Archive for January, 2010
Jan
29
Posted under
First Time Home Buyers,
Short Sales There are reasonable grounds for this procedure which can eliminate numerous problems in future.
If you are selling a home, you will surely want the highest price for your real estate property. Getting the home inspection will ensure that there are no defects in your home which could make potential buyers reconsider purchasing your home. The inspection will also help to reveal defects if any and give you a chance to fix them without letting other people know there was something wrong with the real estate property. You would not want a buyer to back out of the deal because of some drawbacks which could be easily removed or fixed. When potential buyers are sure that the home is in a perfect condition, they feel safe and sure about purchasing it.
It will also benefit you as a seller of a real estate property to have all the details and information about the house you are going to sell.
If you want to buy a home you would need professional home inspection even more. You are to protect your interests and make sure you do not pay more than a home is worth of. It will really ruin your day to find out that the newly purchased home has some safety or electricity issues. If there are any repairs to be done, you would want to know about them before buying a home. In this case you can either negotiate the discount or request the seller to fix the defects. However, if you see the report of the professional inspection conducted by a seller, you can refrain from conveying another one.
If you need the home inspection service, you should go with a highly qualified specialist. You will definitely find a number of inspectors in your area. You would want to choose the best one, the one who conducts inspections carefully and accurately. The thorough job of the inspector can save your money.
However, some buyers neglect getting the inspection. They consider it another useless step in the process of buying a real estate property. This is very typical of those who buy new constructions. They consider that there simply can’t be anything wrong with the new real estate property. This is way to far from being true. Timely home inspection can save you much time, money and nerve.
To select a home inspector you can browse the internet or better yet, ask us at HowToBuyABankHome.com. Personal references can also help. The criteria for choosing a home inspector are solid reputation and broad experience. If you have any questions feel free to interview a home inspector. This will help you make the right decision.
It is clear that home inspection guards both your safety and financial interests. It makes it easier for sellers to entice purchasers and eliminate surprises later on. Purchasers should do it to be sure about their investment.
And don’t stop here, on one site, no matter how good this site is – we are living in the world where info makes life easier.
That is why if you are properly armed with the info in your topic you can be sure that you will always find the solution to any bad situation. So, please make sure to get back to HowToBuyABankHome.com on a regular basis or – the least time consuming way of doing it – sign up to its RSS feed. Thus you will have a direct shortcut to the latest info updates here. Blogs can be helpful, you just need to know how to use the info from these blogs for your own personal advantage.
At MERIT Realty, we can refer you to an excellent home inspector when buying a property in Las Vegas.
Jan
28
Posted under
Short Sales While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they’ve probably lost a few fortunes in real estate along the way. This is a risky business and every property purchased doesn’t always pan out to become a successful investment. There are many risks involved in real estate investing and you would be going to battle unprepared if you didn’t take a moment to carefully study these risks and work to avoid them when planning your property investment strategy.
Unfortunately, there are very few one size fits all risks for real estate investing, as each type of investing is inherently different. This means that each type of real estate investment will involve a new set of risks. Below you will find a brief overview of different styles of investing and the common risks that are involved in each.
Rental Properties
This type of investing offers some risks that are unique and some that are also risks when investing in properties that are lease-to-own or rent-to-own as well. First and foremost is the risk of failing to make a profit. If the property in question cannot achieve an adequate monthly income to cover the expenses of operating the property then it is not a solid investment.
Other risks include the risk of getting bad tenants. This is particularly hard on first time investors. Bad tenants are costly and in some cases destructive (which leads to even greater expense). Vacancies are another risk for rental properties. These properties are only costing money as they sit empty rather than earning money as they were intended. Short turnovers are in your best interest as are long-term tenants.
“Flipped” Properties
This is one of the most enjoyable types of property investments for many ‘hands on’ investors. This allows the investor to roll up his or her sleeves and take an active role in creating the masterpiece that will eventually bring in serious revenue (at least that is the hope). This is also one of the riskier investments, particularly when trying to turn a profit in what is known as a buyer’s market.
The risks are simple but often overlooked and they can have a significant impact on the overall success or failure of the project. First of all, the biggest risk is in paying too much for the property. Other risks include underestimating the costs of repairs, over estimating the ability of the investor to do the work him or herself, taking too much time, experiencing a down turn in the housing market, making the wrong judgment call for the neighborhood, becoming overly ambitious, and getting greedy. Sometimes it is much better to walk away with a lesser profit than to end up loosing money by holding out.
Personal Residence
Keep in mind that your personal home is essentially an investment. The intention is that your home will gain in value over time and that equity in your home will build as you age. There are risks involved in this transaction as well. Buying a home that is in a ‘borderline’ area or one that is not showing obvious signs of growth is one of the biggest risks. This puts your home in the position to lose rather than gain value. This can make your home a burden rather than the investment it was intended to be. Other risks involve is becoming involved in a loan situation that is not at all beneficial (such as an adjustable rate mortgage or an unreasonable balloon payment).
Perhaps the biggest risk of all when purchasing a personal residence as an investment is failing to get a proper inspection that could rule out potentially costly and even dangerous problems within the home your purchase for you and your family. Toxic mold is one problem that comes easily to mind that most proper home inspections would almost immediately rule out. Others include structural problems that are costly to repair and dangerous to leave in disrepair. Each of these risks should be considered before an offer is made on any property.
For those seeking to turn impressive profits in short order, real estate is one way in which this can be accomplished. It is in your best interest however to be aware of the risks that are involved and take careful steps to minimize those risks. Taking these steps now may cost a little more on the front end but in many cases the pay off for doing so well outweigh the expenses.
Start by searching the entire Las Vegas MLS for your investment needs. HowToBuyABankHome.com
Jan
27
Posted under
Real Estate Investors The first thing that should be noted is that flipping houses is a great way to bring home a rather large profit in a relatively short amount of time when doing so in a seller’s market so to speak. The problem is that we currently seem to be experiencing what is known as a buyer’s market from one end of the United States to another. Foreclosures are at an all time high, which means that the market has suddenly been saturated with properties for sale.
While this is excellent news (believe it or not) when it comes to getting your hands on a property at a lower price, it also makes a difficult time of convincing buyers to pay top dollar when there are better bargains down the road. This of course is one of the primary risks involved in the real estate investment venture that is known as flipping properties. The massive profits that most investors seek cannot be accomplished if the property cannot be purchased, rehabbed, and sold quickly.
Unfortunately, at the moment, very few properties in any city are selling too terribly quickly. The worst case scenario in a situation like this is that you are forced to either absorb the loss (which can in extreme cases result in serious financial hardship or bankruptcy) or rent the property out (which will in most cases negate all the efforts that were made to rehab the property. An inability to sell the property that is being flipped is probably the worst fear of every property investor who engages in this sort of investment. In these cases it is often better to drop the price and take a loss than hold out for a better price risking further losses in the future.
These are not the only risks associated with flipping properties unfortunately. Another risk would be the risk of seriously underestimating the amount of money that will be required in order to do the necessary work. This is something that many first time investors find is a fairly common occurrence. Most people have unrealistic expectations of exactly how far their dollars will go when it comes to investing in the materials and labor needed to properly rehab a property. Even minor cosmetic repairs throughout a house can easily run into several thousands of dollars in order to repair. The flip side is that once these repairs are made the potential profits run into several tens of thousands of dollars.
Another risk that isn’t often considered is the risk of overestimating abilities. This is one risk that costs not only precious time but valuable money as well. Not only is material wasted in the process of discovering you aren’t exactly skilled in any particular tasks but also there are further expenses (often unplanned) involved in hiring the professional to repair the damage and replace the material that was wasted. When in doubt, it is almost always best to hire a professional if at all possible. This also leads to missing deadlines, going seriously off schedule, and adding yet another mortgage payment (if not more than one) to the overall price of the project.
The final risk is often something that simply cannot be seen or anticipated. This was experienced in the days immediately following 9-11 and should not be forgotten. The unforeseen happens every day. Markets crash; local economies can be devastated by the announcement of a major employer that it is going out of business (thinks of the collapse of companies such as Enron and World Comm and what they did to local economies). In these instances, the market will take quite a while to recover from the shock to its system and ‘flippers’ among other investors are often left feeling just as lost and devastated as those that were victimized by these companies-both through no fault of their own.
Stuff happens and those things that we have absolutely no control over are almost always the things that affect us most profoundly. The same holds true when it comes to property investment. The state of the economy, the housing market in an area, and sudden announcements that affect either can often have the most profound impact on those who are investing in property in those areas whether for better or for worse. The trick is in deciding which risks are acceptable.
Access the entire Las Vegas & Henderson Short Sale Inventory instantly at: HowToBuyABankHome.com
Jan
26
Posted under
Short Sales Even though it’s not easy for everyone to buy a home, it is in fact easier than ever to get a home these days with most lending agencies and banks being more liberal than ever with providing home loans and mortgages. Even if you don’t have a lot of capital or a lot of money to put down, you can still get the home of your dreams at a very affordable price.
A lot of us think that buying a home is a tough process, needing a large down payment, although this isn’t always the case. Buying a home largely depends on your budget. If you put a down payment on your home purchase, it will go towards your overall purchase. The more money you put down on a home when you purchase, the lower your monthly payments will be.
Those of us who don’t own a home live in rental houses and apartments. This can be a worthwhile solution, although your still paying money towards your housing that you could instead be putting towards a home of your own. Owning a home is a dream for many of us, especially when it comes to that dream home that we all hope to own one day. Apartments and homes are great to rent – although most these days will cost you just as much as a mortgage payment – which doesn’t make any sense at all.
Instead, you can easily convert your rental payments into monthly installments towards your own home. All across the United States, you can find of lot of banks and lenders that offer easy to get loans for purchasing your own home or real estate property at low interest rates. With a lot interest rate, you can get the home of your dreams and enjoy low monthly payments.
Keep in mind, you need to choose a loan plan that’s best for you. You can go through bank, through a lender, or use a service online. There are many different ways that you can go, although real estate agents seem to be the most common now days. Good real estate agents will be more than willing to help you get a great deal on the home, at prices that are right for you. Anytime you buy a house, you should always plan ahead, get yourself a real estate agent, and then pursue your dream home.
If you plan your budget and take things one step at a time, you’ll be closer than you think to the home of your dreams. If you choose to keep renting and pay money toward something you don’t own – the home of your dreams will continue to slip away. Take action now and stop renting – find the home of your dreams and put your money towards owning it instead.
Find your dream home by using my website for instant access to the entire Las Vegas MLS: HowToBuyABankHome.com
Jan
25
Posted under
Short Sales The very best and most enjoyable reason to purchase real estate by far is in buying a property in which your family will live and grow together. There is a lot of fun involved in finding the perfect place for you and your family to call home. There is also a great deal of stress involved as well and that should not be overlooked.
Some things to keep in mind when searching for the perfect property for your family are the following:
1) Make your first step the step of finding a realtor or buyer’s agent that you are confident has your needs, desires, and best interests at heart. Your realtor can prove to be a lifesaver when you’ve reached the final hours before closing and the sky looks as though it’s going to fall. Far more than that though, your realtor can help you find the home that you simply cannot see your family living without.
2) Once you’ve found a real estate that you trust to help you find a home for your family it is time to identify the things that are absolute necessities in your search and those things you can live without. The most important thing to decide upon is a budget that you are comfortable living with.
3) Once you’ve established a budget you need to decide the features that are important to meet the needs of your family. The number of bedrooms, bathrooms, square footage, and yard space. Do you need a fenced in yard or a basement? These things are important as they do affect the comfort and in some cases safety of your family.
4) Another important thing that must be considered when purchasing a home for your family is the neighborhood. This is more important than many people may realize. It is well worth having a smaller home in a neighborhood that is poised for growth rather than a larger home in a neighborhood that is in the state of decline or on the verge of the state of decline. Crime rates in the neighborhood and the school district are other things that need to be considered as well before deciding to view a potential home.
5) You should also take the time to look at several properties before deciding on one property over another. The more properties you see, the better the chances are that you will actually find the one perfect property for the needs of your family home. The more homes you see the more you will learn about your likes and dislikes. You will also get ideas about possibilities and things that can be added on to the home you eventually select. Regardless, the more homes you see, the more choices you have when the time comes to make a decision.
6) Never offer the asking price right away. Even if you are willing to pay the full asking price, offer something a little lower and allow some negotiating room. Be sure, if you truly want the house in question not to be insulting with your offer but make the offer just the same. Some things you may want to consider when you make your offer is how quickly you are likely to need a new roof, new flooring, new heating or air conditioning, and countless other improvements that may need to be made on the property. Each of these things costs money and they add up over time. If everything is fairly recent and in good working order you may want to consider that when making your offer as well.
You will find many houses along the way but few will reach out and impress themselves upon you as home. Those are the ones you should consider long and hard. Weigh the options, the prices, and your likes and dislikes. If you do all of this you should be well on your way to the home of your dreams.
To access the MOST current properties in Las Vegas & Henderson, use my website to have direct, instant access to the entire MLS: HowToBuyABankHome.com
Jan
22
Posted under
Foreclosures When looking for a home for you and your family you will come across all kinds of deals, bargains, and so-called values along the way. If price is a very tangible object for you and your real estate investment then you might seriously want to consider the value of foreclosures. If you are hoping to invest in real estate in order to turn a profit then you may also wish to consider these properties that are often sold well below the ordinary value of the property because they are in varying degrees of disrepair.
Foreclosures are properties that have been taken back by the lenders because the previous owners were unable to continue making payments on the property. Being that these homes were often owned by those in financial distress and may have been empty for some time before being sold, chances are that the foreclosure homes being sold at any given time are in some degree of disrepair. The shabbiness of many of these properties is one of the factors that keeps the prices down. Another is the fact that the lenders are essentially attempting to recoup their investment in the property. For this reason they are often willing to take less than the value of the property if that is what is owed on the property.
Why are these properties often in a state of disrepair? Truthfully, there are many reasons but the primary culprit in this situation is money. Obviously the owners of the home were struggling to make the payments or the home would not be in the state of foreclosure. If the notes on the property were difficult to begin with it makes perfect sense that other issues such as leaking roofs, shabby carpeting, or plumbing maintenance would take a distant second in priority to making the house payment.
At the same time, there are those who are bitter about loosing their homes. As sad as the situation may be some add insult to injury by damaging these properties intentionally. These homeowners feel they have nothing left to loose and if they cannot have their property hole then the lenders should not as well. While this is by no means the way to go there are very many who choose this path over other options.
The fact is that their loss in these situations is actually your gain. The damage they do to the property is often not terribly expensive to repair though it can be quite bothersome. Your willingness to do the work in order to create a beautiful home for you and your family or as an investment can often translate to big savings at the closing table or when negotiating the price of the property. Foreclosures can allow families to buy larger homes in better neighborhoods than they would ordinarily be able to afford. They can also provide a fabulous kick-start to a property investment portfolio.
Despite common claims and Internet advertisements, you do not need to buy a list in order to find foreclosed real estate in your area. You simply need to procure the services of a competent realtor and let him or her know that your intentions are to purchase a foreclosed property or some other property that is selling well below market value. You might be amazed at the wealth of information and assistance your realtor can provide not only in finding excellent foreclosures but also when it comes to procuring financing for some of the more creatively damaged foreclosures you may run across at insane bargain prices.
To find such insane values, use my website to gain instant access to the entire Las Vegas MLS. HowToBuyABankHome.com
Jan
21
Posted under
Short Sales It’s no secret that many home owners are going through some tough times right now and perhaps looking for solutions like a short sale. If you are like the thousands of homeowners in Henderson or Las Vegas who have fallen on hard times and you’re having difficulty paying your mortgage, you will want to read this article.
If you are facing foreclosure, a Henderson short sale may be the right option for you. However, before continuing I must forewarn you, I am not a CPA, nor am I an attorney. Therefore my first recommendation is that you seek the help of both of these professionals before filing bankruptcy, applying for a short sale and well before your house is scheduled to be sold at auction. If you are facing foreclosure, you definitely NEED TO CONTACT ME…I will arrange for a complimentary consult with our real estate attorney group.
What is a Short Sale?
A short sale in Henderson or Las Vegas is when the lender is “forced” to accept less than the full amount you owe on your mortgage when your home is sold. They do this to sell the home as quickly as possible and will often allow additional time for your home to sell.
Why would a lender do this? Believe it or not, the lender does not want to own your property, nor do they want to incur the costs associated with foreclosing on your home (legal fees etc.). Therefore the lender is willing to accept the short sale of your home to avoid the time and expenses pertaining to foreclosing on your home.
How do Short Sales in Henderson and Las Vegas Work?
The first thing you should do when you can no longer afford your home is contact your lender and I don’t mean the 21 year old debt collector that works in a call center that calls you day and night asking when you will pay the mortgage. Call the lender directly and speak to a manager or senior level person. The last thing your lender wants is to foreclose on your home. Your lender will have a department that works with people like yourself that are behind on payments so they can offer a solution to your situation.
If you don’t think you are going to be able to catch up on your mortgage and can’t resolve the late payment issue with your lender, then you may want to see if they are willing to accept a short sale on your home. If you need help on this, again contact me and I will get you into the attorneys office VERY QUICK.
Your lender may require you to submit some additional information before they will consider a short sale on your home. The reason for this is they want to ensure that you are no longer in a position to pay the mortgage as per your agreement with them. This information may include:
- W2’s and or pay stubs to verify your income;
- Bank statements to verify your assets;
- They will require a letter of hardship – this is a letter describing to your lender the reasons why you are in this position financially and will include your request for your lender to accept a short sale on your home. When I say hardship letter, your letter should be just that. You need to make your letter sound as sad as possible and include as much documentary evidence as possible to back up your story. Example, you may want to include any medical bills you have recently incurred.
- The lender will want to know what the fair market value of your home is. They will either use a realtor to do a BPO (broker price opinion) or go with a full appraisal from a licensed appraiser.
- If your home is currently listed for sale, the bank may also want to see a copy of your listing agreement.
- Preliminary proceeds sheet from the sale of the property. This will show the proceeds of the sale of the property after your mortgage is paid off and all other closing costs and fees are paid out. Obviously this will be negative with a short sale.
- A HUD1 will also be needed.
There is no guarantee that your lender approve your short sale, but it certainly may be worthwhile attempting. If your bank does not approve a short sale on your home, they will continue with the foreclosure proceedings. Which is why you need to contact me immediately.
Does a short sale mean you are off the hook entirely?
The correct answer is, it depends. The lender still has options to try and collect this shortage. The lender may try and have you sign a promissory note to repay the shortage (don’t sign anything until you have consulted with your attorney). They may also try and file a collection or a judgment for the difference in the short sale. Again, consult an attorney and you may be able to avoid all of these issues.
The lender may also try and issue a 1099 in the amount of the difference in what is owed on your home and what your home was sold for. The IRS will then in turn try and collect taxes on this amount as income. There has been some recent changes in law that may help you avoid these taxation issues without having to file for bankruptcy.
Bottomline…DO NOT DO THIS ALONE! And DO NOT use a real estate agent to negotiate on your behalf. Let our attorneys do that for you and protect your future.
Reach me for more information at: HowToBuyABankHome.com
Jan
20
Posted under
Foreclosures,
Las Vegas Real Estate Pre foreclosures are known as properties that have reached the final stages before they get repossessed or taken back by the lender or bank. The owner is still in complete control of the property or home, although the bank or lender will repossess the home if the owner doesn’t attempt to rectify the situation. Normally, if the owner makes things right with payment, the pre foreclosure will settle and things will go back to normal.
When buying real estate, there are several benefits to pre foreclosures. Although there are several ways that you can buy a home, pre foreclosure is one of the best. Even though it is one of the best ways to buy property, many people miss out simply because they aren’t familiar with pre foreclosures and all of the benefits that come with them.
The best thing about pre foreclosures is the prices that are associated with them. In most cases, the owner has no choice but the sell the house, and therefore will listen to just about any offer that he receives. Due to this very reason, you can find pre foreclosures for sale at nearly 50% off market value. This is an ideal time to purchase, especially if you are looking to save a lot of money.
Along with the great prices you can get with pre foreclosures, you’ll also have the luxury of dealing directly with the owner – no third parties involved. This is a great advantage, with buyers being in total control of pre foreclosure sales. In the event that the home owner decides to turn down your offer and cannot find another buyer, he will lose everything. Even if you offer the owner a small price, he will be able to make a little bit of money selling the home.
You can find pre foreclosures that up for sale pretty much the same way that you can find homes in which the bank already has control of. You can look in the local newspaper, on the Internet, or by calling the lender directly. There are several options that you have in terms of finding pre foreclosures, giving you plenty of options. Once you have found a pre foreclosure for sale, it’s up to you to seal the deal and get the home of your dreams at a very affordable price.
When you compare foreclosed properties with pre foreclosed properties, you’ll find that there is less competition involved with pre foreclosures. Pre foreclosed homes are a great purchase, as they will normally come at a very affordable price. Those of you who have been looking for a new home shouldn’t hesitate to check out pre foreclosed properties. They are a great investment – and can indeed be very profitable in the long run.
To access the MOST CURRENT inventory in the Las Vegas & Henderson market, use my website: HowToBuyABankHome.com
Jan
19
Posted under
Real Estate Investors The obvious and sought after benefit of flipping real estate is the profit. This is one incredibly tangible benefit, particularly when the profits are large and quick to come your way. Of course there are risks. Most ventures that offer high profit also come with a high degree of risk. Money, however, is not the only benefit that can be associated with flipping real estate though it is certainly the one on most investors’ minds when they get into this line of work.
Let’s talk profit first. Profit is the one reason that most people get into this business. The days are long and the work is hard. This is definitely not the type of work one would ordinarily undertake for the simple love of getting one’s hands dirty. This is real work that leaves you bone weary at the end of the day. However, when all the work is done and you get around to making the sell, you will find that the profit involved in a successful flip is well worth the effort you’ve put into the process.
The good news is that the savvy investor can still manage to make money even when the situation may not work out quite as planned. This is yet another benefit to flipping real estate. If the flip doesn’t work out, there is always the option of leasing to own the property or renting the property out. The profits in these situations are considerable less than a straight out flip but it can prevent financial ruin that is often the risk of a flip gone wrong. The fact that there are options and that you aren’t necessarily left ruined at the end of a bad flip is definitely a benefit. There aren’t many types of investments that allow you the option to save yourself the way real estate does.
One of the intangible benefits of flipping houses is that you are in essence working for yourself. In other words you do not have to punch a time clock or worry about overtime (at least not on your part). This can be a bad thing too if you lack the discipline required to get the job done. However, most of us will view this is a huge check in the pros column when deciding whether or not to take the plunge into the wonderful and frightening world of real estate investing.
Even though this is a business that requires a lot of work in order to turn an attractive profit there is some satisfaction at the end of the day involved in knowing that you are working for yourself and not to make someone else wealthy or in order to punch a time clock. That feeling of satisfaction is one that you should hang onto when the brand new toilet you’ve just installed becomes a geyser. Of course there are mistakes along the way, what other job keeps you on your toes quite like this one?
Real estate investing, house flipping in particular, can be one of the most frustrating types of investments a soul can pursue. At the same time it can also be one of the most rewarding mentally, spiritually, and financially. This is something you should keep in mind when deciding whether or not this is the right path for you.
If it is, you need direct access to properties on the market. You can access the MOST current ones through my website. HowToBuyABankHome.com
Jan
18
Posted under
Foreclosures Short selling your home is not a decision you make lightly. It is a difficult and long process that, if done incorrectly, can WREAK HAVOC on your future.
As a real estate broker in two states since 1981, I am sharing some inside tips to help you if God forbid, you want to DIY or worse, HIRE a real estate agent to negotiate for you.
Step 1 – Get Educated
You need to know your options when it comes to your home. If you want to keep your house, but can’t make the payments and you owe more than your home is worth, you may look into bankruptcy. This will stay the foreclosure process (not forever) and may allow you to stay in your home and repay your lender under different terms.
Deed in Lieu
Deed in Lieu means that you give up the house to the bank and walk away. I.E, you give the bank the deed to the house instead of facing foreclosure.
Short Sale
If you owe more than your home is worth, and don’t want to declare bankruptcy or face foreclosure, then a short sale of your home is the best option. A short sale does have potential tax and in some states, deficiency judgment implications.
Step 2 – Get Some Qualified, Experienced Help
This is probably the biggest tip I would give to people who want to sell their home in a short sale. FIND AN EXPERIENCED REAL ESTATE AGENT who knows how to navigate the process while keeping the banks form harassing you. An experienced short sale agent will give you a much better chance of successfully short selling your home.
Because there is often so many different entities involved in a mortgage (1st mortgage, 2nd mortgage, the investor on the loan, etc) you really don’t want to do this on your own, with no experience.
WARNING! Just because an agent says they specialize in “short sales” does not mean they have actually successfully done one! There are many classes agents attend regarding short sales, but nothing compares to real world experience.
Step 3 – Get Started
The longer you wait to get started with the short sale process the less chance you have of success. Every state is different with their foreclosure process. You need to decide quickly to start the short sale process if you’re getting behind on your payments, or have already received a notice of default (NOD).
Step 4 – Follow Instructions Exactly
An experienced short sale agent will tell you what you need to do to get the house ready to sell. Don’t get too hung up about the price. If the agent wants to set a low price on the house, there is a reason behind that.
TIP: Pricing the house low will be your best chance to get an offer very quickly. You need a buyer that is willing to stick around for a long closing or changes to the agreement. Again, don’t get hung up about the price, all you should care about is getting the place sold.
Step 5 – Know The Tax & Legal Implications
Talk to a qualified tax attorney about this for your particular situation. Your real estate agent should know about this. A good agent will have a highly experienced and successful attorney for you to handle the implications of your short sale.
Step 6 – Prepare to Move
Because your closing date may not be set in stone, you do need to be prepared to leave your home. As painful as it may be (memories, neighbors, location, etc), you need to mentally begin to detach yourself from your house. You need to prepare yourself for your future.
A minimalist lifestyle is nothing to be ashamed of; in fact it should be venerated. Your possessions are just inanimate things; it’s the relationships in your life that really matter. OK, enough life advice!
Step 7 – Prepare Yourself Emotionally
If you are already in default, or have a foreclosure pending, this whole scenario and process of trying to short sell your home can be very emotionally draining.
You will receive solicitations from everyone and their mother. You may have people stop by your home while you are still there. It can be a very difficult process.
Make sure you have people in your life to talk to about your situation. You will need a support network to help through this time in your life. It will pass. And you are being proactive in seeking a short sale of your home. You are taking the right steps, and in time, everything will work out. I can’t promise it will be easy, but you will make it!
My ultimate advice? Use me and my team of experienced, successful real estate attorneys to get between you and your heartless lender. Contact me through my website HowToBuyABankHome.com and I will help you prepare to meet with one of our attorneys for a complimentary consultation to evaluate your situation.