Wednesday, May 16th, 2012 at
11:41 am
Bank of America Offering $2500+ Incentives To Homeowners Pursuing Short Sale Route
Bank of American last year instituted a pilot program of offering incentives to homeowner’s in Florida to encourage them to sell their homes with the short sale process rather than letting their home go to foreclosures. They have now rolled out the program nation wide.
The banks realize it is less expensive for them to have defaulting home owners complete a short sale. That only took a few years to come to that realization.
The incentives range from $2,500 to as much as $30,000 as relocation assistance. If you have a Bank of America Mortgage contact them to see if your mortgage qualifies. The incentive program will end September 2013, but the forgiveness of debt act expires December 2012.
Wednesday, May 2nd, 2012 at
2:59 pm
So many of my clients ask the question “Why is the list price not the sales price?”
Isn’t the list price for this home what the Seller wants? My answer – sometimes. With limited inventory and a high pool of buyers multiple bids drive the list price of a home over the asking price, making it difficult for both the buyer’s agent and the buyer to determine a reasonable offer that will ensure they get the home.
Homes that are priced at market or a little below market in good condition are sold within days of going on the market, and many with multiple offers. I represented a buyer who was competing against 25 offers. Unfortunately even though my client offered ten percent over list, it wasn’t enough.
Sellers don’t just look at the price when evaluating offers, they also look at the strength of the buyer, their credit, down payment, work history, etc. and terms of the contract. These terms include closing date, contingencies, repairs requested and the type of financing involved. So while price is a key factor, it is not the only factor when making offers.
What we see in the San Ramon Valley real estate market is basic economics, supply versus demand. Not enough homes on the market to satisfy the pool of qualified buyers.
For those buyers who are entering the market, make sure you are prepared and understand the current home buying climate. Here are some tips:
- Hire a Realtor
- Get pre-approved by a lender before you start making offers
- Check comparable homes sales, this will help you determine a reasonable offer
- Have all of your finances in order
- Be ready to act quickly
Most of all don’t get discouraged. It may take two or three offers to get a home. The one you finally end up with will be your dream home.
Wednesday, April 25th, 2012 at
2:14 pm
The home buying process negotiations are about the whole offer and not just the price. In today’s competitive market, with multiple offers on many properties, Sellers are looking at terms as well as the price. You may offer a full list price or over list, but other terms may be unrealistic, such as requesting credits, repairs, possession, etc.
The cleaner the contract which is straight forward with minimal requests has a better chance of making the first round of negotiations. Other items such as removing contingencies. Rather than go with the default time period, shorten the days to remove the inspection contingency. This lets the seller know that you are serious and intend to do your inspections right away.
Closing dates are important. If you have already been pre-approved (which is a must before writing an offer), then all that is needed is the appraisal. Regardless of the type of loan, go for a 30 day closing or less if possible. Read the rest of this entry
Thursday, April 19th, 2012 at
2:43 pm
Calendar
Fannie Mae & Freddie Mac have been mandated to implement a streamline process to move short sales to a conclusion within a 60 day time period.
Under the Federal Housing Finance Agency (FHFA) directive, the following items will be put in place:
• Review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package
• Provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days
• Make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package
This is just one more example that lenders are promoting short sales over foreclosures and making this easier for homeowners.
Source: CCAR.org
Wednesday, April 11th, 2012 at
3:28 pm
Many homeowners in Contra Costa County are still struggling to make their mortgage payments. This can be due to the type of mortgage they have – interest only or adjustable or through a personal situation rendering them unable to make payments such as loss of job, reduction in income, health issues or some other hardship.
Many have tried to get a loan modification only to spend months in the process and then be denied. So many people have drained all their financial resources and are facing losing their home to foreclosure. I spoke with a woman the other day who is barely getting by. Read the rest of this entry
