Sunday, October 24, 2010
Friday, October 15, 2010
PRESS RELEASE
Carole DeLaney Earns NAR Short Sales and Foreclosure Certification
Buyers and Sellers Benefit from REALTOR® Expertise in Distressed Sales
Little Rock, Arkansas 10/15/2010 — Carole DeLaney with Ausum Realty has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.
According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.
“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”
The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORSÒ are required to take one core course and three Webinars. For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.
Wednesday, October 13, 2010
KEYS TO SUCCESSFULLY PURCHASING A HOME
Buying a home for the first time can be overwhelming especially for First Time Homebuyers. Here are some tips that can save you time and money when you’re buying a house.
· BEGIN SAVING MONEY FOR CLOSING COSTS, HOME INSPECTION, EARNEST MONEY AND APPRAISAL- Closing cost can be two to six percent of your loan (ex $100,000-loan @ 3% = $3,000 closing costs that will need to be paid at closing). Home inspections range from $200 - $300 which must be paid at the time of the home inspection and is nonrefundable, Appraisals range between $400 - $500 and earnest money can range from $100 - $1,000; this will be credited back to you at closing.
· FIND A REALTOR-you may want to interview a couple of realtors before you select which professional you want to work with. You can check their experience, training and certification. You can also ask for references of past clients. Ask your realtor if will they be representing you, the seller, or both
· GET PREAPPROVED BY A LENDER BEFORE YOU BEGIN LOOKING FOR HOUSES- Most realtors will not show you any houses until you are preapproved and a realtor can recommend several to you. You can contact at least two lenders to compare their interest rates and the different programs they offer. By getting preapproved, you will know how much you are approved for and it could possibly encourage the seller to accept your offer if it’s reasonable.
· KNOW WHEN TO QUIT-when you act on emotion rather than reason; you may end up paying too much money. This happens when you fall in love with a house and you start deciding where you will place your furniture. One other reason that may drive you to spend more is if there are multi offers and your competitive instincts is triggered therefore it may cause you to pay more than what you wanted to.
· IF NOTHING ELSE, GET A HOME INSPECTION- Never opt not to get this done even on a new construction. As a realtor, we cannot tell you about the condition of the roof, plumbing, electrical, we are not the experts. Once a home inspection is completed, you and your realtor will go over the inspection report to determine what repairs will need to be agreed upon before you proceed with the closing. You have several options such as, the repairs can be completed before closing, the funds for the repairs can be escrowed at closing and you (the buyer) will complete them after closing or you could deduct the estimated cost of the repairs from the purchase price.
· TRY TO COORDINATE THE DATE YOU TAKE POSSESSION OF YOUR NEW HOME AND YOUR MOVING DATE- Sometimes things could occur prior to closing that may prevent you to close on the original date, the seller may want or need extra days after closing to move.
Contact Information:
Carole DeLaney, Ausum Realty, Realtor
Email: carole@ausumrealty.com/ Direct: 501.541.8608/website: caroledelaney.com
Facebook: Carole DeLaney Realtor/ Twitter: @cdelaneywork/ Blog: cdelaneywork4u.blogspot.com
Carole DeLaney is a UCA Graduate and a member of Sigma Gamma Rho Sorority. She is Realtor with Ausum Realty located in Little Rock and resides in Conway. Carole has been in the real estate business since 2006, she has experience in first time home buyers, residential re-sale, short sell, foreclosure, commercial, land and investors. Carole’s upcoming articles are Short Sell & Foreclosure and ways to add value to your home.
Thursday, September 30, 2010
Sunday, August 29, 2010
Tuesday, August 24, 2010
Wednesday, August 18, 2010
Home Warranty vs. Homeowners Insurance
What is the difference between a Home Warranty vs. Homeowners Insurance. Home warranty protects the wear and tear on your equipments and appliances such as Hot Water Heater, A.C. Unit, etc and Homeowners Insurance covers personal belongings and the entire house in case of a burglary or natural disaster such as a fire, lightening, tornado. Both are important!
Sunday, August 15, 2010
Alternatives to Foreclosure
Here are some alternatives that you can ask your lender about to see which one will work for your specific need. When you are knowledgeable about what types of services are available and you are using correct terminology, you will be able to go a long way.
Forebearance-Under this plan the lender may allow the borrower to skip a payment or make a partial payment if the borrower can suggest a reasonable plan to catch up on the amount in arrears. This could be very favorable for someone who has been temporarily out of work or has experienced a very unusual unavoidable expense such as sickness or an emergency. The caveat here is that just because the lender has done it once does not necessarily mean that the lender will do this again in the future.
Reinstatment-Similar to Forbearance but under this plan the borrower agrees to make a lump sum payment in the future to bring the mortgage “up to date.” This could be made possible by tax refunds, future bonuses, anticipated increase in family income or something similar. The difference here is a lump sum payment.
Repayment Plan-If the borrower cannot meet the requirements of Reinstatement or Forbearance the lender may allow the borrower to catch up on what is owed by increasing the monthly payments until the missed payments are brought current. This is a very favorable plan for many distress homeowners.
Loan Modification Plan-Some lenders may be willing to do one or all of the following.
-Modify a mortgage by converting it to a fixed rate mortgage at a lower interest rate and extending the years of the mortgage to reduce the monthly payments
-Giving more years to pay off the mortgage and adding the missed payments to the balance of the mortgage.
Forgiving part of the loan amount to make the payments affordable.
Deed In Lieu of Foreclosure- sometimes referred to as “Deed for Keys”. As with foreclosure, this plan does affect a person’s credit rating however, not as negatively as foreclosure. In order to enact this plan the loan amount must be lower than the anticipated sales price. Many lenders require a 20% differential to make this work.
Cash for Keys- This plan works when there is equity in the property and the lender and the homeowner agree to exchange cash from the lender for the keys to the property. The borrower walks away with cash and the lender owns a property that has enough equity to cover the cost. The advantage of this plan is that it is fast and avoids considerable expenses and red tape.
Sell the Home-If the value of the property is greater than the loan amount it is a good possibility that the property could be sold. It is important to offer the property at a price that will attract many qualified buyers especially if real estate values are falling or if there are a considerable number of similar properties for sale in the area.
Upside Down Properties-This refers to those properties in which the mortgage is greater than the value of the property. In this scenario the financial institution may be willing to forgive some of the mortgage to make a sale possible in order to avoid foreclosure. The amount of the mortgage that is forgiven is taxable and the mortgage company will send the borrower a 1099 form at the end of the year. Referred to as “Short Sales,” these transactions have become a preferred method of avoiding foreclosure. This process may result in a negative impact on the borrower’s credit rating though not as much as foreclosure.
Once you speak with your lender and he or she has given you all of your options, you may want to seek legal advice and speak to a CPA before you make a decision. They should help you to determine which alternative will work for you. You do not have to go at this alone, contact me at 501.541.8608
Forebearance-Under this plan the lender may allow the borrower to skip a payment or make a partial payment if the borrower can suggest a reasonable plan to catch up on the amount in arrears. This could be very favorable for someone who has been temporarily out of work or has experienced a very unusual unavoidable expense such as sickness or an emergency. The caveat here is that just because the lender has done it once does not necessarily mean that the lender will do this again in the future.
Reinstatment-Similar to Forbearance but under this plan the borrower agrees to make a lump sum payment in the future to bring the mortgage “up to date.” This could be made possible by tax refunds, future bonuses, anticipated increase in family income or something similar. The difference here is a lump sum payment.
Repayment Plan-If the borrower cannot meet the requirements of Reinstatement or Forbearance the lender may allow the borrower to catch up on what is owed by increasing the monthly payments until the missed payments are brought current. This is a very favorable plan for many distress homeowners.
Loan Modification Plan-Some lenders may be willing to do one or all of the following.
-Modify a mortgage by converting it to a fixed rate mortgage at a lower interest rate and extending the years of the mortgage to reduce the monthly payments
-Giving more years to pay off the mortgage and adding the missed payments to the balance of the mortgage.
Forgiving part of the loan amount to make the payments affordable.
Deed In Lieu of Foreclosure- sometimes referred to as “Deed for Keys”. As with foreclosure, this plan does affect a person’s credit rating however, not as negatively as foreclosure. In order to enact this plan the loan amount must be lower than the anticipated sales price. Many lenders require a 20% differential to make this work.
Cash for Keys- This plan works when there is equity in the property and the lender and the homeowner agree to exchange cash from the lender for the keys to the property. The borrower walks away with cash and the lender owns a property that has enough equity to cover the cost. The advantage of this plan is that it is fast and avoids considerable expenses and red tape.
Sell the Home-If the value of the property is greater than the loan amount it is a good possibility that the property could be sold. It is important to offer the property at a price that will attract many qualified buyers especially if real estate values are falling or if there are a considerable number of similar properties for sale in the area.
Upside Down Properties-This refers to those properties in which the mortgage is greater than the value of the property. In this scenario the financial institution may be willing to forgive some of the mortgage to make a sale possible in order to avoid foreclosure. The amount of the mortgage that is forgiven is taxable and the mortgage company will send the borrower a 1099 form at the end of the year. Referred to as “Short Sales,” these transactions have become a preferred method of avoiding foreclosure. This process may result in a negative impact on the borrower’s credit rating though not as much as foreclosure.
Once you speak with your lender and he or she has given you all of your options, you may want to seek legal advice and speak to a CPA before you make a decision. They should help you to determine which alternative will work for you. You do not have to go at this alone, contact me at 501.541.8608
Strategies to Avoid Foreclosure
Now that you know what early signs to look for if you are at risk of foreclosure, here are some strategies to possibly avoid foreclosure.
- Be Proactive about the problem when the first warning signs appear. Not only does this reduce the stress of not knowing what is going to happen but it makes it easier for creditors to work out a plan.
- Contact your lender when you become aware that you have a problem. The last thing that a lender wants is to foreclose on your property. Financial institutions lose a significant amount of money by foreclosing on a property.
- Read the mail. Not knowing does not solve the problem it just delays the final result and increases the pain. By not reading the mail a person avoids the opportunity to get help before it is too late.
- Contact a HUD approved housing counselor or call a REALTOR for advice.
- Prioritize your spending by paying for the necessities of life first. Always pay the house payment and health insurance first.
- Look for ways to generate cash. Sell those items that have value but are not used or needed, or see a part time job to get through the crisis.
- Don't get scammed by a private "foreclosure prevention specialist," instead go to www.hud.gov to obtain valid information about foreclosure prevention.
- Make an appointment with a REALTOR to discuss the problem and to get their advice.
Do you have a budget?
Budgets are very important and everyone should have one to make sure you stay on track. A budget should be used when you are planning a wedding, saving for a family vacation and to manage your household budget. A budget should be planned and should include everyone in your household. Why? Because if you know the budget for dining out is $1,000 for the year and at the end of the year, the family spent $2,000 you can’t get mad if you didn’t communicate to everyone in the household what the yearly dining out budget was for that year.
Your budget should include paying yourself first. This means before you pay anyone else put some money aside for yourself; this is your retirement plan.
Everyone knows where their money income comes from-you will include your paychecks, interest income, tax refunds, stock dividends, bonus payments and gifts of money.
You will determine your required monthly bills that you must pay. These items are your mortgage/rent payment, car loans, property taxes, tithes, utilities, groceries, supplies, childcare, commuting expenses, medical insurance such as health, dental, life and pharmacy.
You will determine your “wants” budget. You know, I want to purchase those “fire shoes at Dillard’s” or “I want to go to Jamaica.” This is where things can get interesting because once you put everything on paper; you will have a realistic view of what your income is and what it should be to cover everything on your budget.
You will need to always plan for the unexpected. How many times when something occurred, we say “boy, I didn’t plan for that.” Your unexpected or contingency funds should include replacing or repairing a tire or tires, replacing your battery in your car, replacing the hot water heater, I just named a few.
Once you’ve created your household budget, then you need to start tracking your expenses and income. After a couple of months, you should get a good feel for how you’re doing and where the money goes.
And while it’s nice to remove the stress of falling behind on your bills keep in mind that you need to enjoy life too. You can do this by changing your purchasing habits or downsize-you might be surprised with how simple life can be when you’ve got your budget and your life in balance.
Budgets are easy to develop but the difficult part is sticking to your budget and tracking your monthly expenses.
I included a drafted budget. You will develop one to fit your personal household.
Monthly Quarterly Semi-annually Yearly total
Income
Wages
Interests/dividends
Expenses
Mortgage/rent
Utilities
Gas
Electric
Water
Phone
Daily Living
Groceries
Household supplies
Contingency Fund
Entertainment
Shows
Movies
Refreshment
Trip
Airline
Hotel
Taxi
Amusement park
Food
Tips
I am not nor do I consider myself an expert. You can always seek a CPA (Certified Professional Accountant) or a CFP (Certified Financial Planner) to help you get on the right track or to answer financial questions.
Your budget should include paying yourself first. This means before you pay anyone else put some money aside for yourself; this is your retirement plan.
Everyone knows where their money income comes from-you will include your paychecks, interest income, tax refunds, stock dividends, bonus payments and gifts of money.
You will determine your required monthly bills that you must pay. These items are your mortgage/rent payment, car loans, property taxes, tithes, utilities, groceries, supplies, childcare, commuting expenses, medical insurance such as health, dental, life and pharmacy.
You will determine your “wants” budget. You know, I want to purchase those “fire shoes at Dillard’s” or “I want to go to Jamaica.” This is where things can get interesting because once you put everything on paper; you will have a realistic view of what your income is and what it should be to cover everything on your budget.
You will need to always plan for the unexpected. How many times when something occurred, we say “boy, I didn’t plan for that.” Your unexpected or contingency funds should include replacing or repairing a tire or tires, replacing your battery in your car, replacing the hot water heater, I just named a few.
Once you’ve created your household budget, then you need to start tracking your expenses and income. After a couple of months, you should get a good feel for how you’re doing and where the money goes.
And while it’s nice to remove the stress of falling behind on your bills keep in mind that you need to enjoy life too. You can do this by changing your purchasing habits or downsize-you might be surprised with how simple life can be when you’ve got your budget and your life in balance.
Budgets are easy to develop but the difficult part is sticking to your budget and tracking your monthly expenses.
I included a drafted budget. You will develop one to fit your personal household.
Monthly Quarterly Semi-annually Yearly total
Income
Wages
Interests/dividends
Expenses
Mortgage/rent
Utilities
Gas
Electric
Water
Phone
Daily Living
Groceries
Household supplies
Contingency Fund
Entertainment
Shows
Movies
Refreshment
Trip
Airline
Hotel
Taxi
Amusement park
Food
Tips
I am not nor do I consider myself an expert. You can always seek a CPA (Certified Professional Accountant) or a CFP (Certified Financial Planner) to help you get on the right track or to answer financial questions.
Friday, August 13, 2010
Do you know your credit score?
You can visit myfico.com to obtain your credit score. This is what most lenders use when they determine if you are approved for credit such as purchasing a house, car, or even a credit card. Some jobs pull your credit report You can see what has been posted on your report. Some people are unaware of what is on their credit report. Did you know some things reported on your report could be inaccurate?
Be in the know...know what your credit score is.
Be in the know...know what your credit score is.
Early Warning Signs of Foreclosure
Here is some information on early warning signs of foreclosure:
- Credit card debt out of control. (Maxed out cards)
- Paying for necessities with credit cards (groceries, utilities)
- Cannot meet monthly financial obligations (choosing which bill to pay)
- Borrowing from friends and family.
- Loss of employment, or reduction in hours or wages.
- Major illness which can cause loss of work and an increase in health expenses.
- Divorce, separation or traumatic family or personal situations.
- Death of a spouse or significant other.
- Cannot pay the new Adjusted Payment on the ARM Mortgage loan.
- Major unbudgeted maintenance expense.
- Excessive debt in the number-one cause of financial collapse and foreclosure
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