Keith Junor is a Licensed Realtor and Mortgage Broker in Florida with 17 years experience. He authors a Blog at www.The expertsinrealestate.com that gives timely advice on buying and selling, credit repair, mortgages and foreclosure. He can be reached at kj1010@bellsouth.net
Archive for December, 2009
Dec
31
Short Sales-frequently Asked Questions
Posted by: | CommentsSan Diego Foreclosures For Sale
Answers to the Most Frequent Asked Short Sale Questions
1. Q Will I be eligible for a short sale if I have 2 mortgages?
A Yes- The majority of short sales involve 2 lien holders. They both have to agree and be satisfied. If only the first lien holder is paid off after closing, the second mortgages terms has to be re-negotiated and resolved.
2. Q How Many Payments do I have to Miss to Qualify for a Short Sale?
A None—-In the later part of 2007—Most major lenders began to accept offers of a short sale from sellers that had never missed a payment or been late.Their personal situation had changed.
3. Q Will I be Responsible for Additional Income Taxes for the Difference of Loss to the Bank?
A No in most cases. It was true in the beginning of short sales; but now the rules have changed. Consult with your CPA or tax Attorney. The law has been changed so that most people are not responsible for any additional taxes.
4. Q Will I have Trouble Qualifying for a Short Sale If I Owe More Than My House is Worth?
A No If your debts are greater than your assets and you cannot make your payments; then you will qualify for a short sale. It’s that simple.
5. Q Is There Time for a Short Sale Before the Foreclosure Process Begins If I Have Only Missed One Payment but Know I will Miss A Lot More?
A It varies in each state. A rule of thumb is; 6 months to a year. A well priced short sale usually sells and closes in less than 120 days.
6. Q Is A Short Sale Right for Me If—I Have The Resources to Pay All or Part of the Negative Amount Owed. I Don’t Want to Ruin My Credit. I Just Can’t Make My Payments Any Longer.
A In this case; it would be better to work out a repayment plan with the first lien holder. The monies you have will more than likely be used to pay the 2nd lien holder. They will release the lien. The property can be sold and closed in a regular manor.
7. Q Does the Lender Have to Approve My Home Before It Be Listed As A Short Sale?
A No There basically is no such thing as being short sale approved by any lender. The approval occurs after there has been an accepted offer.
8. Q Will Property Taxes Still Have to Be Paid If I do A Short Sale?
A Yes Property taxes always will have to be paid. Each lender has different policies and it will depend on the specific agreement you reached while negotiating the short sale. So, either yourself or the lender will be responsible for paying the property taxes.
9. Q Why Doesn’t my Mortgage Insurance Pay The Deficiency Amount?
A . Mortgage Insurance is not for the protection of the owner. It only protects the lender. In most short sales there are 2 lien holders and NO mortgage insurance.
10. Q Who Pays the Listing Agent’s Commission?
A The bank will pay all commissions along with the usual closing costs.
I believe that short sales are the easiest, low risk vehicle for massive wealth at this time. The more you earn about it the more you earn from it. I recommend the course below.
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Dec
30
The 3 Biggest Misconceptions That Real Estate Agents Have About Short Sale Listings
Posted by: | CommentsSan Diego Foreclosures For Sale
First of all, “yes” some short sales take long to sell and “yes” some short sale listings can be frustrating. But let me tell you this; not all are created equal! With a little patience and a little creativity you can overcome some of the shortcomings of listing pre-foreclosure/short sale properties and make a lot of money by helping homeowners get out from underneath the huge burden of debt and stress they are under.
Let’s deconstruct three of the biggest short sale myths:
Yes, it’s true when it comes to a short sale; the lender is in the driver’s seat. And since they hate to lose money they tend to reduce the amount of commissions by an average of 1%, meaning that if your area pays out 6%, they will only approve 5%, which will be split by both the agents involved in the transaction.
You know what I say to that? Who cares! Be creative! Did you know that there are 7 additional profit centers that can offset your 1% cut in commission? Let’s take a look at what they are:
The “Loss Mitigation Fee” is a fee that we collect only when we successfully negotiate a short sale and have the foreclosing lender pay for all of the closing costs (the realtor commissions, attorney/title company fees, conveyance taxes, etc.).
The average loss mitigator receives an average of 30 NEW files a day. Not a week, not a month but a DAY! That is part of the reason that short sales can take a while, but it isn’t the main reason. The primary reason is because the majority of real estate agents submit short sale packages that are less than adequate and professional! Meaning;
Those and many more reasons cause short sales to get hung up. Once again, take what the defense gives you. If loss mitigators are overwhelmed, then the key is to put together a professional and presentable short sale package guaranteed to get your short sale offer reviewed and approved.
With the right system they are not hard! Let’s take a look at how to overcome the two biggest reasons why short sales blow up right before the closing.
The key is not to have only one buyer but to have a pool of qualified buyers that are pre-approved. The best buyers to keep an eye out for are those that are already pre-approved and that have funds in place to make an actual purchase.
The two easiest ways to do that are: Start networking with every real estate agent that specializes in buyer’s representation. They are easy to find because it is in all of their advertisements. Start working closely with every single mortgage broker or direct lender that you know, or that one of your fellow agents knows.
In conclusion, listing pre-foreclosure/short sale properties can take some time to close. However; in this market everyone needs to stick together and help one another out. By building the right network of real estate professionals, we can all ensure that our listings (short sales or not) do not sit out there without a buyer!
For more real estate industry news and loss mitigation blogs and videos visit www.RealEstateBusinessMentors.com or visit www.AskBobLachance.com for any short sale bank negotiating questions.
Before joining North Shore Enterprises (NSE) in 2004, Bob Lachance was a 4-year-collegiate-scholarship athlete in ice hockey at Boston University where he won a National Championship in 1995. After leaving BU he enjoyed a successful 8 year career as a professional hockey player. Upon retirement from hockey, Bob completed several profitable real estate rehab projects for his own benefit. He then joined NSE as an associate responsible for property acquisitions and loss mitigation/lender negotiations. Bob brought the same determination and work ethic that lead to great success in his professional sports career and thus generated more acquisitions and short sale acceptance letters in a shorter time frame than any associate before or since. His outstanding performance led to a promotion to partner in 2005. Since that time, Bob has taken responsibility for all the day to day operations of NSE. As partner, he has overseen the acquisition of, the loss mitigation, and the disposition of over four hundred properties. Bob continues to be directly responsible for identifying good candidates for acquisition and for overseeing bank negotiations, and has been essential to the success and growth of NSE.
Dec
29
Real Estate Questions and Answers
Posted by: | CommentsSan Diego Foreclosures For Sale
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Dec
29
Colorado Foreclosures: Plenty To Go Around
Posted by: | CommentsSan Diego Foreclosures For Sale
Colorado is a state famous for firsts: it was the home of the world’s first rodeo; its voters were the he first state to elect women to the state legislature; it was the first to offer a delicacy known as Rocky Mountain Oysters; and it is currently the US leader for the number of its homes in foreclosure. In 2006, in fact, the foreclosure rate in Colorado was estimated to be triple that of the US’ national rate.
Greeley, Colorado, a community about an hour north of Denver, had a 2006 foreclosure rate of more than one-half of one percent, or double that of the rest of the state. While the high Colorado foreclosure rate has taken its sad toll on those families forced into foreclosure, it has opened the doorway to profit for those who have been able to take advantage of those Colorado foreclosures.Colorado Foreclosures: A Seller’s Market
As matters stand, the Colorado foreclosures market favors the sellers; there are more people wanting to buy Colorado foreclosures than there are foreclosures for sale. And the Colorado foreclosures market is not regulated by the legal system, so neither party involved in a foreclosure transaction is required to make a court appearance. For more info see http://www.foreclosureshomeguide.com/Real_Estate_Foreclosures/ on Real Estate Foreclosures
Because home values Colorado are rising steadily, Colorado foreclosures present home buyers with an opportunity to get real estate bargains from banks which have many homes in foreclosure and are not interested in maintaining them. Colorado banks are more interested in acting as lenders to home buyers than in being real estate owners themselves.Educate Yourself
Do not get involved in purchasing a Colorado foreclosure without having first researched the available property. Find out as much as you can about physical condition of the home, the desirability both of its neighborhood and its school district, and the chances of its value appreciating during your ownership.
When you’re satisfied that you’ve found a property with which you’ll be happy, go to the bank which holds the note and apply to pre-qualify for a loan. You’ll need to have proof both of your creditworthiness and of your ability to make the monthly payments.
Or, if the property is in pre-foreclosure, you may risk approaching the owner to set up direct negotiations. If the property is to be auctioned off, again make sure you have done your homework ahead of time so that there are no surprises, should your bid be accepted.
With the high rate of Colorado foreclosures, you should not find yourself in rented accommodations for very long!
You can also find more info on Foreclosures Homes and Home Foreclosures.
Dec
28
Real Estate Investing Tips For Profit
Posted by: | CommentsSan Diego Foreclosures For Sale
Investing in real estate has long been considered as a safe and high return investment. “Flipping” in real estate investing has become very popular over the last few years especially among the speculative real estate investors. Flipping refers to the buying and selling of real estate property within a short period for quick profits. Though the return on investment appears to be good, there is still a risk that your money could get locked-in in the absence of buyers.
Real estate prices have steadily increased since the beginning of this decade. However many signs point to the real estate boom coming to an end, so it may be wise to put real estate investing on hold. Investing in real estate, contrary to popular thinking, is a slow yielding investment. Hence real estate investors need to do proper planning and to conduct market analyses before investing.
Before investing in any property it is vital to study all the related documents of the property, to see the license of a broker if any, to check for liabilities etc. All contracts have to be in writing. All details such as the names of all parties, address of the property, area, purchase price, consideration etc. have to be entered in the contract along with all parties’ signatures. It is also prudent to hire a property lawyer to look into the intricacies of real estate contracts.
One good way of investing in real estate is to buy foreclosure properties. Foreclosure is the process in which a bank or a creditor sells the property of the homeowner to recover the loan, which the owner has not been able to pay back.
A lease to purchase contract is considered the best type of real estate investing. This type of contract basically allows the tenant to lease a particular property for some period, and at the end of the period he has the option of purchasing the property at an amount decided at the signing of the contract. The tenant pays an initial non-refundable deposit. If the value of the property goes up at the end of the leasing period, the he may want to buy the property at its original value. If the value has not increased he can opt not to buy it. During this period he can also rent the property to someone else. By this method, the investor takes a lot of the risk off himself as he does not have to commit a large sum of investment capital not apply for a big loan.
Currently, there are a few areas where the real estate market is just too overheated and investing in real estate is just too risky. They are Miami, Las Vegas, Northern Virginia, Phoenix, Sacramento, Boston, Washington DC, and San Diego. Other “hot” areas also include San Francisco, Chicago, New York, Los Angeles, and Seattle. The safer, less volatile areas for investing with good ROI are Dallas, Cleveland, Houston, Columbus, Omaha, Kansas City, and Pittsburgh.