Sunday, June 27, 2010

For Sale By Owner aka FSBO

1)  Can't I save alot of money selling my house myself? 
      Absolutely, the question is can you give your house the same exposure that a Realtor can? In my local market when a Realtor lists your house instantly approximately 4000 Realtors know about it. With today's housing market moving at a slow pace the more who know your house is for sale the more likely you are to get it sold.

2)  I have to sell my house myself in order to get enough to pay the mortgage off and there is no money for Realtor fees.
      This is a very common situation in today's market. What most don't realize is that you can have all the advantages of having a Realtor and not have to pay the Realtor fees. Your house no matter what you owe is only going to sell for what the market will currently pay for it. Therefore call a Realtor and they can help you communicate with your bank and get short sale approval. Once it is sold the bank pays all the fees for getting it sold and you can move on with your life.

3)  What about closing costs, termite inspections and the dreaded home inspection repairs?
      Most short sales are sold as is and the home inspection is done for the buyers information only however I have seen the bank pay for some repairs. Closing costs are paid for by the bank as this is a cost of selling the home. Termite inspections are on average $65 and I can tell you that I've paid several of those to help out the home owners who are just trying to get on with their lives by starting over.

These are but a few of the questions that I get calls on weekly. Don't go another month worrying how you are going to keep paying for a house you no longer can afford. Call me and I will be glad to answer your questions.

Thursday, June 24, 2010

SHORT SALE-What is it?

A short sale is when you sell your house for less than you owe on it. Which brings up some questions. Let me see if I can answer a few here.

Q)  If I sell my house for less than I owe won't I have to pay the difference?
A)  NO. The bank forgives the balance and you will NOT get an IRS form #1099 at the end of  the year which means you do not have to pay taxes on the difference either.

Q)  If I can't pay the mortgage how am I supposed to pay Realtor fees?
A)  If you short sale the house the bank pays the Realtor fees and all other fees associated with selling the house.

Q)  If I short sale my house won't I ruin my credit?
A)  Yes your credit will take a hit of approximately 100 to 250 points but you get to start over again with expenses you can afford. Your credit score can/will recover in about 24 months. If you walk away and let the bank foreclose you will be responsible for the money owed the bank plus all expenses. We all know that the bank can add on penalties and interest real quick. Plus your credit score will take a more significant hit of about 300 to 500 points with foreclosure.

Q)  Do I need the banks permission to short sale my house?
A)  If you are late on the payments and have reasons like lost job, sickness or much less income due to the economy then you have valid reason which in banks terms is called a hardship. You will need to call the bank and let them know you can not continue to make the payments and that you are going to sell the house.

Q)  Can any Realtor sell my house as a short sale?
A)  All Realtors have the ability to sell your house for market value. However you will have a much smoother process if the Realtor is short sale certified. Which means they have formal education and experience in dealing with the banks in regard to short sales. Some banks are now requiring that the Realtor be short sale certified in order to sale the house.

Q)  But I have had no luck with my bank working with me, how am I going to talk to them about a short sale?
A)  Once the Realtor lists the house most all of the conversation with the bank is going to be done by your Realtor. The Realtor with your help will gather all the necessary paperwork (not much) and get it to the bank along with market conditions in your neighborhood. This lets the bank know that the list price for the house is all that the market will pay.

Q)  Will the bank let me sell the house myself as a short sale?
A)  No they require a licensed Realtor so that it is all done legally by the state and federal laws governing Real Estate transactions.

Q)  How do I know which Realtors are short sale certified?
A)  If you know a Realtor just ask them and they will let you know if they have experience in short sales or call me and I'll answer your questions.

Please ask questions but don't let your house go into foreclosure. Foreclosure is a nightmare for all conceerned. Short sales are everyones preference and absolutely the best answer for the seller. So stop worrying your life away over house payments you can no longer make. Call me and I'll do my best to answer your questions and calm your fears.

Wednesday, June 9, 2010

Should I walk away from my house?



How do I know if I should walk away? Although our local market is not as bad as some areas of the country we are still in a declining market in some areas of town. The experts forecast more decline at worst and ever so slight increase at best for the next few years. If this is in fact the case and you are owing more on your home than it is worth you still have options and bleeding money isn't the one to continue with.
Do I vacate the house now? No! Neither the banks or your neighbors want this. Besides even if you leave you still need to keep the utilites on so that no damage occurs as a result of no heat or water. The bank can come at you for damages if you let this happen. First call an experienced certified Short Sale Realtor to walk you thru the process and then you can make an informed decision that is right for you and your family.
Are there advantages to Short Sale versus Foreclosure? Which process you go thru will depend on your situation but in general short sale is better for you and the bank. Again an experienced certified Realtor will sit down with you and go thru the process and how it affects you. As a rule the difference between the sale price and the mortgage owed is forgiven and you do not have to pay taxes on the difference when you do a short sale.
Will my credit be damaged for life? You can recover from this on average in 3 years and be able to obtain another mortgage. To be clear foreclosure has more of an impact on your credit score than a short sale. Either way it makes no sense to carry a burden in a market that won't change in the near future. As with anything in life knowledge is power and enables you to make good decisions. Make sure you find a Realtor who is Short sale & foreclosure certified with experience.
No Money to Sell? With an experienced short sale/foreclosure Realtor you will have no further expenses to sell your home. All Realtor fees will be paid when the house is sold by the bank. Take a minute call me and let me explain the process over the phone to ease your mind a bit.
Bottom line. Don't stay awake at night worrying. Don't get caught up in a scam that can cost you more money by paying someone to "Fix" your problem. Call me today and get on with your life. I'm sure you have many more questions and I'll be glad to help you answer them.