Author: adminrealtor

A Virginia Realtor specializing in the Western Fairfax County Region of Northern Virginia.

Preparing For A Short Sale

No Comments

As difficult and stressed as things may be, the lender is going to want some information about your financial situation as part of their decision to accept a lowered payoff amount. The information needed is similar to the information needed to complete a mortgage application, except, instead of trying to prove your credit worthiness, you are trying to prove your financial insolvency.

Here is a list of items you may need:

  • A hardship letter explaining your financial situation. Include what you have done to rectify the situation.
  • Documentation on any other liens against the property.
  • Bank statements.
  • Pay stub and W2’s.
  • Monthly bills, especially utility bills on the property.
  • Property taxes.
  • Homeowner insurance policy

Categories: Short Sales and Foreclosures

Tags:

Can I still short sale my home if I’ve filed for bankruptcy?

No Comments

The absolute answer to this question is to consult an attorney who practices law in the state you filed, because bankruptcy is a legal issue.

Ask your attorney if the state in which you filed for bankruptcy will protect your home from foreclosure. The Bankruptcy Court or Trustee would have to approve your entering into a listing agreement. In most cases, it will be nearly impossible to complete a short sale.

Consult an attorney for legal advice.

Categories: Short Sales and Foreclosures

Tags: ,

What Is A Short Sale?

No Comments

If you’re keeping up to date with real estate news, chances are you’ve heard the word “foreclosure” more and more. If you want more detailed information about foreclosures, then read my post called, “What Is A Foreclosure”. For this post, just know that a property in foreclosure means that the homeowner can no longer pay the mortgage. What does this have to do with a short sale? Read on.

When a homeowner can no longer afford the payments on their property, they may try to refinance their loan to a better rate in order to lower their monthly payments and avoid foreclosure. But when the total balance of a mortgage exceeds the current appraised value of the property, refinancing that mortgage becomes extremely difficult, if not impossible. It becomes a huge risk for any lender to lend money on an asset that is worth less then they are lending. So what is a homeowner to do? They cannot refinance but cannot afford the mortgage. The only option they have is to sell the property. But since the appraised value of the house is less than what the homeowner owes, the home must be sold at a loss. This loss is considered a short sale from a lenders perspective since they are willing to accept less than the amount they are owed as payment in full.

Categories: Investing Short Sales and Foreclosures

Tags: ,

Can’t Pay Your Mortgage?

2 Comments

For some reason or another, you just can’t seem to pay your mortgage. Whatever the reason, you must know that you do have choices:

  • Sell your home and find a more affordable one. If you owe more than what your home is worth, you may need to sell your home as a short sale. Talk to a knowledgeable real estate in your area for more details.
  • Refinance the mortgage.
  • Ask your lender if they would agree to a forebearance, wherein the lender agrees to temporarily suspend or reduce payments.
  • Ask your lender if they could agree to permanently modify the terms of the loan to reduce monthly payments.

If you miss a payment or know that you are going to have trouble keeping up with your payments, contact your lender immediately! Open communication with your lender shows them that you are willing to do what you can to resolve the problem. Consult with a real estate agent in your area for help if needed.

Categories: Short Sales and Foreclosures

Tags: ,

What Is A Foreclosure?

No Comments

Foreclosure is a process by which a lender takes title or forces the sale of a property as a result of the borrower’s failure to comply with the terms of the mortgage. The first missed payment begins the foreclosure process. Bringing the loan current (paying all the mortgage payment(s) and fee(s) due) or selling the property ends the process.

If after numerous attempts to collect payment from the homeowner fails, lenders will begin legal proceedings to foreclose on the property through a Notice of Intent to Foreclose posted in a local newspaper and at the county/city courthouse. The notice lists general information about the property and a date the property will be sold at auction.

Depending on the auction terms, the lender may set a reserve amount (a minimum amount they will sell the house). If that reserve amount is not met, the home becomes property of the lender, or Real Estate Owned (REO).

Depending on the state, a house sold at a foreclosure auction may go into a redemption period wherein the homeowner can buy back their home if they can pay for the entire loan, including any accumulated fees.

Categories: Investing Short Sales and Foreclosures

Tags: ,

10 Tips To Selling Your Home Quickly

No Comments

No one wants their home sitting on the market for months, so BEFORE you list your home, follow these quick tips to help you get sold quickly:

  1. Remove the clutter. Show off available space by removing loose items and excess furniture.
  2. Paint and repair any damages on the walls.Try to stay with neutral colors.
  3. Repair any flooring defects. Replace flooring if possible.
  4. Remove or minimize personal photos. Let the buyers imagine themselves in your home.
  5. Clean up the yard. Curb appeal is important so get your front looking great and buyers will want to see more.
  6. Invest in air fresheners or air cleaners, especially if you have pets in the house.
  7. Clean and dust around major appliances, including the furnace and hot water tank.
  8. Add plants for greenery room fillers to give the place a lively appeal.
  9. If you want to list your home as 3 bedrooms, then try to make sure that each room functions as a bedroom, or at least show that a bed can fit in the room.
  10. Clear off kitchen counters. Everyone loves counter space. Try putting toasters, coffee pots and knife blocks in cabinets when not in use.

Remember that once you list your home, you need to keep it looking good throughout the listing period. Think about how you feel when you see a nice luxurious hotel room– no clutter, clean and inviting. That’s the same feeling you want buyers to see when they walk into your home.

[phpbay]home decorating, 5[/phpbay]

Categories: Selling

Tags: ,

The Home Selling Process

1 Comment

Selling your house may sound easy at first and you may decide to try to sell your home on your own. This post will show you what steps are normally involved in the home selling process, and maybe you will see how valuable selling your home with a real estate agent can truly be:

  1. Understand your market. Do some research and find out what the market is doing in your neighborhood. Your real estate agent can provide a detailed report of the current real estate activity in your area.
  2. Market your home sale. Create flyers and brochures, and offer open houses. Ideally you are working with a real estate agent who will enter your home into the Multiple Listing Service.
  3. An offer received begins the negotiation and counter-offer process.
  4. Once the contract is ratified by all, the buyer(s) may choose to order home and termite inspections.
  5. Remove any contingencies after negotiating terms from home or termite inspection findings, etc.
  6. Buyer(s) will do a final walk-through prior to settlement.
  7. Close on the property.

This is just a basic overview of the process, and because there are many factors that could affect each step, it’s recommended that you hire a real estate professional knowledgeable in handling unique situations.

Categories: Selling

Tags: ,

Pre-Qualification vs. Pre-Approval

1 Comment

So you think you’re ready to make the leap to homeownership? Or maybe the time you bought your first house seemed like a blur and you can’t remember the difference between pre-qualifying for a loan vs. obtaining pre-approval for a loan. Well I hope this post will clarify things a bit for you.

The biggest difference between the two is a credit history check and full debt and income verification.

When you pre-qualify for a loan, you are not applying for a specific loan amount. You state your income, any debts you may have and your lender or mortgage broker will do a preliminary calculation of how much you can afford. No credit history check is obtained, and you may not need to provide documentation of your income. You still need to apply for the loan amount you need when the time comes.

When you obtain pre-approval for a loan, you are applying for a loan so your lender or mortgage broker wants to see all your income documentation and runs a credit history check to determine how you’ve paid your debt in the past and what debt you currently have. They gather all this information and determine your FICO score which helps them determine what loan program best suits your situation.

Pre-qualifying will help you in the following ways:

  • Generally, interest rates are locked in for a set period of time. You will know in advance exactly what your payments will be on offers you choose to make.
  • You won’t waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:

  • A seller may choose to make concessions if they know that your financing is secured. You are like a cash buyer, and this may make your offer more competitive.
  • You can select the best loan package without being under pressure.

I always recommend that my customers obtain pre-qualification to see how much they may be able to afford and weigh the difference of the payments on a new home against what they are paying now for their housing situation. If they find that they are ready and serious about shopping for a new home, I highly recommend that they obtain pre-approval for a loan.

Categories: Buying

Tags:

The Home Buying Process

No Comments

Ideally you will seek the advice of a real estate agent knowledgeable of the market conditions in the neighborhood you are interested in, but in general, these are the following steps in the home buying process:

  1. Work with your real estate agent to evaluate your needs.
  2. Obtain pre-qualification to determine a price range.
  3. View selected homes in your price range.
  4. Write an offer.
  5. Negotiate and counter-offer.
  6. Accept the contract terms upon inspection and removing contingencies.
  7. Your agent can work with your broker to complete the mortgage approval process and underwriting, i.e., appraisals.
  8. A termite inspection is done and a survey is ordered.
  9. A title company will perform a title examination of the property.
  10. A final walk-through of the house is completed prior to settlement.
  11. Close on the property.
  12. Take possession of your new home.

The time it takes to complete the process can vary. Negotiation and counter-offering may take some time, and after a home inspection, there may be more negotiation to resolve any issues that surface.

Categories: Buying

Tags: