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.

National Geographic has voted Bellingham in the Top 50 Places to Live and Play. Here are some reasons I love Bellingham!

1. The People! Bellingham is a great place to call home because of the people. Bellingham is a community that cares and it shows! The locals are friendly, open, and not afraid of being themselves. Wherever you go be prepared for a warm smile and a willingness to chat.

2. Bellingham's Recreation! There is so much to do in Bellingham...and so many active people. It truly is a lifestyle destination. Whether you like to sail, bike, run, hike, ski, kayak, mountain climb, swim, row, etc., Bellingham is the place to be. Bellingham is also the venue of many competitive races and its yearly springtime kickoff race...the ski to sea! It's an amazing thing to see...on a summer's day, the whole town is out and about enjoying the beautiful weather and life in general. The people here are happy!

3. Coffee Shops! Bellingham offers some of the finest coffee in the world. You can have coffee at a different caf everyday for a year and never have it at the same caf.

4. Summer Festivities! The community of Bellingham provides so much summer entertainment...and most of its free! The music scene is outrageously fantastic...offering Oceanside Venues to neighborhood and downtown alley concert series. Other Bellingham entertainment including arts and crafts festivals, sand castle contests, and much more!

5. Parks and Green Space! Bellingham is a community whose government is dedicated to preserving the community and parks which will allow Bellingham to grow gracefully. All around Bellingham you'll find parks throughout that are properly maintained, clean, and safe. My favorites are Boulevard Park and Point Park which are both Oceanside. On a warm summer day, you'll find vast amounts of people soaking up the sun. Many of these parks provide Frisbee golf, playgrounds, grills, volleyball for pure summer entertainment.

6. Vicinity to Vancouver and Seattle! Bellingham is a small version of both Seattle and Vancouver...if you feel the need for a bigger version, both are under a 2 hour drive.

7. Small business Owners! Bellingham is the home of a large number of independent business owners. People, who have the passion to live where they choose and work for themselves, have relocated to Bellingham because it's a lifestyle destination.

8. Fresh local foods and produce! During the summer you can find as many local veggie stands as coffee stands...all at very reasonable prices. Local growers offer you-pick fruits which is a local favorite pastime. These include raspberries, blueberries, and strawberries...yum! Bellingham local farmers also offer free range animal products.

9. Local transportation! Bellingham's offers local transit throughout the county along with Amtrak stations that provide service to Seattle and Vancouver. Bellingham also has inter city trail system that weaves in and out of downtown and all of the local neighborhoods. You can commute via these trails and get to wherever you need to be...all without a car.

10. Beauty of Bellingham! Once again Bellingham has it all...mountains, ocean, rivers, wildlife, beautiful terrain, and wonderful people!

Give me a call if I can assist you in your Real Estate Needs and Goals!

Tara M Camp

Connect Realty

360-296-3244

www.taracamprealestate.com

The Current Real Estate Cycle

So this article is going to be a bit edgy and may provoke mind tingling thoughts of Inquisition. Perhaps you may even get dizzy. I did!

Where is the market going from here? In my opinion...nowhere but down...like a home sick mole!

These days whether I'm talking to a mortgage broker, another agent, investors, etc. I ask "So where do you think the real estate market is heading. Most think the worst is over, but very small few agree with my reasoning. So, I decided to bring it to the Rain and hopefully make it out alive...hit me with your best shot.

With the over-all condition of the financial market, stock market, and real estate market I can't believe they're are so many optimist out there.

Here's my roller coaster of a explanation...

Cause: Lenders tightening their lending standards to only type A borrowors.

Effect: Large pool of buyers are wiped out!

Cause: Less buyers shopping for real estate.

Effect: More inventory on the market.

Cause: The longer it takes to sell the market inventory.

Effect: More seller competition = More buyer incentives = Price decreases

Cause: More Price declines

Effect: More defaults

Cause: People maxed out the Home Equity Line and are now living on credit until the next ball drops.

Effect: More defaults, More credit crunch, More inventory

Cause: Reserves are low for lenders lending money.

Effect: Money costs more to lend...Interest rates go up.

Cause: Interest rates go up

Effect: People can't afford to buy a home

Cause: Inflation

Effect: Homeowners can't pay their bills, ie., mortgage and credit cards

Cause: Homeowners can't pay their bills, ie., mortgage and credit cards

Effect: More Defaults

Cause: 2 More cycles of Adjustable rate mortgages to reset over the next year.

Effect: More Defaults....more inventory, more price declines.

We'll you get the idea...it's a vicious cycle. I could go on and on...I didn't even touch the volatile stock market and it's effects. Please give me your thoughts as I am open to your opinion and I do realize mine is a bit different from the average Joe.

If your a buyer make sure you buy with your market decrease buffer built in. If you're a property seller make sure your property is priced right to sell fast or get creative. Creativity can be a win/win situation in this market. Let me show you how!

Specializing in Bellingham, Wa Bank Owned Properties, Short Sales, and Seller Financed Properties. Please give me a call, I'd love to work with you!

Bellingham Real Estate - Columbia Neighborhood

The Columbia neighborhood is one of the Bellingham's most sought after neighborhoods. The Columbia neighborhood has around 4000 community members with around 1600 single family dwellings. Most the dwellings are craftsman style featuring front porches with alley loaded garages, with plenty yard of for family frolicking and gardening.

The Median home price for the Columbia neighborhood is $266,000. What will this buy you...a cute craftsman 3 bedroom/ 1.5 bath 1250 square foot home. Selling time for these much sought after homes is about 2 months and less. Therefore, make sure you are pre-qualified and ready to pull the trigger when you find a home that meets your criteria.

If you looking to relocate to Bellingham and/or would like some help finding your perfect home or investment property, give me a call.

Tara

Buying Bank Owned Properties - Advantages of REO's

Buying Bank Owned real estate can be a great way to get a good deal on a home/property. In order to make sure it is a good deal you need to work with an agent who specializes in this arena. There are many advantages and downsides of buying a bank owned properties, part one of this series will be the advantages of buying bank owned real estate.

Advantages

* When you buy a bank owned property you are usually able to buy at a great sq. footage price, which is how you should buy any home if you're buying with investment standards. $100/sq. ft. is a great price!

* Once a property becomes bank owned, all liens that were a result of the foreclosure are wiped off and back taxes are paid.

* Banks will sometimes offer financing on the property with better terms than a normal buyer because they want to get rid of the property, but keep the asset and earn interest on their money.

Specializing in Bank Owned properties, Preforeclosures, Seller Financed Properties, and Lease Options in Whatcom and Skagit Counties.

Buying Bank Owned Properties - Disadvantages of REO's

Buying Bank Owned real estate can be a great way to get a good deal on a home/property or it could be a nightmarish experience. In order to make sure it is a good deal you need to work with an agent who specializes in bank owned properties. There are many advantages and downsides of buying a bank owned properties, part two of this series will be Disadvantages of buying bank owned real estate.

Disadvantages

*Most often a lot more Due Diligence is involved. These days there are so many bank owned properties that we get a good mix of the good, the bad, and the ugly. There are some gems to be found underneath the rubble! You must have an agent that will educate you on the due diligence process!

*Counter Offers will be verbalized from the bank in most cases.

*Negotiations can go on for a while. The banks are swamped right now and sometimes they only answer offers on certain days or when they get around to it.

*Properties can be filthy, stinky, and vandalized.

*Sold "as is," banks will not fix problems associated with the property.

*Properties are usually winterized and it's up to the buyer to get the water turned back on to inspect the septic and water systems and quality.

*The property may have several offers on the table, make sure your agent educates you on how to make your offer strong.

*Your financing needs to be in place before you place an offer. A pre-approval letter needs to accompany your offer.

*Earnest money will need to exceed the norm...usually 3% rather than 1%.

*Your friends will be jealous when you get a great deal.

Specializing in Bank Owned properties, Preforeclosures, Seller Financed Properties, and Lease Options in Whatcom and Skagit Counties.

What is a Bank Owned Property?

What is a Bank Owned Property?

A bank owned property is a property that has been foreclosed on...has gone to auction and the bank has taken it back and now owns it. Often times the bank will make certain repairs to make the property more attractive. Once the property has gone through the foreclosure process, most liens attached to the property will automatically be wiped off or the bank will settle with the lien holders. This is an advantage over buying a pre-foreclosures.

Often times bank owned properties are priced at Fair Market Value, although they aren't in fair market value condition. Make sure you work with a Realtor that is willing to negotiate the correct market price for the property condition.

For more information bank owned properties visit my website at www.TaraCampRealEstate.com or give me a call... 360-296-3244.

Specializing in Whatcom and Skagit County Bank Owned Properties, Short Sales, Lease Options, and Seller Financed Properties.

Greater Washington Bank Owned properties, Lease Options, and Seller Financed Properties.

FHA Financing - What it is and How it can Benefit you in today's Market!

While the sky is falling and the banks capital is drying up and/or they're hoarding it for a rainy day, I'm here to tell you that there are some great financing options out there to take advantage of in this great buyers market.

One options is FHA financing. No longer are we seeing the strict guidelines of the FHA of yesteryear, but a newer program that's as almost as easy as subprime...o.k, just kidding,...but with insurance backed by the government and less predatory lending programs.

What is FHA?

FHA financing is financing provided by the Federal Housing Administration (FHA), which has existed as a government corporation since 1934. Established under the National Housing Act, the goal of the FHA is to stabilize the mortgage market by providing an adequate home financing system through mortgage insurances. The FHA does not loan money out to borrowers, rather it provides lenders protection through mortgage insurance which protects lenders from the home-owner defaulting on their loan obligations.

Benefits of FHA financing

***Lower down payment (3 percent)

***Down payments and closing costs can be covered through gifts

***These loans are available for all homebuyers

***FHA loans are available to individuals with less than great credit history

***Individuals purchasing a condo do not have to pay an upfront mortgage insurance premium

***There are no cash reserve requirements for a FHA loans on single family residences or duplexes

***FHA for rehab cost added to the loan...not limited to bank owned however!

***Great FHA financing for HUD properties and Bank Owned Properties

Contact me for more information on your financing options, property search, or assistance in getting prequalified.

FHA Financing - Qualification Guidelines

As a real estate professional I find it my duty...my job...my responsibility...my desire to know which financing options are available for my buyers in the Whatcom and Skagit County areas.

Although, I'm no expert on conventional financing, I know enough to keep my buyers informed. One of the more increasingly popular means of financing during these tight times is FHA financing. Find out more...FHA Financing - What it is and How it can Benefit you in today's Market!

FHA guidelines are one of the easiest forms of financing to qualify for these days.

FHA loan Qualification Guidelines

• 2 Years of steady, consistent employment


• Last two years Income should be consistent or increasing


• 2 year clean credit history required


• Bankruptcy's must be at least 2 years old, current credit must be good


• Foreclosure's must be at least 3 years old, current credit must be good


• New mortgage payment cannot exceed 30% of gross income

There are great options for FHA all across the board. Contact me for more information regarding financing options in this buyers market. Search for Washington bank owned properties, seller financed properties, lease options, and more.

Bellingham Real Estate - Preforeclosures and Bank Owned Properties

Whatcom County and the Bellingham real estate and market has held strong compared to most areas of the country in regards to home values and market conditions. Over the last 12 months our market has continued to see declines in housing prices and has experienced about a 10% decline in values from the same time last year.

Within the last few months preforeclosures have almost doubled, although the percentage of those that actually end up bank owned are definitely fewer. Short sales and bank owned properties are a big percentage of home sales these days. Which means overall they're bringing down home values in those areas.

For more information on Buying a Bank Owned Property, Short Sale, or other property give me a call.

Tara Camp

ConnectRealty.com/tara

Search Greater Washington Bank Owned Properties at www.ConnectRealtyHomeSales.com

Bank Owned Properties - How to make a strong, acceptable offer!

How to make your offer on a bank owned property stand apart.

1. Have a great Buyer's agent on your side, because the listing agent isn't going to negotiate for you!

2. Have your pre-approval letter ready when you present your offer.

3. Present the offer with 3% or more (of offer price) earnest money.

4. Have your agent include comparables sales if they support your offer.

5. Put together a list of repairs that need to be done to the property along with photos as evidence.

6. Pay all cash...if you can!

7. Make a clean, solid offer...the bank usually don't make repairs...so don't ask them to.

8. Make a clean, solid offer...with as few contingencies as possible.

9. Offer a quick closing...

For more information on Bank Owned Properties, give me a call.

www.taracamprealestate.com

www.connectrealtyhomesales.com

HomeSaver Advance

HomeSaver Advance is the latest attempt of the fed. to assist homeowners in default. Basically the program is designed to help homeowners who have fallen behind because of a temporary set back and can otherwise afford/pay for their home. The jist of it is that your current lending institution can provide you with a unsecured loan that will cover any unpaid mortgage payments(arrearages). You will be charged 5% interest over 15 years(not too shabby). This loan can be applied to principle, interest, attorney fees, or anything else associated with your loan. Oh yeah, the loan has to be Fannie Mae owned or securitized in order to qualify for the program. Don't worry, if you got a conventional loan you most likely fit in this box.

To See the full Article click on the title: HomeSaver Advance

Creative Financing Might Help Sell your Home

Have we Hit Bottom?

Yes, Even I ponder that question...In my opinion the answer is no! I have kept a watchful eye on markets across the nation and if anything things are getter worse. Credit stardards are tightening and money is drying up. O.k., certain markets certainly haven't experienced the infux of foreclosures, but when the money dries up it will affect every market.

As a foreclosure specialist, I have noticed recently that not only are subprime mortgages defaulting, so are prime mortgages. Looking at properties being listed these days, I'm finding over-leveraged properties and owners of all credit ratings. Therefore, the problem not only being subprime lending, but a culmination of lax lending standards, high LTV's, and over-priced real estate.

Please follow the link to a great msn article...click on the title "Have We Hit Bottom?"

Market Conditions and The Near Future of Real Estate

Well, the Real Estate Market here in Bellingham has held up pretty nicely compared to most of the country. Compared to prices of January 07' prices have fallen a bit but overall the market has held strong. Inventory is up and the number of units sold is down about 15%. With the lending standard of the banks getting more stringent and a their lack of funds to lend, I think the number of sales will decline even more. There will be a need for creative financing and creative sales strategies. In my opinion, financing will be harder to come by and interest rates will only get higher.

Please click on Title Market Conditions and the Near Future of Real Estate to view related video.

Sold on ConnectRealty.com

How We Help You Connect

The process of selling a home is a busy time with literally dozens of things that need to be considered, handled and resolved by the close of the transaction. Having a Connect property specialist as your partner makes this hectic process much easier.

From the initial steps of placing your home on the market to signing the final closing papers, here's how I will help:

Price and Prepare Your Home for sale
Market to Other Realty Professionals
Market to Potential Buyers
Advise, Negotiate Offers, Handle Paperwork
Close Your Deal!

Price and Prepare

As a Connect property specialist I will help you get your home ready to be sold. From helping you decide a competitive price to advice on how to elevate your home's curb appeal, here are a few things you can expect from me.

Comparative Market Analysis (CMA)

The CMA compares your home to the other homes currently for sale in your area as well as other homes that have sold recently, or expired from the market before selling. This comprehensive data helps us arrive at the most competitive price for your home.

Interior and exterior upgrades

From your home's curb appeal to the color of your interior paint scheme, your home should welcome prospective buyers and make them feel like they have to live here. I will evaluate what improvements can be made and offer objective advice to help you seal the deal. Would you like some free advice on staging your home or making it more presentable on showing day?

Market to Other Realty Professionals

Successfully marketing your home means spreading the word about your home to other realtors. A Connect Realty property specialist will widen your audience of potential buyers using these techniques.

Multiple Listing Service (MLS)

The MLS lets real estate professionals show and sell each other's listed properties as "cooperating brokers." It's an electronic database promoting brokers' listings whether they're large or small. The more agents who know your home is on the market, the faster it's likely to sell.

Brokers' Tour

As your Connect Realty agent, I will host this tour and invite local realtors to see your home and preview it for their clients.

Connect Hot List

Connect Realty's advanced technology can quickly broadcast new listings within the real estate community via computerized "hot sheets" that announce your home's arrival on the market. The faster we get your house in front of agents and brokers, the sooner their buyers will want to check it out.

Lockbox

As your property specialist, I will provide an electronic key or numeric combination to open a door-hanger, which holds your house key. Property specialists will be able to show prospective buyers your home, even when you're not there. If you're away from home a lot, or if you're house is off the beaten path, this is a great convenience.

Market to Potential Buyers

Finding “the one” buyer for your home is what the Connect property specialist lives for and our experienced professionals enlist the following tactics to sell your home:

Web Presence

The Internet is a popular choice for home "shoppers." Nationally, more than 80 percent of people in the market for a new home use it. It's especially valuable for people relocating to your area. I will provide you with real-time listings, online open houses and plenty of photos that showcase your home to Web surfers. Plus Connect Realty guarantees that every one of our listed properties will be promoted on multiple Web sites.

Yard Sign

Yard signs are an awareness-generating tool, notifying neighbors and drive-by buyers that your home is for sale.

Home Book or Magazine

Free of charge and available just about everywhere that potential buyers shop, home books are another popular marketing tool among sellers (not to mention a very useful catalog when you're buying you're next home).

Showing

As a Connect Realty sales associate I will set up showings to accommodate the schedules of qualified buyers and their property specialists – without inconveniencing you and your family.

Open Houses

Your potential buyer may still be around the corner, but open houses can bring them to your door. Consider a weekday open house – they're not just for Sundays anymore! And I can also market your open house online!

Direct Mail

Promotional postcards and other written materials about your home can be sent to targeted market areas and the potential home buyers who live there.

Home Warranty

Connect Realty offers a home warranty program: a one-year plan that assures prospective buyers that your home's systems (electrical, heating/air conditioning, plumbing, appliances, etc.) will be functional during that time. Such a warranty will protect you and reassure your buyer that your home is of solid value and in good condition.

Advise, Negotiate Offers, Handle Paperwork

This includes everything from the beginning to the end of the process of selling your house. I will handle your questions and direct you to professionals that will assist you in every aspect of selling your house.

Inspections

City code, general home, and pest and radon inspections.As your Connect Realty specialist I can represent you (and your interests) during these appointments so you don't lose time from work or school.

Evaluating and Negotiating the Offer

It takes a certain finesse to navigate the ins and outs of a buyer's offer. Is the offer acceptable? What closing date works for you? Are you willing to repair the roof in exchange for your full asking price? Helping in shaping your decisions is why you'll want a trusted, objective professional like me as your partner.

Contract Acceptance

Buying a home is one of the biggest decisions of your life. Rely on the guidance and objectivity of a trusted professional. As your property specialist, I can make sure that details are remembered and your interests protected.

Legal and Other Documents

A real estate transaction can involve listing and purchase agreements, multiple disclosure statements, addenda, amendments and contingencies. Do you work with real estate-related legal documents every day? Well, I do. Rely on my familiarity with the language, timelines and requirements that lie within these legal documents.

Dispute Resolution

Even the smoothest, simplest real estate transaction involves two parties, with needs and objectives that may differ. The right real estate property specialist can provide skilled negotiation and mediation and conflict resolution. Let me deal with the sticking points that can sometimes offend a seller.

Close your Deal

Facilitate Closing

The old adage, "the devil is in the details," is no less true at closing. Once you've accepted an offer on your home, your I will work quietly and efficiently to keep things moving smoothly and according to plan. Broker, lender or title examiner. Everyone needs paperwork, signatures, verifications and certifications. From opening escrow to title transfer, it's another area where the right property specialist can make the difference.


Transfers

The number one irritant of home buyers is running into unanticipated difficulties in gaining possession of their new (your former) home. I will make help the transition go smoothly by handling everything from finalizing the transfer of utilities to handing over the house keys and ownership to the new owners.

Pre-sale Repairs and Upgrades

Got a leaky roof that requires a certification? Or perhaps you've agreed to remove an unsightly tree stump. I can create a tickler system that will remind you to fulfill your obligation in a timely fashion to prevent breach of contract.

Title Services

Creditors' claims, undisclosed heirs and mistakes in public records. These are issues that could stall your closing. Connect Realty offers title service as part of our "one-stop shopping" service.

Contingency Resolution

Contractual contingencies are terms that must be met before an agreement is binding. The written contingency, therefore, must also be removed in writing, by a specified date, before the contract can be fully in effect. Whether it's financing, inspection or any other item your agreement is subject to, I can assist you in understanding and fulfilling these contractual conditions.

Have any Questions? Please give me a call.


Sellers Information
http://www.connectrealty.com/tara

How to Structure your Residential Real Estate Note for the Most Resale Value

If you're considering being creative and selling your home with owner financing your not alone. With the banks putting a strangle-hold on lending standards this will be one of the most popular ways of selling houses in the near future. Whether you're wanting to create a monthly income stream for yourself or sell your newly created note for a lump sum anytime after selling, you'll want to follow these simple guidelines.

1. 10% down payment for owner occupied buyer
20% down payment for non owner occupied(investor/2nd home)

2. Structure you note with interest of 9% or higher

3. Structure a note that amortorizes over 30 years

4. Struture a note with a 7 year balloon

5. Buyer needs to have a credit score of 625 or higher

6. Structure the note with a 1 month minimum seasoning period(this means that you have held the note for at least 1 month).

These guidelines will enable you to receive the most for your note. If you can get a bigger down payment that would go straight into your pocket and also make your note more valuable. These are only guidelines to make your note more valuable, if you choose to create it differently it will still be salable, only less valuable.

Education is a Empowering

I just returned from a week in sunny, summer-like Glendale, Arizona. The weather was soo very nice, but the best part of the trip was the people I chose to surround myself with...my fellow colleuges of Nouveau Riche University. NRU is a premier real estate educational program dedicated to educate it's members in every aspect of real estate investing including tax strategies, creative aquisition, finance, you name it and they teach it. I've been involved with with Nouveau for about a year now and it only keeps getting better. Nouveau has a high standard of ethics and demands the same of it's members, which is seen again and again each time I attend Glendale for education(which is every 2 months). I had an incredible time in Phoenix last week with all the new faces I met, as well as, with those I didn't. The positivity, support, and high caliber of colleages at Nouveau will to continue to enrich my life more and more each time I visit. I look forward to next time.

Tips for Selling Your Home

Here are a few tip on how to get the most bang for your buck when selling your home. I know some of them sound quite ridiculous but they'll give you the most return on your time and money invested.

1. Landscaping

· Keeping the lawn mowed and shrubs well trimmed.
· Removing dead tree limbs and bushes close to the house, as well as, other yard debris.
· Livening up the landscape by planting fresh shrubs or flowers. (A small investment of even under $100 can really make a difference here.)

2. Cleaning(Inside and Out)

· Treat your carpets/walls a deserved cleaning
· Cleaning gutters and downspouts.
· Washing the driveway and sidewalk; patch holes, too.
· Cleaning and neatly arranging the garage or shed.
· Odors and Dirt are the leading “turn offs” for home buyers.
· Bake some cookies!

3. Front Door Presentation

· Checking siding, trim and doors – especially the front door – for dirt and peeling paint. (Wash or touch up where needed.
· Making sure the entry light and doorbell work.
· The front door should not only look, but also give the house a sense of security. A new lock will give a sense of safety and also add to the “wow” factor.

4. Garage Door Refurbished/Replaced

· Consider installing a new garage door or painting the old one to increase curb appeal if your garage is in the front on the house. This can be the most noticeable item on the house.

5. The “Cute” Factor

· Making the house cute and home-like will give you the greatest return on your money. Painting the exterior will help achieve a more modern, homey feeling. Consider warm, complementary colors.
· Interior colors should be neutral, although personally I like more lively pastels.
· If your house is going to be empty when you list it, add a few things to make it feel cozy. Bath mats, towels, salt & pepper shakers, pots/pans, flowers,

6. The Eight Foot Rule

· This is the sweet spot where buyers stand as they wait for the realtor to open the door. This spot is crucial whether it makes sense or not, try it. You know what “they” say about first impressions.
· Consider a tile entry-way, a new door mat, a vase with tree branches
· Add something that’s warm and inviting.

STOP FORECLOSURE!

Are you a distressed homeowner facing foreclosure? You’re not alone, as you know many Americans are facing foreclosure in today’s real estate market. Get Informed! Know what your options are.

1. A Loan Modification

· A loan modification is simply that – a modification to your existing loan.
· You’ll need to catch up on 60%-70% of your late payments.
· Call the bank & tell them you have six or seven payments to make up and you want to do a “loan modification”.
· The bank will in turn put the other three or four payments on the end of the loan.
· You will also be required to pay all attorney fee and back taxes at this time.

Example:
Value of the house $200,000
What is owed $185,000
Monthly payments $1,500
Payments behind 10
Back payments Owed $15,000
Attorney fees $2,500

Therefore, you’ll have to pay:

$1500(late payments) X 7 = $10,500 +$2500(attorney fees) =$13,000

*You can only do 1 loan modification per year and 4 per length of the loan.
*Bank will ask for “proof of funds”.

2. Forbearance Agreement

· A workable agreement between you and the bank. If the Loan Modification doesn’t work because you don’t have all the cash, then this may be a better option for you.
· The bank will require 40%-50% of back payments plus all attorney fees up front…the rest of the payments will be added to your monthly payments over the course of a set period of time (6-12mnths).
· If you choose this option make sure you have enough money saved so that you don’t fall back into foreclosure. If you miss a payment you end up right where you left off in the foreclosure process.
Example:
Today is Feb. 6th and you strike a deal with the bank.
Your original Sale date is March 1st.
The bank will push your sale date back to April 1st.
And will continue like this until you have caught up on your payments.
If you miss a payment you will be right back in foreclosure the next month.

3. The Subject-To

· Sell the property Subject-To your existing loan. The Buyer will bring your loan current and pay all the arrearages at the time of the sale.
· This method will help build your credit by making timely payments each month. You should have a third party management company collect payments from the new buyer and then pay them to the lender.
· Your loan may have a due-on-sale clause that may call your loan due at the time of sale. You can ask your lender for permission to waive this clause.

4. Short Sale

· When your lender agrees to take less the amount owed on your current mortgage, this is called a short sale.
· In order for this option to work you must be faced with a financial hardship.
· A lot of paperwork and negotiating is required
· The Negotiator must state a case to the bank as to why you are deserving of a short sale.
· Banks don’t require you to be in foreclosure to do a short sale!
· Short Sales vary in processing time…it can take 3 weeks to 6 months and longer if you file bankruptcy.
· Short sales can buy you time
· Normally the banks give you a deficiency judgment(which is negotiable) is tax as income, as of 1/08 this has be waived

5. Chapter 13 Bankruptcy

· Contact your bankruptcy attorney

6. Deed in Lieu of Foreclosure

· Process where you just “give up” and give your home back to the bank.
· You will definitely be given a deficiency judgment, unless you get it in writing that they will not hold you liable.
· The bank will also hold you responsible for a “1099 tax liability”. This means you’ll have to pay taxes on any “shortage” of mortgage balance.
Example: Mortgage is $200,000
Bank sold for $150,000
You’ll be taxed for the difference of $50,000

7. Collateralizing your Defaulted Note with a Discounted Note

· Meet/Call your lender and negotiate a Substitution of Collateral of the defaulted property.
· Find a discounted note
· Find a lending source
· Replace the defaulted paper with the discounted note…this may actually put money into your pocket
· Easier said than done


I am not an attorney, nor do I pretend to be…Please contact your attorney for legal advice.

Creative Ways to Buy/Sell Real Estate in Today's Market

Whether you’re buying or selling a house these simple techniques can help you reach your objective and solve the problems you face as a buyer, seller, or real estate professional.

Temporary Seller Financing - It’s a well known fact that owner financed properties sell faster and for more money than your typical conventional transactions. However, most homeowners/sellers want to get paid today. This is a strategy where you get the best of both worlds…sell at a higher price and collect the sale proceeds at the time of closing.

Here’s an example of how it works…

Basically, you (seller) set the sales price (should be the appraised value), get a down payment, and create a 1st Mortgage Note that an investor will purchase for up to 85% - 95% of face value at or right after the closing (depending on LTV, credit of buyer, and rate/term of note).

There are many local and nationwide companies that will buy your newly created note. Of course there are certain specifications that need to be considered when creating a marketable note, therefore, consult an expert and/or real estate attorney.

Benefits

· Higher sales price
· Faster Closing
· Lower Closing Costs
· Easier qualifying than that of Conventional Financing for fixers
· More lax underwriting standards

Installment Sale/Contract for Deed - Another form of seller financing where a homeowner with considerable equity takes back all or part of the market price of the property in the form of a promissory note secured by real estate. What does this mean? In simple terms…you finance the property for the buyer and hold title until terms of the agreement have been satisfied.

Again, caution must be taken in the wording of the created note to protect your interest.
Benefits of the Installment Sale

· Defer Capital Gains
· Secure Investment (interest earned on total loan amount)
· Highest possible sales price
· Faster Closing
· Lower Closing Costs

Explanation of Benefits

· Used as Retirement Vehicle this creates a low taxed income stream, which allows Medicare to kick in sooner than it would with a person with a large sum of cash in their bank account. It allows the beneficiary of the note to leave something to their heirs (all tax benefit) upon exiting.
· Interest only payments-Defers taxes indefinitely. Better/safer investment than most anything.

There are many variations to this type of financing to reach any desired outcome.

Lease Option/Rent-to-Own - The buyer enters into a lease agreement with the seller with an option to buy at a later date. Length of time can be 3 months to 5 years. The Lease payment will be determined by buyer and seller. Buyer pays the seller option money for the right to later purchase the property. The lease option money is considered a down payment and is usually non-refundable. The purchase price can be pre-determined or a percentage of the market value at the time of closing. A portion of the monthly rental payment typically applies toward the purchase price. While the buyer isn’t obligated to buy the property if he/she chooses not to exercise their option all contributed monies will be forfeited to the seller.

Benefits

· Tax Benefits of investments property ownership
§ Depreciation write-offs
§ Capital loss write-offs
· Helps the buyer save down payment and build credit


Lease Purchase - Same as the lease option except the lease is obligated to purchase the property at a pre-determined time.

1031 Exchange - A 1031 tax deferred exchange allows you to roll-over all of the proceeds received from the sale of an investment property into the purchase of one or more other like-kind investment properties. At closing, proceeds are transferred to a third party--called a facilitator or qualified intermediary--who holds them until they are used acquire the new property.

Benefits

· Consolidation of Properties
· Increase Depreciation (raw land to depreciable property)
· Management Relief
· Leverage (more investment $$ to Invest due to no Capital Gain)

Short Sale - This is a sale that involves the bank discounting the amount owed due to a hardship. Although it sounds straight forward and simple it’s not. The bank may give distressed homeowner a Short Sale kit and offer to lower the price a little however it requires a real estate professional to make a case for the homeowner in order to get the discount usually needed to prevent foreclosure. Homeowners be wary of any individual asking for an upfront fee for consultation on a short sale.



Disclaimer- I am not an attorney or Accountant, nor do I pretend to be. Please consult your Attorney/CPA for tax and legal advice.