5 tips you didn’t know when selling your home

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I thought I’ll share 5 tips with you about facing some issues while selling your home.

1) The right sights, smells and sounds.

It is no news flash  that the view of a utilized car lot; stinky foods or animal smells; along with the siren song of a fire station next door might be deal-killers. What may possibly surprise is a few of the right sights, smells and sounds that will support seal the sale of your property. My experience has been – agents, chime in here! – that the more natural stunning sights, smells and sounds are, the more favorably they’ll be received by the largest population of prospective buyers.

For example, playing a soundtrack of classical musical is fine, but will trigger some skeptical buyers to wonder what noises you may be attempting to cover up – particularly if you are in a condo or other potentially thin-walled property where neighbor noise might be an issue. On the other hand, birdsong could be attractive to some buyers. Artificial air fresheners? Not so significantly. The scent of the jasmine or lavender that grows inside your yard? Even allergy victims can appreciate that.

You might be desensitized to the wonderful views of trees, mountains or even water outside your window, but pulling back the curtains so prospective buyers can see for themselves is an absolute should.

House getting is often a multi-sensory encounter – visual staging of the property itself is no longer a plus, it is a ought to. But homes which develop pleasant impressions that fire on all of a buyer’s sensory cylinders surely have the edge on their competition.

2) Your happiness.

Video and even written love letters that extoll all the virtues for which you love your neighbors, your neighborhood and your property are contagious to buyers. I’ve observed sellers aid buyers see their houses through their own loving eyes by posting videos on YouTube and including the link on the listing flyer or even by putting a binder containing a letter plus menus and flyers from their favorite neighborhood restaurants, dry cleaners and other nearby merchants out on the counter during showings.

Wide-open curtains that let light stream in, light and bright paint and decor colors along with other home features that science has proven make residents more happy and functional also produce this thought process in a buyer’s mind: “Hmm, these people appear pleased here. I could be, too.”

Similarly, indicators that you invested a good deal of adore in your home, by keeping it in immaculate order and pristine condition, by tending a well-cared for kitchen garden, lovingly furnishing and creating comfortable (if not overly customizing) your kids’ rooms, all produce the feel that a residence was happily lived in – it’s like staging your property having a life well-lived, not just paint and tile.

3) The freeway or subway you thought was too close.

There’s such a thing as a freeway or elevated train tracks becoming too close to your house; if your location rattles or roars, for instance, every time the train passes, chances any buyer will view that as a selling point are pretty slim. Nevertheless, homebuyer attitudes toward being located near freeways and subways or bus lines are a-changing. Every single upward click of gas costs renders buyers a tiny bit far more interested in a location that is much more commutable.

Where yesteryear’s buyers had been all about the posh exclusivity of far-out suburbia, today’s buyers are more interested in monetary and ecological efficiency and convenience. I’ve never heard so many homebuyers looking to own homes that will enable them to ditch their cars entirely as I’ve in recent years!

What may well once have been seen as too close to the freeway has gotten a brand new spin, lately, as a extremely convenient, commuter-friendly location.

4) Your neighbors.

Most homeowners contemplating selling their homes recognize the significance of well-kept neighboring houses. A lot of a buyer has pulled up to an incredible house, viewed it, and left shaking their head with woe due to the fact they just can’t cotton to getting the place on account of the shoulder-high weeds, car inside the yard or crumbling ruins of the home next door.

On the flip side, your neighbors themselves – not just the houses, but the folks – can in fact aid sell your home. Numerous homeowners know people who need to live in their neck of the woods; this is 1 reason several seasoned real estate experts hold their listings open to neighbors and send out postcards to neighbors announcing the listing – the neighbors might know people who are thinking about your house! Also, neighbors who are out and about chatting with each other, laughing and playing with their children, mowing their lawns or painting their fences, or even who just offer a smile and useful location information to the buyer-to-be they pass on the street can make a extremely favorable impression on prospective buyers.

It is a fantastic notion, if and once you determine to list your residence for sale, to touch base with neighbors you know and let them know; it is in their very best interests to get excellent new neighbors, so they may be able to go the extra mile in showing the neighborhood’s greatest asset – themselves – off to its very best benefit.

5) Your pets.

The New York Times ran a piece a couple of months ago about sweet, well-behaved dogs (and cats!) who reportedly helped sell their owners’ Manhattan apartments. In a departure from the conventional wisdom that dogs need to be removed and every single trace of their presence erased from the residence throughout showings, the post featured numerous buyers and brokers attesting to their belief that the presence of a specific cat or dog “help[ed] sell a property by producing the location appear warmer or more appealing.” And I’m sure you’ve all heard me tell the story of the San Diego buyer who fell in love having a tract house listed at a price higher than all of the nearly identical comparables he’d noticed and wanted to make a full-price provide instantly – so lengthy as the deal included the dog!

Definitely consult together with your agent just before you decide to implement leaving your dog at house for showings as part of your strategy. I’m a dog lover, and could be concerned that someone may inadvertently let 1 of “my girls” out, if I left them there whilst my home was becoming shown; also, would-be buyers or their agents may possibly have allergies your pet could set off. Lately, it appears like I’ve noticed many brokers attempting to capture the very best of both worlds by generating certain that the family pet or even the broker’s own pet is captured in a charming tableau in 1 or 2 of the listing pictures, even if they’re not present at the residence in the course of showings.

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Comments (0) Jun 09 2011

Addendum language

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This is a list of addendum language that I use when needed.

1. ACCESS TO PUBLIC ROAD:
The Seller warrants that the subject property has the right of ingress and egress to and from_________________________ road without limitation by way of the existing driveway located at:____________________________________________
2. AGENT AS PRINCIPAL OR RELATIVE OF PRINCIPAL:
A. All parties acknowledge that___________________is a duly licensed Real Estate Agent under the law of
__________________ and is acting as the____________________________________.
B. All parties acknowledge that_____________________________is a duly licensed Real Estate Agent under the law of ____________________, and is the____________________of the____________________________and is acting as the agent of the ________________________________________.
(Buyer or Seller)

C. All parties acknowledge that the Buyer/Agent intends to sell the Property at a future date for a profit.

3.AMENITY PACKAGE RELEASE:
In the event that the Property is served by a recreational amenity package either now existing or to be constructed, Buyer acknowledges and represents that he has investigated the ownership and availability of such amenity package, and hereby releases Broker and Affiliated licensees from any responsibility or liability in regard thereto.
4. ASSESSMENTS OR LIENS:
The parties hereto are aware that there is a_______________assessment or lien against the within described Property in the amount of $________________________. Said assessment or lien shall be paid by/at the closing of this sale.
5. PROPERTY EXCHANGE:
This Agreement, and the Separate Agreement which is attached hereto, are intended to be Exchange Properties pursuant to Internal Revenue Code § 1031. The parties agree that they will perform all necessary acts and that they will execute all necessary documents to effectuate an Exchange of Properties under said Section. The parties anticipate that the closings upon the properties which are the subject of this Agreement and the attached Agreement will be simultaneous.

6.CONTINGENCIES:
A. Appraisal.
This Agreement is contingent upon_____________having Property appraised no later than_________________
and to pay for the appraisal. In the event the appraisal is not timely made, this contingency shall be deemed waived. The property must appraise for at least the amount set forth in the “Purchase Price” paragraph of the Agreement or the Buyer may, at his option, on or before_______________________, declare this Agreement null and void and all earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation. In the event Buyer fails to exercise this option, it shall be deemed waived.

B.Approval of Others.
This Agreement is contingent upon___________________viewing and approving the above described Property, and, if acceptable, notifying the Seller or Broker on or before________________________. Should the Property be unacceptable to_____________, this Agreement shall become null and void and all earnest money refunded in full, in which event all parties agree to execute all necessary documentation. In the event this contingency is not removed by the date set above, this contingency shall be deemed Waived and the Agreement shall remain in full force and effect.

C.Bankruptcy Pending.
The parties herein acknowledge that they have been informed of bankruptcy proceedings in the Federal District Court, and that this Agreement is contingent upon a final judgment and decree authorizing the sale of the Property. In the event that a final judgment sale authorization is not granted by_______________________, this Agreement shall become null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.

D.Court Permission to Sell.
Seller’s obligations under this Agreement are contingent upon approval or order of the appropriate court having jurisdiction over the sale of the Property on or before___________________________. Seller shall proceed diligently and in good faith, using all reasonable best efforts, at Seller’s expense, to obtain said approval. In the event said approval or order is not received by said date, the Agreement shall be null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.

E. Divorce.
The parties herein acknowledge that they have been informed that the Sellers are involved in a divorce proceeding and that this sale is contingent upon Sellers obtaining a final judgment and decree authorizing the sale of the Property. In the event that a final judgment sale authorization is not granted by___________________, this Agreement shall become null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.
F. Not Contingent on Sale of Property.
Buyer warrants that this Agreement is not contingent upon the sale of current residence or any other property and further states that failure to sell any of said properties will not be grounds for refund of earnest money in the event of loan denial.

G. Trade-in of Buyer’s Property.
This Agreement is contingent upon the Buyer and Seller reaching a mutually satisfactory trade-in agreement on the Buyer’s current Property located at_____________________________________________________________
on or before_____________________________. In the event a mutually satisfactory agreement is not reached within the time stated above, this Agreement shall become null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.

H. Release of Liability (Contingencies).
1) Conventional Loan.
This sale is contingent upon Buyer assuming Seller’s existing loan and Seller’s existing indebtedness for repayment of the loan and lender’s agreement to release Seller from liability thereon on Seller’s Property as described herein. Buyer agrees to immediately apply and submit necessary information to lender. If Buyer has not received such approval and agreement from the lender within________days after the date of acceptance of this Agreement, or should Buyer fail to qualify, the seller shall have the option of waiving this stipulation or declaring the Agreement null and void and all earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation.

2) FHA Loan.

This Agreement is contingent upon the Buyer’s ability to assume (a) the Seller’s existing FHA loan and (b) the Seller’sliability to the Federal Housing Administration (FHA) for the repayment of the FHA loan. Buyer agrees to apply immediately to FHA and submit necessary information. If Buyer has not received such approval and agreement from FHA within______days from date this instrument becomes a binding agreement, or should Buyer fail to qualify to assume the seller’s liability, seller has the option to waive this contingency or to declare the Agreement null and void and earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation.

3) VA Loan.
This Agreement is contingent upon the Buyer’s ability to assume the Seller’s existing VA loan and to assume the Seller’s potential indemnity liability to the U.S. Government for the repayment of the loan and the VA’s agreement to release Seller from liability thereon. Buyer agrees to apply immediately to the VA and submit any necessary documents and information required by VA. If the Buyer has not received such approval and agreement from the VA within_______ business days from the date this Instrument becomes a binding Agreement, or should the Buyer fail to qualify to assume the Seller’s liability, Seller has the option to waive this contingency or to declare this Agreement null and void and earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation.

7 . EARNEST MONEY:
A. Additional Earnest Money Held by Broker/Holder.
Buyer agrees to pay Holder additional earnest money in the principal amount of $_____________________on or before _____________________, making a total earnest money deposit of $_____________________. In the event Buyer fails to pay additional earnest money by said date, then, at the option of Seller (this option to be exercised within seven days of said date), this Agreement may be declared null and void by written notification to Buyer and Broker.
B. Held until Specific Time.
All parties to this Agreement acknowledge that the earnest money will not be deposited until_________________.
8. RECEIPT ACKNOWLEDGMENT:
Receipt of this notice is hereby acknowledged this_________day of____________,______ at_____o’clock____.
By:_____________________________________________.
9. RENT PRORATION:
All prepaid rents on said Property shall be prorated at the closing of the sale. The Seller represents that the monthly rentals on said Property of $___________________will be current at the time of the closing, and that there will be no expenses chargeable to the Seller except the taxes on said Property. The Seller shall pay to the Buyer all security and damage deposits, if any, which have been paid to the seller by any of the tenants. Buyer shall enter into an agreement to hold the Seller harmless against such transfer of security or damage deposits. At the closing of the sale, the Seller shall execute an affidavit which will verify the number of leases and tenancies then outstanding on the Property, the prepaid rent as to each, and the amount of security deposits as to each.

10. SUPERSEDE PREVIOUS CONTRACT:
Upon signatures by all parties, this agreement supersedes and makes null and void previous agreement accepted
____________________________, by and between the parties hereto.
11. THIRD PARTY AGREEMENT:
Seller hereby reserves the right to assign this Agreement to________________________________ (3rd Party) for closing and payment of mission in accordance with the terms hereof.

12. ZONING:
A. Rezoning Contingency.
Buyer understands and agrees that Property is zoned_________________________________and that the improvements thereon may not meet zoning requirements. The Buyer’s obligation hereunder is conditioned upon the Property being rezoned to_____________________________by the appropriate______________________ (County/City) authorities by _____________________________. The_______________________(Buyer/Seller)
shall be responsible for pursuing such rezoning and paying all affiliated cost. In the event that said rezoning is not obtained by said date, then this Agreement shall become null and void and all earnest money shall be refunded to the Buyer. All rezoning applications shall be submitted to Seller for Seller’s approval prior to filing, which approval shall not be unreasonably withheld. All parties agree to cooperate, to sign the necessary documentation and to support the rezoning application.
B. Homes converted to multifamily use where zoning for multifamily use may be questioned.
This Agreement is contingent upon Seller providing a letter from the city or county zoning authority stating that the
Property is presently zoned for multifamily use. Seller shall have two (2) weeks from date of acceptance to present said letter to Buyer or Broker(s). Should the Seller not present the letter within the above-stated time period, Buyer must, within forty-eight (48) hours past the time period, declare this Agreement null and void or this contingency shall be removed as a condition of this Agreement. If Buyer elects to declare this Agreement null and void, said declaration shall be on a Termination and Release Agreement with all earnest money being promptly refunded to Buyer. All parties agree to sign promptly all documentation.

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Comments (1) Sep 18 2010

10 Short Sales questions and tips

Posted: under Investments.
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Here are 10 frequently asked short sales made questions which are incredibly useful especially if you are just getting started or contemplating quick sales as a means to acquiring pre-foreclosures.

1. What occurs on the seller’s credit rating when they permit an investor to short sell their property?

What typically takes place is the loan will show up as “paid” on their credit report; even so there will probably be a notation that says “settled for less than originally owed” or something along these lines. It’s additional favorable for a homeowner to small promote than to have a foreclosures on their credit report.

2. Where do you find investors for short sales?

Depending on where you live, you may see buyers who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they’re experienced in performing short product sales and if they would be interested in working with you. Another good place is your nearby real estate investors club meeting.

3. Define a short sales?

A short selling is really a form of pre-foreclosure sale made and occurs when the mortgagee agrees to accept much less than the loan volume to avoid foreclosure. A negotiated short sale results inside a discounted buy price for the buyer. The buyer would finance the acquisition significantly the same as in any conventional realty acquisition.!. but devoid of the luxury of time.

4. Can an proprietor profit from a short sale?

The seller can’t profit (monetarily) from a pre-foreclosure short sale.!!! But you will find usually exceptions towards the rule.

5. How do bankruptcies affect the possibility of carrying out a short sale?

Most mortgagees won’t take into account a short sale if the house owner is in bankruptcy.!.why? Due to the fact negotiating a short sale made payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what paperwork do I have to include inside a short sale package?

Documents depend on the lender. Each loan company has diverse requirements. It is typical to require hardship letter, buy and sales contract, ECOR, settlement statement (HUD 1), net sheet, pay stubs, bank statements, personal financial sheet (monthly budget), amongst other things.

7. What percentage of mortgage firms send somebody out for an appraisal on a achievable short sale?

All lenders order a BPO or full appraisal of the asset prior to making their decision to accept or reject the short purchase offer. This is there only way of assessing the worth of your home.

8. How late in the pre-foreclosure procedure can you begin a short sale?

Attempt to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure Short Sale made.

9. What is a Due on Sale clause?

“Due on Sale” Clause (DOS) Provision inside a mortgage or deed of trust calling for the total payoff of your loan balance inside event of a selling or transfer of title towards the secured genuine asset. A contract provision which authorizes the loan provider, at its choice, to declare immediately due and payable sums secured by the lender’s security instrument upon a purchase of all or any part of the genuine home securing the loan devoid of the lender’s prior written consent.

For purposes of this definition, a sale or transfer indicates the conveyance of authentic house of any proper, title or interest therein, regardless of whether legal or equitable, regardless of whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other technique of conveyance of true home interests. Standard language which states that the mortgage must be paid when a house is sold.

10. Will banks enable a short sale when the owner has some or a beneficial sum of equity?

If a asset has what the financial institution would consider a substantial quantity of equity, chances are they would take into account allowing the asset to foreclose and then reselling it closer towards the retail value. Focus on homes that don’t have much equity. Your job will be to create the fairness in the home by negotiating a successful short sale made.

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Comments (1) Sep 12 2010

FSBO letter.

Posted: under Realtor® Tools.
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Years ago, I was using a letter to target FSBOs. This letter had several updates time to time, making it better every time.
Now, I don’t use it anymore since I have been better, in a “on-the-spot” situation, to list FSBOs. I now list 4 on every 5 FSBOs out there without any material. You can learn that here.
But I think it can be very useful for other agent looking to hit FSBOs.

Greetings Mrs. & Mr. Jones, (check owner’s name in tax roll and make it personal)

My name is you name and I am a REALTOR® with your firm and I specialize in the listing and selling of homes in neighborhood name.

While out showing some properties in neighborhood name, I noticed that you are marketing your house on your own. I’m sure you have a good reason for doing this and I respect your decision. If you would like some information to help you with pricing, I would be happy to drop off a “neighborhood name analysis” for you. This analysis will give you a good idea of what’s currently on the market and what has recently sold in your area. If this interest you, then give me a call and I will get one over to you.

Selling real estate can be very confusing and complex. I have good connections with Mortgage Brokers and Title Companies that can help you through this process. If you do find an interested buyer, give me a call, and I’ll connect you with the right people.

I also have an excellent “For Sale by Owner Help Kit” which offers tools and advice on selling your home. I’ll forward some of this kit to you over the next few weeks. I think you will find the information very helpful. In the meantime, go check out my for Sale by Owner page at your site url.

If I can be of any assistance give me a call me on my direct line at your phone number or via email at your email. You can reach me anytime. If you get a voice message leave me a message and I will call you right back. I promise.

Make it a successful day!!!

Your name, REALTOR®,

We want to keep inviting them to call. “Call to action” phrases need to be in everything you do.

1. We let them know we are active in their neighborhood.

2. We offered them free stuff.

3. We let them know we understand the decision they have made, to go it alone, no push.

4. We made ourselves available, to help with info, if they find a buyer.

5. We let them know that we have connections in the business.

6. We told them we would be staying in touch and sending them more info.

7. We invited them to call us, again.

8. We will put pictures and.or virtual tour of their home in our site (with permission).

Notice I’m not trying to sell them. One of the keys, with FSBOS, is to remember that they are going to sell alone because they probably don’t like agents or they may have had a bad experience in the past that has clouded their thinking. Or they just don’t want to pay us. Whatever their reason I have found that just offering to help them is a very non confrontational way to start with building trust.

Your goal with the letter is to get them to call. Once they call, you want to make the appointment.

Then when you are in front of them you can “sell” them. It sounds simple but a lot of Realtor® make this mistake. They are selling when they should just be making an appointment. There is a time and a place for everything.

This is a way to list FSBOs but slower than what I teach in my eBook.

Good luck!

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Comments (1) Jan 17 2010

Short sale document: the hardship letter

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The hardship letter is an important document needed for a short sale transaction. This is a letter, written by the owner, explaining to the lender how is it difficult for him/her to keep paying his/her mortgage. I suggest to have written by hand, as a short one page letter.
I include an example here, where you just have to change what need to be changed.


Date

Client’s Name
Address
Loan#
Phone

To whom it may concern:

I am writing this letter at my Realtor’s request in hopes you will understand my situation as we have spoken over the phone. I am asking, begging for your help. I have never been in this type of situation before and quite frankly am truly embarrassed to even let you know what happened.

INSERT PERSONAL SITUATION HERE. MAKE IT TEAR-JERKING.

I know that sometimes bad things happen to good people and this is one of those times. I really don’t understand this whole process and am losing sleep every night and I am starting to feel as if my whole world is crashing down on me. I am asking you to help me get this home sold so I can move on with my life. They say this is the American Dream and I am here to tell you that my dreams are all nightmares. I don’t for one second blame you for anything, but we are in this together. I promise that I will do everything I can to help get it sold for as much as possible and will make sure that the home is ready at all times for showings. Please don’t make this situation more difficult for me and my family. All I am again is asking for is your help out of a nightmare.

Sincerely,

Name

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Comments (0) Jan 01 2010

Real Estate agent: documents you need for your short sales.

Posted: under Realtor® Tools.
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First of all, understand the short sales.

A short sale is a transaction that happens when a homeowner is owning more money on his/her home than what it is worth in today’s Real Estate market, and when the bank or the lender is willing to take less than what the homeowner owes.
Most of the time, that bank or lender will be able to collect more money with a short sale than if the homeowner goes into bankruptcy or foreclosure. That’s why they will be listening to short sales under certain circumstances.
For the homeowner, the short sale transaction is a better situation than going bankrupt or foreclosed. They credit will be hurt for 2 or 3 years instead of the 7+ years in a foreclosure situation.

Secondly, here are a list of documents you will need in order to prepare the short sale transaction with the bank representative:

FOR THE REALTOR:

  • ~ Signed letter of authorization from seller authorizing you to negotiate with the lender on their behalf.
  • ~ Letter of facts about the property. Everything that is wrong with the property and why it is impossible to sell it at a higher price.
  • ~ Current Market Analysis. Highlight comparable sales that reflect the lower value.
  • ~ Photographs. Remember, the photographs aren’t to highlight a charming house. Photograph evidence of damage, bad location, etc…
  • ~ Evidence of all showings and feedback. Explain to lender results and conversations you’ve had while trying to sell the property.
  • ~ Copy of listing contract/MLS Listing/MLS history.
  • ~ Current “AS IS” CMA.
  • ~ Copy of purchase contract if you have one.
  • ~ Preliminary HUD
  • ~ Make sure the seller has a detailed, tear jerking letter of hardship. See an example here
  • ~ Sales and services Quotes

Also, insert copies of the following if any:
1. Code Violations
2. Fines
3. Hearing Information regarding the maintenance of the property
4. Evidence of lawsuits the City is filing against lenders
5. Evidence of pending litigation or changes in the law
6. Insert Tenant / Landlord provisions if it helps your case
7. Evidence of the town / city’s enforcement of fines against other banks
8. Latent Material Defect
9. Sexual offenders and predators

FROM THE SELLER:

    -Two years tax returns and W-2′s.
    -Three months bank statements.
    -Pay stubs for last 30 days.
    -Detailed monthly budget.
    -All mortgages with account numbers.
    -Copy of the deed.
    -Copy of the note and/or mortgage
    -Pending bankruptcy, or other action/judgment or lis pendens.
    -Tear jerking hardship letter. See an example here

Buyers generally get a lot more house for their money in a short sale situation, because these properties are usually very competitively priced in order for the sellers to unload them before they end up in foreclosure. It’s a very good situation for them. The only downside I see is often the multiple offers situation for those short sale properties. But there are a lot of short sale properties available in the Cape Coral Florida market than in other parts of the country, so this area is the place to buy!.

So, if you are thinking of buying a short sale, here are 3 tips:

1 – Find a Realtor with short sales experience. There are many rigorous short sales and foreclosure training programs available to real estate agents, including the Certified Distressed Property Expert (CDPE) and the Short Sales and Foreclosures Resource Certification (SFR). If you wish to purchase a short sale property in Cape Coral, Florida, or anywhere else for that matter, you will greatly increase your chances of getting your deal to closing if your agent is experienced and comfortable with short sales….either through a short sales certification program, or through hard knocks experience in the field.

2 – Get pre-approved. No short sale offer will be considered without a pre-approval or a proof of funds letter. If you have not yet been pre-approved by a local lender and are not sure who to call, your real estate agent is a good source of referrals. The pre-qualification process generally takes less than 30 minutes, and can be done over the phone, however, a pre-approval takes longer but is better than a pre-qualification. Make sure you work with a local lender – today’s wild & woolly finance environment means that you greatly increase your chances of closing a deal if you use a local lender with a good reputation. All short sale offers must be submitted with a pre-approval letter, or with a proof of funds, as bank’s statements, in the case of a cash transaction.

3) Submit your highest and best offer the first time around! Lenders generally do not counteroffer….they will either say “Yes” or “No”. So if you are going to go through the process of waiting 60 days or more to hear back from the lender, you will greatly increase your chances of hearing that “Yes!” if you submit a good, solid offer with no contingencies.

Once you submit an offer that is approved by the seller, the seller has to submit your offer to their lender to see if the lender will accept the offer as well….remember, in a short sale situation the lender is agreeing to accept less than what the homeowner owes on the mortgage…..and the lender is going to do whatever they can to minimize the amount of that loss to their bottom line. Parting with their profits is not something that comes easy to lenders…..so it takes awhile to find out if they are willing to take the level of financial beating that is inherent in the amount you are offering. Sometimes the wait can be up to 90 days….sometimes much more (the amount of the wait often depends upon which lender holds the paper).

Look at the frustrating wait time as the price you pay for getting the chance to get a home you might not otherwise be able to afford.

If you want to receive listing from banks, this program will give tremendous help to get in the game as well.

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Comments (0) Dec 31 2009

Short sales documents

Posted: under Realtor® Tools.
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There are a significant number of short sales in the Cape Coral area. And I see also a significant number or Real Estate agent that have a false idea of what is a short sale. A short sale is a Real Estate transaction where a homeowner is selling his/her property. It is NOT the lender who is selling it. The lender just takes a loss. If you are involved in a short sale transaction, here are the documents needed:

Purchase and sale agreement.
This is the contract, the accepted offer. This document shows that an owner is willing to transfer ownership of the property to a buyer, under a specific set of conditions and/or terms. The purchase and sale agreement needs to be well-executed. To be legally binding, it must be signed by all who have their name on the deed.

Hardship Letter.
The hardship letter is an important document written by a homeowner to his/her lender, explaining the reasons for being unable to continue paying the mortgage. To be effective, it must state the homeowner’s situation, show concern, and demonstrate that the homeowner is taking action for the problem to be resolved. It is even better if this letter is hand written and not very long.

Homeowner’s financial statement.
This is a document presenting all income, assets and liabilities. The homeowner and all co-borrowers must be included on this worksheet.

Latest two bank statements.
If the homeowner has more than one account, all the statements must be presented.

Latest two pay stubs if any.
If the homeowner has more than one job, all the stubs must be shown. Unemployed homeowners must present the latest available. Self-employed individuals can provide a profit and loss report.

Last two years tax returns.
Sometimes, homeowners in a foreclosure situation have missed filing their taxes. In this case, present the latest available and write a personal note to the lender explaining the situation very clearly.

Last two years W-2s.
Employers provide this to employees and the IRS every year. Provide the latest available.

In addition, if relevant and available, you may include the following list of documents. Those may be useful as well. In some instances, they are absolutely necessary.

    * Death certificate
    * Divorce decree
    * Incarceration decree
    * Bankruptcy discharge letter
    * Relief from stay
    * Proof of disability
    * Insurance claims
    * Police reports
    * Court approvals
    * Anything that may be useful

Additional Documents.
Once in contact with the lender, these two additional documents will be needed.

Listing agreement.
Lenders want to see if the property is listed or has been listed by an agent. They like to see that homeowners are serious about selling and did everything in their power to sell it, or to be out of their problem. This is also a must for real estate agent commission allowance.

HUD-1.
This is the RESPA compliant settlement net sheet. RESPA stands for Real Estate Settlement Provisions Act. It shows who gets paid what, and how much. This document shows the main thing the lender wants to know: How much the lender will get. You can get in touch with you favorite title company to have it ready as a good faith estimate.

Those are the documents needed for a short sale to be negotiated and it is important for Real Estate agent to be ready right away. That will help you, your sellers and the buyer’s agents. The more complete, the better. The degree of what is acceptable varies from lender to lender. Some lenders are more demanding than others. Have all these documents. The short sale will go a lot smoother.

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Comments (1) Dec 26 2009

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