% lower than national statistics. 0.05% higher than
Alabama statistics, and the same as Montgomery County for the month of January.

montgomery al foreclosure

Montgomery AL Foreclosure Activity by Month

The number of Bank-Owned properties decreased from 74 homes in December to 47 in January. The number of Auctions increased from 45 to 82. There is a 6-month rising trend.

montgomery al foreclosure

Are you or someone you know behind on mortgage payments and facing a Montgomery foreclosure? You do have options. A short sale may be the answer to saving you, your family and your home. I am a Certified Distressed Property Expert (CDPE) with specialized training in helping families avoid foreclosure. Give me a call for a private consultation.

7 Tips For Avoiding Foreclosure Of Your Montgomery AL Home

by The Hat Team

In our present economic situation, many people are currently facing the loss of their homes. However, because foreclosure is expensive for lenders, mortgage insurers, and investors, the FHA, HUD, Freddie Mac, Fannie Mae, and private companies are being required to work with borrowers who are experiencing money problems. As a result, lenders do have workout options to help you keep your Montgomery AL home. Warning: Do not mistakenly assume that your mortgage situation will correct itself; you must take the steps suggested below to avoid, or at least forestall, foreclosure.

foreclosure1. ACT NOW! Time is of the essence. Do not ignore letters or calls from your lender. If you do, chances are that action to foreclose will begin quickly.

2. CONTACT YOUR LENDER:  When you reach the lender, you should be prepared to provide him/her with your account number; a brief explanation of your circumstances; income documents or evidence of unemployment, public assistance, or business losses; and a list of your household expenses. Ask about a reduced interest rate, refinancing, lengthening the term of the loan, and a repayment plan for missed payments. In all probability, the lender will mail you a loan workout package. It is important that you complete and return these forms quickly.

3. DO RESEARCH; Reread your loan documents to determine what is said about unpaid mortgage payments. Learn about specific foreclosure laws in your state Get in touch with the government housing office where you live.

4. CONSIDER SELLING: Lenders will most likely suspend foreclosure proceedings while your Montgomery AL home is on the market and possibly even eliminate mortgage payments during this time. Explore a short sale.  If the market value of your house is less than you owe, your lender may consider taking the sale proceeds and forgiving the rest of the debt. Or you might give your deed to the lender in return for the loan balance being cancelled. Check with an attorney or housing counselor before taking these actions.

5. BEWARE OF SCAMS! Avoid “foreclosure prevention” companies who offer to negotiate with your lender, will cost you thousands of dollars, and may even “rescue” your home away from you. Do not sign anything from these firms!

6. SET PRIORITIES: Pay the mortgage on your Montgomery AL home before paying credit card debts, doctor bills, or the like. Can you sell a second car or other assets? Could you take a second job to ease the situation? Your lender needs to know that you are serious about trying to find a solution to your financial problems and are willing to make sacrifices to do so.


        a. Get legitimate help. Contact a HUD approved housing counselor (1-800-569-3287) or 1-888-995-HOPE) for free or low-cost guidance. Help is also available from the National Foundation of Credit Counselors (1-866-557-2227). Also, check with your local bar association or a neighborhood legal services program for pro bono legal representation.

        b. Look into government benefits such as fuel assistance, food stamps, or property tax abatements to help you through this difficult period.

It is important that you be both aware and proactive in your fight to keep your Montgomery AL home!

All About Appraising Your Montgomery Real Estate - Part II

by The Hat Team

Final Estimate of Value

Once the appraiser has applied the three approaches to the appraisal of your Montgomery real estate, he/she must decide which of them is the most reliable and most closely follows the actions of the market. For residential properties, the Sales Comparison Analysis is typically the most reliable. For commercial or industrial properties, all three techniques (or portions of one or more) may be reliable. The appraiser reconciles the various aspects of each technique into what he or she believes produces a credible and supportable opinion of value. The result is the Final Value Estimate, which, depending on the needs of the client, may be expressed as a single number or a range of value.

What If It's Low?

If the appraisal of your Montgomery real estate comes in low, that doesn’t necessarily mean that you can’t complete the transaction. Your options to rectify the situation included the following:

  • appraisalYou can make up the difference in cash.
  • The seller can lower the price.
  • The seller can carry a second mortgage for the difference.
  • You can order a second appraisal
  • You can supply a list of comparable sales and ask for a review of the appraisal.

What Does It Include?

Under the Equal Credit Opportunity Act, your lender must furnish you with a copy of the appraisal of your Montgomery real estate if you request one in writing. Appraisals are very detailed reports, but they should include the following:

  • Details about the subject property, along with side-by-side comparisons of three similar properties.
  • An evaluation of the overall real estate market in the area.
  • Statements about issues the appraiser feels are harmful to the property's value, such as poor access to the property.
  • An estimate of the average sales time for the property.
  • What type of area the home is in (a development, stand alone acreage, etc.).

Do remember that an appraisal of your Montgomery real estate is not a home inspection and cannot be considered a guarantee that the property is in good condition. Appraisers make notes about obvious problems, but they do not perform tasks done by certified home inspectors.

Montgomery Real Estate For Sale:3105 Audubon Road Montgomery, AL 36106

MLS #281486

Location, privacy, park, large wooded lot, historic neighborhood. If any of these are "hot buttons" in your home search then you can stop looking! This charming Cloverdale cottage sits just behind Cloverdale Bottom park on a quiet dead end street and has a BIG wooded back yard (lot is 50x279). The interior has all the charm you expect in a vintage home like hardwood floors, stucco walls, antique mantle, wall sconces, and working transoms. Private back yard has two car carport and additional parking plus storage area. Cozy patio with brick BBQ grill great for backyard entertaining. Priced below market, this is one of the best deals in Cloverdale/Idlewilde...and you can't beat the location!

Learn more about 3105 Audubon Road and other Montgomery Real Estate by visiting 

Search all Montgomery Real Estate and homes for sale.


Montgomery Real Estate For Sale: 3033 Merrimac Drive Montgomery, AL 36111

MLS #281479

Decor That Dazzles! Live surrounded by beauty everywhere you look in this elegantly decorated 4-bedroom home. Mirrored walls in the foyer, living area and master bedroom highlight your beautiful furnishings and visually expand spaces. The paneled den with its large fireplace is cozy on chilly fall and winter nights. And you'll love the Florida room in spring and summer with its expansive pool views. Updated and immaculate, too, so call your agent today to experience this stylish home.

Learn more about 3033 Merrimac Drive and other Montgomery Real Estate by visiting

Search all Montgomery Real Estate and homes for sale.


All About Appraising Your Montgomery Real Estate

by The Hat Team

A vital step in the home buying process is a professional appraisal of the Montgomery real estate you wish to purchase. An appraisal is an objective analysis of the property’s market value and is required by lenders to make certain that the property is worth at least as much as the amount of the loan you are requesting. Your personal approval is accomplished early in the loan process, but final commitment usually hinges on a satisfactory appraisal, and the lender will study the completed report carefully before determining whether or not the piece of real estate qualifies to serve as security for your loan.

Appraisers are experienced and knowledgeable professionals whom are licensed by the state to estimate real estate values. They must follow rules set forth in the Uniform Standards of Professional Appraisal Practice (USPAP). Once the appraiser has determined the highest and best use of the Montgomery real estate, i.e., the most profitable utilization of the property, he/she will then go about estimating the home’s market value through the use of three basic approaches.

montgomery real estateThe Cost Approach

The Cost Approach: a set of procedures through which a value indication is derived by estimating the current cost to construct a reproduction of the existing structure, deducting the accrued depreciation and adding the estimated land value. The principle of substitution is the basis of the cost approach, in that no rational person will pay more for a property than the amount for which he can obtain, by purchase of a site and construction of a building, with undue delay, a property of equal desirability and utility. Appraisers typically make use of published cost figures when calculating the cost to construct a building. These sources of data are available online and in printed form. Land value is determined by a comparison of the subject site with other similar sites that have recently sold.

The Sales Comparison Analysis

While cost and income considerations are important, the Sales Comparison Analysis is regard as the industry standard for residential properties. Appraisers get to know the neighborhoods in which they work. To assure that any effects (positive or negative) of its location will be reflected in the sales comparison analysis, the appraiser should select comparable sales from within the same neighborhood whenever possible. If this is not possible, the appraiser may need to make "neighborhood" or "location" adjustments for any sales that are not subject to this same neighborhood characteristic.

The same is true of other aspects of your Montgomery real estate, such as the size, quality and features of the buildings. Differences that the market reacts to are adjusted in the comparable sales to reflect what is present in the "subject" property that is being appraised. If a sold home features a fireplace and the subject does not have one, but the market considers a fireplace to be important, the appraiser make a downward adjustment to the sale price of the comparable sold home because it did have one and the property being appraised does not. The reverse is true when the home being appraised has a feature that other homes that have sold do not have. The basic question is what features are present in a property that buyers are willing to pay extra to get, or will pay less if it they are not there? When differences exist, the appraiser must determine how much a typical buyer will add or deduct for it.

The Income Approach

This technique is typically used in appraising income-producing properties. It is a technique whereby the gross or net income of an income producing property is capitalized at a rate which provides a return of interest on the money invested and a recapture of the capital investment in the improvement over a reasonable term of the investment. Capitalization is accomplished for simple residential properties such as rented homes or duplexes by the use of a Gross Rent Multiplier. This involves multiplying the total monthly rent of a property times a number (GRM) found by dividing the sale prices of similar properties by their monthly rents. Commercial and industrial properties involve more complex formulas to determine their value in the income approach, such as cash flow analysis.

What's your Montgomery real estate worth?

Displaying blog entries 1-6 of 6




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