Porama Srijinda, Real Estate Advisor
Showing posts with label real estate agent. Show all posts
Showing posts with label real estate agent. Show all posts
Thursday, January 19, 2012
Wednesday, January 11, 2012
Short Sale: Is It Right For You?
How a Short Sale Happens?
When the lenders provide the option to sell the burrowed
property to a third party at a lower price than what they actually owe on their
loan, it is called a real estate short sale. To illustrate further, if the
mortgage is $200,000 and the market value of the property has dropped to
$185,000 an amount of $15,000 is short excluding the real estate commission,
title charges and other similar contingencies. If the lender accepts the above
short price instead of the full loan amount the transaction is called a short
sale. Lenders
often resort to short sale in order to avoid foreclosure and consequent financial
burdens.
What are the Steps in
a Short Sale?
The short sale process is not as easy as some people may think.
The lender has to approve the process; the homeowner has to convince the
hardships to the lender leading to the short sale. The following steps are
involved in a typical short sale. The seller or the homeowner signs a listing
agreement with the real estate agent. The agent negotiates with a buyer who is willing
to buy the property for less than the total mortgage loan amount. If the seller is satisfied with the amount
purchase offer is agreed. The lender accepts the purchase offer made by
the buyer. When funds are delivered by the buyer to the lender,
the transaction is closed. Finally the lender releases the lien on the
property and the new deed is made in favor of the buyer.
How a Person
Qualifies for the Short Sale?
A borrower if wants to qualify for a short sale should
satisfy the lender the circumstances that have lead to last step of ending in
short sale of the property. Generally the following situations are accepted by
the lenders as valid reasons for making a short sale.
- Unemployment and critical illness of the borrower.
- A drop in market value of the property.
- Mortgages in continuous defaults and the recovery of funds not optimistic according to the lender.
- The property becomes in poor condition either by its own or due to natural calamities.
- The area or neighborhood has started decreasing trends in property value.
In addition to the borrower reasons, the banks and other
lenders may have their circumstances to think in favor of short sales to
sustain the business. These includes, Increasing defaulting loans that decrease the
confidence of the shareholders and REO being a liability rather than an asset, many
banks avoid the complications that come later.
In any case the seller needs to submit a hardship letter
explaining the circumstances that prompt for a short sale. The letter should
state the incapacity to make monthly loan dues and also the inability to pay
the difference upon short sale. The homeowner may be required to submit the
financial statements, tax records and all other documents in support of his
hardship. Some of the valid reasons for accepting hardship are,
- · Unemployment.
- · Divorce.
- · Acute Illness.
- · Bankruptcy
- · Death
The below mentioned situations do not constitute hardship.
- · Spending on luxury when there is an acute shortage of income.
- · Personal problems with the neighbors.
- · Relocation of the house simply to abandon the present house for seeking comfort.
- · Pregnancy is not considered a hardship.
- · Buying another home because of the poor condition of the present home.
In short it is very important to convince the lender the
reasons for seeking short sale. If the lender discovers that the homeowner has
enough income to repay loan, short sale may not be granted. In some cases the
lender may grant a short sale to a homeowner with some assets but he or she may
be required to pay back the short fall. The seller is not entitled to make a
profit or receive a portion of money from the short sale.
The Consequences of a
Short Sale:
Even if the hardships are acceptable to the lender, there
are few things that must be taken into account when planning a short sale. A
short sale happens only when a buyer agrees to buy the property and therefore
confirmed decision to buy the property is very important. Besides the lender
has to accept the offer to get final approval of the short sale.
In a short
sale, the homeowner owes the difference between the mortgage balance and the discounted
amount. The lender may issue a 1099 for the difference but according to the Mortgage Forgiveness Debt Relief Act of 2007 there are
many situations where exemption can be granted for debt forgiveness. A short
sale leads to negative credit score and therefore efforts should be made to get
a positive feedback from bank stating that payment has been made in full.
Porama Srijinda, MBA.
REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443
Tuesday, January 10, 2012
U-T EconoMeter
EconoMeter: Will home prices rise in 2012?
Panel forecast
overestimated 2011 increase by $21,000
Written by
Roger Showley
6
a.m., Jan. 7, 2012
Q: Will
San Diego County median home prices rise in 2012? They dropped 6 percent from
$335,000 in November 2010 to $315,000 in November 2011.
Panel's
answer: Yes 5, No 3. Consensus 2012 median: $319,300 (2011 consensus was
$336,250)
Marney Cox, San Diego Association of Governments
Marney Cox
ANSWER: NO
2011 and 2012 prediction, $300,000. Unfortunately, the
significant hurdle of clearing the excess inventory of distressed properties is
not yet complete. The foreclosure process is expected to peak in 2012 and
liquidations, the following year. This additional supply is expected to push
the median home price down 5 percent during 2012. The faster foreclosures are
processed and returned to the market for sale, the more downward pressure on
home prices and a quicker return to a normal housing market. To facilitate this
process, regulators are considering a plan to sell foreclosed properties to
investors who would renovate and rent them; preventing this correction only
delays the inevitable, pushing the construction sector recovery off into the
future.
Porama Srijinda, MBA.
REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443
Opting for New Home Construction
Whether to buy an existing home or have one built is yet another decision to make during the home-buying process. If you decide to go with new construction, a real estate agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the home builder.
Below are some basic pointers to prepare you for the journey ahead.
Selecting a builder
Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you and then seek out the builders in your area who offer those styles. Due diligence is essential. Ask friends for referrals to get firsthand accounts; verify the builder's state license status, if applicable; and check whether they're certified by the National Association of Home Builders.
The builder representative and your real estate agent
A builder representative's ultimate goal is to sell you a home. His or her role is to provide a wide range of information to help you in your decision-making, from building restrictions, roads and easements to inspections, warranties, rebates and upgrades. A real estate agent knowledgeable in new-home construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your agent also can look out for your interests in reviewing the builder's contract, which often contains more legal jargon than consumer-friendly language.
It's all about timing
Market conditions greatly dictate a builder's incentive to make a deal you cannot refuse. When a builder has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be more amenable to strike a favorable deal, whether it's throwing in upgrades or taking a bit off the asking price. A real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion but empty inventory still remains.
A word about paying up
While there are always exceptions, most builders require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the agreement states otherwise, you will lose that money. Make sure you understand every detail in the builder's contract before signing it.
Porama Srijinda, MBA.
REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443
Saturday, January 7, 2012
Increasing Your House's Appeal
Remember the 60-second rule: That's all the time you have to create a winning first impression. Here are some simple to significant ways to maximize your home's appeal.
Exterior
* Keep the grass cut and remove all yard clutter.
* Weed and apply fresh mulch to flower beds.
* Apply fresh paint to wooden fences.
* Tighten and clean all door handles.
* Clean windows inside and out.
* Powerwash home's exterior.
* Ensure all gutters and downspouts are firmly attached and functioning.
* Paint the front door.
* Buy a new welcome mat.
* Place potted flowers near the front door.Interior
* Evaluate the furniture in each room and remove anything that interrupts "the flow" or makes the room appear smaller. Consider renting a storage unit to move items off-site.
* Clean and organize cabinets, closets and bookshelves.
* Clean all light fixtures and ceiling fans.
* Shampoo carpets.
* Remove excessive wall hangings and knick-knacks.
* Repair all plumbing leaks, including faucets and drain traps.
* Make minor repairs (torn screens, sticking doors, cracked caulking).
* Clean or paint walls and ceilings.
* Replace worn cabinet and door knobs.
* Fix or replace discolored grout.
* Replace broken tiles.
* Replace worn countertops.Special details for showings
* Turn on all the lights.
* Open all drapes and shutters in the daytime.
* Keep pets secured outdoors.
* Buy new towels for bathrooms.
* Buy new bedding for bedrooms.
* Replace old lamps or lampshades.
* Play quiet background music.
* Light the fireplace or clean out the ashes and light a candelabrum.
* Infuse home with a comforting scent, such as apple spice or vanilla.
* Set the dining room table for a fancy dinner party.
* Vacate the property while it is being shown.
Porama Srijinda, MBA.
REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443
Wednesday, January 4, 2012
Seven Main Roles of Your Real Estate Agent
How can a real estate agent help me?
Seven main roles of your real estate agent
A Buyer’s Real Estate Agent:
- Educates you about your market.
- Analyzes your wants and needs.
- Guides you to homes that fit your criteria.
- Coordinates the work of other needed professionals.
- Negotiates on your behalf.
- Checks and double-checks paperwork and deadlines.
- Solves any problems that may arise.
Porama Srijinda, MBA.
REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443
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