Real Estate Information

It is late August and the dog days of summer are here! Homeowners are forced to run their air conditioners night and day to try to escape the hot temperatures.During these warm summer months it can be easy to overlook energy conservation but you can still be comfortable as well as save energy. Below are some tips tp help you with create an energy efficient plan and still enjoy the summer!

Energy Saving Tips For Outside

• Replace air-conditioner filters regularly. Dirty filters restrict airflow and can cause the system to run longer, increasing energy use. Replace filters monthly for maximum benefit.
• Longer days mean we don't need out outdoor lighting as much. Adjust your outdoor lighting timers accordingly and you'll save money and extend bulb life.
  Try solar-powered outdoor lighting or garden lighting as an alternative. They are energy-efficient, inexpensive, safe and very easy to install.
• Consider switching to electric lawn mowers as well as trimmers. By not using the traditional gas models, you can help to save money, reduce pollution and they are also much quieter!
• If you have an outdoor pool, reduce the operating time of your pool filter and automatic cleaning sweep to four to five hours, and only during off-peak time.

Energy Saving Tips For Inside

• There is really no need to have your gas fireplace's pilot light during the summer. Save energy, and money, by turning out the fireplace's pilot light until the fall. It is always a good idea to refer to the operating manual for your furnace to learn how to do this properly or  consult a technician. 
• Keep blinds and draperies closed on hot days to keep the inside temperature cooler and comfortable. 
• Make sure your attic has the proper insulation that will protect your home from excessive heat penetration in summer and cold penetration in winter. 
• Ceiling fans are a inexpensive way to create gentle breezes throughout your home to help keep the temperature down.

These are a few summer tips to keep your family comfortable in your homes, during this hot summer as well as a few energy saving and environmental alternatives.

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Short sales are full of requirements and conditions that can trip up both buyers and sellers. Getting the bank to accept less than what is owed on a property can be a challenge. Since the lender is positioned to take a loss on the sale, you will most likely have to deal with the loss mitigation department to process the documentation required to get the contract approved.

Other names for loss mitigation or departments that may handle it may include work-out, foreclosures, loan modification, or reinstatement. Some of the larger institutions may even specifically offer a short sale department.

If you are interested in short sale investments, here’s what to expect from loss mitigation:

1. Send Authorization to Release Information Form or Power of Attorney. The Authorization to Release Information (ATRI) Form gives the lender the authorization to give you (the buyer/investor) information about the loan so that you can begin the documentation and negotiation process. If you are able to obtain a Power of Attorney from the buyer for this loan, then you will also have the ability to actually participate in the negotiations directly with the lender.
2. Establish a rapport with the lender’s rep. Settling a short sale is not the most attractive prospect for a lender. Although preferable to foreclosure in many cases, lenders are not anxious to deal in short sales. If you are able to establish a good working relationship with the loss mitigation rep, then it will help move the process along.
3. Once you build rapport the rep, send your short sale package. Make sure that you have done your homework and present complete documentation. Then follow up with the rep, after learning what the lender’s standard procedure is and how long the approval should take. You don’t want to be annoying, but you do want to maintain the relationship you have established and make sure that your deal does not get lost in the process.
4. Once the deal is accepted, move quickly. Get the approval in writing, arrange any necessary financing and take all quested actions to get the deal closed. Many short sales fall out between the approval and close, so by moving swiftly through the last steps you hasten the ability to finalize the transaction.
5. It is a good idea to stay on friendly terms with the rep. A small effort of sending a thank you note after close can go a long way.

Short sales can be difficult for both borrowers and lenders. Establishing yourself as a well-educated, thoroughly prepared investor will help you move your next deal through the process.

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With the housing market still slow and a sluggish economy, selling your home can be a challenge due to the fact that there is steep competition with new home foreclosures and falling prices. However, there are some things you can do to help sell your home in a slow market quickly! Below are some tips to get your home off the market and into contract!

1. Find an agent who is right for your market.  Your first plan of action should be to locate an agent with proven results with sales. Keep in mind you should also work with someone that you feel comfortable and confident with.at has a good track record with sales in your market range and neighborhood. Good sales stats in your price bracket demonstrate that the realtor knows what buyers are looking for and how to move property similar to yours. A great agent can help you move your home, even in a tough market.
2. Research and understand your market. Understanding the ‘comps’ in your area will help you reach a realistic asking price and get a better handle on the competition. Ask your realtor to provide this information and also take opportunities to visit open houses for homes that are comparable to yours. You can learn a lot about staging, pricing and what is appealing to buyers.
3. Keep up with repairs and maintenance. Don’t hesitate to make necessary repairs and maintenance to your home when you are ready to sell. You don’t have to undergo major remodeling or expense. Simple updates like fixing broken steps, touch up painting and keeping your lawn mowed and flower beds cleaned out will really go a long way in making your home look move-in ready.
4. Be flexible. From having your home ready to show at a moment’s notice to your willingness to negotiate, the key to selling your home in a slow market is flexibility and responsiveness. Going the extra mile for prospective buyers can really make a difference in getting more people through the door ready to make an offer.
5. Add value. Remember that you are competing with short sales and foreclosures, so any extra value you can add to your home can make it more attractive. Whether it’s an appliance, patio furniture or a simple cost concession, small items can add up to big pluses when prospects are evaluating the total value of your home.

In a slow market, you need to get your home noticed quickly and be willing to negotiate so that prospective buyers see a great value in your property. Don’t stop looking for ways to make your home stand apart from the competition.

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Our sluggish economy has made it difficult for potential homebuyers to make the final move in purchasing a home. Many lenders have tightended their requirements and some buyers have some concerns about coming up with a large down payment. If you are ready to make an offer on a new home but need some assistance, there are some option to help you finalize the sale eventhough you may not have the necessary cash. 

Depending on what lender you decide to go with, they each have their own minimum down payment requirements and can vary depending on the mortgage program, loan amount, borrower income and credit rating. Typically., a good rule of thumb is roughly 20%, but you can find different ways to help you meet down payment requirements, including buyer assistance programs -  also called down payment assistance programs.

Assistance programs and grants can help you avoid robbing your savings or 401K or borrowing the money elsewhere to come up with a cash down payment. Some of the most common buyer assistance programs are for first time home buyers, but other assistance programs are available as well. How do they work? Below are some key requirements of standard programs. 

• Home buyers must qualify for a loan that allows gift funds from a charitable organization
• Limits may apply to the price of the home
• Funds can be used for the down payment and for closing costs
• Gift funds can be used for new or existing homes

There ae several different organizations that provide buyer assistance, including Grant America, Nehemiah and American Family Funds. Many other buyer assistance organizations are available, so do some homework and talk to your tax preparer and mortgage lender about options.

Always speak to your lender about available programs in your market, they can help you structure the down payment assistance to be compatible with their underwriting guidelines and offer advice on program advantages for your type of loan.

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In an effort to get more people back in their homes,  President Obama announced a program in early 2009 aimed to help. The plan was to give homeowners a break on their monthly payments by reducing the interest rate to as low as two percent for the first few years of the mortgage in some cases. For the average family, this resulted in the saving around five hundred dollars every month, and it also helped that the mortgage was lengthened to forty years from the usual thirty. 

However, many people have become disillusioned with this seemingly foolproof plan to get America's economy back on track. Enrollment is down and homeowners already on the plan are dropping out for a variety of reasons. Some have sold their home or did  a short-sale, so they no longer need the program. However, other people are being forced out because their home was foreclosed upon, or they no longer qualify for the loan. When the process began, everyone was allowed into the program and Obama pressured the banks involved with it to let people in with no proof of income required.

More than one third of the people who originally qualified for the modifications have had to drop out due to lack of income. The number of people who have been successful with the program is less than those who have had to drop out of it. As more and more homeowners drop out, the foreclosure nightmare of 2009 is beginning to repeat itself, because even after the mortgages have been revised by the program people still have far too much debt to allow themselves to stay afloat, and this could have repercussions on the economy much greater than what has already happened to it.

As John Taylor of the National Community Reinvestment Coalition said, "It's sad that they didn't put the same amount of resources into helping families avoid foreclosure as they did helping banks."

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A short sale occurs in a real estate transaction when the sale amount is less than the balance owed on the property’s loan. Short sales have become a popular option to avoid foreclosure proceedings, because they offer the lender an opportunity to escape significant foreclosure fees and because short selling is thought to have a better credit outcome for the borrower. Short sales do not however guarantee that the lender will release the borrower from the remaining loan balance, although most lenders choose to accept the short sale as is.

A deed in lieu of foreclosure is a deed instrument that a distressed borrower offers to the lender, transferring all interest in the property to the lender in order to satisfy a delinquent loan and avoid foreclosure. An advantage of a deed in lieu is that it releases the borrower from all debt on the defaulted loan. Both parties must agree to the transaction voluntarily. As with short sales, a deed in lieu agreement is less costly to complete for the lender and does not hurt the borrower’s credit as much as a foreclosure.

The short sale process is complex and takes a long time to complete. Additionally, many short sales fail to close after months of paperwork and negotiations. A deed in lieu of foreclosure is a simpler process, and may be more attractive to lenders than a short sale. The bank or other lending institution is able to take control of the property and the sales process, including the ability to set the sale price.

If you are at risk of foreclosure, it is very important that you investigate your options with your lender before foreclosure proceedings begin. If your lender initiates foreclosure against your property, you lose the ability to negotiate more attractive options that save penalties, help release your from your initial obligation and minimize the damage to your credit rating.

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Mortgage and real estaterelated scams are on the rise and new scams are showing up every day. Anyone can fall victim to a scam so pay attention to detail and stay vigilant.

Below are some of the most common scams that are happening now/ Be aware and stay on top to of anything that appears suspicious. Remember the saying "if it seems too good to be true, it probably is!"

Scam #1:In this scam, so called “Rescuers” prey on homeowners on the edge of foreclosure by promising that they can save it. They persuade homeowners to pay for different fees and fill out fake forms and other tricks. In the end the homeowner still looses their home to foreclosure anyway. These scammers prey on desperate homeowners who will do anything to save their home. 

Beware of foreclosure rescue programs where you are asked to sign over the title of your home to a third party, are asked to not contact their lender, or send mortgage payments to a third party. These are all big red flags to be aware of. 

Scam #2: This scam is when a borrower provides fraudulent financial information like income and assets so they can qualify for a loan with lower rates and more favorable terms. Lenders show suspicion when red flags such as PO boxes are listed as the employers address or if the applicant has no credit history. These type of scams eventually cost everyone as the costs and losses involved from the borrowers are passed to consumers.

Scam #3:This scam is called Appraisal Fraud, this happens when an appraisal is faulty, when it states that a property is worth more than what it really is. Typically when an appraisal is listed as higher than it actually is generates false equity because a fraudulent appraisal document has been obtained indicating the higher value. 

Beware of appraisals that are dated prior to the sales contract as well as other red flags such as if the owner is not listed on the contract or title.

Mortgage and real estate scams are on the rise and new schemes are being exposed every day. Stay vigilant and always ask questions. There are many excellent websites available that have alerts for consumers and useful information to help consumers stay aware.

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So you’ve found an agent, cleaned up, spruced up and staged your house. It’s officially ‘listed’. So now what? If you have never sold a home, or if it has been awhile since your last sale you may be anxious on what comes next.  Here are a few basic parts of the process that can take the mystery (and the anxiety) out of showing your home.

1. Advertising  – let your realtor take charge. The realtor will make sure that you have your home listed in MLS – Multiple Listing Service - so that other agents can see it. Your realtor may also place your home on various Internet sites, take ad space in the local paper’s home section and put a sign in your yard – with the realtor’s phone number.
2. Readiness – you should be prepared to show your home on a moment’s notice. It is best to make sure that your home is neat and picked up at all times. This may be hard if you have small children or pets, but having your home show-ready means that you will never lose an opportunity to have a prospective buyer walk through.
3. Access – your realtor should install a lockbox on your front door so that other agents can show your home easily. It is best that you are not present when your home is shown, even if it is inconvenient for you. Most prospects are uncomfortable making honest comments about the features they like and dislike if you are present. It’s also easier for them to picture themselves living in your home without the current owner nearby.
4. Open house – an open house encourages both agents and prospects to visit your home during a specific period of time and ask questions of your realtor. You may opt to have one open house for agents or brokers only and one for buyers
5. Traffic – In a slow market, you may see a lot of interest right away, as both agents and buyers are eager to check out new listings. Then you may see periods of days or even weeks with no activity or interest. Don’t be discouraged quickly – and have regular meetings with your realtor to discuss feedback and see if there are any adjustments to the staging or décor of the house that may position it better with buyers.
6. Asking price – Your realtor can advise you of the ‘comps’ or comparable home prices in your neighborhood and how your asking price lines up with the market. You might consider lowering the price after 90 days or other extended time on the market. Depending on your urgency to sell, you may decide to take your house off the market for a period of time, the relist at a different price to generate that ‘new listing’ interest and activity.

Selling your home can be a little nerve wracking, but understanding the process goes a long way in making sure things go smoothly.

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More than five million homeowners now owe more than their homes or worth or are at risk for foreclosure because they can no longer afford their mortgage payments. In March of 2009, the Obama administration introduced a major housing relief effort, starting with the Home Affordable Modification Program (HAMP).

The first part of HAMP involved a loan modification program, which was designed to help homeowners modify their existing loans in order to get monthly payments that would help them stay in their homes and avoid foreclosure. Since the program launched last year, more than 300,000 modifications have been processed and are active.  Loan servicers saw a decline in permanent modifications in May 2010 from (47,000 from 68,000 in April 2010). The $75 billion HAMP will expire in 2012.

In March of this year, the Treasury Department introduced another program for troubled homeowners - Home Affordable Foreclosure Alternatives (HAFA). This program which took effect April 5, 2010, was also designed to keep homeowners from being forced into foreclosure – by standardizing and expediting the short sale process, along with a $3,000 incentive. Under HAFA, once the lender has agreed to the short sale and forgiven the balance, it cannot go after the deficiency judgment and harass the borrowers. 

A major benefit of this new plan is that the lenders have to respond to the homeowners’ written requests for the short sale within ten days. One of the largest detriments to any short sale is the long and cumbersome process from initiation to close. HAFA creates a platform for standardization of short sale and deed in lieu of foreclosure forms and criteria.

The Treasury Department continues to make revisions to the program, even though it has only been in place for a few months. But because of the large amount of requirement revisions to paperwork that is intended to provide a new standardization, many lenders are even more wary to jump on board and begin training workers. This program will close on December 31, 2012.

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If you are ready to buy the perfect home and have everything lined up – except the down payment, what are your options? How can you complete the sale if you don’t have extra cash?  Minimum down payment requirements vary by lender, mortgage program, loan amount, borrower income and credit rating. A good yardstick is roughly 20%, but you can find different ways to help you meet down payment requirements, including buyer assistance programs -  also called down payment assistance programs.

Assistance programs and grants can help you avoid robbing your savings or 401K or borrowing the money elsewhere to come up with a cash down payment. Some of the most common buyer assistance programs are for first time home buyers, but other assistance programs are available as well. How do they work? Below are some key requirements of standard programs. 

• Home buyers must qualify for a loan that allows gift funds from a charitable organization
• Limits may apply to the price of the home
• Funds can be used for the down payment and for closing costs
• Gift funds can be used for new or existing homes

Any number of charitable organizations provide buyer assistance, including Grant America, Nehemiah and American Family Funds. Many other buyer assistance organizations are available, so do some homework and talk to your tax preparer and mortgage lender about options.

Talk to your lender about available programs in your market. Your lender can help you structure the down payment assistance to be compatible with their underwriting guidelines and offer advice on program advantages for your type of loan.

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