Does this mean that there is no help, if this sounds like you?

No, there is still help and that help can come directly from the seller. For ages, a seller has been able to help a buyer to make the purchase by helping them with either the down payment or some of the closing costs. Now, with the current real estate market, it is difficult to find a seller willing to do this, however there are still many properties out there that a seller may be willing to help. If they were asked!

This all has to come as part of the offer, and you should discuss this with your real estate professional (or ask me).

During the latter part of 2011, the Obama administration introduced a program called HARP, that would allow homeowners that up to date, but upside down on their mortgage to refi, and take advantage of lowered monthly payments. If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through MHA’s Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.

The number of lenders that are willing to do this type of refi, has been gradually going up, and each has their own qualifing criteria but basically you may be eligible for HARP if you meet all of the following criteria:

• The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
• The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
• The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
• The current loan-to-value (LTV) ratio must be greater than 80%.
• The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.

Not everyone may qualify, but doesn’t it make sense to see if you do. Give us a call today for a free evaluation.

A recent interview with financial notables such as Warren Buffett and Donald “THE” Trump have seperately said the same thing. Now is the time to buy, but if you still don’t believe me, watch the video below:

The term upside down means that due to falling home prices, the value of the home is much less than the balance of the mortgage or mortgages. For those people that have fallen behind on their mortgage, or simply don’t like their rates or type of loan, the new program “may” not work for them. Now is a good time to talk to a professional Realtor or mortgage professional to see if HAMP version 2, could help you. It may allow you to stay in your home without the need to short sale, turn in the deed or go into foreclosure.

Give us a call for a free consultation.

 

If you want to know what your home is really worth, click the proper link on this website.

The other reason that banks prefer a Short Sale over a foreclosure is that the home stays in better shape. While someone is living in it, the owner is going to maintain it. They’re going to keep the air conditioning going, keep the water going, the electricity, and so on. The home won’t deteriorate quickly if you’re going for a Short Sale because you are living in it until you close the deal. When the house is foreclosed on, it can be ugly. Homes literally fall apart, air conditioning is off, some people even rip the air conditioning out of the house for the copper or looters come into the property and rip the place apart for valuable metals and such. We recently went to a foreclosed home where the air conditioner was literally ripped out of the house. Here was a $300,000 home, that probably cost $900,000 to build and the house literally had the air conditioning ripped out, copper tubing ripped out, mold, mildew and rot were starting to appear throughout the home. So in a case where there is a foreclosure, the homes literally deteriorate almost instantly. They have yard bills, maintenance, insurance, the list goes on. The banks realize that if they allow the home to go into foreclosure not only do they make less money in the end they end up paying out more money because in the winter pipes explode, in the summer the home is left to the elements of humidity without air conditioning and the house just falls apart. When they accept a Short Sale they’re more apt to have a home that is well kept or at least kept in living condition. They know that they’re not going to be faced with having to pay for expenses other than the expenses related to the sale of the home.

In Short Sales, homes sell for more money. The market is still dropping or flat but homes are still selling. The banks want to simply get their money and move on. They get their money back to work. It’s just common sense. If you could make more money and get it back to work for you wouldn’t you do it?

A Short Sale also stops their overhead. There is so much overhead to take care of with foreclosures and it gets expensive. As they say, “A bird in the hand is worth two in the bush.” In the end they have a happier buyer with a Short Sale because they get a good deal and a nicer home.

So you’re probably wondering why we’re giving you all of this information for free. We’d like to think that if there is one person out there we help who is in the position where they should do a Short Sale or who is on the fence about whether or not they should do a short sale; we can help them by informing them. In the end, the more informed people are about Short Sales the better the marketplace is for everyone involved. If you’re thinking about doing a Short Sale or thinking about buying a Short Sale and need guidance we are here for you. You are welcome to give us a call and talk to us about the facts and the reasons why or why not a Short Sale would be good for your current situation. We want you to understand what a Short Sale is all about, no matter who your realtor is. Of course selling homes is our passion and it’s also how we pay our bills, so we would be honored if you decided to give us a call and allowed us to help you with either making a Short Sale or even buying a Short Sale home. We have the knowledge, experience, and guidance you need to get it done right. So give us a call today.

]]> http://johnfalto.awesomerealestatewebsite.com/2011/why-do-banks-do-short-sales/feed 0 http://johnfalto.awesomerealestatewebsite.com/2011/should-i-buy-a-short-sale http://johnfalto.awesomerealestatewebsite.com/2011/should-i-buy-a-short-sale#comments Sun, 01 Jan 2012 01:09:50 +0000 johnfalto http://johnfalto.awesomerealestatewebsite.com/?p=620 Besides bank owned properties (foreclosures) Short-Sales are one of the best deals in the marketplace.  These homes sell for 5% to 10% BELOW bank owned homes; which helps to make them the best deals on the market.  If you are not paying cash and you are doing more of a typical “normal” financing, then you are going to get a better deal on a Short Sale because a lot of the bank owned homes are going for cash.  Only make an offer on a Short Sale when you are certain that the agent who is selling the home and your agent as a buyer both know the process involved in Short Sales.  Otherwise, you are going to be stuck in the process for 6 months or more.  If your agent understands how the Short Sale works and what’s needed to complete the entire process, it can be as short as 60 days for you to complete a Short Sale purchase.

So what are the key steps to getting into a Short Sale?

Key Step 1 – Do you have the time?  Short Sales take longer, plain and simple.  Short Sales will take 60-90 days.  They should never take more than 120 days in a normal situation.  This is, once again, where your agent knowing what they are doing and understanding the entire process of a Short Sale is important.  Now keep in mind not every situation is “normal”; about 70% of situations are “normal”.  You also have to also keep in mind that Short Sales are up from 8% in 2010 to 28% in 2011.  That means that Short Sales are definitely going a lot faster, but you still have to make sure that you have a little bit of time.

Here’s an example of what happens with a Short Sale; a home that sold 3 years ago for $727,000 sold in a Short Sale for $275,000.  That same home, if it were bank owned, would have sold for about $350,000.  So Short Sales are definitely the best deal out there; but you have to make sure you have the time that it’s going to take to do the process and do it right.  So why do they banks do this?  Once again, a bird in the hand is worth two in the bush.  They want their money and they want it as fast as possible.

Key Step 2 – Work with realtors that KNOW Short Sales.  Be blunt; ask them right up front to show you their track record with Short Sales.  Tell them to give you proof that they know Short Sales.  A good realtor makes the process easy and simple.  As a buyer, you’re not paying for the fees, the bank is, so you want to make sure you get a realtor that is good and is going to work for you.  The listing agent does 99% of the work, so make sure they have experience.  Ask your realtor to search the MLS and see, has the listing agent closed the Short Sales in the proper amount of time?  Ask about what the listing agent’s process is to handle short sales.  Do they have a system and a process that they go through to get the Short Sales through?

Key Step 3 – Be open minded to a counter-offer from the bank.  Most of the time a bank will make a counter-offer.  Be willing to consider it.  The banks are willing to work with you, they’re just NOT willing to give the home away.  They go off the BPO (Broker Price Opinion), so that is why it’s so important for your Realtor and the listing realtor to be at that meeting.  Again, your realtor should know and understand this process and the listing realtor definitely needs to know.

So why do banks do Short Sales?  Frankly, banks make more money on a Short Sale than they do on a foreclosure.  They make 10%-13% more money on a Short Sale.  The home stays in better shape when they’re making a Short Sale because the owner lives in it until the closing.  There are no added costs of maintenance and upkeep for the bank if the owner remains in the home.  It’s a more solid deal for the bank than allowing the home to go into foreclosure.  If they can get it done in a Short Sale they’re better off financially.

It’s all about the money.  That is why your offer needs to be a fair offer and not 40% to 60% below the market value.  Have your realtor run a market analysis for you before you make the offer so you have something to back you up. So if you want to make an offer at 40-60% below the market value, then be prepared to wait 12-20 months for you to get to a final deal.  It comes down to being realistic.

So why are we offering this information on Short Sales free of charge to you?  Honestly?  We want to make sure that YOU get a good and fair deal, no matter who you work with as your realtor.  We know that if we get this information out into the marketplace then everybody wins!  Knowledge is power.  Don’t get me wrong, we make a living by selling homes and we would love to help you with buying a Short Sale.  We are knowledgeable and we have that track record to prove it.  We love what we do and selling homes is our passion but it also is what pays our bills.  If we can help you make a Short Sale please give us a call or drop us an email.  Most of all, we want to make sure you understand what you need to do in order to buy a Short Sale and understand what you want to look for in a realtor.  We can definitely offer our services and be that realtor that makes your Short Sale run as smoothly and happen as fast as possible.

]]> http://johnfalto.awesomerealestatewebsite.com/2011/should-i-buy-a-short-sale/feed 0 http://johnfalto.awesomerealestatewebsite.com/2011/remodeling-your-kitchen-to-help-sell-your-home http://johnfalto.awesomerealestatewebsite.com/2011/remodeling-your-kitchen-to-help-sell-your-home#comments Sun, 01 Jan 2012 01:00:06 +0000 johnfalto http://johnfalto.awesomerealestatewebsite.com/?p=616 It is often said that the two top rooms suggested for remodeling a home for a faster sale are the kitchen and the bathroom.  Most people cringe when they hear this because they think they have to spend thousands of dollars to truly update these two rooms.  For many, they think all new appliances and cupboards are the best way to go.  Kitchen remodeling almost always conjures up visions of replacing countertops and expensive fixtures but this really doesn’t have to be the way you go for an update!  While you can take the remodeling to any degree, even the smallest of changes can make a huge difference.

Kitchen Remodeling

Like any room in your home a fresh coat of paint can make all the difference.  You can do something as simple as paint the walls and update the coloring in your kitchen to painting the cupboards as well.

A simple change out of hardware on the cabinets can add to a fresh coat of paint and create a whole new look.  Many times something as simple as a coat of paint on the walls and cabinets with new hardware will look like you’ve updated your kitchen for thousands.  It looks fresher, cleaner and more modern and can generally be a weekend DIY project that makes it look like you’ve replaced old, worn cabinets with new ones.  Be sure to take the time to remove the doors and paint them full and correctly thought.  There’s nothing worse than someone opening a cabinet door to see the old, tacky untouched areas that you may miss when painting cabinets with the doors still on.

You can take the kitchen remodel a step further and “update” your appliances without having to purchase new ones.  Sheets of stainless steel faux covering, much like the old time “tack paper” is available to cover an old refrigerator to give it a whole new updated look.  A roll of stainless steel faux covering of 27.5”W x 98”L can cost about $10 a roll.  There are also faux stainless steel paints available if you prefer this method but for most rolling on a sheet of the “contact style paper” is easier and faster.

Of course if you are going to update the refrigerator to look stainless steel you will want to update your other appliances too.  Built in dishwasher fronts can easily be covered in the stainless steel looking sheets and, depending upon the model, some even have fronts that can be removed and replaced with a pre-cut sheet that slides into the front.  Covering your stove is a little more difficult and takes a little more time but can be done with some precision cutting and patience.  In the end, for a few hundred dollars you can have all stainless steel looking appliances in your kitchen; giving it a new high-end look without having to actually replace the appliances.

Swapping out old and outdated lighting fixtures is another easy fix for many kitchens.  If you have a 1970’s style swag lamp hanging over your kitchen table it may be time to rethink lighting fixtures.  You can rarely go wrong with a simple, clean and updated fan with a light kit.  Many people can install their own fans and lights with simple directions or even by taking some of the free courses offered at your local hardware stores.  Lighting fixtures can take a dark and dreary kitchen and make it seem fresh and vibrant.

One last quick fix in the kitchen is swapping out your sink faucets with updated versions.  Generally this is an easy project that most anyone with even a little bit of handiness can achieve.  Removing an old fixture and cleaning the area around it can make a big difference.  A shiny new updated faucet and spray hose can bring your kitchen into the 21st century for under $100 in many cases.  Even high-end faucet kits can come in for just a few hundred and give your kitchen a fresh, clean, updated new look.

So what can updating a kitchen with inexpensive fixes like a fresh coat of paint, a new faucet fixture and a new ceiling fan do for you in a matter of sales?  One of the first places that makes or breaks a sale is the kitchen.  Even those who don’t spend a lot of time cooking want a fresh, new, and updated looking kitchen.  Minor kitchen remodeling with an investment of anywhere from a few hundred dollars to the lower thousands, depending upon what you want to update, can actually recoup as much as 70% or more of your investment according to Remodeling Magazine.  It will also give buyers a feeling that you have kept your home updated if you’re kitchen looks fresh, clean, and more modern.

As the saying goes, “Friends and family tend to gather in the comfort of the kitchen” so a kitchen that is fresh, clean, updated and inviting is definitely going to be a great selling point.

If you’re looking to sell your home and need help in determining what you need to do to make your sale happen faster we’re more than happy to help you out.  Give our office a call and we can discuss your needs and ideas to help you sell your home.  As always, we’re happy to serve you with the sale and/or purchase of a home and our top-notch staff is always ready to help you with every aspect of making your home purchase or sale go as smoothly and quickly as possible.

Well here’s the thing; life after a short-sale is great! The main reason is because you wipe out tons of debt. That allows your credit score to go back up. A Short Sale is like a punch in the arm; it’s easy to get over. The big difference is what type of Short Sale terms you receive from your lender. Ask your agent or realtor to show you’re their success on past deals. They should be able to show you the terms they’ve negotiated for previous clients. You want someone with a good track record.

The best thing about a Short Sale is that banks don’t really go after you too hard on a Short Sale. The reason why is that they make 13% more on a Short Sale than they do on a foreclosure. So they want you to win. Remember, it’s all about the money in the end and if they can make more that’s what they want. Short Sales are easy if they’re started on them soon and with an expert helping you. The best part is that the bank pays for it all to happen so for you, it’s a pretty sweet deal. There is zero expense to you, the home owner, when you do a Short Sale.

So you want to know, “Is this going to show up on my credit report?” On a Short Sale it’s going to appear as a loan that you paid off less than you owed. It’s kind of like if you borrowed $100 from your friend and the next week you came to them and said, “Hey I only have $20 to pay you back. Can I pay you the $20 and we call it even?” Your friend says, “Well okay.” They’re not happy but it’s better than you paying nothing at all.

The legal terminology says that “the mortgage was paid off for less than was owed.” Most of the time you get it wiped out 100%. Sometimes they may also call it “Release of a lien for less than what was owed.” The bottom line is you get the most out of it with a “Get out of jail free” card so to speak; without any expenses. No again, the key is will your realtor or agent work hard for you to get the best terms. This is truly the biggest part of the puzzle because if you have someone who doesn’t work hard in order for you to get the best end of the deal, you could end up having problems.

You also have to realize that time is not on your side. You don’t want to wait until the last minute to act! If you wait to the last minute you make it so much harder for all of the parties involved. The more time you have to negotiate a better deal for you. So the only reason to wait is to give the bank the upper hand and help them out. You give the bank the opportunity to take you to the cleaners. You’re under no obligation either. You are not obligated at all until you sign the final papers and release that mortgage, so you are in control. Do not put it off.

So you’re wondering why we are giving you this information at no cost to you, no matter whom your realtor is that you’re working with. We know that if we get this information out into the marketplace, then everybody wins! You will come out of this situation fully informed and knowing what to do for your situation; or at least you will know what your realtor should be doing.

However, don’t forget we make a living selling homes. Selling homes is our passion and our livelihood. We would love to work with you if you are thinking about doing a Short Sale. Please, feel free to give us a call!

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