From wsj.com
Financially troubled borrowers may think that foreclosure or a short sale of their home means their mortgage woes are over. Not necessarily.
Some homeowners are finding that when they sell their homes for less than the outstanding mortgages - a so-called short sale - their mortgage companies are going after them for some or all of the difference. Mortgage companies are also sometimes taking legal action to recover unpaid amounts after a foreclosure is completed.
Jul 26, 2009
Jul 22, 2009
Tax Hits On Short Sales
From wsj.com
For a homeowner who is attempting to complete a short sale on the sale of their home, consider these examples of the tax consequences that you may experience.
For a homeowner who is attempting to complete a short sale on the sale of their home, consider these examples of the tax consequences that you may experience.
Jul 19, 2009
Focus & Refine Your Home Search
Too many choices - this is the problem buyers face today. Dozens upon dozens of homes that fit your general criteria may sound appealing at first. But having too many homes to choose from and viewing too many homes makes house hunting quickly become an overwhelming chore for a buyer.
When working with buyers, I guide them in continually focusing and refining their home search. That way, we spend our valuable time viewing only the very best homes for them. Ultimately, the only thing that matters in a home search is finding a great home at a great value. Here’s how we do it:
Price It’s never necessary for a buyer to max out on their purchase price. I am a firm believer in this. There are great homes to be had at all price levels and I advise buyers to select a great home that they can afford. There’s nothing good about having an incredible home and an empty wallet. Don’t push the upper limits of your price range – sticking to the bottom or middle of your price range will be one of the best decisions you’ll ever make.
Location Where do you want to be? East metro Orlando is probably the biggest “neighborhood” in the city. East Orlando is expansive and encompasses hundreds of subdivisions. As important as price, location needs to be decided up front. Do you want to be within five miles of work, within a certain school zone or near family? Even better - select the specific subdivisions you can see yourself living in.
Short Sales In Or Out? Short sales represent the bulk of homes available today. As a buyer, are you prepared to give a short sale offer the time and patience required? Don’t expect an answer back within a couple of days like you would with a “normal” sale. Responses to short sale offers take much time and patience – I’ve recently seen a two week response, but a longer wait is more typical. In my experience, the average homebuyer doesn’t have the patience to wait for a response. For those folks, I advise to eliminate short sales from their home search.
Amenities You want a pool, but could you live without one? You want a three car garage, but could you live with two? You want a new home, but could you live with a 10-year-old home? You want four bedrooms, but could you live with three? First-time buyers are especially demanding and expect every item on their wish list without exception. But an experienced buyer knows that they will likely find just a few items on their wish list and can work on the home once they move in.
When working with buyers, I guide them in continually focusing and refining their home search. That way, we spend our valuable time viewing only the very best homes for them. Ultimately, the only thing that matters in a home search is finding a great home at a great value. Here’s how we do it:
Price It’s never necessary for a buyer to max out on their purchase price. I am a firm believer in this. There are great homes to be had at all price levels and I advise buyers to select a great home that they can afford. There’s nothing good about having an incredible home and an empty wallet. Don’t push the upper limits of your price range – sticking to the bottom or middle of your price range will be one of the best decisions you’ll ever make.
Location Where do you want to be? East metro Orlando is probably the biggest “neighborhood” in the city. East Orlando is expansive and encompasses hundreds of subdivisions. As important as price, location needs to be decided up front. Do you want to be within five miles of work, within a certain school zone or near family? Even better - select the specific subdivisions you can see yourself living in.
Short Sales In Or Out? Short sales represent the bulk of homes available today. As a buyer, are you prepared to give a short sale offer the time and patience required? Don’t expect an answer back within a couple of days like you would with a “normal” sale. Responses to short sale offers take much time and patience – I’ve recently seen a two week response, but a longer wait is more typical. In my experience, the average homebuyer doesn’t have the patience to wait for a response. For those folks, I advise to eliminate short sales from their home search.
Amenities You want a pool, but could you live without one? You want a three car garage, but could you live with two? You want a new home, but could you live with a 10-year-old home? You want four bedrooms, but could you live with three? First-time buyers are especially demanding and expect every item on their wish list without exception. But an experienced buyer knows that they will likely find just a few items on their wish list and can work on the home once they move in.
Jul 15, 2009
Don’t Go It Alone
I recently met a young woman looking to buy her first place, a condo near downtown. She revealed to me she’s been actively looking for a place for over a year. She’s devoted every minute of her free time to viewing homes with the listing agent or at open houses, driving thru neighborhoods on her way home from work and scouring the internet at work and at home. Unfortunately, she’s reached the point of exhaustion and she’s about to give up on her home search.
I understand her dilemma – house hunting can be exhilarating at first, but without direction, focus and professional guidance can quickly turn house hunting in to a chore. And doing all this work alone – without a realtor – makes it even harder.
Realtors have the one and only source for real-time MLS listings. There is no other web site that compares, regardless of their claims. A realtor’s MLS program will automatically email you new listings and price reductions in your price range the moment they hit the market. Realtors schedule and coordinate showings at your convenience – only available after work, no problem. A realtor represents you in any offer you submit, negotiates on your behalf and gets you under contract quickly. Finally, a realtor guides you through the closing process including appraisal and home inspections and gets your home closed.
All the time and energy this buyer put in to her home search could have been offset by the services of a realtor. My best advice for any seller or buyer today - or in any market – is to work with a realtor every time. Don’t go it alone.
I understand her dilemma – house hunting can be exhilarating at first, but without direction, focus and professional guidance can quickly turn house hunting in to a chore. And doing all this work alone – without a realtor – makes it even harder.
Realtors have the one and only source for real-time MLS listings. There is no other web site that compares, regardless of their claims. A realtor’s MLS program will automatically email you new listings and price reductions in your price range the moment they hit the market. Realtors schedule and coordinate showings at your convenience – only available after work, no problem. A realtor represents you in any offer you submit, negotiates on your behalf and gets you under contract quickly. Finally, a realtor guides you through the closing process including appraisal and home inspections and gets your home closed.
All the time and energy this buyer put in to her home search could have been offset by the services of a realtor. My best advice for any seller or buyer today - or in any market – is to work with a realtor every time. Don’t go it alone.
Jul 10, 2009
Out Of Pocket Expenses For Buyers
Getting ready to buy a new home? Pulling together your down payment is a major undertaking on its own, but don’t forget other critical expenses you’ll need cash for.
The following items are considered “POC” items or Paid Outside Closing. This means these are expenses a buyer needs to pay for out of pocket before closing on their home purchase.
Appraisal Paid to an appraiser once the home is under contract. Cost is typically $250 to $350.
Home Inspection Paid to a home inspector once the home is under contract. Cost is typically $200 to $300.
Termite Inspection Paid to a termite inspector once the home is under contract. Cost is typically $100 to $150.
Mold Inspection Paid to a mold inspector once the home is under contract. Cost is typically $125 to $175.
Some service providers can provide a “package deal” to provide all three inspections – home, termite and mold – for one flat fee. Cost is typically $300 to $400.
Property Insurance Paid to your insurance agent before closing. Cost varies and depends on the kind of home you’re buying, age, construction and amenities.
The following items are considered “POC” items or Paid Outside Closing. This means these are expenses a buyer needs to pay for out of pocket before closing on their home purchase.
Appraisal Paid to an appraiser once the home is under contract. Cost is typically $250 to $350.
Home Inspection Paid to a home inspector once the home is under contract. Cost is typically $200 to $300.
Termite Inspection Paid to a termite inspector once the home is under contract. Cost is typically $100 to $150.
Mold Inspection Paid to a mold inspector once the home is under contract. Cost is typically $125 to $175.
Some service providers can provide a “package deal” to provide all three inspections – home, termite and mold – for one flat fee. Cost is typically $300 to $400.
Property Insurance Paid to your insurance agent before closing. Cost varies and depends on the kind of home you’re buying, age, construction and amenities.
Jul 6, 2009
Beanie Babies In The Window
There’s a vacant, abandoned and neglected house on my street that is an embarrassment to my community. It’s an enormous house sitting empty and neglected for over a year.
The original owners lost the house to foreclosure and the house went from a loved family home to an eyesore literally overnight. By the time the bank took the house over, a year had passed.
Just in the past few months, the house went on the market and quickly sold for an incredible price. On closing day, I saw the caravan driving thru the neighborhood to get to their new house – a uhaul truck and two cars filled to the brim. The caravan arrived at their new home, popped out of the car and straight to the front door. What a welcome sight – a family moving in!
From across the street, I could see piles of boxes and furniture packed in each room. Then I saw the sweetest thing…a row of beanie babies lining the window sill. The little boy who would now call this home had staked his claim.
The original owners lost the house to foreclosure and the house went from a loved family home to an eyesore literally overnight. By the time the bank took the house over, a year had passed.
Just in the past few months, the house went on the market and quickly sold for an incredible price. On closing day, I saw the caravan driving thru the neighborhood to get to their new house – a uhaul truck and two cars filled to the brim. The caravan arrived at their new home, popped out of the car and straight to the front door. What a welcome sight – a family moving in!
From across the street, I could see piles of boxes and furniture packed in each room. Then I saw the sweetest thing…a row of beanie babies lining the window sill. The little boy who would now call this home had staked his claim.
Jul 1, 2009
$8,000 Down Payment Assistance
From Orlando Sentinel.com
Starting today, Florida hopes to stoke its real estate market by becoming one of the few states to offer $8,000 in down payment assistance to qualified homebuyers so they can benefit upfront from a new federal tax credit.
Starting today, Florida hopes to stoke its real estate market by becoming one of the few states to offer $8,000 in down payment assistance to qualified homebuyers so they can benefit upfront from a new federal tax credit.
Subscribe to:
Posts (Atom)