Q. If I'm paying cash is that better?
A. Depends on the lender, some of your larger companies are looking only at the gross, such as Frannie and Freddie. Smaller withholding companies that don't have funds to keep the properties on the books are looking for a quick close. Sometimes if the home is need of major repair then the cash offer will be the one looked at.
Q. What does, "Sold As Is" mean? Is there something wrong with the house?
A. The banks spend a lot of money every day, as long as they own these properties. Such as paying taxes, sewer, water, heat and electricity. They most likely are anywhere from $100,000 plus underwater already, they don't want to spend any more money on the home. So what they are telling you is that once you agree on your price, the inspection is for "Informational Purposes Only" This is not a negotiating tool like on a normal sale. The bank is telling you that they will fix nothing and they are not negotiating on price. In a very rare occasion I've been able to renegotiate on the price but that was due to major items such as structure, that was not evident to the eye. Please don't send the listing agent telling them that the furnace needs a cleaning and the dishwasher doesn't work and you want it fixed or a price reduction. (True story)
Q. What are corporate addendum's?
A. This is your purchase and sales agreement, due within 48 hrs.
Q. Why can't I make changes? What if there is a mistake?
A. You can not change anything on these documents, not even a typo. If there is an issue with anything in the addendum's it must be made on an attachment. Remember these are standard contracts for the bank all addendum's are the same they just change the buyer information and the address. I know the contract only protects the bank, but remember they know nothing about the property, so they are not liable for anything. They make no representations.
Q. Can I give a personal check for the Earnest money deposit?
A. No, always bank certified check.
Q. What are the property line issues, are there easements? I noticed the listing says, buyer to verify property lines.
A. This means that the bank and the agent do not know where the property lines are. Remember this is not a house where we can talk to the owner and find things out, we don't know! This does not mean there is a property line issue! It just means we don't know where the lines are.
Q. What can you tell me about the home?
A. Nothing! We don't know, we walk into the home and look around just the same as you. We can never make any representations about the property, so please don't ask the agent if they know how old the roof is.
Q. After looking at the home I see there are no toilets, cut plumbing, no flooring, kitchen is torn out and what's left of the kitchen is cut in half, fence is torn off that surrounded the pool and the owner has cut the electrical in the home, but I'm going to submit an offer for FHA and/or USDA financing ok?
A. Are you out of your mind? These items are obvious to all, therefore these items have already been reported to the lender and they are aware that the home will not pass, so don't make us take an hour out of our day to write up an offer on a home that clearly will not pass.
Q. Can't we just go into the property prior to close and do the work on the home, so it will pass?
A. Absolutely not! This is a liability for the lender, what if you get hurt. What if you do a horrible job and do more damage to the property and you still can't get your financing? The seller is not going to allow you to change their asset, so please don't ask.
Q. How long before I have an answer to my offer?
A. Usually 48hrs.
Q. What if there are multiple offers, will I have an opportunity to change my offer?
A. Most agents are required to call best and final once the second offer comes in. I personally will post the multiple offer due date in MLS Remarks and post the notice on MLS as well. However, not all agents are the same so if you know there are multiple offers just go in with your best foot forward.
Q. What if I'm financing the home, FHA/USDA/VA and an item comes up on appraisal, the home is sold as is what do I do?
A. Send over a copy of the appraisal report to the listing agent. Most likely they will be required to obtain a repair bid and send to the lender for approval 9 times out of 10 it gets approved.
Q. Do I need to ask in my offer for utilities and dewinterization to occur in my offer?
A. Absolutely, never assume that the lender is going to do anything. Utilities on for inspection and dewinterization. Seller to perform title v.... Don't forget, if its not in there and accepted, it might not happen.
Q. Can you tell me what the operating expense are?
A. We do not have any history on the properties, there are no seller descriptions, and we do not have past operating expenses, rents or utilities.
Q. Can you tell me if any permits have been pulled on the property?
A. Since the seller is the bank and never lived in the home they do not have that information. Questions or concerns need to researched by the buyer or by their agent.
Q. How do I submit an offer?
A. Always check the documents attached on MLS as most of the time, we have to retype your offer into a computer system so they have specific things they ask for. This is very time consuming on the listing agents part so if you have all this information together for the listing agent it will make for an easy transaction.
Q. Should I make a really low offer?
A. Unless the home has been on the market a long time with no price adjustments, the lenders are not going to accept a low offer, these prices are already discounted.
Q. I just received the corporate addendum's why is the house still on the market?
A. Until we receive the buyer's signed copy of all contracts and addendum's and deposits, all marketing efforts on the part of the listing agency must continue. The property will still be shown and new offers will be presented to the seller.
Q. What is the Fannie Mae, "First Look Initiative"
A. No offers can be submitted for the first three days, this give everyone a fair chance in making an offer on the property. Then the only offers that are submitted are owner occupied until it's been on the market 15days then all offers welcome.
Q. What is the owner occupied certificate? Is this important, I'm buying it for my sister, she's going to live there can I sign it?
A. This is extremely important. The lenders are really promoting owner occupied. The lenders will send someone out to confirm that you are really living there. If you are not they have high fines and penalties for the purchaser.
For more questions about bank owned properties or if you are looking for bank owned properties, please visit: www.RealtyKim.com
Tuesday, April 12, 2011
Wednesday, April 6, 2011
What is a short sale? Is a short sale right for me? How much do I pay for a short sale?
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure
Foreclosure is expensive for a mortgage lender. Mortgage lenders are not in the business of foreclosing on houses. Banks and lenders are in business of making loans. They don't want the house back. This is a business decision for the lender. Which means it has to make rational, logical sense. If you think a short sale maybe right for you, call now to find out how you can save your credit. The commission and attorney fee's are covered by your lender, this is of no charge to you!
We are constantly striving to create efficient and dramatic results for our clients by utilizing the latest on-line technology & marketing systems. Our team passionately believes that our clients' needs always come first.
I am not a talker, but a doer. If you comprehend the power experience in selling this much real estate, and you want someone who is open minded to new ideas of, and is Pro-active in getting homes sold fast and for top dollar, then pick up the phone and call now.
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure
Foreclosure is expensive for a mortgage lender. Mortgage lenders are not in the business of foreclosing on houses. Banks and lenders are in business of making loans. They don't want the house back. This is a business decision for the lender. Which means it has to make rational, logical sense. If you think a short sale maybe right for you, call now to find out how you can save your credit. The commission and attorney fee's are covered by your lender, this is of no charge to you!
We are constantly striving to create efficient and dramatic results for our clients by utilizing the latest on-line technology & marketing systems. Our team passionately believes that our clients' needs always come first.
I am not a talker, but a doer. If you comprehend the power experience in selling this much real estate, and you want someone who is open minded to new ideas of, and is Pro-active in getting homes sold fast and for top dollar, then pick up the phone and call now.
When is it too late to short sale my home? What happens after auction?
It's never too late! Usually to stop an auction we need an offer, but it's never to late to make that call to stop the auction.
Many times I've had homeowners behind a year and we just start the short sale process. So many home owners think that the short sale will cost them money. They are not aware that the bank pays the attorney and Realtor fees, so they wait.
It's never recommended to wait, but if you receive an auction notice you must act now! For More Short Sale information, visit: www.LocalShortSalePro.com
Once the auction take place, the bank is formally taking back the property. At this point in time, your next contact will most likely be a Realtor. This agent is hired by the bank to list your home and be the eyes and ears for the bank. They will most likely visit the home and leave a notice on your door, called Know your Options. This notice will let you know who is in charge of your home and possible talk about relocation assistance otherwise known as, "Cash For Keys" and the rental option.
Don't get too excited the rental option is for tenants who are living in the home with a lease, at that point we ask that the tenant turn the lease over to the bank for review. They will deceide whether or not they want to honor the lease.
The relocation assistance is known as Cash for Keys. Another words, "you give me the keys and I'll give you a check." The amount is always negotiable and the sooner you move out usually the larger amount is offered. You must agree to leave the property in broom swept condition.
If you reject the cash for keys the lender will move forward with the eviction process. For more information on the foreclosure process, visit: www.RealtyKim.com
Many times I've had homeowners behind a year and we just start the short sale process. So many home owners think that the short sale will cost them money. They are not aware that the bank pays the attorney and Realtor fees, so they wait.
It's never recommended to wait, but if you receive an auction notice you must act now! For More Short Sale information, visit: www.LocalShortSalePro.com
Once the auction take place, the bank is formally taking back the property. At this point in time, your next contact will most likely be a Realtor. This agent is hired by the bank to list your home and be the eyes and ears for the bank. They will most likely visit the home and leave a notice on your door, called Know your Options. This notice will let you know who is in charge of your home and possible talk about relocation assistance otherwise known as, "Cash For Keys" and the rental option.
Don't get too excited the rental option is for tenants who are living in the home with a lease, at that point we ask that the tenant turn the lease over to the bank for review. They will deceide whether or not they want to honor the lease.
The relocation assistance is known as Cash for Keys. Another words, "you give me the keys and I'll give you a check." The amount is always negotiable and the sooner you move out usually the larger amount is offered. You must agree to leave the property in broom swept condition.
If you reject the cash for keys the lender will move forward with the eviction process. For more information on the foreclosure process, visit: www.RealtyKim.com
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