Nigel Chapman | Altoona Iowa Real Estate for Sale

Up to $24,500 FREE money when you buy a home in Des Moines!

Nigel Chapman (RE/MAX Real Estate Concepts) — Mon, 23 Nov 2009 07:05:35 -0500

Did you hear our Internet Radio show on Saturday? WOW!!! The lightbulb suddenly came on! Holly Olson, the Executive Director of Neighborhood Finance Corporation was on our show discussing how NFC can help your home ownership dreams come true.

NFC are targeting areas of Des Moines to maintain or raise the quality of homes in the neighborhoods. They are giving foregivable grants to repair your newly purchased home and even rehab your existing home!

While on the show, we realised that $24,500 in tax credits and FREE money are available when you buy a home in selected areas of Des Moines. Almost two-thirds of the city are now within eligible neighborhoods.

Let's use an $80,000 purchase as an example and see what FREE money is available:-
$8,000 Federal Tax Credit for First time buyers ($6500 for "move-up" buyers)
$10,000 Forgivable Grant from NFC for qualified home improvements.
$2,500 Down payment / closing costs assistance
$1,500 Estimated closing cost assistance from the seller
$1,500 Federal Energy Efficiency Tax Credits
$1,000 Reimbursement from City of Des Moines for certain storm water rerouting or sump pump improvements.

Thats $24,500 in potential FREE money!!!!!!

Everyone's circumstances are different and of course there are some qualifying factors. Call Nigel Chapman @ RE/MAX Real Estate Concepts 515 321-8094 to find out more information and start your American Dream. If you prefer, please email at Nigel@RealEstateConcepts.net

To listen to our weekly Internet Radio broadcast Saturdays from 10am - noon Central Standard Time go to www.DesMoinesLocalLive.com

Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36th Ave SW, Altoona, IA 50009. 515 321-8094. Nigel@RealEstateConcepts.net Licensed to sell real estate in Iowa. Equal Housing Opportunity. www.NigelSellsIowa.com

Countdown to the end of the $8000 tax credit

Nigel Chapman (RE/MAX Real Estate Concepts) — Thu, 13 Aug 2009 14:06:25 -0400

We are counting down to the end of the $8000 first time homebuyers tax credit. Now the question is : Would the Federal Government end this program just as we are coming into Winter? Would this not kill the economy? Or am I being biased as a Realtor®?

Will they extend it? Will they increase it? Will they offer it to all of us?? :)

Only 4 more months to get $8000 FREE money!

Nigel Chapman (RE/MAX Real Estate Concepts) — Wed, 05 Aug 2009 20:26:39 -0400

Wow!! How time flies! Only 4 months left to grab your $8000 from the government when you buy your first home! Take a look at this cool video that RE/MAX has produced to promote the tax credit. If anyone knows how to download it and change the end to show my web address - please let me know! :)

http://www.youtube.com/watch?v=tLqbFzM3o6E

Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, Altoona, Iowa

515 321-8094

Radon: An Important Consideration Prior to Purchasing a home?

Nigel Chapman (RE/MAX Real Estate Concepts) — Tue, 07 Apr 2009 11:19:30 -0400

Homes may contain cracks in walls and floors, though these may not be a serious problem to the home's stability, other problems may be present. Something that can't be easily noticed and observed, especially by the naked eye could be working its way through the cracks and crevices. Actually, what people do not realize is that this invisible threat is possibly already present at their home. This threat is so harmful that it can cause lung cancer and is even ranked as the second leading cause in the United States.

The culprit is called Radon Gas. Just the fact it is a gas, gives cause for concern. In general, Radon Gas is formed from the decomposition of Uranium in the soil. This gas enters the home through the cracks or holes in the walls and floor of the home. Once the gas has entered the house, it will continue to accumulate and hang around. Usually, the gas hangs out in places like basements and other areas that are low and enclosed. Radon continues to accumulate until the gas reaches high levels that can cause toxicity. A safe level of 4 pico curies per liter is determined by the Environmental Protection Agency of the US Government. This is actually the average reading for a 48 hour period. When people are exposed to this gas for a long time, harmful effects are likely to happen.

How widespread is the problem of Radon? The Radon gas has been detected in all homes at 50 states. However, there are certain areas wherein Radon is more prevalent than others (http://www.epa.gov/radon/zonemap.html), although no area is free of traces of Radon. The Radon found in these areas is either man-made or naturally occurring in the environment. Homes that are built close to old mines are more susceptible to Radon; however, the best way to determine Radon contamination is to have your home tested.

There are two ways to test Radon - passive and active testing. For active testing, there are devices that measure the levels of Radon constantly in a specific area in the house and results are then displayed. However, for passive testing, samples are gathered over a long time and then mailed to a lab for further analysis. Any of these methods would alert you to the risks for Radon toxicity. There are also do-it-your-self kits for passive testing. This is done by leaving the test kit in the most susceptible area of the house to be able to gather Radon samples. The samples would then be carefully examined by an expert. Another option would be to hire an expert to conduct the testing and analysis. More information and resources can be found at the EPA website. (http://www.epa.gov/radon/zonemap.html)

Once Radon concentrations are found at your home, it would be best to minimize it and prevent further contamination by sealing cracks and holes at your home. Ensure that the access points are effectively sealed through seeking the help of an expert. According to EPA, a homeowner would spend roughly $800 to $2500 for a radon mitigation system.

Radon is becoming a more important consideration if you're planning to buy a home. Here in Iowa, for example, Radon is very common. Many relocation companies are now requiring homes to be tested for Radon. Having said that, many Iowans will accept the risk of Radon over Scorpions, Rattlesnakes, Tropical Storms ....... J

Nigel Chapman, Certified Distressed Property Expert

515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at http://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.

My home is listed, but is not selling! What can I do?

Nigel Chapman (RE/MAX Real Estate Concepts) — Sat, 11 Apr 2009 12:14:14 -0400

If you are a home seller and your property remains unsold for a long period of time, there are a lot of possible causes. Here are some of the possible reasons why your home has not sold.

You're selling your property at too high a price

Homes that are not sold immediately are priced too high. Even if buyers love your neighborhood, think your house has awesome curb appeal, they will walk away if they find out the price and it is too high . If you really want your property to be sold immediately, then it would be better to make necessary adjustments to your price. Consider the exact market value of your house then check on the trends in your area to determine if your price is reasonable or not. Keep in mind that you possible have a lot of competitors and overpricing your property will hurt you. Although some buyers could even offer you your list price, the appraiser could reject the price and the transaction will fall apart within a few days of your anticipated closing. Just imagine, the utilities are about to be changed, you are living from boxes, cannot wait to get the keys to your next new home and wham! The appraiser does not agree with your price and the buyers lender stops the transaction!

Your property's condition

Due to the increased number of homes being sold in the current market, your property should be priced competitively. Your property should even look as good the newly built homes to attract buyers. If you're able to market your home properly, then you're sure to get a lot of prospective buyers. You can do this by carefully examining your home. Check out the possible repairs that your house needs. Does your house needs repainting or your plumbing need fixing? Try putting your feet into the buyer's shoes. A house that needs a lot of repairs would definitely not be appealing to you. Most buyers want to move in immediately after purchase. It would be good if you will make some necessary make-over to your house by repainting the walls and ceilings. Refinishing hardwood floors and having carpets professionally cleaned would also be a good way to attract buyers.

Location of your property

This is probably overrated but the location of your property is a huge factor in it being sold quickly. Most buyers would prefer a home that is accessible to almost every facility that they will need. Usually, homes that are near the church, near the school, and near the office are sold faster than those that are not. Buyers also take into consideration the crime rate in the neighborhood. Aside from that, most buyers also tend to check the entire neighborhood's ambiance and look. For each of these qualities that your home does not meet, you should consider a price adjustment.

The marketing strategy used is not working

A Listing agent is responsible for marketing your home to the maximum number of buyers. Over 80% of buyers use the internet to research the homes they will consider buying. Is your listing brokerage internet savvy? Do they have upgraded Realtor.com listings? Do they feed their listings out to as many other internet websites (including their competitors) as possible? Please note that many traditional companies tell you they want all agents to sell your home, but in reality they are trying to keep all the commissions for themselves! If you have concerns about this, then perhaps you should be looking at other listing agents.

Homes are "just not selling" in your neighborhood

For obvious reasons, you won't be able to sell your home if sales in your area are very low. Usually, there are trends of sales within a certain location. Some locations or neighborhoods may have good sales while other places don't even have a single property sold. Another reason is that many markets currently have more homes on the market than potential buyers! If that's the case, the best possible solution is to sell your property at a very low price. Although this strategy is not popular with sellers, it is still effective if your goal is to sell your property quickly. If this situation could result in less money than you require to satisfy your mortgage, talk to a short sale expert and see if they can assist you. A Certified Distressed Property Expert is a great resource.

Your property can't be accessed by potential buyers

For you to be able to sell your property immediately, it has to be readily accessible. Does your agent have a lockbox on the home? Are they members of the local Multiple Listing Service? Are they part of a national company thus ensuring clients relocating into state can find your property? Short notice viewings will also help. Demanding 24 hours notice will not encourage a buyer or their agent to view your home. Please consider, the easier it is for us to see your home, the higher your chances of getting a prompt sale.

To contact a Distressed Property Expert in your area, please contact the Author.

Nigel Chapman, Certified Distressed Property Expert

515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at http://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.

How Loan Modifications will help ease the problems of the Housing Industry

Nigel Chapman (RE/MAX Real Estate Concepts) — Mon, 06 Apr 2009 10:42:26 -0400

Due to the overabundance of homes for sale and declining economy, a lot of homeowners are facing problems when trying to sell their homes. The competition of resale homes on the market, along with the increasing number of distressed properties, are causing prices to be driven downwards. Many people are finding that if they were to sell their homes, the money received would not be enough to pay the mortgage debts.

Recent years saw lenders giving "exotic" loans to people that perhaps should not have qualified for a loan. We are all familiar with 100% financing, 80/20 loans, even 105% Loan To Value mortgages. But what about NINA's (No Income given, No Assets given) or NINJA's (No Income given, No JOB stated or verified!! And no assets given)? Seriously - As long as your credit score was fairly good and you could fog up a mirror with your breath on a cold day - you could buy a house.

As a result mainly of the exotic and sub-prime loans, we are facing a huge housing crisis. Many of these people had the ability to pay. Many of them still could if the 5 year re-amortization or interest rate jump had not occurred. During the past year, many homes have entered distressed state or even foreclosure, because the lenders will not work with the homeowner! Recently the federal government gave billions to banks to bail them out, while banks continued to foreclose! In the past few weeks, public outcry has led to the banks to start to work with their borrowers. A lot of improvement is still required, but at least this is a start.

Imagine the impact a loan modification could have to a distressed homeowner? They will be able to continue making their payments and keep their home! It really should be this easy! A bank loses on average $50,000 per house it forecloses on. They would be much better off to do a loan mod and continue with the mortgage.

This $50,000 saving is the reason why banks have finally woken up and many are willing to negotiate payment terms with homeowners who are facing a loan foreclosure. Instead of losing about $50,000, banks would rather earn small amounts from payments by homeowners. The problem now lies with homeowners because they do not know about loan modification. The media is all about broadcasting doom and gloom. If they would advertise loan mods, short refi's or the other methods for owners to keep their homes, the current housing industry problems would be eased

Loan modification is a definitive solution both for homeowners and lenders to prevent foreclosures and help the declining housing industry.

To contact a Distressed Property Expert in your area, please contact the Author.

Nigel Chapman, Certified Distressed Property Expert

515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at http://www.DesMoinesBlogger.com

Are you ready to purchase a bank owned property?

Nigel Chapman (RE/MAX Real Estate Concepts) — Mon, 06 Apr 2009 10:12:57 -0400

Purchasing Properties Owned by the Bank

More people are becoming interested in purchasing properties owned by the bank. We often see information advertised promising to make us lot of money without having to put much effort - once we know the secret how to do it. In reality, there is no such thing as a secret method and in order to earn money, hard work is required.

What is REO?

REO means Real Estate Owned. This term is used for properties that are now owned by a financial institute, after being foreclosed upon due to inability of the owners to pay mortgage. However, you need to know that this is not the same as homes that are heading for foreclosure auction. If you are interested in purchasing homes sold during a foreclosure auction, you will have to pay the remaining loan balance including additional fees that was incurred during the foreclosure itself. Also, you need to be ready with cash at hand to pay for all of these. The home that you will acquire will also be "as is", meaning that if there are current residents in the house you will have to evict them. On the other hand, an REO property is often a greater deal and investment because it has less hassle. Actually, an REO property is a house that didn't have a buyer during the foreclosure sale. Since the bank is the owner of the property, it will be responsible for the eviction of the occupants, removal of liens, and issuing of title insurance policy. REO's are exempt from completing a Sellers Property Disclosure, therefore you are not aware of any defects and cannot sue the seller if you purchase the property and find a defect.

Is it cost effective?

The most common misconception about REOs is that they are all great deals and you can make a lot of money from them. This is not totally true. If your intention is to gain profit from purchasing properties that are real estate owned, then you need to be very careful. Banks want to recover their money or even profit from every sale they make - do not assume the home is priced as a bargain. You will need to verify the real market value of the property that you want to purchase. You will also need to include in your costings the possible renovations, various repairs that the property will need and carrying costs. There are a lot of people who find success in purchasing REOs and reselling them. However, you need to consider that there are also some REOs that are not profitable.

Are you ready to invest?

If you're interested in purchasing REO's from banks, then you will have to negotiate with their REO department. Usually, these REO departments have their own real estate agents that list the REO properties on the MLS. If you see an REO property you like the look of, contact a real estate agent that is experienced with distressed property sales. You can ask the agent all the information that you need to know about the property so that you can check if it is worthy or not.

Typically, banks will just sell their REO properties "as is" without making necessary repairs or renovations. So before you close the deal with these banks, it is necessary that you make careful examinations of the property itself and check for damage. If you find any, your can often help you withdraw your offer to purchase. Most REO's require $1000 earnest deposit with the offer, a letter stating you have cash available or a mortgage pre-approval and contingencies are not acceptable. Keep in mind it is possible that your offer will be rejected or you will be presented with a counter offer from the bank. Your distressed property expert will assist you with all the negotiations, addendums, inspections etc.

For a distressed property expert in your area, please contact the author.

Nigel Chapman, Certified Distressed Property Expert

515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at http://www.DesMoinesBlogger.com

Latest Mortgage Default Statistics - These numbers will amaze you!

Nigel Chapman (RE/MAX Real Estate Concepts) — Thu, 02 Apr 2009 21:02:04 -0400

This is amazing. The Mortgage Bankers Association keep statistics on foreclosures, payment defaults etc. As a Certified Distressed Properties Expert, I get regular updates on this information. When I received these numbers, I just had to share them!

First, I would like to explain the definitions these numbers use. FORECLOSURE - Papers have been filed, sherrifs sale is probably scheduled. DEFAULT - payments are 30 days or more late. DEFAULTED - The combined total of mortgages already in foreclosure PLUS those that are now in default.

As of March 5th 2009. . . . . . . . . . . .

3.3% of all mortgages are in foreclosure. 7.88% are in default. Adding them together 11.18% have defaulted!

"Let's blame the sub prime loans for this", I hear you say. "We have good credit and it would never happen to us". Well, how about this ..........

6.94% of PRIME loans are in some kind of default! Yes, thats right, people with good jobs, good credit, money down - People from every walk of life are defaulting.

I am sharing these numbers to show that all of us could know someone that is in a distressed situation. We call them distressed properties, but I promise you - these properties are owned by some VERY DISTRESSED HOMEOWNERS.

Let's take a quick look at FHA loans: 2.43% in foreclosure, 13.73% in default, that's 16.16% defaulted. Notice how few are in foreclosure compared to distressed? This is because FHA do not want to become asset managers and will work with homeowners. Many other types of loan also have investors that will work with homeowners, but you need a shortsale expert to help you through this minefield.

If you are a homeowner in distress, PLEASE contact the author of this post by email so we can put you in contact with your local shortsale expert. There is no catch here. There is no charge. Holders of the Certified Distressed Properties Expert designation are trained to try and help you keep your home before we help you minimize damage to your credit by negotiating a shortsale.

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. http://www.NigelC.com

What is this new $8000 Federal Tax Credit for First Time Home Buyers?

Nigel Chapman (RE/MAX Real Estate Concepts) — Mon, 23 Mar 2009 09:24:30 -0400

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

Five Common Errors that Sellers Should Avoid

Nigel Chapman (RE/MAX Real Estate Concepts) — Fri, 27 Mar 2009 11:33:19 -0400

Avoid pricing your property too high

Although you would like to maximize profit when selling your property, this could actually hinder you. When your property is listed too high, potential buyers will not look. Once you realize this and reduce the price, buyers start thinking it is an old listing or you are desperate to sell. Make sure you and your agent price your home at the right price for the market and your circumstances.

Re-finance Appraisals Should Not be Mistaken for the Market Value of Your Property

Many people believe that the refinance appraisal they recently received is the same a market value - often it is not. Lenders who are offering re-financing often increase the appraisal because you have good credit, they want your business, you are a great customer, etc. The real market value of your property may actually be lower than this appraisal. Using this refinance appraisal will often result in pricing your high too high. Ensure you ask the advice of your real estate professional. Ask them to show you comparative sales in your area to help establish a fair market value.

Present / stage your home well

This may sound obvious, but your home needs to present itself well. Buyers are emotional, if they walk into your home and feel at home themselves; they are more likely to buy. If possible, do some repairs, paint and make sure everything works as intended. Make sure the interior is clean, everything is picked up and the home shows well. If you have pets, ensure odors are eliminated and your pets are not ‘in the buyers face'. Many people do not like to buy a home that has had smelly, hairy pets.

Do not "force sell" your home

When potential buyers are viewing your home, never forcefully sell it. Allow your buyers to examine your home and make them feel comfortable at the same time. If possible, leave the house and let the real estate professional talk to the buyers. If you are showing the home yourself, reach the emotions of the buyer. Discuss the benefits of the home and what you love about it. If the buyer feels you are force selling the home and feels uncomfortable, they will promptly leave.

Nigel Chapman, 515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at www.DesMoinesBlogger.com

Things You Need to Know Before Offering on a Short Sale

Nigel Chapman (RE/MAX Real Estate Concepts) — Thu, 26 Mar 2009 10:30:23 -0400

Do you plan to buy a new home? Are you eyeing houses that are on short sale to fit your tight budget? Prior to deciding to offer on a short sale, you need to carefully assess the sellers' situation.

When a home is in short sale, it is being sold at price usually lower than the amount owed to the lender. The seller also does not have other means to pay for the borrowed money; hence, the short sale. A lot of factors can be associated to this situation and these would include: getting laid off from work, divorce, unexpected medical bills and the downturn in home values.

You need to know that short sale is not the same as foreclosure. In the latter, the title and the rights to the real estate have already been granted to the lender. The best solution for homeowners to prevent foreclosure is to short sale their home. Although it sounds promising to the seller, you need to know that there are also some drawbacks for the buyers. You need to take some of these into consideration before you decide to offer on a short sale. If you are really in no doubt that you want to write an offer, then here are some points that you need to know.

•· You need patience to wait for the completion of the transaction. In purchasing a home that is for short sale, the agreement between you and the seller is not enough to close the deal. You still have to wait for the go signal from the lender or the lenders. The average time for approval for a short sale with one mortgage is two months. For more than one mortgage to different lenders, it could take three months or longer.

•· You should be ready with your cash. For you to receive immediate approval from the lenders, you need to prove that you have enough funds to pay for the short sale. Your chances of approval from lenders will be higher if you present a larger amount for down payment and have a pre-approval letter with an expiration date at least 3 months in the future.

•· You should write a "clean" offer. Lenders do not like buyers who cannot completely commit on the short sale. A subject to sale contingency will probably not be accepted.

If you think that you are ready to offer on a short sale, then you should consult a qualified Realtor. When looking for a qualified real estate professional, they should be able to present you with a list of homes for short sale, assist in the process of negotiation, and communicate with the lender appropriately.

When buying a property on short sale here are some of the problems that you should be ready to face.

•· Buyers should be ready with possible rejection from lenders. The price a lender is willing to accept can often depend on the expertise of the listing agent. The lender will require a copy of the listing history showing that the listing agent has made every attempt to cover the mortgage debt. They want to ensure that the price has been decreased steadily over a suitable period of time. If your offer is too low, the lender may reject the offer outright - although we would hope they will counter offer.

•· The seller could at the last minute reject the short sale. The lender might suddenly ‘move the goalposts' on the seller. An example would be expecting the seller to take out a loan for the deficit. In a case such as this, the seller might decided to let them foreclose.

•· Buyers will not be allowed to request for repairs. Since the property is already offered at a low price than its real market value, lenders normally will not allow any requests for repair. The property will be given to the buyer as is. No improvements and repairs will be done as this could cause additional expenses to the lender.

Keep in mind that short sales involve a lot of risk, and you need to take into consideration all of the sides involved in the short sale. This would include you or the buyer, the seller, and the lender. All terms and conditions should be agreeable to all the involved to make sure that the transaction is good.

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

Nigel Chapman, Certified Distressed Property Expert

515 321-8094 Nigel@RealEstateConcepts.net

Read all my blogs at www.DesMoinesBlogger.com

Technorati - How do I post a permanent link to it?

Nigel Chapman (RE/MAX Real Estate Concepts) — Wed, 25 Mar 2009 13:37:13 -0400

Blog Information Profile for nigelchapman

Understanding the Short sale Process

Nigel Chapman (RE/MAX Real Estate Concepts) — Wed, 25 Mar 2009 12:07:21 -0400

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

But, My House is Worth More Than Those Foreclosures and Short Sales

Nigel Chapman (RE/MAX Real Estate Concepts) — Tue, 24 Mar 2009 16:53:44 -0400

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

Great ways to find a short sale listing expert

Nigel Chapman (RE/MAX Real Estate Concepts) — Tue, 24 Mar 2009 10:52:12 -0400

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