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Foreclosure
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Written by Administrator
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Saturday, 30 May 2009 23:28 |
Are you behind in your mortgage payments, or concerned that you soon might be?
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their loans, meaning they owe more than the home is worth, making it impossible to refinance.
If you've become one of those millions, don't panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you.
To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever having contacted the bank.
This would also be a good time to consult with a tax advisor and a Contact One agent. Thousands of Contact One agents are trained in working with distressed properties, and will be able to help you explore options other than foreclosure.
Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they'll consider alternatives. Some of these options may keep you in your home.
Loan ModificationWhile only certain homeowners will be able to take advantage of this alternative, it is your best option because it keeps you in your home and preserves your credit rating.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.
Short Sales
This is the fastest-growing foreclosure alternative. Many banks will allow a short sale, in which the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, short sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. It stays on their credit reports for only two years, as opposed to seven years for a foreclosure, and often isn't a barrier to purchasing another home.
Short sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a short sale.
Contact One leads the real estate industry in agents who've completed the Certified Distressed Property Expert (CDPE) course or other specialized training. They understand the intricacies of these transactions, and they'll be able to advise and counsel you every step of the way.
Find a Contact One agent in your area.
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:
- Don't ignore the problem.
- Contact your lender as soon as you realize you have a problem.
- Open and respond to all mail from your lender.
- Know your mortgage rights.
- Understand foreclosure prevention options.
- Contact a HUD-approved housing counselor.
- Prioritize your spending.
- Use your assets.
- Avoid foreclosure prevention companies.
- Don't lose your house to foreclosure recovery scams.
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Last Updated on Saturday, 30 May 2009 23:51 |
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Buying
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Written by Administrator
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Saturday, 30 May 2009 23:24 |
Contact an Agent
A ContactOne Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.
Get Preapproved for a Loan
Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your ContactOne agent can also help you. Contact several lenders and determine which one will give you the best deal.
Determine Your Price Range and Area(s) in Which You're Interested
By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your ContactOne agent can help.
Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary
How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?
Begin Testing the Market
Right here on icontactone.com, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods.
With Your Agent, Begin Seriously Looking at Homes
Your agent can add to the list of homes you've already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?
Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.
Make an Offer
When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.
At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.
Once Your Offer Is Accepted: - You'll be asked to submit an earnest money deposit that usually isn't refundable.
- Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
- Have the property professionally inspected.
- If necessary, request repairs.
- Obtain homeowner's insurance.
- Contact utilities (phone, water, power, etc.).
- A few days before closing, stage a walk-through.
- Obtain a cashier's check for the down payment and closing costs.
At Closing: - Make sure the terms and conditions of the loan statement are correct.
- Carefully read everything before you sign.
ENJOY YOUR NEW HOME!Why You Should Use ContactOne in Your Home Search
Buying a home is probably the largest investment you'll make in your lifetime. Having an experienced, knowledgeable ContactOne professional representing you in this transaction just makes good sense.
Buying a home is not like buying a car, a mutual fund or other commodity. It can be a life-changing event. ContactOne agents fully understand the real estate process – and just as important, they understand your local market.
Of course they know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, they'll probably know it. If you're unsure about school districts, they'll be able to direct you to answers. If you're unsure of a builder's reputation, they'll know how you can confirm it.
Your ContactOne Sales Associate also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you. |
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Last Updated on Saturday, 30 May 2009 23:47 |
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Selling
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Written by Administrator
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Saturday, 30 May 2009 23:22 |
Hire a REALTOR®
Studies show that homesellers who use a REALTOR® to represent them generally get a better price than those who sell the home themselves. REALTORS® are up-to-date on critical processes and can help keep you out of trouble. They can also help you get your home sold at the best price in the right timeframe.
Equally as important, REALTORS® add objectivity to an inherently emotional transaction: the sale of your home.
To locate a Contact One Sales Associate, visit the Find An Agent area of remax.com.
Before Your Home Is Listed
It's important to have your home in good showing condition before buyers start going through it. Here are some steps to take:
- Touch up interior and exterior paint as needed.
- Install new carpeting and flooring if it appears worn or dated.
- Make sure the front is clean and spruced up – curb appeal will create a favorable first impression.
- Trim bushes and plants as needed, and make sure the lawn is kept mowed and trimmed. In autumn, rake the leaves; in winter, keep the snow shoveled.
- Keep the interior clean, decluttered and odor-free. Eliminate evidence of pets.
- Minimize personal items such as family photos. You want buyers to see themselves living in the home.
- Consider putting excess furniture and belongings in storage. Now's the time to clean out the garage and basement and sell, give away or throw away items you don't need anymore.
- Consider having a pre-listing inspection performed. Buyers will be hiring professional inspectors; here's your chance to address problems in advance.
- Consider engaging a professional stager to give your home the right emotional appeal.
During the Listing Period
- When potential buyers visit your home, either be absent or make yourselves as inconspicuous as possible.
- Have fresh flowers in the entryway. It makes for a friendly introduction into your home.
- If offers are made that don't match your hoped-for price, don't reject them out of hand. Pay attention to your agent's advice.
- Consider dropping the price if several months go by with few or no offers. But if you and your agent have priced your home properly from the start, this shouldn't be necessary.
- Don't get discouraged. In buyer's markets, homes take longer to sell than during boom times. Your home will eventually sell; it's a matter of your Contact One agent finding the right buyer for you.
Help Your Agent
You have the best chance of selling your home if you work closely with your Contact One agent. Make sure all showings are coordinated through him or her. If you have a brochure box, be sure to keep it filled.
If prospective buyers want to discuss your property or negotiate price or other terms, defer to your Contact One agent. He or she is the expert and can best handle all these details without emotion. |
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Last Updated on Saturday, 30 May 2009 23:34 |
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