Check out this Great House! Price Reduction & Open House Sunday 1-3 Feb 20th
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Stop By and Say hello and view this Great property...
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Wednesday, February 16, 2011
Thursday, January 20, 2011
Attention lenders, mortgage servicers and our wonderful government - some suggestions you might want to consider:
Attention lenders, mortgage servicers and our wonderful government - some suggestions you might want to consider:
Many buyers are in need of closing cost assistance in order to purchase a home in today's economic environment - as a matter of fact it has been what would be considered common practice for as long as I can remember going back to when I purchased my 1st home many years ago.
Most of the mortgage products that exist today still allow buyers to receive up to 6% of the sale price in seller paid concessions.
With the market the way that it is and there being so many foreclosure & short sale listings why is it that buyers are only able to secure 1-3% closing cost assistance as a general rule?
I have a suggestion.....make the process of selling these properties easier as a win-win for everyone involved.
Lets apply some common sense to this whole process:
If the property is a REO (foreclosed asset)
1. Be realistic on the condition and market value
2. If you are targeting owner occupied buyers - be willing to offer 6% seller paid closing costs for sale price within 90-95% of appraised value
Its really not that hard to determine the current market value and condition. If you now own a property that needs repairs then you know its going to attract investors willing to fix it up and re-sell to owner occupants. If its likely to go FHA then be willing to work with a buyer and pay closing costs like many sellers are willing to do OR you will eliminate many potential buyers.
If the seller is behind on payments and the seller wants to work to list and sell as a short sale in lieu of a lengthy and costly foreclosure process then be part of the solution. When a seller contacts you or their Realtor contacts you get involved early in the process.
1. Collect seller data to explain hardship and get a financial profile on the seller - you did this during the mortgage pre-approval process so do it now.
2. Accepted things for what they are and not what you think they should be --- mortgage payments are not being paid, foreclosure will take months and cost you $$$....be part of the solution and lets get work together to get these non=performing assets off your books.
3. Get an appraisals asap to know exactly what your potential asset is worth in the present market - use 90 day comparable solds of comparable properties (location, condition, features) What is owed to you has nothing to do with its present market value---become educated.
4. Be willing to accept an offer that is at a net sale price within 10-15% of appraisal value - keep in mind many areas are still experiencing a decrease in values each quarter----a value today is no longer valid as soon as a few additional compatibles settle at lower prices- the sooner you sell the better your bottom line.
5. Remember you just might end up owning this great asset you think you have if you are unrealistic in your expectations.
I have seen some of the stupidest things done by lenders in the short sale approval process. One the lender would not accept and offer that was at full market value with 6% assistance but suggested we drop the price over $25k and offer 3% closing assistance - like really my $220k offer with 6% would not net you more than your suggested $195k price with 3% - like really you just cost yourself over $17k and the taxes, water, trash and sewer bills that were not being paid went up up up each month we did not settle - now that was a really smart person huh? Another lender would only pay closing costs if the buyer was doing an FHA mortgage and not if a VA or USDA - a little discriminating to me - who cares what type of financing the buyer is doing - your concern should be bottom line proceeds --- in the end many months later after loosing 2 qualified buyers it sold for thousands less than the initial offer - they must all be related and share the same stupidity dna/genes.
While I understand there is potentially alot of sellers who are not in a true hardship and many lenders feel they are being taken advantage of it just seems logical to me to have a pre-approval process with short sales like the process of securing a mortgage. a process that actually works to get these properties sold.
If we can get a mortgage approval and go thru the underwriting process and settle in 45-60 days from the time an offer is accepted then we should be able to contact the lender, submit the basic info, get an appraisal of value, submit a market analysis and marketing plan, and get the lender to agree that a short sale is there best shot of getting the best net proceeds within the same 45-60 day period.
Mr President and any other member of our government or any of the lending institutions- I think I speak for Realtors in general - ask us directly what we think is needed to get Thur this challenging market and we will tell you. If you want to know what is going on and what can make things better apply some common sense and look to make some SERIOUS changes in a process that for all intense purposes is not working and costing you millions of lost revenue. Something has to tell you your process is not working - you have more foreclosures today than ever, with those properties that you refused to short sale you end up selling for thousands less after incurring the expenses of the foreclosure and all of this plays into consumer confidence or lack there of which in turn feeds the negativity in the housing market. You are functioning on a lose - lose concept.
We have sellers who are willing to go thru the steps necessary to assist you with disposing of these properties that are costing you $ every month that goes by with a mortgage payment not being paid and we have buyers that see the value of home ownership and are willing to purchase.
Its a reality - just like many lenders made poor choices to approve these mortgages homeowners too made poor choices in taking on a commitment they just can not keep. It is what it is - lets move forward and look back on this as a period of learning what not to do.
bottom line: DO A BETTER JOB OF BEING PART OF THE SOLUTION AND NOT PART OF THE PROBLEM - I REALLY DO WANT HELP AND BEGIN TO ALLOW THE HOUSING MARKET TO RECOVER.
Many buyers are in need of closing cost assistance in order to purchase a home in today's economic environment - as a matter of fact it has been what would be considered common practice for as long as I can remember going back to when I purchased my 1st home many years ago.
Most of the mortgage products that exist today still allow buyers to receive up to 6% of the sale price in seller paid concessions.
With the market the way that it is and there being so many foreclosure & short sale listings why is it that buyers are only able to secure 1-3% closing cost assistance as a general rule?
I have a suggestion.....make the process of selling these properties easier as a win-win for everyone involved.
Lets apply some common sense to this whole process:
If the property is a REO (foreclosed asset)
1. Be realistic on the condition and market value
2. If you are targeting owner occupied buyers - be willing to offer 6% seller paid closing costs for sale price within 90-95% of appraised value
Its really not that hard to determine the current market value and condition. If you now own a property that needs repairs then you know its going to attract investors willing to fix it up and re-sell to owner occupants. If its likely to go FHA then be willing to work with a buyer and pay closing costs like many sellers are willing to do OR you will eliminate many potential buyers.
If the seller is behind on payments and the seller wants to work to list and sell as a short sale in lieu of a lengthy and costly foreclosure process then be part of the solution. When a seller contacts you or their Realtor contacts you get involved early in the process.
1. Collect seller data to explain hardship and get a financial profile on the seller - you did this during the mortgage pre-approval process so do it now.
2. Accepted things for what they are and not what you think they should be --- mortgage payments are not being paid, foreclosure will take months and cost you $$$....be part of the solution and lets get work together to get these non=performing assets off your books.
3. Get an appraisals asap to know exactly what your potential asset is worth in the present market - use 90 day comparable solds of comparable properties (location, condition, features) What is owed to you has nothing to do with its present market value---become educated.
4. Be willing to accept an offer that is at a net sale price within 10-15% of appraisal value - keep in mind many areas are still experiencing a decrease in values each quarter----a value today is no longer valid as soon as a few additional compatibles settle at lower prices- the sooner you sell the better your bottom line.
5. Remember you just might end up owning this great asset you think you have if you are unrealistic in your expectations.
I have seen some of the stupidest things done by lenders in the short sale approval process. One the lender would not accept and offer that was at full market value with 6% assistance but suggested we drop the price over $25k and offer 3% closing assistance - like really my $220k offer with 6% would not net you more than your suggested $195k price with 3% - like really you just cost yourself over $17k and the taxes, water, trash and sewer bills that were not being paid went up up up each month we did not settle - now that was a really smart person huh? Another lender would only pay closing costs if the buyer was doing an FHA mortgage and not if a VA or USDA - a little discriminating to me - who cares what type of financing the buyer is doing - your concern should be bottom line proceeds --- in the end many months later after loosing 2 qualified buyers it sold for thousands less than the initial offer - they must all be related and share the same stupidity dna/genes.
While I understand there is potentially alot of sellers who are not in a true hardship and many lenders feel they are being taken advantage of it just seems logical to me to have a pre-approval process with short sales like the process of securing a mortgage. a process that actually works to get these properties sold.
If we can get a mortgage approval and go thru the underwriting process and settle in 45-60 days from the time an offer is accepted then we should be able to contact the lender, submit the basic info, get an appraisal of value, submit a market analysis and marketing plan, and get the lender to agree that a short sale is there best shot of getting the best net proceeds within the same 45-60 day period.
Mr President and any other member of our government or any of the lending institutions- I think I speak for Realtors in general - ask us directly what we think is needed to get Thur this challenging market and we will tell you. If you want to know what is going on and what can make things better apply some common sense and look to make some SERIOUS changes in a process that for all intense purposes is not working and costing you millions of lost revenue. Something has to tell you your process is not working - you have more foreclosures today than ever, with those properties that you refused to short sale you end up selling for thousands less after incurring the expenses of the foreclosure and all of this plays into consumer confidence or lack there of which in turn feeds the negativity in the housing market. You are functioning on a lose - lose concept.
We have sellers who are willing to go thru the steps necessary to assist you with disposing of these properties that are costing you $ every month that goes by with a mortgage payment not being paid and we have buyers that see the value of home ownership and are willing to purchase.
Its a reality - just like many lenders made poor choices to approve these mortgages homeowners too made poor choices in taking on a commitment they just can not keep. It is what it is - lets move forward and look back on this as a period of learning what not to do.
bottom line: DO A BETTER JOB OF BEING PART OF THE SOLUTION AND NOT PART OF THE PROBLEM - I REALLY DO WANT HELP AND BEGIN TO ALLOW THE HOUSING MARKET TO RECOVER.
Thursday, January 13, 2011
Wednesday, November 10, 2010
Friday, November 5, 2010
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