Nigel Chapman | Altoona Iowa Real Estate for Sale

Definition of Short Sale: A home that is being sold at a price where the net proceeds to the lender are less than the amount owed. For the lender to accept this, an owner has to have a genuine hardship that may result in the home being foreclosed upon. Before the lender would agree, the homeowner should first complete a hardship package to prove their current financial status. Completing this package can be quite difficult because there are a lot of things needed for submission. Some of these things are W2s, bank statements, hardship letter, and itemized expenses. However, before declaring hardship, sellers would need to seek help from a professional. Most people whom I meet with hardships have recently divorced, become unemployed, incurred high medical bills etc and all of them do not know where to turn for help.

Why Should I do Short Sale?

To maintain a great credit score, you need to pay all of your bills and other expenses on time and that includes mortgage payments. Missed mortgage payments will create a bad credit score, so you need to take immediate action once you find yourself in financial distress. One way is to do short sale. True enough that short sale can cause bad credit scores, but it won't be as bad as a foreclosure on your credit report. After foreclosure, it will take a longer period of time before you would be able purchase a new home, usually 3-7 years, which is the same for bankruptcy. When the seller does a short sale, the credit scores will drop due to bad payment history, but may be eligible for a new mortgage after 2 years. sellers can also add an explanation or short explanations to their credit reports about the low score.  Did you also know that a foreclosure affects your credit FOREVER! You can qualify for a mortgage in a little as 2 years after a shortsale!

Think about your last credit application form, or even sometimes a job application. Did it ask "Have you ever had a foreclosure?" I bet it never said "Have you ever short-saled your home?"!! Credit is an important matter and therefore it requires consultation from an experienced professional.

How is Short Sale Done?

Due to current depression and buyers market, it can be quite difficult to sell your home immediately. Because time is important, you should consult a short sale expert about the sales trends in your community so that you will be able to adjust your price accordingly. A short sale listing expert does a lot more than fill out some forms, place your home on the MLS and stick a sign in your front yard. This expert understands the short sale process, what the lender requires as documentation, how to clear the 2nd mortgage, who to contact, etc. A short sale is a lot more involved than any regular listing and sale.

At this stage, do not worry about real estate commissions and other selling costs. The expert you hire will explain in more detail how these costs are ultimately paid by your lender - not you.

What Will Happen After Missed Mortgage Payments and Foreclosure?

Once you have started the ball rolling, you need to make the necessary preparations. Your shortsale expert will assist in notifying your lender and keeping them appraised of the situation.

After consecutive missed mortgage payments, your lender will make contact and demand payment. However, if you are unavailable or if you lack funds, the lender will start foreclosure proceedings. During this process, you need to record all contacts you make to the lender, dates, times, reason for call etc for future reference. Once you have these records, you need to give a copy to your short sale expert. Your expert will need this to contact the important people at the bank for negotiations. If a remedy is not found, your foreclosure will be published at the local newspaper and will eventually go to the sheriff's sale.

Your short sale expert should be able to extend the time you can remain in your home, assist with a loan modification, set up a short refi, or help sell on a short sale. Remember that the loss mitigators you are calling are human as well and should be spoken to respectfully.  Your short sale expert is experienced with these communications. Let them make the calls, you are way too emotionally involved.

The above covers some of the vast subject of shortsales. If you require further information, please contact the author.

Nigel Chapman 515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at www.DesMoinesBlogger.com

Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36th Ave SW, Altoona, IA 50009. Each office independently owned and operated. Equal Housing Opportunity. Licensed to sell Real Estate in Iowa.

Our market is not as bad as Sacremento, but the sellers can be the same :)

If I could only find an agent who sees things my way," whined a wanna-be seller. First he tried to refinance, but the mortgage broker ran the comps and couldn't justify the value. Then he considered selling, but only if he could find an agent who truly understood the value of his home.

Harry, we'll call him, bought a home in Sacramento two years ago for around $300,000. Part of his problem was the ZIP code -- that area was, and still is, depressed. Harry, blinded by the falling market in Sacramento and feeling it affected everybody else in town but him, insisted he had enough equity to either refinance or sell.

I ran a map search for him that crossed ZIP codes and encompassed more desirable areas. The results were the same. His home was worth about $200,000. I delivered the news.

Harry exploded: "I see you came up with the two miserable comps the mortgage broker found." He demanded that I use a different formula, the one that exists in Harry's head. The thing is I found a few dozen comparable sales, and they all pointed to the same hard, cold, cruel number.

In the old days -- like 5 years ago -- appraisers would throw out the foreclosure and short sale comps from an appraisal. But the truth is today those depressed sales are what comprise the market. Foreclosures affect the neighborhood. They make up the market values of nearby homes. As I explained to Harry, even if we found a buyer willing to pay Harry's inflated price, that buyer's lender would never appraise that home at the higher value.

It's not a conspiracy, Harry. The problem is you paid too much for the home when you bought it and values all around you have declined. Harry's not too happy with me right now. Oh, well.

This blog is reprinted in it's entirety with the kind permission of Elizabeth Weintraub, a Broker Associate with Lyon Real Estate in Sacremento, CA. Elizabeth is an expert in her local media and writes an awesome blog which can be found at http://activerain.com/blogs/elizabethweintraub

If you are financially distressed and need to sell your home short, do not go to your local "listing specialist"! In this situation, you need a short sale expert - someone who understands the process and knows what will help your lender co-operate.
 
A short sale listing expertdoes a lot more than fill out some forms, place your home on the MLS and stick a sign in your front yard. This expert understands the short sale process, what documentation to send the 1st mortgage, how to clear the 2nd mortgage, who the loss mitigators are, etc etc. A short sale is a lot more involved than any regular listing and sale.
 
If you know a real estate agent, ask them what their short sale experience is. Have they received additional training? Do they keep a database of the loss mitigation contacts? Do they know the full shortsale and foreclosure procedure in your state? Do they know how a short sale can effect your credit compared to a foreclosure? I love my family doctor, but if I have a heart problem, I will see a heart expert - real estate should be the same.
 
In some areas, there are more distressed property sales than other sales! In some areas of Des Moines, appraisals are becoming difficult because the only recent sales are foreclosures! Perhaps you have a friend or family member that has experienced a short sale distress. Ask them if they would refer their agent.
 
The Internet can be a great source for an expert. Those of us that specialize in short sales love to blog about it. We are proud that we help people keep their homes instead of losing them! When we meet, I will consult with you and try to find a way to keep you in your home (if that is what you want). If we are unable to negotiate a short refi, loan mod etc, we can discuss shortsale. Did you also know that a foreclosure affects your credit FOREVER! You can qualify for a mortgage in a little as 2 years after a shortsale!
 
Some investors will prey on those unfortunate enough to be in financial distress. Many times, the investor is unable to negotiate the short sale and the homeowner ends up in foreclosure. Good short sale experts can also have investors. These investors are often able to step in at the last minute to stop your foreclosure. Please beware, not all investors are the same. Beware of foreclosure rescue scams - help really can be FREE.

If you are in the Des Moines Area, give me a call and I would love to help you save your home or at least your credit. If you are outside my area, please email me and I will refer you to your local specialist.

Nigel Chapman 515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at www.DesMoinesBlogger.com

Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36th Ave SW, Altoona, IA 50009. Each office independently owned and operated. Equal Housing Opportunity. Licensed to sell Real Estate in Iowa.

The year 2009 is great year for first time home buyers in the United States. This is because a new Housing and Recovery Act has been launched to aid the plummeting housing industry. This federal tax credit offers a great deal to first time home buyers because they can receive up to $8000 return in their real estate expenditure. This is a good opportunity for families who would like to settle down in their own homes.

What exactly does it do?

The $8000 Federal tax credit provides up to 10 percent tax credit from the total amount of real estate to be purchased. The $8000 is the maximum credit amount that a home buyer can avail. This $8000 federal tax credit for first time home buyers provides a full 10 percent credit or a maximum of $8000 upon purchase of real estate. This tax credit is available only when you purchase a house within the time between January 1, 2009 and December 1, 2009. The tax credit will be free as long as the buyer owns the purchased home for at least three years.

Who can avail the federal tax credit?

The government has specified that the $8000 Federal tax credit applies to first time home buyers only. The first time home buyer in the statement is defined as a person who has not owned or purchased real estate for the last three years. The first time home buyer is also required to live at the purchased home for three years or the credit will become repayable.

Is there an income limit to receive the federal tax credit?

There is a specific income requirement to receive the federal tax credit. The modified adjusted gross income or MAGI for married couples should only be under $150,000 per year. As for singles, or unmarried, the modified adjusted gross income should be under $75,000. However, if the modified adjusted gross income will exceed the specified, a home buyer can still avail a partial tax credit subject to conditions and an income maximum.

With the newly imposed housing and recovery act, a lot of families who do not own their own homes yet can seize this opportunity to purchase homes. The current condition of the housing industry makes it easier to purchase newly constructed homes at a low price due to increased supply yet little demand.  Resale homes are also great buys in this buyers market. For families wanted the dream of home ownership, this is a great time to buy and claim the $8000 federal tax credit.

For a more complete set of Q&A's, please go to www.8000Dollars.com and complete the form. If you are in the Central Iowa / Des Moines area, please contact me for a personal consultation. For more home buying selling information go to www.NigelC.com

Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36^th Ave SW, Suite BB, Altoona, IA 50009. 515 321-8094. Nigel@RealEstateConcepts.net.    Each office independently owned and operated. Licensed to sell Real Estate in Iowa

Behind on payments?   Heading toward foreclosure?   Think you are on your own?   Need help, but don't know where to turn? Feeling embarrassed?

STOP WORRYING! HELP IS AT HAND!

We have all seen the little signs on the roadside "Sell your home now - for cash", "Facing foreclosure, call us". Yeah right. Most of the people that call end up in a foreclosure situation when they didn't need to! If the investor cannot negotiate the price he wants from your lender, he will often walk away! Leaving you against a wall!

Did you also know that a foreclosure affects your credit FOREVER! You can qualify for a mortgage in a little as 2 years after a shortsale! Think about your last credit application form, or even sometimes a job application. Did it ask "Have you ever had a foreclosure?". I bet it never said "Have you ever short saled your home?"!! Let my team walk you through the various options you may have.

Approx 40% of sales in the Des Moines Area this year could be distressed properties! or should we say VERY distressed owners?

We are real estate professionals. If we help you keep your house, we charge you nothing - you love us forever, refer us to all your friends and family and when you are ready to sell we will be waiting for your call! If we are unable to help you keep your home, we will all leave with our heads held high - know we have fought a great fight and done everything we can.

Loan mods, short refi's, Home Affordable refinance, shortsale, foreclosure. When you are ready to talk, call my team.

Beware of foreclosure rescue scams - help really can be FREE

Nigel Chapman 515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at www.DesMoinesBlogger.com

Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36th Ave SW, Altoona, IA 50009. Each office independently owned and operated. Equal Housing Opportunity.

The recent $8000 federal tax credit announced by the government is causing quite a stir here in Iowa. This is REAL money for you to spend! As long as you do not owe the IRS any money (and subject to a few exceptions) you can get an $8000 check back after you buy your first home. As a real estate broker, I specialize in the Des Moines Metro are and would love to tell you more about this great program. In fact, you can get a no obligation Q&A on the tax credit at http://www.8000dollars.com

A few questions we are regularly asked about the tax credit are as follows:

Q. What is a first-time home buyer?
A. According to law, a first-time home buyer is someone who has not owned a principal residence in the past 3 years. There is a test of homeownership history for married taxpayers which we can discuss if it may apply to you.

Q. I had no federal tax liability, can I still claim this tax credit?
A. Yes! This tax credit is refundable, meaning it can be claimed even if you have minimal (or even no) federal income tax liability. For example, if you are a qualified home buyer and owed the IRS $2000 on April 15th, you would receive a check for $6000 after claiming the tax credit ($8000 minus the $2000 you owed.)

Q. I have already filed my 2008 return, can I get this money before I file my 2009 return?
A. Yes. There are two common ways to do this. Your tax preparer can file an amended 2008 return. Another way would be reducing your tax withholding to accumulate cash by raising your take home pay.

Legal smallprint :) Nigel Chapman and RE/MAX Real Estate Concepts recommend that you seek legal and tax advice from an Attorney and or CPA of your choice. RE/MAX Real Estate Concepts, its staff and agents are not giving tax advice in any manner.  This information is given for general guidance only. The information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information herein is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
 
Nigel Chapman, RE/MAX Real Estate Concepts, 550 36th Ave SW, Altoona, Iowa 50009. Call Direct 515 321-8094. Nigel@RealEstateConcepts.net.  Licensed in Iowa. Each office independently owned and operated. Equal Housing Opportunity.
 

A Fannie/Freddie Treasury guarantee on the way means mortgage rates have fallen, right? The huge spread between 10-year T-notes and mortgages has closed, for sure? All these mortgage-backed securities as good as Treasurys, they're trading the same way? Fannie and Freddie can borrow cheaply, so mortgage rates will be cheap, too? 

All wrong. This week's mortgage trading removes any remaining dispute about the difficulty facing the financial system, the economy, and housing. Mortgage rates have soared to 6.75%, up .375% in a week, the spread over 4.07% 10-year notes wider.

All long-term rates had a rough week. The CPI jump got the initial blame (1.1% in June alone, 5.0% year-over-year), but everybody knew it was coming, guaranteed by $145 oil. However, offsetting CPI concern was Perfesser Bernanke's grim testimony, pushing "below-trend growth" off into 2010; and a mere point-one percent gain in June retail sales -- that at the high point of rebate checks, done now. 

The cause of the 10-year spike from 3.80% to 4.07% was this strange chain: early-week news of rapidly weakening Euro and Asian economies at last knocked oil into a three-day drop to $130. That news jangled the stock market -- the Irish Setter of finance -- into an ear- and tongue-flapping, eye-bulging race to buy. As soon as the fear of 1987 left stocks, so did the frightened bid for bonds, and up went T-rates. 

Fair enough: falling oil trumps a sinking globe. For the moment. 

The mortgage story is different and separate. 

In normal times, from the mid-‘80s forward, retail low-fee Fannie mortgages were available at about 1.60% above the 10-year T-note, give or take 10bps. Mortgages today should be 5.75%, tops, at that level a help to ARM escapers, refiers of all kinds, and buyers of resale homes and foreclosures. Instead, since January the market has repeatedly traded 2.75% over the 10-year, a terrible burden on housing. 

I have argued since last year that this spread had nothing to do with Fannie/Freddie credit fear, because the Ginnie spread was just as wide (Ginnies have been "full faith and credit" for 40 years). Instead, the spread is the best indication of the insolvency of the financial system. 

If you're MegaBanc, or WhiteShoe Securities, and you've lost your capital, and the market thinks it unwise to give you any more, the ONLY way to improve your capital ratio is to shrink your assets. Sell! You have to keep some cash, and cash-like Treasurys. Of course, you dare not try to sell the mountain of IOU-crap you created and hold, and are trying desperately to blame on subprime mortgages. That leaves high-quality MBS as the only assets you can sell without a loss.

Add to that: it's not just MegaBanc and WhiteShoe... it is every single big institution trying to downsize simultaneously. Constant MBS selling has overwhelmed the modest buying by Fannie and Freddie, mutual funds and non-leveraged investors, and crowded out mortgage borrowers. 

Meanwhile, the WSJ editorial crew, Kudlow's Twits at CNBC, and dozens of serious blogs insist that the private sector is perfectly able to provide mortgages, and Fannie and Freddie should disband. Sophomoric, juvenile, irresponsible, puerile, ignorant.... The private sector at work? Ask somebody for a fixed-rate jumbo quote, and then ask how the top-end 20% of housing will survive with 8.25% money. If anybody qualifies. 

After the FDIC seizure of IndyMac (which by itself may consume 15% of the FDIC's cash), FDIC head Sheila Bair observed, "The housing crisis... is no longer confined to states that once had go-go markets," asking for more "pro-active intervention." Her thinking still runs to finding ways to keep financially failed households in their homes. Won't work. We must help buyers. She is correct about nationally deteriorating housing (Seattle the new poster child, good economy and all), guaranteed by mortgage starvation. The only way to housing recovery is to stop the financial-institution implosion, and that means Federal injection of capital and bad-asset extraction.

Reproduced in full with the kind permission of (c) Lou Barnes www.BoulderWest.com

After continuous pestering from friends, family and past clients, I finally agreed to run for president of the United States of America. Click link to see my latest news report.

Nigel runs for President

To better serve our clients, we now have 5 offices in the Des Moines Metro!

• West Des Moines - Mills Civic Parkway
• Beaverdale - Douglas Avenue
• Southside - Fleur Drive
• Downtown - Kaleidescope / Hub

AND OUR NEW BRANCH

• Altoona - West of Wal-Mart

Call me at (515) 321-8094 for all your real estate needs.