What Is A Foreclosure?

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Foreclosure is a process by which a lender takes title or forces the sale of a property as a result of the borrower’s failure to comply with the terms of the mortgage. The first missed payment begins the foreclosure process. Bringing the loan current (paying all the mortgage payment(s) and fee(s) due) or selling the property ends the process.

If after numerous attempts to collect payment from the homeowner fails, lenders will begin legal proceedings to foreclose on the property through a Notice of Intent to Foreclose posted in a local newspaper and at the county/city courthouse. The notice lists general information about the property and a date the property will be sold at auction.

Depending on the auction terms, the lender may set a reserve amount (a minimum amount they will sell the house). If that reserve amount is not met, the home becomes property of the lender, or Real Estate Owned (REO).

Depending on the state, a house sold at a foreclosure auction may go into a redemption period wherein the homeowner can buy back their home if they can pay for the entire loan, including any accumulated fees.

Categories: Investing Short Sales and Foreclosures

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10 Tips To Selling Your Home Quickly

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No one wants their home sitting on the market for months, so BEFORE you list your home, follow these quick tips to help you get sold quickly:

  1. Remove the clutter. Show off available space by removing loose items and excess furniture.
  2. Paint and repair any damages on the walls.Try to stay with neutral colors.
  3. Repair any flooring defects. Replace flooring if possible.
  4. Remove or minimize personal photos. Let the buyers imagine themselves in your home.
  5. Clean up the yard. Curb appeal is important so get your front looking great and buyers will want to see more.
  6. Invest in air fresheners or air cleaners, especially if you have pets in the house.
  7. Clean and dust around major appliances, including the furnace and hot water tank.
  8. Add plants for greenery room fillers to give the place a lively appeal.
  9. If you want to list your home as 3 bedrooms, then try to make sure that each room functions as a bedroom, or at least show that a bed can fit in the room.
  10. Clear off kitchen counters. Everyone loves counter space. Try putting toasters, coffee pots and knife blocks in cabinets when not in use.

Remember that once you list your home, you need to keep it looking good throughout the listing period. Think about how you feel when you see a nice luxurious hotel room– no clutter, clean and inviting. That’s the same feeling you want buyers to see when they walk into your home.

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Categories: Selling

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The Home Selling Process

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Selling your house may sound easy at first and you may decide to try to sell your home on your own. This post will show you what steps are normally involved in the home selling process, and maybe you will see how valuable selling your home with a real estate agent can truly be:

  1. Understand your market. Do some research and find out what the market is doing in your neighborhood. Your real estate agent can provide a detailed report of the current real estate activity in your area.
  2. Market your home sale. Create flyers and brochures, and offer open houses. Ideally you are working with a real estate agent who will enter your home into the Multiple Listing Service.
  3. An offer received begins the negotiation and counter-offer process.
  4. Once the contract is ratified by all, the buyer(s) may choose to order home and termite inspections.
  5. Remove any contingencies after negotiating terms from home or termite inspection findings, etc.
  6. Buyer(s) will do a final walk-through prior to settlement.
  7. Close on the property.

This is just a basic overview of the process, and because there are many factors that could affect each step, it’s recommended that you hire a real estate professional knowledgeable in handling unique situations.

Categories: Selling

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Pre-Qualification vs. Pre-Approval

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So you think you’re ready to make the leap to homeownership? Or maybe the time you bought your first house seemed like a blur and you can’t remember the difference between pre-qualifying for a loan vs. obtaining pre-approval for a loan. Well I hope this post will clarify things a bit for you.

The biggest difference between the two is a credit history check and full debt and income verification.

When you pre-qualify for a loan, you are not applying for a specific loan amount. You state your income, any debts you may have and your lender or mortgage broker will do a preliminary calculation of how much you can afford. No credit history check is obtained, and you may not need to provide documentation of your income. You still need to apply for the loan amount you need when the time comes.

When you obtain pre-approval for a loan, you are applying for a loan so your lender or mortgage broker wants to see all your income documentation and runs a credit history check to determine how you’ve paid your debt in the past and what debt you currently have. They gather all this information and determine your FICO score which helps them determine what loan program best suits your situation.

Pre-qualifying will help you in the following ways:

  • Generally, interest rates are locked in for a set period of time. You will know in advance exactly what your payments will be on offers you choose to make.
  • You won’t waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:

  • A seller may choose to make concessions if they know that your financing is secured. You are like a cash buyer, and this may make your offer more competitive.
  • You can select the best loan package without being under pressure.

I always recommend that my customers obtain pre-qualification to see how much they may be able to afford and weigh the difference of the payments on a new home against what they are paying now for their housing situation. If they find that they are ready and serious about shopping for a new home, I highly recommend that they obtain pre-approval for a loan.

Categories: Buying

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The Home Buying Process

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Ideally you will seek the advice of a real estate agent knowledgeable of the market conditions in the neighborhood you are interested in, but in general, these are the following steps in the home buying process:

  1. Work with your real estate agent to evaluate your needs.
  2. Obtain pre-qualification to determine a price range.
  3. View selected homes in your price range.
  4. Write an offer.
  5. Negotiate and counter-offer.
  6. Accept the contract terms upon inspection and removing contingencies.
  7. Your agent can work with your broker to complete the mortgage approval process and underwriting, i.e., appraisals.
  8. A termite inspection is done and a survey is ordered.
  9. A title company will perform a title examination of the property.
  10. A final walk-through of the house is completed prior to settlement.
  11. Close on the property.
  12. Take possession of your new home.

The time it takes to complete the process can vary. Negotiation and counter-offering may take some time, and after a home inspection, there may be more negotiation to resolve any issues that surface.

Categories: Buying

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10 Steps to Prepare for Homeownership

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  1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
  2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
  3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
  4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.
  5. Get your credit in order. Obtain a copy of your credit report.
  6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
  7. Organize all the documentation a lender will need to preapprove you for a loan.
  8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.
  9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
  10. Find an experienced real estate agent who can help you through the process.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®

Categories: Buying

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Should you buy a home or rent?

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A lot of potential first-time home-buyers ask me this question:

“Should I buy a home or continue to rent?”

Such a simple question can have many varying answers. Personally, I would choose to buy since acquiring real estate can be a great investment, BUT, what I tell my customers is that they should evaluate their own personal situation, and not just from a financial viewpoint. To start, ask yourself some questions:

  • How long do I plan to work in the area?
  • What kind of life-style do I live now, and how would that change if I were to buy a home?
  • How often and for how long at a time do I travel?
  • Do see my current family size growing in the near future?

Of course there are many other questions you could ask yourself, but take it a step further and picture yourself as a homeowner. You may have a yard that needs to be maintained on a regular basis. There are several major appliances that need servicing on an annual basis, or may need repairing. You’re going to be responsible for paying for all your utilities, including trash removal.

Don’t get me wrong, as a real estate agent I would LOVE to help my customers find a home to buy, but I want to ensure that they know the in’s and out’s of home ownership, and who knows, maybe renting is the best way to go for their current situation.

Categories: Buying

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