B of A HELOC is DEMANDING that the Buyer pay for and SEND THEM an appraisal.
Without this, he will close the file.
My negotiator actually told me to FIND A NEW BUYER, one that will pay for and SEND THEM an appraisal?????!!!!
Are you Serious!!!!
I have escalation contacts....but this is just ABSURD!!!!
WHY WOULD ANY BUYER PAY FOR AN APPRAISAL FOR THE BANK BEFORE GETTING AN APPROVAL LETTER!!!
DUMB DUMB DUMB (kindest words I could find)
How to Pick Profitable Rental Properties
(Investment Properties: Part 4 of 5)
From looking at various homes to actually making a profit, investing in rental properties takes many steps. A person that is new to the process may feel a bit overwhelmed. In order to reduce risk and increase your chances of making positive cash flow with real estate, here are some tips on picking a home.
Good School Zone
A good school zone will always attract families. Many families will be able to purchase homes in the area but some will have to rent a while in order to get their finances in order. These are the types of people who will stay in a home for 2 or 3 years and be potential good tenants. Focus on schools that have high standardized test scores and achieve well in the areas of math and science.
Avoid High Crime Areas
This may seem obvious, but it needs to be pointed out. Homes in areas that are subject to more than average rates of crime will be tough to rent out. Furthermore, the crime rate will drop the rental rate. This can cause a breakeven or even net loss on the monthly cash flow.
Demographic of Neighborhood
Each neighborhood will have its own miniature set of demographics. A community next to a college or university will likely be made up of homes rented almost exclusively to students. An older neighborhood with higher priced homes will likely have couples that are middle aged and higher. Study the neighborhood carefully to make sure there is an available market of tenants that fit the demographic.
Employment Opportunities
Another factor that can heavily influence the profitability of a rental property is the number of available jobs in the nearby area. A new factory, expanding hospital or growing university are places that will add on more people and need them for full time work. Many times people will obtain a job first and then start looking for nearby homes to rent. Sometimes these people can be short term renters but it is possible to find someone that locks in a home for 2 or 3 years.
Check for Vacancies and Homes for Sale
For a new subdivision that is under construction it is common to see multiple signs indicating new homes for sale. However, for an established neighborhood, a high number of for sale signs is a kiss of death. This typically indicates that the area is on the decline. An even worse condition is the presence of several vacant homes. These are homes that have been abandoned for various reasons. Steer clear of these areas in your own best interest.
Be on the Lookout for Problems from Mother Nature
Some areas are more prone to natural problems than others. Issues like flooding, mud slides and tornadoes seem to be attracted to certain areas. The insurance for properties in these areas can be quite high and chip away at the monthly cash flow for the property.
Finding a good property based on these guidelines does not automatically mean that your home will be a cash cow. However, it should increase your chance for success in a very lucrative type of investment.
Investment/Rental Properties (5 Part Series)
Financial Gurus Still Believe Rental Property Is a Safe Investment
(Investment Properties: Part 3 of 5)
The record low interest rates for mortgages have helped the real estate market to slowly improve month by month for the last several quarters. Thanks to these low rates real estate has continued to be a sound investment for people who wish to diversify their portfolio. For those people that are considering buying their first investment property here are some considerations to keep in mind.
Neighborhood History
It is wise to pick areas that are accustomed to rental homes. One of the most obvious choices would be neighborhoods close to a major university or college. If there are no colleges or universities in your area then look for certain neighborhoods close to quality schools. Schools often attract stable, hardworking tenants that will likely pay on time.
Understanding the Role of Landlord
There are two major ways to prosper from owning rental property. The first is to buy the home at a significant discount and then sell the place at a profit after the home has appreciated. The second way is to have positive cash flow. The second method takes considerable planning. Just because the tenant is willing to pay more per month than the actual mortgage payment, it does not mean that the home is profitable. There are other items to consider such as regular maintenance and repairs.
Determining What to Charge in Rent
Appraisers and real estate agents can provide information about rental rates for a certain area. This gives the investor some idea of what can be charged per month. The monthly mortgage amount and allotted figures for maintenance should be subtracted from the rent. There should be at least 15% left over after subtracting the payments and expenses. Otherwise, you run the risk of losing money.
Choosing Tenants
Once you have some interested parties and they seem capable of paying the rent it is time to begin the screening process. Experienced landlords hold fast to the rule of checking out prior landlord references as well as the tenant’s credit file and even a criminal check. The criminal check could spare you from inadvertently leasing to a felon and finding major damage to your home due to a police raid.
Research the Possibility of Using a Rental Management Firm
Some companies specialize in managing properties for investors. These firms will review applications from potential tenants, handle collecting rent payments and, most importantly, take care of the maintenance issues that pop up at the most inopportune times.
For instance, if you get a call in the middle of the day that a toilet is leaking, can you leave work and fix it? If you get a call at 2 am on Saturday morning notifying you of a sudden hole in the roof, are you capable of fixing that problem? Some people have the skills and time to manage these issues, but most people do not. In these instances it is a good idea to use the service of a reputable management firm.
Investment/Rental Properties (5 Part Series)
Good morning Superstars,
Here's a sampling of this week's Superstar discussions.
| Replies | Latest Activity | |
|---|---|---|
My hands are tiedWhen we initially signed the contract we were told that even though this is a short sale it will NOT take a long time and the process was g… Started by Tara | 6 | 10 hours ago Reply by Harry Clay |
B OF A shortsale rejecting sellers assistI did an agreement of sale for a shortsale that is backed by bank of america. The sellers have a FHA loan. State is PA. We put down $12,000… Started by Mike F | 10 | 21 hours ago Reply by Jeff Payne |
Attorney fee & processing fees on short sales when buyer is purchasing using a VA loan?Does anyone know how when the buyer is purchasing a short sale with a VA loan an Attorney fee of 800.00 for obtaining the approval(s) &… Started by Michelle Marina | 6 | yesterday Reply by Kevin - Greenville, SC |
Short sale approved but they want seller to miss a payment!We put contract on a short sale through Suntrust in April. Bank approved short sale yesterday under the condition seller misses 1 payment!… Started by Erica | 5 | yesterday Reply by Wayne Brooks |
REDC Gross Mismanagement of Bank of America file - Escalation?I'm a 3rd party negotiator and I've been working on a HAFA short sale since August, 2012, when I jumped in. File is Bank of America being… Started by Linda Ippolito | 24 | yesterday Reply by Ron Scribner |
 Fannie Mae and Freddie Mac Control MLS Market TimeFannie Mae and Freddie Mac are now dictating market time. Short sales that are Fannie Mae or Freddie Mac loans must be active in the MLS fo… Started by Wendy Rulnick REFERRAL PROGRAM DETAILS We have had several members ask us about our referral program. So.....here’s how it works. Short Sale Superstars receives requests from sellers and buyers needing assistance. These referrals are sent out in a group message to our Advanced Short Sale Training Group members first. Becoming a member of this group requires going through our Advanced Short Sale Training. The cost is $147.00 for a 2 year membership and 13 hours of training (audio). Click the link above for more details. If we do not have an advanced member in the area needed we then send out a group message to the members of the Referral Group. Joining the Referral Group is free. If there is still no one available to assist we then send out an email to all members of Short Sale Superstars. Also free. Currently we charge a 20% referral fee on properties that sale for $100,000 or more. Referrals are paid to REGrow, LLC a Florida Licensed Real Estate Brokerage. REGrow, LLC is the owner of Short Sale Superstars. So.....are ready for some referrals? Do You Need More Short Sale Listings? Short Sale Superstars wants to make generating Short Sale leads easier for you. So..... .....here is aFREE one hour course on Short Sale Lead Generation that may help you. Let's make 2013 a banner year for Short Sales. Together we can help a lot of folks avoid foreclosure. | 3 | yesterday Reply by Brett Goldsmith |
Things to Consider Before You Add "Landlord" by Your Name
(Investment Properties: Part 2 of 5)
Owning investment property has been a proven means of gaining wealth. However, it is not as passive as some information marketers would have you to believe. Here are some items to think about before jumping in to the world of landlords.
Handling Repairs
All homes need maintenance and repairs. It does not really matter how old the home is, whether it is brick or wood or even a modular home. To protect tenants most states have adopted laws that favor the renter when repairs are not made in a timely manner. If you are handy with tools and have a knack for being able to fix anything that breaks then this may not be a major issue.
However, if you have a full time job, a family and you are not comfortable with most repairs then you will need to decide how to handle the roof leaks, toilet overflows and broken appliances that come from owning a home. You can choose to use a property management company that will handle all the repairs for you and simply bill you. Or you can contract with your own handyman service.
Managing Tenants
The majority of tenants will pay the monthly rent and treat the place as if they actually owned it. However, a small percentage of people can cause a large number of problems. Lack of maintenance can lead to mold and mildew throughout the property. However, major problems like parties that attract police, illegal activities that end up on the news and major damage to floors, ceilings and walls can cause a nightmare for even the most patient person. Some people have the personality to handle this kind of stress while others want no part of the problems.
Collecting Money
It is highly likely that at some point you will have to call on your tenants, either on the phone or in person, and get them to pay for their past due rent. This is just a fact of being a landlord. With these situations comes a need for good judgment. Some people really do run in to bad luck and simply need a few more days to pay the rent. Others are either poor money managers or simply lazy and refuse to pay their obligations on time.
Evictions
It may seem on the surface that evictions favor the landlord. Once the renter has stopped making payments then the landlord simply makes a plea to the local court to have the person(s) removed.
However, things are not that simple. First, you will lose a month’s rent waiting on the tenant to pay. If the court system is backed up then you may have to wait another month to get a hearing date. In the meantime the renter can leave a major mess behind that requires extensive cleanup and possibly new paint and carpet. Once again, as stated before, the majority of tenants will pay on time and not cause problems. But an eviction can be problematic and expensive and you need to be prepared for it.
Investment/Rental Properties (5 Part Series)
Advice About Purchasing Your First Rental Home/Property
(Investment Properties: Part 1 of 5)
Before buying that first piece of rental property it is important that you answer a single question. This question has nothing to do with your credit score, your experience with real estate or how much money you can gather for the purchase. The question is quite simple: WHY are you buying an investment home?
The answer to this question will guide you towards the right kind of property and the right type of financing. Let’s look at some examples to get a better idea of reasons people use to start investing in homes.
Saving for College Tuition
This type of goal usually involves a term over a few years. Couples with young children will buy a home in an area that has shown signs of appreciating. A year or two before the child enters college the family will sell the home and use the profit to pay for tuition, books and other expenses.
In this particular scenario the couple is not concerned with making a large profit each month on the rent. They simply want to break even while keeping the home in tip-top shape to maximize the potential appreciation.
Using Cash Flow to Increase Monthly Income
Some individuals invest in rental homes because they want to earn a profit each month from the rent. In these cases it is extremely important to buy a home either for all cash or at a deep discount from the market price. Foreclosures and vacant homes are common for this example. Buying the home for cash or at a deep discount allows the landlord to charge a fair rent based on the current market conditions and pocket most of the money each month as profit.
Speculation about Future Values
Sometimes people simply buy a property at a slightly discounted price in hopes that the property value will escalate quickly due to a future event. For instance, a new shopping mall, new school or a new factory can greatly improve the value of homes in the immediate area. Buying a home in such a location and holding on to it for a few months to a year can yield a high profit.
Career Change
Some people want to begin their property investment as a means to escape their current full time job and start a new career. It is possible for people to invest in real estate as their main source of income. However, it is not a get rich quick scheme.
The most successful investors have clear goals and follow a proven formula. They buy homes in particular areas that exhibit desirable qualities. They only buy when the price is discounted heavily and they have favorable financing for the transaction. They also understand the rental rates for the area in comparison to the financing costs.
Buying a rental home can be lucrative and lead to good fortune. However, it must be approached with diligence and hard work, not pie-in-the-sky dreams.
Investment/Rental Properties (5 Part Series)
Rock Realty Client Testimonials
"Mike & Matt,
Thank you so much for helping us find our dream home! We love it! Thank you for the many hours spent in research, travel, phone calls, and emails. Thank you for being open & honest with us every step of the way! We felt we could trust you 100%. We really enjoyed working with you and highly recommend you to others.
Thanks!"
Kevin & Abby G. (Madison, WI)
Rock Realty Home Buyer Client
Thanks for the compliments, and Congratulations on your new home Kevin & Abby!
Looking to purchase a home in Wisconsin?? Contact Rock Realty! We would love to help!!
It seems that we've weathered the storm of the foreclosure craze and have experienced a massive pendulum shift in which home seller's can pretty much dictate what they want for a change. Multiple offer and calls for highest and best on NORMAL market sales have become the norm for some markets. All of this is absolutely outstanding.....if you're looking to sell your home.
HOWEVER......
If you're a buyer trying to purchase a home and keep being disappointed by losing out to some cash buyer whose offering $10,000 over the listed price, then it becomes a different story......
I've noticed an increasing trend of potential buyers who are now making attempts to decrease their expenses related to purchasing a home (outside of the actual purchase price), so that they're able to pay more of their own closing costs or an increased down payment amount.....just about ANYTHING to be able to reach the coveted position of the absolute highest and best offer that the Seller's receive.
There's one particular question that I'm continuously being asked over and over again......"Do we really need to have a home inspection???"
WHADDAYA MEAN?????
Nothing...and I do mean NOTHING should replace the expense of a home inspector! Not even having Cousin Joe, who has a job pouring driveways for new construction, take a gander at the largest investment that you're about to undertake to "check it out"!!! A home inspection is absolutely VITAL to purchasing a home! Even if you're purchasing a distressed property that's being sold "as is, where is"....it is your absolute duty to ensure that you're fully aware of what's going on with the property that you're about to purchase.
Trust me....it makes a difference when a large defect is found, after the sale, and you're informed that your homeowner's insurance will not cover the cost to repair. It's the very best deal that you'll ever receive for a few hundred dollars!
hello i have 2 lien holders the first lien holder refuses to review the file until the 2nd lien holders approves the short sale. has anyone ever run into this? 1st is Nation Star the 2nd is Citizens bank. 1st is only allowing 3k to the second and the second refuses to take anything less than 6k. Each want to see an approval letter from the other. Any advice, TIA
This is a first for me.
I heard about a short sale seller who sold his house in 2009. Several years later, they find out that the buyer is selling the house. The previous owner loved that house and would like to buy it back.
Are there any rules to prevent him from doing so? He has already repaired his credit and in a better financial situation today than before.
He doesn't know who the current owner is....but he has been driving by the house he lost, and found out it's going on for sale.
Comments?
We have been helping agents all over the country process their short sales and THIS IS A NEW SITUATION:
We were working with a smaller bank and THEY ACTUALLY ASKED US TO HELP THEM WRITE THEIR APPROVAL LETTER!!!
Yep, first short sale the bank had ever done.
They asked us what documents they needed to see, and, asked us to send them a copy of an approval letter from another bank so they could see what it looked like. The short sale was quickly approved and the approval letter was of course almost word for word from what we told them.
Needless to say - WE GOT THAT SHORT SALE APPROVED!!!!!
All my best to everyone helping homeowners......if you are having "short sale headaches", contact me so I can help!!!
Sincerely,
Ben Benita
Ben@ShortSaleShop.net
855-50-SHORT
Does anyone have an executive contact at Franklin?
Thank you.
There was a little known Supreme Court decision that did not receive the same fanfare as some of the other cases before the Court. The recent property-rights ruling went in favor of landowners and land developers. The ruling could have far-reaching effects on how government handles property owners’ decisions that “cause wider harm or social burdens” on the community. The case, Koontz v. St. Johns River Management District, revolved around the property owner (Koontz)’s desire to develop about four acres of a 14.9-acre wetland property. When Koontz sought a permit for the development from the local water management district (St. Johns), he was told that he could choose either to develop only one acre or pay for contractors to make improvements to government-owned wetlands in the same watershed in exchange for a full permit. Koontz opted to take neither option and sued, saying that his property was essentially “taken for public use without just compensation” because he was not able to develop his land without agreeing to “extortionate demands.”
Backed by the National Association of Home Builders, civil liberties groups, and property-rights advocacy groups, Koontz’ case spent 11 years working its way through the legal system. The Supreme Court ended up siding with Koontz, saying that the local watershed “impermissibly burden the right not to have property taken without just compensation” by creating a set of parameters around the receipt of the desired permit that prevented Koontz from using his own land for his own benefit. The vote was 5-4 in favor of Koontz, with Justice Alito writing in support of the decision that “land-use permit applicants are especially vulnerable to…coercion…because the government often has broad discretion to deny a permit that is worth far more than the property it would like to take” and that “government…may not leverage its legitimate interest in mitigation to pursue governmental ends that lack an essential nexus and rough proportionality to [social costs of the proposal]”.
Not surprisingly, many property owners are breathing a collective sigh of relief that their rights are being further defined and protected, but critics of the decision warn that the ruling sets a dangerous precedent since technically no physical thing was taken away from Koontz. Justice Kagan, who wrote the dissenting opinion on the case, said that the ruling “threatens to subject a vast array of land-use regulations….to heightened constitutional scrutiny” and “I would not embark on so unwise an adventure”. Why an I am not surprised that Justice Kagan dissented on this.....
Paddy Deighan, J.D. Ph.D
Well, the happy news out of BofA’ville just never seems to end. Last month I read that according to their CEO, Bank of America’ problems are behind them!!!! Really?? Wall Street is buying it but I am not!!! Recent litigation has revealed numerous statements by former Bank of America employees that are ASTOUNDING and SHOCKING!!!
According to Bank of America employees, the lender offered employees incentives for sending homeowners into foreclosure rather than modifying their loans!!! Special!!! The BofA employees stated under oath that they were “told to lie to homeowners about loan modifications and were rewarded for sending homeowners to foreclosure rather than modifying their loans”. The allegations and incriminating statements are part of the evidence being presented in a federal class-action lawsuit brought by homeowners against BofA. The homeowners say that the lender deliberately “thwarted their attempts to take advantage of the federal Home Affordable Modification Program (HAMP).” Former employees of BofA involved in the suit testified that they were “instructed to deny modifications for no reason, to pretend they had not received documents they received, to hold documents and then claim they were too old, and to cancel trial modifications for ‘nonpayment’ even when all payments had been received.” The employees also reported that the bank “drilled” into them that the longer loan modifications were delayed, the more fees the bank could collect, even if this meant “lying to customers.”
The mortgage workers reportedly received cash bonuses and gift cards for meeting quotas for sending distressed homeowners into foreclosure. Not surprisingly, BofA has denied all of these allegations and pointed to the fact that it has, so far, helped the most homeowners under HAMP of any lender. “[BofA] is committed to assisting customers at risk of foreclosure,” said spokesman Rick Simon via email. A former loan collector for the bank disputes this claim, saying that he received $500 for every 10 customers he put into foreclosure and adding that other collectors received gift cards to Target and Bed, Bath & Beyond for putting homeowners in trial modifications into foreclosure.
Paddy Deighan J.D. Ph.D
Well, it seems there is a bit of hypocrisy coming out of Washington for a little change of pace. President Obama announced his nomination of congressman Mel Watt (D-NC) for director of the Federal Housing Finance Agency (FHFA). Many homeowners around the country were delighted by this selection because Congressman Watt has a history of supporting principal reduction in loan modification programs.
The hope is that he will continue this position during his tenure as head of the FHFA. Current acting director of the FHFA, Edward DeMarco, has refused to allow Fannie Mae and Freddie Mac to include principal write-downs in their loan modification arsenals. Demarco argues that the practice not only jeopardizes the American taxpayers, but also rewards poor payment history and sets a bad example. Now Watt could be causing problems in this area himself. During his confirmation hearing in the Senate last week, Watt said that while he would not preemptively refuse to engage in write-downs, he also would not endorse the policy. Instead, he promised to “study carefully how that decision [to not do write-downs] was reached, what it was based on, and then I would build on that new information…and make a responsible decision.”
Not surprisingly, Watt’s apparent reluctance has upset many home owners who believed that he would definitely approve the controversial measure to engage in principal reductions as part of a loan modification program. He has been accused of backtracking and failing his constituents. This is particularly alarming since Watt was a vocal critic of DeMarco’s policies as a congressman. Watt responded that while it was his responsibility to support write-downs as a congressman because he had many underwater borrowers in his district, as director of the FHFA he would have to be “a strong advocate for taxpayers”. Watt is likely treading lightly around this issue because one presidential nominee to replace DeMarco has already been blocked.
As my Mother was known to say, “We will see what we shall see”
Good morning Superstars.
Here's a sampling of this week's Superstar discussions.
Credit Repair Business OpportunityGood morning Superstars. Today I want to talk a little bit about Credit Restoration. As many of you may know TLW and I went through a very… Started by youLatest Reply |
MEMBER WEBINAR: How To Turn Short Sale Sellers Into BuyersHow to turn Short Sale Sellers into BUYERS! Join us for a Webinar on July 3 Space is limited. Reserve your Webinar seat… Started by youLatest Reply |
FICO Credit Scoring of Short Sales Compared to ForeclosureThis is a really interesting article by Yves Smith of Naked Capitalism on"FICO's Dubious Explanation of Why It Treats Short Sales the Same… Started by Wendy RulnickLatest Reply |
Ocwen and FHA Loan Modification GuidelinesI have been negotiating with Ocuwen to get a short sale approved for a client. After the initial runaround of having to send the same pape… Started by Linda C. Babbitt | 1 | 18 hours ago Reply by Brian Avery |
Property underwater due to 2nd equity linePreparing to list property where we're close to payoff on the first mortgage (BofA). Sellers have a 2nd HELOC (5th 3rd) that puts them unde… Started by Amy L Augenstein | 0 | yesterday |
Can't get PNC to Budge on 2nd Lien Payoff!I have a short sale with BofA as the 1st and PNC as the 2nd. PNC wants $15,000. BofA will only give them 8%. I got the buyer to kick in som… Started by Kelly Townsend | 2 | yesterday Reply by Brian Avery |
Is our bank required to give us a copy of the BPO or appraisal they had done on our property? Disputing value of homeWe are in the beginning stages of disputing the value of the home we are attempting to do a short sale with. I do not understand the proce… Started by Darlene Parker | 18 | yesterday Reply by Ron Scribner |
Duel Tracking - Nationwide?Hi, this might be a silly question but is the New Duel Tracking (Homeowner’s bill of rights) law Nationwide or just in CA? Do you know if… Started by Russ Trinidad | 2 | on Thursday Reply by Ron Scribner |
SUNTRUST MORTGAGE NOT WAIVING DEFICIENCYI have a short sale with one mortgage with Suntrust. The principal balance of the debt is $386,000, and our offer is $370,000. Suntrust wi… Started by Marti Watson | 1 | on Thursday Reply by Wayne Brooks |
(Audios are 45-90 min each).
***Use discount code sss10000 for a $50 instant savings
The Wisconsin housing statistics are in for May of 2013. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:
Strong home sales in Wisconsin for May helped boost prices up, according to the most recent statistical report released by the Wisconsin REALTORS® Association (WRA). The sale of existing homes in May increased 18.2 percent over last May, now the 23rd straight month of positive sales growth in Wisconsin, which helped push the median price up 4.3 percent to a statewide median of $144,000.
“These are very positive signals and represent an uptick from the pace of sales established in the first four months of the year,” said Renny Diedrich, chairman of the WRA board of directors. Existing home sales rose 10.3 percent from January through April this year compared to that same four-month period in 2012. “There’s no doubt consumer demand has been strong over the last couple of years, but now we’re also seeing sellers jump back in the market as well,” Diedrich said.
“Prices showed solid but sustainable growth,” said Michael Theo, WRA President and CEO. "We saw some large increases in median prices in March and April, so it’s good to see more modest increases in May."
Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales & prices have been increasing over the past few years. Both Dane and Rock counties are showing marked improvements in the number of homes sold and the price at which they are being sold at. This spring has been really hot for the properties that are priced right! There's been a large increase in the number of home sold, as you can see below.
If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.
Housing Statistics for the State of Wisconsin:
May 2013
Home Sales: 7,403
Median Home Price: $144,000
May 2012
Home Sales: 6,181
Median Home Price: $138,000
Housing Statistics for Dane County, WI:
May 2013
Home Sales: 925
Median Home Price: $207,000
May 2012
Home Sales: 623
Median Home Price: $211,000
Housing Statistics for Rock County, WI:
May 2013
Home Sales: 205
Median Home Price: $114,000
May 2012
Home Sales: 173
Median Home Price: $100,000
View my report from last month. Wisconsin April 2013 Housing Statistics
Rock Realty Client Testimonials
"I found Rock Realty on the internet while looking for someone to help us sell our house .. I called and talked to Mike, we set up an appt and he got the ball rolling... and wow did he get the ball rolling..he stepped up in every aspect.. the house was all over the net and we had people looking at the house right away .. he was right there every time we had questions and made us feel as if we were his only client.. he worked thru any difficulties we had without any negativities...our house sold Very quickly and Mike really stepped up through the whole process... Our thanks to Mike and Rock Realty"
Scott H. (Janesville, WI)
Rock Realty Seller Client
Thanks for the compliments, and Congratulations on your closing Scott!
Looking to sell your home at a great price!? Check out what Rock Realty can do for you!
Unfortunately, not all Short Sale properties that are listed for sale in the Los Angeles area will close escrow. First, what is a Short Sale? If a home's current market value is less than the mortgage balance owed and the homeowner (borrower) cannot afford to make the mortgage payments, they will ask their lender(s) to take an offer from a buyer and approve a Short Sale. This a very different type of sale compared to the traditional real estate transaction. Not all real estate agents will have the training, knowledge and experience that is required with a Short Sale. So, choosing a professional Short Sale Realtor is important. The homeowner is already having a difficult time and does not need to become the agent's first short sale experience.
If a trustee sale date has been set or the foreclosure date is soon approaching, that could put the Short Sale at risk. The Short Sale Agent and seller would have to work on getting the short sale package to the lender quickly and then, the agent must insist that the lender postpone the foreclosure sale so that there is time for a Short Sale. So, it is better not to wait if you are planning on a Short Sale.
Sometimes, a lien or judgment will show up that affects the title of the property besides the mortgage loans. These liens or judgments must be cleared before a sale can close. Liens may include past due homeowner association (HOA) fees and state or income taxes. Judgments may be as a result of unpaid credit card bills, for example.
Other reasons that a Short Sale might not be successful:
All Short Sale lenders will require an appraisal on their behalf to obtain an estimate of the fair market value of the property before they approve an offer. Sometimes, the appraiser's value will come in "high" and the lender might want more than a buyer is willing to pay for the home. The Short Sale Realtor should be able to work with the lender to dispute the value (if that's the situation).
If there is more than one mortgage loan involved, then a second lender will need to approve a certain amount of money for their settlement as part of the Short Sale. The first mortgage company dictates how much of the Short Sale proceeds they are willing to allow to the junior loans. If the junior liens want more money, there are ways that it can be satisfied.
It is also important that the buyer that is purchasing the home be serious and qualified. The buyer should be able to obtain financing (unless they are paying cash) to complete the purchase of the short sale home. If the buyer cancels, another buyer has to be ready to go.
However, there is good news-- my Short Sales have been successful. So, Short Sales do close!
Note: While I was in the process of writing this article, I received a phone call from a short seller that had a trustee sale date within a couple of days. The homeowner was upset because they had hired a real estate agent to work with their lender on a Short Sale and the realtor did not properly communicate with the lender so the bank was not postponing the foreclosure sale. Seller was NOT happy.
los angeles short sale realtor agent
source: http://activerain.com/blogsview/3765671/are-all-short-sales-in-los-angeles-always-a-success-
If you have a client that has a just filed or soon to be filed residential foreclosure action in Florida, what new timelines can you expect under the new Florida Foreclosure Law? Effective with all NEW lawsuits filed on or after July 1, 2013 the new streamlined foreclosure procedures law will govern how fast the lawsuit will proceed – or at least that is the theory behind the new law. Reality can be quite something else.
Under the law as it existed before June 7, 2013 (the date Governor Scott signed the legislation) an uncontested or minimally contested foreclosure action could take about 110 days from start to finish PROVIDED the lender’s attorney did all the things the lender’s attorney could do under Florida’s Rules of Civil Procedure when they could be done. For example, a foreclosure action usually results in the Lender counsel waiting for the time after service of process of the lawsuit on the defendants and then filing a Motion for Summary Judgment of Foreclosure. The reality is that most lender counsel don’t jump on getting the Motion for Summary Judgment filed and the Motion then set for a Hearing date until days or weeks after the soonest date one can be requested. The procedural rules provide that the lender attorney cannot set the Motion for Summary Judgment for hearing sooner than 20 days from the date of the filing of the Motion for Summary Judgment. Many courts today are have busy schedules, so it may take 30 days to get a hearing, thus creating a 10 day delay.
Under the law (click here for a copy of the bill) as it will be beginning June 8, 2013, these timelines are supposed to have been changed. …………
One part of the legislation actually asks the Florida Supreme Court to create an expedited timeline for foreclosures in the Florida Rules of Civil Procedure. These Rules are created not by the legislature, but by the Florida Supreme Court. Almost all of the 110 days that I mentioned above are from time requirements set forth in the current Florida Rules of Civil Procedure. Since the legislature cannot change those timelines, it has asked the Florida Supreme Court to do so. So the changes in the entire procedure in Florida are not over yet and there is actually no real “EXPEDITED” in the new law – at least not for now!
Some changes that will affect borrowers:
Deficiencies
The existing deficiency law allows a lender to pursue a deficiency as late as anytime before 5 years after the foreclosure sale date. The revision now states that any deficiency judgment must be sought within one year from the foreclosure sale. Further, in the case of owner-occupied residential property, the amount of the deficiency may not exceed the difference between the judgment and the FMV as of the date of the sale. There is also a rebuttal presumption that a residential property for which there is a homestead exemption is an owner-occupied property.
Finality of Mortgage Foreclosure Judgment
Presently, if a mortgage foreclosure judgment and sale is set aside, the title reverts to the borrower. Under new Fla. Stat. 702.036 any action to set aside, invalidate, or challenge the validity of a final judgment of foreclosure or to re-establish a lien or encumbrance is relegated only to monetary damages if certain conditions are met: 1) proper service, 2) final judgment was to the property, 3) appeals periods have run, and 4) a non-affiliated third-party bidder purchased the property. The statute then goes on to address the rights of the true owner/holder when that final judgment is received via a lost note affidavit.
Lost Note Affidavits
Fla. Stat. 702.015 is created to address a lost note affidavit for residential loans by requiring threshold requirements in the initial pleadings. The complaint must contain affirmative allegations as to it holding/owning the note and its entitlement to enforce them. Further, in the alternative, the complaint must contain allegations as to how the right to sue was delegated to the plaintiff if it is now the owner/holder. Lastly, contemporaneously with the complaint, a plaintiff must file a certification regarding the original note. In addition, when the complaint is filed a plaintiff must file its lost note affidavit.
Lost Note Indemnification
A big deal is the new indemnification requirement. This is important because the prior law did not have any baseline standard for the lender guarantying to the borrower it would AND COULD defend any claims that someone else held the promissory note. Fla. Stat. 702.11 is created to state lost note indemnification means 1) a written indemnification agreement, 2) a surety bond, 3) a letter of credit, 4) deposit or cash collateral, or 5) other security the court deems appropriate.
Timelines
The new timeline for an expeditiously lender attorney handled residential foreclosure I think will remain the same – for now! Until the Florida Supreme Court creates new “expedited” rules of procedure, I do not see the timeline changing under the new law. I will stick to my 110 day start to finish timeline that I proposed years ago – that can still work today. See FORECLOSURE PROCESS FINISHED IN 100 DAYS? BUT - now you say that most realtors say that foreclosures take years, not weeks. Although it is true that there are foreclosures that have taken since 2008 to get resolved in 2013, that was the result of situations and forces that no one could have predicted (and no one did predict that log jam scenario, further aggravated by a moratorium on filing foreclosures, another delay no one predicted). Timelines are based on technicalities but they are subject to the vagaries of human conduct, mostly caused by distraction and personal priorities. Lately we hear of foreclosures taking 5 months in Florida. That's 150 days and close to the technical line of 110 days, so reality and possibility are becoming aligned. My experience is getting away from the major population centers creates a courtroom atmosphere were there are far fewer pending cases and thus fewer delays both from excess work vs. available time, to simply the number of pending cases. Whatever the reason, now more than ever your clients need to understand the race of the FORECLOSURE EXPRESS VS. LITTLE ENGINE THAT COULD .
---------------------------------------
© 2013 Richard P Zaretsky, Esq.
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.
See our easy to find articles at
TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES.
**********************************
like buttons
************************
