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The Right Way to Investigate Your New Neighborhood

The house looks perfect and it has all the features you need.  The location is convenient for your needs and there really is nothing standing in the way of buying this particular property.  STOP.  Don’t buy the house until you do one thing; investigate your new potential neighbors.  Here are some tips for finding out the not so obvious facts.

Make Multiple Visits at Multiple Times

One of the best things you can do before buying the home is to visit the home are various times and various days.  The appearance of the neighborhood at 11:00 am on a Wednesday will likely be different from the appearance on a Thursday night.  Look for neighbors that are in the yard, on the street and how busy the roads are.  Are any of the neighbors engaged in any loud activities such as parties, electric tool use or other annoying sounds?  Take your time and make sure to visit the home on the weekend as well.

Chat Up Your Potential Neighbors

The people that will be your neighbors have the information you need.  However, it can be a challenge to get them to talk.  During your visits look for people out in the yard engaged in various activities.  Start a pleasant conversation and ask them about their opinion of the area and the neighborhood.  Ask a few open ended questions and give them a chance to talk.  Make sure to ask if there are any troublesome neighbors to look out for or any problems in the area such as sink-holes, poorly built homes or sewer issues.

Use the Internet

Various websites like Google and Bing offer maps and street views of nearly every known address.  Type in the address and look around.  It is likely that the pictures are at least a few months old if not a few years.  The home could look exactly like it does now or there could be some major changes.  Take time to look at the home you intend to buy as well as the adjoining properties.  You may discover something that raises a red flag and causes you to consider a different property.

Check Police Records

There are some websites and even smart phone apps that provide detailed police records for neighborhoods.  These sites will usually list things such as robberies, vehicle thefts, and violent crime. Some neighbors on one street may not be aware of crime that is frequently occurring one or two streets over.

See if anyone is Blogging

Sometimes there will be a blog or even a small community newspaper published for the area that you are considering.  If you can find the blog or recent paper take some time to review the information.  Local events, improvements in the neighborhoods and other items will likely give you enough detail to see if this is the right area for you.

Some of these steps may take a bit of time to complete and may seem awkward at first.  However, considering the large investment that comes with owning a home it really makes sense to spend some time researching your new neighborhood and ensure that it will be as nice as your new home.

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We received this question recently:

“Hi Broker Bryant,  I'm in the process of doing a Short Sale on my home. My husband is on the deed but is not on the loan. After we do the Short Sale can he buy us a house using only his credit  for the mortgage?”

Well that’s a good question. The answer is.........I doubt it. At least not for a few years. Since he is not on the loan his credit will not necessarily be affected. However, in the new lender’s eyes, because he is on the Deed, he will be “Guilty by Association”.

This is because the property you did the Short Sale on was your “Marital Home”. He may not have been on the loan but he was an owner. He reaped the benefits of ownership and he will also suffer the consequences of the default.

The default will not show up on his credit but......the new lender will do a check on his last place of residence and his ownership of the property will show up. AND the property will show up as being sold as a short sale. “Paid in full for less than the full amount”.

Time Frame For Getting  A New Mortgage

• Mortgage program lending guidelines after a short sale depend on the lender. For loans that are federally backed, such as those from the Federal Housing Administration (FHA), you'll have to wait at least two years from the short sale before you regain eligibility. That's as long as you were current on your old home loan. If you weren't, eligibility could take as long as three years. Private lenders, of course, are free to set their own time requirements. Read the full article.
  

Of course I am NOT a mortgage professional. This information is based on my research. Run this by your mortgage professional.

Upcoming webinar:

 Times are getting tough again for many agents.  Right now there are countless short sale and distressed property "experts" out there competing for only a handful of listings.  On this one time, Live webinar, Mike Linkenauger of the Short Sale Specialist Network and Bryant Tutas of Short Sale Superstars will  discuss and SHOW YOU, step by step, how to generate real estate leads consistently and easily through blogging and search engine optimization.  Mike has directly generated over 170,000 real estate leads online over the last few years alone!  Don't miss this chance to discuss blogging, online lead generation and how to get a greater share of the limited number of listings out there right now with both Mike and Bryant!  At the end, they will answer any questions you may have.  It will last approximately 45 minutes and is a one time event.

Great news for Bank of America short sales

From the Florida Association of Realtors(R) newsletter today.

BofA announces new short sale incentive NEW YORK – May 16, 2012 – Bank of America announced a new short-sale program – called enhanced relocation assistance – to help homeowners move debt free and get paid $2,500 to $30,000 for doing so. The actual cash payment depends on the appraised value of the home.

Sellers get the payment at closing. While each agreement with Bank of America is unique, the offer generally requires sellers to satisfy junior liens to provide clear title to the property; a full walk-through appraisal; and a closing that occurs on or before Sept. 26, 2012 (I heard this is actually 2013). The program only applies to pre-approved short sales, not sales that start with an offer; and eligible homeowners must actively participate in a short sale program, such as HAFA or Bank of America’s proprietary program.

Bank of America says Realtors can determine a client’s eligibility quickly through its lending website, agent.equator.com, or by calling a short-sale specialist at (866) 880-1232.

Sellers already working on a short sale through Bank of America are also eligible if they meet the requirements. The bank says it will contact them by letter if they qualify.

© 2012 Florida Realtors®

From the Florida Association of Realtors Newsletter.

WASHINGTON – Aug. 22, 2012 – The Federal Housing Finance Agency (FHFA) announced that short sales on homes under Fannie Mae and Freddie Mac would get easier after Nov. 1, 2012. It issued new guidelines that help homeowners hit by a financial hardship, moved by the military or held back by a home’s second mortgage.

“The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job,” says FHFA Acting Director Edward J. DeMarco.

READ FULL ARTICLE

This is from the Florida Association of Realtors(R) newsletter:

.........Banks have resisted a push to reduce principal owed by homeowners behind on their payments. One concern is that borrowers in good standing will stop making payments in order to lower their balances.

Bank of America has offered to reduce principal for loans in its own portfolio and for those the bank services for private investors, the person said. Loans owned by government-controlled mortgage giants Fannie Mae and Freddie Mac would not be eligible.

Of the 14 million loans serviced by Bank of America, half are owned by Fannie and Freddie. One-quarter are owned by the bank, and another quarter by private investors. Borrowers with a balance of $1 million or less and who live in their homes would be eligible. The homeowner’s monthly mortgage debt would have to be equal to 25 percent or more of their monthly income.

READ THE COMPLETE STORY

From The Florida Association of Realtor(R)s newsletter today:

AP: Lawyers accused of scam in bank suits COSTA MESA, Calif. – Aug. 19, 2011 – California prosecutors sued several lawyers and call center operators for allegedly duping desperate homeowners across the country into paying thousands of dollars to join dubious lawsuits against big banks.

The complaint unsealed Thursday in Los Angeles County Superior Court accuses prominent foreclosure attorneys Philip Kramer and Mitchell Stein and at least 17 other individuals and businesses of ensnaring borrowers in a scheme that falsely promised a cut of future settlements.