Good offer and the bank keeps stalling.They will no say they want more money and it is not worth more after 5 months.
Do Bankers think people selling real estate want to waiste their time if they will not accept a comparable offer?Bankers are not communicateing enough to allow a good transaction.

Things to Look for When Purchasing a Home

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Home Page > Finance > Real Estate > Things to Look for When Purchasing a Home

Things to Look for When Purchasing a Home

Posted: Mar 05, 2007 |

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There are many things to watch for when buying a new home. Often, home buyers find themselves overwhelmed by the process of buying a home and overlook many of the telltale signs that a home might not be all they think it is. It will always be good practice to go over the negative aspects of any given home, in detail, before making an offer. Many of the following things should be found during a proper home inspection, however it is a good idea as the buyer to familiarize yourself with certain things and to discuss them with your Realtor and the inspector.

1. Damp Basements

A damp feeling in a basement can suggest water seepage, either from improperly graded soil, or a bad foundation. This can lead to many problems further down the road when considering renovations or remodeling. This can also lead to problems with mold and the deterioration of the standing foundations. Moisture can also weaken the foundations leading to expensive repairs in the future. This is also a health concern as the presence of mold has been linked to several respiratory conditions and ailments.

2. Cracks in the Foundation

Always inspect the interior and exterior of the foundation for cracks and stress marks. Visible cracks can mean several things; excessive settling of the house, the fact that the house may have been built on an improperly graded site, or in an area that is prone to earth movement. Cracks can also allow small insects access to the interior of the home. Ants and termites can cause no end of costly problems in a home. There are many different types of foundation imperfection and the causes of these are quite varied. If there is any evidence of an imperfection in the foundation, have the entire foundation checked by a professional.

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3. Odor

The presence of unappealing odors can mean many things in a home, the most common of these is mold. Biological problems like mold can be difficult to repair as it usually means an extensive amount of work to correct them. Ripping out walls is the most common “fix” for mold as it can be trying to find the source. Visible mold can be killed with bleach, but usually the problem runs far deeper than the surface. A professional inspector should identify any mold problems upon the necessary inspection and relate these to the realtor or home buyer.

4. Poorly Ventilated or Damp Attic

This is another factor that can cause large amounts of mold and dry-rot to develop in a home. Check the interior of the roof if it is accessible. Is it wet? If so, there is a problem. This means there is insufficient ventilation and/or a leak in the roof itself. The interior of a roof should be bone-dry, year-round. This could also be a result of fans from the kitchen or bathroom that vent into the attic and the attic is not properly set up to accommodate the moisture that this generates.

5. Discoloration

The discoloration of portions of the walls or ceiling is a good indicator of leaks and seepage. This could indicate a problem with leaking roofs or plumbing pipes. This can be an extremely expensive problem to fix as it usually involves cutting into the walls and/or ceilings. Leaks such as this can also cause a fire hazard as they may interfere with the existing wiring. Be mindful of fresh paint as this is a common way to cover up spots that show water damage.

6. Electrical Work

One of the largest causes of electrical fires in homes is D.I.Y. Electrical work. Check the connections on fixtures and anything that appears to be added post-construction. Electrical work should never be done by an unqualified individual. For instance, check the main electrical panel, does it look unorganized and sloppy? This is one indication that the home’s electrical work may have been done by a non-certified individual. Haphazard wiring can lead to costly repairs and is a definite danger to the homes and residents.

7. The Property Itself

The Property itself can contain many oft-overlooked problems. In particular the landscaping of the property can affect the home itself and particularly the foundations. Is the property sloped away from the house? The high point of the property should always be the house itself. This assists in drainage and presents water problems. If the land slopes downward towards the home, chances are there will be issues with water and seepage.

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Simon Conway is a professional real estate agent and investor specializing in Orlando real estate , and Orlando vacation homes & resort communities. Simon has won several accolades including agent of the year in his firm, and has been a member of the multi-million dollar club for many years, he is also a speaker and lecturer on real estate investing.

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Closing a Short Sale – The Basic Things you need to Know

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Home Page > Finance > Real Estate > Closing a Short Sale – The Basic Things you need to Know

Closing a Short Sale – The Basic Things you need to Know

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Posted: Jul 27, 2009 |Comments: 0
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For most homeowners, acquiring their own properties and homes is one of the most rewarding and greatest investments they could ever venture on. However in the midst of the current economic downturn, most homeowners are now faced with the dreadful decision of giving up their properties due to several financial crises in the form of short sales. It could be an awful situation to find yourself in, however there would be no better option to survive the economic uncertainties and its grueling effects. As a matter of fact, it is a more dignified option to take than bankruptcy and even foreclosure.

How does short sale work?

Simply defined, short sale is putting up your house or property in the real estate market with a much lesser worth or price than its original or actual value. There are many factors that would lead homeowners to resort to short sale, the most obvious would be unemployment and being laid off or retrenched from work among others.

The inability to pay for home mortgage and other loans as well as the plunging down of the market value of their property comprises some of the most valid reasons for short sale. Other factors that would be considered in short sale are death, divorce, medical illness or other emergencies and the seller’s lack of other assets to support his payment obligations for the mortgage. This would definitely not suffice the expenses you may have incurred in purchasing the property, but it sure is a much better choice than foreclosing the property for good.

What are the steps to put your homes for short sale?

Even if the homeowner or seller would try to put his property under this category, it is not always ensured that the bank or lenders would approve of its sale. Thus, in order to qualify for short sale, there are first basic steps to comply with.

First and foremost, the seller would sign a listing agreement for selling his property as short sale in the presence of a real estate agent and a third-party for approval of such contract. The real estate agent, preferably with experience in short sale, finds a buyer who would be interested in the transaction and make an offer which is then a lesser amount compared to the actual price of the mortgage. Basically, the seller would give his confirmation to such offer and then afterwards seconded by the lender of the seller’s property. Finally, closing the short sale would be culminated with the delivery of the funds by the buyer and the deed delivered by the seller as well as the release of the lien by the seller’s lender.

Closing a short sale has very simplistic and easy steps to deal with and it seems a good and wise choice especially for home buyers. Yet for homeowners or sellers who do not really have much of a choice but to short sale their properties, the government is actually providing many regulations to help them bounce back from such turmoil and dilemma.

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Things to Know About Short Sales

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Home Page > Finance > Real Estate > Things to Know About Short Sales

Things to Know About Short Sales

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Posted: Nov 02, 2009 |Comments: 0
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In today’s real estate world, foreclosures are common-place.  Everyone probably knows someone who has had to go through the ordeal of having a home foreclosed.  However unpleasant this aspect of real estate may be, there is something that can be done so that you do not lose out completely.

In essence, what happens is that the home is sold for an amount that’s less than the mortgage or property sale value and the remaining balance is exonerated or forgiven by the lender.  If this is accepted by the lender, and you really have to work with your lender so that this can happen, you will avoid foreclosure.  The term is commonly known as a short sale because the proceeds fall short of what is owed on the property.  To some lenders, it is better to sell a property at a modest loss than to continue trying to get the current debtor to pay the mortgage or to foreclose on the property and have it sit unsold for an undetermined period of time.

You must be aware of what’s involved in short sales.  Even though you avoid having your home foreclosed on by the lender, there are negative consequences for the bank, which loses out on money that it had hoped to recover, and for the property owner who must sell a home at less than favorable conditions and then deal with a poorer credit report.

A short sale comes about due to economic and/or financial hardship that has fallen upon the debtor.  The owner or borrower has a problem paying the mortgage, falls in arrears and the bank has to collect the money that is owed to it.  There are no favors being done by either party.  What is actually taking place is that the lender and the borrower have found the best solution to the greater losses that would be incurred by both parties if there were a foreclosure.  The financial institution loses less money than it would in a foreclosure, and the borrower takes a lesser hit on his/her credit history and lessens the debt load.

Among the steps you should take is to talk to your lender.  After all, nothing can be done unless you and your lender agree to the short sale of the property.  Even though there is consent, it may change at any moment and negotiations between the bank and the debtor may continue even whe4n the short sale is already on the real estate market.  This is where it differs from a foreclosure in which the borrower’s property is forcefully sold or repossessed after the borrower has failed to comply with the terms of the mortgage

Something that you must be well aware of is that the agreement will include a contingency where the lending institution must approve the sale.  This becomes even more complicated if there is more than one mortgage on the property.  Another thing to keep in mind is that a short sale will stay on your credit report for seven years, like all entries.  However, it is usually possible to get another mortgage 1 to 3 years after a short sale.

All in all, if you have to choose between foreclosure and a short sale, it might be a good thing to consider the latter, especially after you have consulted with professionals in the field.

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For great short sale property, you can take a look at Tolleson AZ Short Sale Realty and Short Sale Homes in West Phoenix Valley.

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
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The seller can benefit from the short sale. Through this, he will be able to settle financial obligation. Aside from that, he can also use some of the proceeds to start over. However, this is only possible if he was able to handle the short sale properly. The short sale takes place when the lender agrees with the borrower to sell the property and use the proceeds to settle the remaining balance of the mortgage. However, the payment will be less than the actual balance.

Although many think that they already know everything about short sale, they are mistaken. They ought to understand several things. Besides, there are things that lenders do not tell their borrowers. A few of them are discussed bellow.

Banks or lenders will take their time before they approve any application for short sale. This is because they are not certain if it is the right thing to do. It is the last thing on their mind. This is because short sale is tantamount to loss. Although the borrower will be able to settle his loan balance, the lender will receive a discounted payment. In order to avoid the loss, he will consider all his remaining options first.

The lender also changes the different processes in order to make it more complex for applicants. This will discourage the borrowers to file for the sale. There are also changes that frequently happen in the mitigation process, which is normally not favorable with the consumers. This is because lenders are always cooking up ways to reduce losses through the short sale. This lengthens the entire process, which requires borrowers to wait longer.

This can be inconvenient for buyers as well. Although short sale homes are cheap, the buyer is not guaranteed to own the property he wants. Even if the buyer made an offer, there is still a chance that he will not end up as the owner of the property. This is because the lender will still need to approve the application for short sale first. They may take a while. Aside from that, the property may still be in the listings of most real estate agents. This means that it is still open for other buyers. Someone may make an offer that is higher than his. This would mean that he would lose the chance of owning the property. He can expect to wait for a long time as well. This is because he has to wait for the lender will need to approve the short sale.

The lenders also want to ensure that their investment is protected. This is why they will make you feel that they will lose a lot in a short sale arrangement. The truth is, they could have already earned from your loan. In fact, most lenders have already earned from your previous payments.

If you wish to purchase a short sale property, you should learn how it works. Making an offer does not guarantee anything. You have to be patient as well. This is because it can take a long time before the seller can get an approval.

When you are starting to be behind your mortgage payments, you need to avoid undergoing foreclosure. The negative impact of foreclosure is deeper compared to other ways of settling the unpaid debt. This can scar your credit for years and this is a much- dreaded way to lose your homes.

This is the reason why most people would look into the possibility of short sale. Undergoing short sale does not mean you can escape the negative effects on your credit. However, it certainly has more advantages compared to foreclosure. One, you can be eligible to get a new mortgage after 2 years as opposed to foreclosure which is after 5 years. Second, you can keep your dignity because. Third, credit scores deduction can be as low as 50 points and the effect can be as little as 1 and a half years.

There are so many good things about short sale. However, the challenge lies on how to get your lenders approve your offer. Short sale is known to be a tedious process in the sense that lenders are being critical about it. They want to ascertain well if your offer is worth absorbing the loss.

One way to get your lenders to accept your offer is by understanding their point of you. There are certain things you should know about your lenders and short sale.

Reasons why lenders would settle for short sale

You may wonder why lenders would allow a loss for sale in exchange for the forgiveness of you debt. Well, here is the real reason. They want to reduce their number of non-performing loans.

In lending, loans are considered performing if the borrower is able to keep up with payments on a regular basis. However, once the borrower starts to be in default for 90 days or more, the loan will be considered non-performing. Lenders do not want them because if their number rises, they could be in trouble financially. Non-performing loans can have a negative impact to their financial statements and eventually would put them out of business.

This is the reason why lenders would opt for a short sale. This transaction can minimize the number of non-performing loans of the bank. They would take their chances from this transaction, especially if they already have an increasing number of non-performing loans.

On the other hand, short sale loss is usually lesser than foreclosure. Banks can set an allowable loss for short sale to take place. Moreover, banks would also avoid the hassles of foreclosure if they accept short sale offers.

Additional information about lenders and short sale

The chances of being approved of your short sale offers lies on several considerations. One, if the application of short sale falls within the 180 days grace period before the non-performing loans of the bank will be considered a liability. And two, the loss of short sale is acceptable for the third party investors involved like Fannie Mae and Freddie Mac. For Fannie Mae, it is acceptable if the loss is less than foreclosure. For Freddie Mac, it is acceptable if the offer reaches 90 to 92 percent of the BPO or Broker’s Price Opinion.