The Real Deal on Refinancing your Mortgage

Here's a Video on the real scoop on refinancing your property. A lot of people think that a refinance is available to whomever, whenever...for not a lot of cost involved. Well, that's not true. There are certain considerations that need to be addressed before an owner can just go get refinanced.

First I must say...Videos are great! They are a quick and easy way to get informed - fast! So, here's a good one for you. Personally, information sinks in the faster if I see it in more than one form, so I'll break it down for you as well.

In order to refinance you and the property in question must meet certain criteria.

Credit must still be good 675+, or For FHA 620...some lenders are saying they will go lower, but the folks I work with disagree...each lender is different:)

Debt to equity must be high enough to refinance...which means the property must have some equity

Home owner must also consider if it is worth the cost associated to refinance. In most circumstances it will take 2-3 years to re-coup the initial investment it cost to refinance.

Here's an online refinance calculator that will help you determine if a refinance will benefit you, how long it will take you to recoup you investment, and the costs involved.

Some questions to consider:

1. How good is your credit?


2. What kind of rate can you get?


3. What is the current value of your home?

For help with any of these questions consult a mortgage professional and your Realtor.

AIG Cries for More Cash-o-la

This morning AIG threatened the US Government with a "Catastrophic Collapse" if they are allowed to fail. In a 28 page report they describe the repercussions of it's demise. After receiving 3 previous bailouts, for a total of 188 billion, now they're back for more.

Originally, the money was suppose to go directly to AIG, but it turns out that AIG has been feeding banks that need a big of resuscitation, oh yeah and to pay for swaps. According to Reuters, among these banks are: Goldman Sachs, Deutsche Bank, Merrill Lynch, Societe Generale, Calyon, Barclays, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America and Lloyds.

The initial bailout was to make AIG "pay" for it with high interest rate...the WSJ says that (AIG) has gotton pretty much a complete reversal of terms. Oh, my...is that a huge loan modification or what? Rick Santelli calls it "the new poster-child of all the reason why the gov't with the best of intentions just has a raft of unintended consequences and complex issues that just seem to get deeper, darker and more tough to follow every time".

Somehow the video I had on this news...just dissapeared. I'll repost if I can dig it up.

Is now the Right time to Buy?

Everyone is asking, "is the now the right time to buy?" Only a crystal ball can give you the definite "yes or no" that you're looking for...that is if you believe in crystal balls. That question can be accurately answered yes and/or no, with a understanding of the financial markets.

For those folks waiting for the perfect opportunity to buy this might be it. Interest rates will go up once thefinancial systems stabilize. They have to, it's called inflation. Due to the massive amounts of money being printed, inflation is inevitable. Once the dollar weakens, due to inflation, we'll have less purchasing power.

While prices may continue to decline, with higher interest rates you'll be able to afford less. Let's look at an example.

• Loan Amount: $200K


• Interest Rate: 5%


• monthly payments $1,073.64

vs.

• Loan Amount: $200K


• Interest Rate: 7%


• monthly payments $1,330.60

vs.

• Loan Amount: $200K


• Interest Rate: 10%


• monthly payments $1,755.14

So, as you can see whether prices continue to fall or not, affordability is often dictated by interest rates. In my opinion, this is part of the reason for the bubble. Because interest rates were offered at low, low introductory rates folks could afford more...until their interest rates went up.

Let's look at the "no" side of the question...no this is not a good time to buy. With the financial markets in it's weak state, interest rates could stay low for a while...while prices continue to decline, creating even more affordability.

Whether you're looking to buy now or wait if out for a while, it all comes down to your motivation. If you can afford the home you want now, buy. If you can't, continue to wait. Either way, you're right. If you're waiting for the bottom, make an educated decision by knowing the facts.

Go Green to Save MOney

Saving money these days is on everybody's mind. Whether it be on dinner out, groceries, getting an americano rather than a latte...people are cutting back due to the uncertainty of our economy. It's not a bad thing...saving is good, it's how you build wealth, and gives you character. When times get tough just remember the quote by Friedrich Nietzsche, "What doesn't kill us will only make us stronger,"? I know it's easier said than done, but really, do we need to satisfy every whim with a latte or a new hand bag?

Going Green to Save Money - As the price of energy goes up, not only in price, but also in environental and health impact, we can save by slowly implementing "green" components into our lives.

1. Audit your Home - Heating and Cooling are the biggest expenses on your energy bill. Find out where it's going! Utilities companies will sometimes do free audits.


2. Replace the old with the Green - This is the most cost effective way to save money. Replace bulbs with compact fluorescent light bulbs or light emitting diodes. Turn off and unplugg lights, fixtures, wall mounts, and power strips.


3. Buy Wise - Appliances and Plug-ins are the next big expense...Buy energy efficient models. It might cost more upfront, but in the long run it'll save you money and you'll be doing mother nature a favor.


4. Make your Own...Energy that is! There are many government grants for water, power, and wind energy production...of course these options will depend on your climate, budget, and space.


5. Use portable solar chargers for phones, laptop, and other small electronics.


6. Ride a bike, commute/rideshare, or take a bus.

Going Green is a great way to save, reduce use, and better your community.

Enjoy and have a great day!

Bellingham Real Estate - How to Market to Sell your Property

A Realtor's main job is marketing. How an agent markets himself/herself is a reflection of their marketing plan for your property. Are they using the latest and greatest tools & technology to market your property or are they using an antiquated system that requires little to no effort, is cheaper, and/or less effective?

One way to know for sure is look for your real estate agent online. Do they have an online presence, website, and/or blog? If you google their name and can't find them it's probably safe to say that your property will be just another addition on the MLS and if you're lucky, you might get a newspaper/magazine print ad (5% of Sales).

Why is print advertising not the most effective way to market a property? According to National Association of Realtors, over 90% of Buyers start their search on the internet. If your property isn't find-a-ble then it isn't buy-a-ble. With today's internet resources, it's amazingly exciting what one can do to market a property effectively. Your property can and should be plastered all over the internet and social media websites.

A few of these sites:

• www.Craigslist.com (of course)


• www.Realtor.com (as a showcase listing)


• www.twitter.com (the latest and the greatest in social networking/media)


• www.facebook.com - that's right


• www.ActiveRain.com (#1 blogging platform for RE professionals)


• www.Youtube.com (video marketing site)

Marketing is all about getting your product seen and/or heard by the prospect that would be most interested and qualified. It's called target marketing. Pick your audience and show them what you've got. Days are gone when you could stick a sign in the yard (15% of Sales) and hope for the best...(well, mostly). Real Estate should be exciting, marketing should be adventurous...after-all you want your property to be noticed and SOLD!

Contact me for a up-to-date Marketing Plan to sell your property. Insanity: doing the same thing over and over again and expecting different results.

Why Should Buyers work with a Real Estate Agent?

Working with a professional Realtor to buy your home is a good idea for several reasons:

• Because it's FREE! The Seller typically pays your agents commission, although they represent you! Wahoo!


• To protect your best interest...to make sure you get what you're paying for. A real estate agent will be know fair market values so you don't have to worry about over paying.


• To analyze your financial situation to help you determine how much you can afford. There is more to a house payment than just the mortgage payment!


• To explain things to you because they are experienced and familiar with the process. Your agent should monitor your transaction and give you regular updates and timelines.


• To access information on all properties listed for sale by all real estate agents in your area.


• To set up appointments for you to see homes that interest you.


• To help evaluate features of a property that may affect its value and future resale.


• To prepare a negotiation strategy for the property you have selected.


• To help you complete all the necessary paperwork when it comes time to make an offer.


• To help you arrange financing.


• To represent you at closing to answer your questions and make sure everything runs smooth.

Washington Real Estate - New Foreclosure Legislation

I went to a Investor Networking Group on Wednesday night to hear about the new WA state foreclosure legislation...I found it quite ridiculous! It was presented by a local attorney, Doug Owens.

The gist of it is that the state sees it more beneficial for the homeowner to go into foreclosure rather than to short sale or just plain quick sale their property. "They" (the state) think it's more likely that the homeowner comes out ahead if they allow their property to go into foreclosure. "They" think the homeowner will recapture some of their equity if the sale goes to the courthouse steps and someone actually pays more than what is owed. Guess what state, there is no equity!

To get a bit more detailed, if an investor or joe blow buyer goes out and solicits a pre-foreclosure and strikes a deal with the owner and then later sells the property the buyer must disclose this amount to the seller and ask permission to make this profit. If the profit comes in higher than the original amount the buyer must give all subsequent profits to the homeowner, even if it's a rehab, yada, ya.

Get this, if you're using a Notice of Default list to do your marketing to find and buy properties, then you owe the sellers a fiduciary duty and must disclose everything. O.k., so I realize there are some unethical folks out there and I've dealt with my fair share, but this is going a little too far. What if a family wants to buy a property and they say, "hey lets look for a discounted property by looking for a pre-foreclosure." Guess what their suspect, even if they go through a realtor. Yep, that's right. Or is it Wrong?

Then the legislation turns around and says that if it's listed, it's ok? Pretty Vague, huh? Well, I'll stop my ranting now, matter of fact I don't know why I'm ranting. Better for us as realtors, right? There's only one way out for the homeowner, through us. Well, I think it's wrong! I don't think this is protecting the homeowner. I think it sucks. Sorry homeowner, the government isn't going to help you like "they" said they would, neither can the investors with money to buy your property, nope, you have to wait for a typical buyer to come along and qualify for a bank loan and save you.

This is just the tip of the iceberg, read more about WA State Foreclosure Legislation, although you'll probably need an attorney to interpret it.

Whatcom County, WA Lease Options

Currently there are about 30 Lease Option in Whatcom county. Wow, how the market has changed! You couldn't find a owner that was willing to accept a lease-option a few months ago and now we're finding terms that we thought we'd never see again in Bellingham. Compared to the rest of the country we're still holding strong, which is a sign that Bellingham, Wa is holding it's value and is more stable than many other areas.

For more information on these lease option properties, feel free to contact me.

Search Bellingham, Whatcom, Lynden, Sudden Valley, Sumas, Maple Falls Pre-foreclosure Properties

Search Bellingham, Whatcom, Lynden, Sudden valley, Sumas, Maple Falls Foreclosures

Search Bellingham, Whatcom, Lynden, Sudden Valley, Sumas, Maple Falls Seller Financed Properties

What you should know before Buying a Short Sale (Pre-Foreclosure)

Buying a Short Sale property is a great way to score a good deal, however, there are a few things you should know before submitting an offer.

What is a Short Sale?

A short sale is when the seller's lender will accept less than what's owed in order to sell the property and cut their losses. A short sale will be much cheaper to the bank than a foreclosure.

When a seller is selling their home subject to a short sale it is the bank that will make the deciding factor on what price they will sell the property.

Check the Public Records/Assessor's Site

Do your research before making an offer to purchase. Your Bellingham Real estate agent can find out who is on title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer on your Bellingham Short Sale Properties.

Hire an Agent with Short Sale Experience

It can make for a timely and difficult transaction if your listing agent has never handled a short sale, but it's even worse if the buyer's agent has no experience in that arena. You need an experienced short sale agent on both sides of the transaction.

An agent with short sale experience will help ensure that all the necessary documentation has been gathered and submitted to the bank. The bank will need this paperwork before they even consider a short sale. You don't want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner.

Submit Documentation & Purchase Offer to Lender

Any offer that you submit to the bank will be on a "AS IS" basis, however, you can still obtain an inspection and complete any/all your due diligence as with any transaction.

Once the seller has accepted your offer, the listing agent will send it to the lender for approval along with your earnest money deposit and Pre-approval letter.

Write your offer contingent upon the lender's acceptance, giving the lender a deadline. This will allow you to cancel after a certain amount of time and will also expedite the process.

Please contact me if I can be of service to you or anyone you know. I am experienced with both sides of the Short Sale transaction and would love to assist you in your Bellingham Real Estate needs.

Short Sale Requirements - Seller Documents

Short Sale Requirements

There are a handful of requirements that you must get from the property seller in order for a short sale to even to begin to be processed and for the banks to even take you serious.

If you're a listing agent for a Short Sale Seller, it will make the process go a lot smoother if you get these documents from the get go and submit them to the bank with your offer. When you submit them to the bank you should fax them in and then call LM to make sure they were received. If not, do it again and again...until their intercepted by the Loss Mitigation Offense.

1. 4 Most Recent Bank Statements

2. 3 Most Recent Tax Returns (1040's) & W2's

3. 3 Months of most recent pay stubs

4. Hand written Hardship letter (Stating series of events that has led you into foreclosure)

5. Medical Bills/Other Relevant documentation

6. Listing Agreement if house was/is listed with a realtor

7. Notice of default (sent by the Mortgagee)

8. Financial statement (list of assets and expenses)

9. Authorization to Release Information - This will allow you to negotiate on their behalf!

**Documents are required by everyone on Loan Agreements/Deed

***If they don't have any of this documentation please have them give written documentations to support why it's missing.