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.

Bellingham Living - Top 50 Places to Live - Relocation - Why I love Bellingham

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