Foreclosure can happen to anyone and this may be due to factors that are out of your control regarding your financial situation. When this happens, it’s important to cut a deal with your lender for the purposes of stopping the foreclosure process. This is usually called a workout and it has nothing to do with your elliptical trainer. It has everything to do with a compromise which occurs between the homeowner and the lender in regards to loan default or a loan that will soon fall into default.
Some mortgage banks are so impersonal in that they don’t want to compromise with the homeowner who happens to be behind on payments. Other banks are compassionate because they will seek to hear you out as opposed to going ahead and foreclosing on a home, because it costs the bank around $80,000 to foreclose on a home, which is actually not advantageous to them.Where workouts are concerned, know that this process involves permanently or temporarily modifying the loan terms for the purposes of making the mortgage affordable. In addition to that, making the default fixable in regards to the borrower.
When it comes to alternative workouts, the homeowner is open to arrangements brought before them that will go towards helping them get back on track. Mortgage lenders can then decide on the following;
Lengthening an introductory teaser payment or interest rate.
A payment or interest rate that is to be kept constant or fixed, one that was almost starting to adjust.
Granting the borrower temporary forbearance that will stop them from making payments for about six months.
The lender may add several months to the set term of the loan and this happens when some loans are deferred till the time the loan ends.
Waiving of penalties and legal fees that have been incurred over time by the buyer.
In case the owner gets someone who will buy the home for less than the amount owed on it, the lender allows it, which forgives a fraction of the mortgage balance.
Transferring the home to a buyer after the bank allows it, who then assumes the mortgage and even when the mortgage is non-assumable.
The bank agreeing to take back the deed which results in the owner voluntarily giving the property to the lender.
Consider the above mentioned and you will be glad that you did!
Many people have always thought that the process of selling their homes is simple. Well, it isn’t. This is because a lot of challenges have been known to arise, making that process a long drawn out one. Some of those challenges include;
As the seller, you’ll be required to do some research about what state the market is in. It isn’t always automatic that once you put your home in the market it will sell. Knowing the particular type of real estate market that exists in your area helps this is in regard to whether it’s a buyer’s market or seller’s market. When your home is in a buyer’s real estate market, this means that any home buyer who is in the market place has an advantage over the seller. The seller’s market is the opposite.
Selling a home can be pretty emotional and this can be challenging to the home seller. The uncertainty, excitement, stress and nervousness that comes along with it has been established as one of the top 10 challenges home owners face when selling their homes. The only tip that will help you handle those emotions is to truly be sure that you want to sell the home. Knowing that this is a business decision also helps in keeping your emotions in check.
Avoid a realtor who offers to sell your home for the largest amount of money. The first step in choosing a realtor is to properly interview them in regard to establishing whether they are licensed or if any disciplinary action has ever been taken against them. In addition to that, consider their accreditations.
This is another challenge that home owners face when selling, which is why it’s important to always price your house right from the beginning. Doing this will enable you get a lot of activity and showings within the first week or two after listing it. Overpricing it won’t attract any buyers and less inquiries/showings will be seen. The longer a home sits on the market, the more buyers begin to wonder what is wrong with it or whether some sort of stigma is attached to it.
This is in regard to repairing what needs to be repaired such as plumbing issues, roof leaks and peeling paint among others.
To avoid the above mentioned challenges, contact me today and you will be glad that you did!
If you’re planning to sell your home, know that there are a few things you should take into consideration before you start looking for buyers. The reason for this is because it has been established that homes that have a high curb appeal usually command higher prices and the fact that they take less time to sell is an added bonus! Maintenance and beautifying tasks such as landscaping are what will attract buyers and, will also add thousands to your home’s value. Consider the following;
Before you start planting more azaleas or scrape any paint, it’s important that you start by washing mildew, dirt and any general grunge that is on the outside of your house. Experts have estimated that washing the house will add $10,000-$15,000 where the sale price of some houses is concerned. In regard to walkways, soapy water and a soft bristled brush that is long handled will help to reveal its true color. Windows should be washed inside and out and while you’re at it, don’t forget the cobwebs and the garage door.
The house’s exterior should be given a good paint job since this is what will be instantly seen by buyers. It’s important to match the paint that is already on the walls since appraisers have time and again marked down the value of a home mainly because it was painted differently from its competition.
Buyers also notice the condition of your roof since curled, faded and missing shingles add nothing to your home’s look and value. This is especially when your neighbors have replaced or maintained their roofs. Calling a professional is the way to go because with the right technique and tools, your roof will go from looking shabby to looking bright and new.
A lawn that is well manicured with pruned shrubs and fresh mulch will basically boost the curb appeal of your home. Putting a crisp edge on your garden beds while also pulling all invasive vines and weeds will make your yard look beautiful. To give a rich feel to your yard, consider surrounding trees and bushes with reddish or dark bark mulch.
Color has been known to attract and please the eye of buyers so consider planting some pansies by the mailbox. In addition to that, place a brightly colored bench on the front porch or an Adirondack chair. Planting a tulip border in the fall for it to bloom in the spring is also another way of adding a color splash.
In the event that you’re shopping around for a real estate agent in Denver, know that there are a couple of things you should consider before settling for a particular one. You obviously want the best since most agents are now presenting themselves through sponsored public benches, direct mail post cards and even yard signs or online ads. To cut through the hype you should know that there are other methods you can take into account for the purposes of sizing up a real estate agent’s potential and record. They include;
This requires you to ask the agent for a list of the properties they have sold and listed for the last one year together with contact information. This way, you’ll know whether the customers the agent has worked with were particularly disappointed or particularly pleased. Another thing you should ask those customers is what the asking price was that they offered initially and what the final sales price was. If you’re selling your property, it’s important to inquire whether those previous properties are similar to yours in terms of features, price and location. This is because it’s advised that you work with an agent who specializes in exactly what you are buying/selling.
Most states have boards that discipline and license real estate agents so before hiring one, consider looking them up. This is usually for the purposes of learning whether they are licensed or if there has ever been any complaints lodged against them or disciplinary actions taken by the state’s regulatory body.
Peer given awards do count since they are given to agents who have been judged by their peers. This is basically a huge endorsement but the one that really counts is the Realtor of the Year, which is given by the local branch of NAR or the state.
Real estate agents have certain specialties that have been achieved through additional training. Some of the designations you should look out for include;
Certified Residential Specialist (CRS); this shows that the agent has completed additional training where the handling of residential real estate is concerned.
Accredited Buyer’s Representative (ABR); this also shows that the agent is now able to represent buyers in transactions.
Seniors Real Estate Specialist (SRES); This shows that the agent has completed training, which is aimed at helping sellers and buyers who are in the 50-plus age group.
Hire the best by taking into account the above mentioned and you will be glad that you did!
Most real estate agents dream of tapping into a network that is characterized by serious investors who will be ready to buy and sell homes. What the real estate agent should keep in mind is that an investor does not think like everyone else. This is usually where the disconnect happens mainly because most real estate agents are accustomed to first time shoppers or home buyers, which makes it easy for them to misunderstand exactly what an investor wants. The real estate agent might think that the investor would like to hear the following;
The home is located in a great neighborhood.
The countertops are just gorgeous.
The property is simply perfect for one with a large family.
The above mentioned may actually be important topics but what the investor would rather hear is the following;
The house has issues and a terrible smell and this scares off the competition.
It has been six months since the house was listed, which is making the seller very motivated.
About $250 a month is what the house is capable of producing and this is in regard to passive cash flow.
The following are ideas that will help you to learn how to work with an investor. They include;
Efficiency is what the investor market is all about. Real estate agents who require a lot of handholding or those who at the point of every transaction take a lot of time should know that the investor market is really not for them. Coming into this game when you already know how to tackle, block, catch and throw is what will ensure your success.
Investors have been known to speak a different language than that of the real estate agent. Understanding terms such as cap rate, hurdle rate, income vs. capital gains and internal rate of return is important for you to be able to converse with an investor. In addition to that, when you solidly understand how 1031 exchanges really work, enables you to attract many investors. In essence, your real estate math knowledge should be far deeper than just using a mortgage calculator.
Lastly, investors have the ability to close quickly on properties and pay cash. The other benefit when working with an investor is that there are no agent fees, and closing costs are usually covered by the investor instead of the homeowner. Investors understand that time is money and move quickly to close.
House flipping occurs when a real estate investor buys a home, usually at an auction for the purposes of reselling it at a profit. The majority of real estate investors have made a lot of money from house flipping after they have considered a few things. They include;
Finding a home in a desirable neighborhood or city where people want to live is the first thing you should consider. It’s important that you start by researching local neighborhoods and cities and in addition to that, areas whose real estate sales are on the rise. You should also consider areas that have employment growth or those that indicate they are likely to rebound from recession.
Consider looking for structurally sound homes since you don’t want to buy a home that will require you to tear it down and rebuild it from scratch. When buying the home at a real estate auction, it’s important to know what to look for in regard to being knowledgeable where electric, building and plumbing is concerned.
Consider homes that are in a good school district because they sell more quickly.
Since you will be required to fix one or two things in the home you just bought, it’s important that you know which updates and repairs are needed for the purposes of knowing whether you will be able to afford to fix them.
Since this is the most important part of the entire house, pay close attention to it. Ensure that you make it appealing because this aspect is what future buyers will be looking at.
Flipping a house requires you to get educated in regard to all that your local real estate market entails. In addition to that, you need to become an expert where home financing options are concerned if you’re planning to apply for a loan.
Having a mentor is also important and if you know of any, consider requesting they mentor you. If you don’t know of any, consider offering a financial incentive to other experts who you may not know personally. This will motivate them to tutor you into becoming an expert like themselves.
If you usually buy and sell properties for cash and would like to venture into the Denver market or elsewhere, contact us today and you will be glad that you did!
