Mama Liz's Blog: April 2009

1. Write your contracts clearly so they can be read by the Originator, Processor, Appraiser, Underwriter and Attorneys. Please provide all addendums and amendments to lender prior to ordering the appraisal
2. Be aware that all health and safety related items will need to be repaired by a licensed contractor PRIOR to closing. Some exceptions may apply.   
3. Looking at condos? Make sure they are on the FHA Approved Condo List BEFORE writing up a contract.   https://entp.hud.gov/idapp/html/condlook.cfm (Spot Loans are being done by some lenders.)
4. Some basics:
   1. 3.5% down payment required (must be buyers own money, a gift from a relative or SC State Housing Down Payment Assistance or Family Services Grant)
   2. Seller can contribute up to 6% towards pre-paids, closing costs and reserves...none of which can go towards the buyers down payment
   3. This is a "full doc" loan (W2's, Pay Stubs, Bank Statements and verifications required)
   4. Home must be owner occupied
   5. Schedule closings for the end of the month to save on interest for your buyer
   6. If the contract or addendums mentions a CL-100 or Home Inspection lenders are required to review it and provide to the appraiser.

 

There have been so many posts written about short sales on Active Rain lately. When I first started blogging on Active Rain in June of 2007 there was only us and Dan Forbes that were writing series on how to do a short sale. At that time I would say that 90% of all the comments that we received were that agents were refusing to list or sell short sales. In fact, there were brokers who dissallowed the agents in their offices to participate in Short Sales.

It only took about a year or so before agents started to realize that if they did not at least show their buyers short sales that they may not stay in this business. Although I don't believe that to be true because there are many niches to conquer in real estate- but that is another subject. There are now designations and certifications so you can call yourself a short sale expert even if you have never done a short sale through to closing.

As soon as Nestor got his real estate license in Texas many moons ago- his very first listing was a short sale and after they had an offer he closed the short sale in 2 weeks. Yep, 2 weeks is how long it used to take to get a short sale approval. We did short sales back in the 80's recession also.

Short sales are not new. They are not foreign. They have been around as long as mortgages have been around. Do you remember or still see those signs anywhere in your state from the company, We Buy Ugly Houses? They were doing short sales long before most agents knew what the term meant.

Even as short as last week, here in Florida- I was asked by a real estate agent who was setting up a showing for one of our listings, "What is a short sale?".  I was about to ask her what rock did she just crawl out from under, but instead I educated her about what a short sale is and how to write up an offer for a short sale and how to explain it to her buyer.

Of course writing short sale posts on Active Rain is great for Google Juice. I have seen a huge increase in real estate agents on Active Rain writing posts about short sales and many of these posts are being featured. The only problem with that is that much of what is being written are simply not facts.

Much of what agents write about is one or two or three listings that they have closed on as short sales. While it is fine to write from one's own experiences and tell the process as it pertained to that particular short sale it is not a good idea to write blanket statements about short sales.

I highly recomment that if you are not an authority on short sales that you do not write articles as an authority. Instead for your protection and to do the consumers justice with correct information please preface your posts with disclaimers:

• If you are writing about certain customs in your state- let the public know that your post is about your state. This way a seller in Florida does not read a post from someone in California and form the wrong opinion such as- the state of California is a non deficiency state for owner occupied primary residences and the state of Florida is a deficiency state. This is a huge difference.

• I don't think that consumers understand the law in different states so if you are writing in generalities- don't! This is NOT fair to homeowners who may have found your blog online and then take your word as gospel.

• If you are basing all of your short sale article on just one or two of your closings and you are sharing that information to the nation and the world in a public post- be careful. You need to make sure that you crossed all your T's and dotted your I's. I read posts written here on Active Rain where what transpired during the short sale process was NOT in the best interest of the seller. This is not information you want to share with the world and have someone come back at you later.

• Know what a short sale is. Even today I am reading on Active Rain definitions of what a short sale that are not true or factual. 

A short sale is a seller's lender agreeing to accept less than what is owed to them. Period. End of story. Nothing more, nothing less.

Anyone can ask their lender to accept a short pay off. There are so many articles giving false information on the Internet and on Active Rain about sellers' having to qualify and who can get a short sale approved and who can not. This is extremely unfair to the consumers reading your blog. You may not want to list certain short sales but the fact is that anyone can ask their lender to accept a short pay off. If you do not want to list certain short sales because of your judgment that is a call you make because it is your business but don't spread it all over the Internet that property owners of certain circumstances can not do a short sale. Your ethics may not be their ethics.

The extent to which it will be approved will depend upon the real estate agents' ability to negotiate. I will write another post about that.

I want to apologize that my short sale book is not ready. I am on my last few chapters and then it will go to the editor.

        

Let's Get Down To The Truth About Short Sales by Katerina Gasset is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.

 

By TwitterButton

 Let's Get Down To The Truth About Short Sales was first published on South-Florida-Luxury-Living.com

 With all the posts out there about how now is the best time in history to run out and buy a home, I thought it only fair to show you the reasons that you should not do so. The last thing this economy needs is for consumers to start spending money, that would actually cause the great deals to go away. Mainly due to the fact that it would cause the economy and the real estate market to recover, and at this point that's the last thing we need.

10-  Rent is fun to pay. I mean it's not at all like having to pay your own mortgage, why do that when you can pay a mortgage for someone else. If you went out and bought a home, there would be one less investor out there getting a free house with your money.

9- The amount of homes for sale on the market. There is no need to running out there when you have a ton of homes for sale at your disposal. You should certainly wait for the numbers to dwindle so you will have less of a choice you decide to buy. This will keep you from having to be so picky.

8- The great deals will be the first to go. This will be your indicator that you are getting close to time to start looking. All the good homes will be taken and then you can go sift through the left overs for what you can salvage.

7- Low Interest rates. Low interest rates will cause your mortgage payments to be lower, and this may make you feel like you are not doing your fair share. You should definitely wait around for those rates to rise so you can make a higher monthly payment. Then you won't have to deal with the guilt of saving money.

6- The price of homes for sale. Currently many homes for sale are on the market at very competitive lower prices. If you can manage to hang in there a little longer without buying a home, then you can catch market during or after a recovery. This means that you will get to pay more for the home than you would today.

5- With today's rates and prices, mortgages on many homes for sale are actually cheaper than rent on the same homes. Again this would possibly save you money, and that's not what you want to do. You need to wait for the prices to rise so you're not getting as good of a deal.

4- A 10% of the sales price tax credit up to $8,000. If you were to buy a home now,and you are a first time home buyer, then you would receive this tax credit. If you can hold out until next year, then you will be able to avoid this tax credit all together. This will save you the aggravation of trying to decide what to do with the extra money on next year's tax return.

3-Builder incentives. At present, in addition to the competitive prices, many builders are offering other incentives on new homes. Incentives like a percentage of of the home for sale depending on your employment and reduced pricing on upgrades. Some are even offering free upgrades and tossing in little extras that they normally do not offer in order to sweeten the pot. This would mean that you could get a great deal on a brand new home in your area, and that's the last thing you want. Wait for these deals to be snatched up other buyers before you even consider looking for your new home.

2- Lack of competition for you. Right now with many would be buyers sitting on the fence trying to make a decision, you would have your pick of the litter as far as the homes currently available are concerned. You need to wait until many more buyers are on the search, that way you can possibly end up in multiple offer situations and have to fight another buyer over the home you really want.

1- The pride of home ownership. There is no reason to come home to a home that actually belongs to you. Why not constantly come home to a house that you are buying for someone else.

 

 I hope that in some way this has helped anyone reading to figure out why you should stay on that fence. There are really too many great deals and incentives out there to subject yourself to making a decision as to which one you want. So hang in there and stay on those sidelines. With a little discipline and a little luck you'll be able to avoid all the great deals that this current market has to offer. Best of luck to you.

 

www.jlboney.com

When I started in real estate...there were many things I was willing to do..today is no different...as a matter of fact...I learned early on...despite what we call ourselves...we are sales people! 

To think that term is ugly or embarrassed by those words?  We sell houses...lifestyles..and regardless of what you think...you must know your lines and have skill...and practice...

As I sit and listen to associates a few things come to mind....

• Those that speak first loses..don't believe me try it in negotiations and watch the other party...just spit up everything that you need to know.
• 
  Rehearse your presentations..that's right...don't tell me that words just naturally flow out of your mouth..the truth is..with ever changing laws..policies..and the way we do business...you need to practice your presentations.  Sales skills is an art..and you truly have to practice them.
• 
  If you don't have the answer...be honest...I learned a simple phrase, I'm not certain but I will be more than happy to get that information to you as soon as possible.  Too many agents wing it and with resources available 24/7 are you really going to take the risk of pretending you know what you don't know?

• You lose a deal...and you know in your heart of hearts you can't do anything about it...its really simple to keep moving forward...NEXT..move on..lesson learned..don't dwell on it or let it break your attitude..remember for every one of them you lose there are so many you can gain.  So keep your focus. 
• 
  Prospecting-its important and imperative for a successful business..many agents waste valuable time..doing the "more important things" rather than continually keeping their pipeline full.  Prospect every single day.
• 
  Get in front of more people..no I don't just mean sitting behind your desk on line...get real...real estate is a people to people business and while you might have encounters with people on-line...take the time and get to know them face to face...pick up the phone...send them a note.  While it might not be cool..these acts of appreciation never go out of style.
• 
  Why would you take every drop of business that comes your way?- Overpriced..the likelihood of a property selling is slim to non...if you have difficulty in showing the property why list it?  And if a seller is unreasonable about offers why add them to the mix to an already overpopulated mls?
• 
  Leads are leads regardless of how you slice it...if people take offense to this..well they should include their contact info..with no name...no phone..yes ladies and gentlemen they are in fact leads. ..its our job to convert them...and build the relationship! 

I am really surprised..as to how some real estate professionals get dragged by their nose....while some may say its because real estate is consumer centric...that has always been the case..real estate always has been consumer centric at least the way I have always practiced it.. 

No I won't pick up your dry cleaning but would be more than happy to go to court or assist in getting repairs done!

As I think back to the agents that I have used in the past.  I didn't ask them to pick my kids up from school or check on my mail while I am out of town...nope can't say I asked for a ride to the airport and why would I?

I hired them for a reason...for their expertise...for the real estate services they provide...for their knowledge and for them to lead the way to either selling a home or buying a home! 

A good salesperson, agent consultant or whatever you want to call yourself...knows their business..knows what works....knows their limits.. but more importantly...they work hard and at the end...they can sleep with themselves at night..can you?

About The Author:  Midori Miller is a Real Estate Trainer and writes and trains  Daytona Beach Real Estate Training. Midori Miller is a licensed Florida Real Estate Broker, License # BK645709 and an active member of the Daytona Area Association of REALTORS.  CENTURY 21 Sundance Realty has 2 office locations to serve the public, Ormond Beach, Florida and Daytona Beach Florida.  Contact midorimiller@yahoo.com or (386)453-3236. Buying, Selling or Real Estate Training.  All calls and emails are confidential as I respect your privacy!

About two weeks ago, I got a call from a potential client that wanted to buy their first home in Beaverton, Oregon. They were willing to meet at my office, or in their home, with me and one of my mortgage brokers (Of their choice), which is one of my requirements prior to going and looking at homes. (You need to be able to qualify so we know what you can afford so you are not disappointed that you can’t afford a certain property.)

After the hour or so meeting everything was looking good, their credit was good, job history was good, the only thing missing was a down payment. We thought maybe if they were willing to look in certain areas where there are still 100% loans available, we could get them in a home. or they would just have to save and call me when they had the down payment in hand.

Well, yesterday evening, they called and said they were ready to start looking, they had a down payment.

“HUH? How did you get your down payment? You thought it was going to take you six months of hard savings and you got it in less than 2 weeks? How? Or do I want to know?”

He laughed and said, “We thought long and hard about it and with prices and interest rates what they are, we didn’t want to lose out on this opportunity to buy a house and still get the $8,000 tax credit, so we figured out how to get the money” I then said, “Well, do tell”

He said, “We looked at all the stuff we had. If we bought a house, would we really want to move all this stuff? So we decided since it was supposed to be 70 degrees out last weekend, that we would have a garage sale and see what it would get us on our way to start saving for our down payment. Well, that one weekend put $12,000 in our pocket! Who knew our crap that we didn’t want to move was worth so much?”

I was really impressed and happy for them and I warned him that I was going to be posting about their story as a very creative way to come up with the money. He just laughed and said, “You do that. It was someone else’s story that you wrote about that got us to call you, so hopefully our story will help someone else.”

So congratulations! Here is the post that I told you I would write. I can’t wait to write the story of the day you unlock the door for the first time after closing. If you are looking to buy a home and don’t have a down payment, be creative like this couple was, and the dream of owning that first home maybe closer than you realize.

Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739

©2009 Todd Clark - How one client went from no down payment to 5% down payment in a little less than 2 weeks and you can too!

There are hundreds of Tea Parties being organized and planned all over our great country to be held on April 15th and we are calling this National Tea Party Day.

Make sure you get your taxes done early so you have time to get to your state Capitals, City Centers, City Buildings- where ever the tea party in your town is being held.

If you would like a list of towns and cities that have volunteers organizing a tea party you can visit the National Tea Party site at http://www.teapartyday.com.

On this site you can find your state and town. If there is no one there organizing the tea party you can fill out a quick volunteer form and organize one in your town. There are so many organizers that I don't think you will have a problem finding a Tea Party in your area. There are over 8 of them in our area! Florida is really involved with these Tea Parties.

Then you can go to the site Tea Party TShirts site  to buy your tshirt to wear to the Tea Party. We ordered our shirts today and they said they would arrive in time for the Tea Party. The only bummer was that we did not think of doing the t-shirts first! That is capitalism at work- you snooze, you lose! But we are so glad that the people running this site are making money selling t-shirts! How cool is that!

There are some very good videos and advertisements going around for the Tea Parties. My favorite one is the one from San Antonio Texas! It is so good that I am posting it here so you can see how well this one was done. Remember the Alamo! Go San Antonio!

Watch this very well done promo spot for the San Antonio April 15th Don't Mess With Texas Tea Party!

 

So get busy, make your signs, get all the young and old NEW conservatives you know, the Independents you know and the Libertarians you know to gather together and send our message to the White House. We are TEA'D OFF!

Let's all get out on April 15th and make this day one to remember!

Here is what may be the new Tea Party Anthem written and song by Lloyd Marcus, the President of the National Association for the Advancement of Conservative People Of Color.

 

Pass this post along, reblog it, send it by email, post it on Facebook, link to it from Twitter; pass it on!