Discontinued Shingles Can Be A Problem!

Do you have a roof with T-Lock shingles? If so, there may be issues when you try to sell your home. Hail or wind damage that has not been addressed will show up when the buyer does their inspection.  T-Lock shingles have been discontinued. They are no longer being made so a small repair is not possible. This means that the roof must be totally replaced. Insurance may not cover the replacement and the balance will have to be paid by the home seller. Even if the roof has no damage, some insurance companies are not writing new policies for buyers on homes with the old T-Lock roofs.

This does not mean that you automatically need to go out and replace your roof by any means! I recommend a visual inspection by the homeowner for starters. If any damages are suspected, call out the insurance company to inspect and possibly file a claim. It is much easier to take care of this prior to listing the property for sale than to wait and be under the pressure of losing a sale because it can’t be done quickly. ork to the property befo

All insurance policies carry a certain deductible cost as part of the coverage. Even if you have to pay this in order to get a new roof or have repairs done, it is better to know this prior to pricing the home for sale and then finding out later that there is a claim to be made. If the home has to have a whole new roof, it will be a great feature to talk about in the marketing that we do for the property. The words “new roof” are music to a buyer’s ears! They’ll give you a better offer in the first place when you have done the work to the property before putting it on the market. Major repair items like roofs and furnaces are the things that keep first time buyers up all night. Take away their anxiety by taking care of these issues before you sell! It will mean less heartache for you as the seller as well! For a list of reputable roofing contractors, contact me.

Read below for a list of loan scenarios. It is definitely better to do a short sale than to just let your home go into foreclosure. Even if you have already been notified that the bank is going to foreclose there still may be time to sell your home and avoid the ramifications of a foreclosure on your credit report.

Conventional Fannie Mae: After only 2 years with an 80% LTV ratio (Loan to Home Value), 4 years with 90% LTV ratio and 7 years-LTV per eligibility chart. Foreclosure is a full 7 years from completion.

Conventional Freddie Mac: 4 years from completion of short sale. Again, if you foreclose you will be waiting 7 years!

FHA Loan: 3 years from completion date; however, FHA ML 09-52 states that FHA financing can be obtained in less than 3 years…if you’re lucky! Foreclosure on your credit means you have to wait 3 years!

VA Loan: 2 years from completion date, but if you weren’t late on your mortgage 12 months prior to your short sale you could be eligible sooner.

Jumbo Loans: 2-7 years following a short sale, but 5-7 years with a foreclosure!

If you are unsure of what type of loan you have, please contact me. I can help analyze your loan type and see if a short sale will help you.

Possibly. Keep in mind though that this process is dependent on may variables determined by your mortgage lender. First of all, visit your lenders web site to see if they offer loan modifications. They will list the steps required to modify the loan. The problem sometimes occurs when the lender tells the homeowner that it will be no problem to lower the monthly payment and then at the end of the process, the promises made by the lender in earlier conversations are not kept.

Each modification program has different rules but generally the homeowner must be currently living in the home and not using it as an investment property. Next the homeowners must be able to show that their income has decreased and there is a hardship in paying the current payment.  Once all of the criteria have been met and the correct documentation has been submitted to the lender, the lender may or may not modify the loan.

I do not recommend employing the services of a so called “Loan Modification Prifessional” that will do the paperwork for a fee. If you simply must enlist the help of a service, please do so ONLY if you can pay upon the successful completion of the loan mod. Many companies charge borrowers upfront for the loan mod and then are unable to deliver. Think about it, if you really had three or four thousand dollars laying around would you need to modify your loan in the first place? Don’t do it.

Statistics show that a huge percentage of the loans that actually do end up getting modified end up in foreclosure anyway. Most times, if you are having trouble paying the monthly payment, a savings of a few hundred dollars per month is not going to make any difference.

Short Sales

Short sales make the most sense to me for those having trouble paying their monthly payments. The process can definitely be successful when done correctly.  When you do a short sale, the lender agrees to take less for the house than you currently owe on it.  Again there are strict criteria on who can qualify to sell their home short and who cannot. Those who cannot would be those with obvious equity and no hardship. Those who can will meet the criteria listed below.

• you have a hardship, such as a job loss, divorce or medical emergency
• you owe more than your house is worth
• you’re unable to afford your current monthly mortgage payment
• you’re unable to modify your current home loan

Step one is to call us at 719-264-7777 and make an appointment to go over your current situation. Step two is to determine the true value of the property and list it for sale in the MLS. Beware of the scammers will instantly buy your home for cash or at least claim to do that.  Banks are getting wise to these scams. The buyer makes an offer to purchase your home for a super low amount. They then turn around the same or next day and try to resell the property to a new buyer. In essence this steals equity from the lender and can be considered fraud. Buyers who intend to resell the property must disclose their intention as part of the sale so the lender is made aware of this condition. Most lenders do not look favorably on this practice.

 Colorado State laws are also very strict about waiting periods before an investor can transfer the title to a home purchased in a short sale. These shady dealings are exactly why you should never trust the sale of your home to some company who clains to just want to help people.  Many of these companies advertise on craigslist.com or use hand made signs on street corners. I have a 21 year real estate career in Colorado Springs and real estate license that I do not want to lose. All of my dealings are done in a professional manner. I just can’t risk it for some flaky investor doing things the wrong way!

Short sales are not for the faint of heart. The process can be tedious. Lots of paperwork has to be filled out, signed and sometimes signed again. Homeowners simply can’t do it themselves. The real estate closing fees and commissions are figured in the final payoff to the bank. Most sales do not require sellers to bring any money to closing. Once again, if you had thousands of dollars laying around, would you be thinking about a short sale? Probably not.

Selling a home short will not damage your credit as much as a foreclosure. Again, you will have missed payments and that dings your credit. The real focus should be on finding a more affordable place to live so you can start fresh. I help people just like you in all stages of mortgage distress. The key is to take action immediately! Contact me now so I can advise you and you can make a plan for a better future.

This is a common question that I hear all the time. There is no simple answer. The thing to know first is that if you miss a payment, the bank is not going to foreclose immediately.  Foreclosure is a lengthy process and costs lenders a lot of money so they don’t want to have to foreclose on their borrowers. If you act quickly, you will have time to make an informed decision.

Can I make a partial payment?

No! It’s all or nothing with your monthly payment. Banks will not accept a partial payment and they most likely will send back your check uncashes.

The key is to be proactive in avoiding foreclosure if you think you can’t make your payments. Many people are faced with job losses, illness or family emergencies that cause financial hardship. First of all know that you are not alone.  We specialize in working with home owners who are in a place where making payments is a real problem.

What are the options?

First it is good to sit down with a real estate professional (notice that I said professional ) to discuss your unique situation.  My concern is that there are so many vultures running amok in this market that will take advantage of unsuspecting home owners in distress.  They will offer to buy your home and close immediately. I ran across a couple the other day that told me that they are not about “the money” but really concerned about  “the people”. Really? Real estate is my business. I do not buy homes from owners in distress. I will give you counsel and offer options. That’s all. No weird lease-options, seller buy back or money back (illegal) options. Be very careful! Contact me right away so I can advise you in a professional and discrete manner.

Tomorrow…

Loan Mod or Short Sale?

Your home is overpriced

Buyers are very tuned into local market conditions. They know all about your competition and based on the many internet data systems that show current home values (correct or not), they know what they need to pay for a home. These buyers now control the market. They determine your home’s value. Realtors can come up with comparable sales to justify a value but that does not mean that buyers will pay that price. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth. Once the price is set, we need to monitor it closely.

Most real estate agents, and hence most qualified buyers, will see your listing in the first 30 days on the market. If the initial price is too high by as little as 5%, it will be duly noted and interest in your property will fizzle. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.

An overpriced house is like an overpriced sweater in a store at the mall. It becomes shopworn if it has been hanging there more than a few weeks. People overlook it and buy the newer inventory. Fresh pricing is a key part of the home selling process!

Staging is a must!

Today’s marketplace is competitive. Imagine that you are a buyer. Do you want to view homes that are dark and cluttered? No way! Buyers will stay much longer in a home that has been professionally staged for showings. Give your home a makeover and do it now! If you want to compete, you have to show an effort. New paint, carpet and a good cleaning can go a long way to help buyers take an interest in the property.

 You’re in a bad location

We all know the phrase “location, location, location.” The fact is that it’s true. Your location can’t be changed. If your home is on a busy street, reduce the price. If your home backs to apartments or a busy shopping area lower the price. If you are in one of the less popular school districts, price will be affected. The point is, location rules in real estate.

If your home’s location is less than desirable, your options are somewhat limited. You certainly can’t change your location but you might be able to do a bit of landscaping to help hide the problem. The key is to do the landscaping early. Trees don’t grow overnight. Plan ahead for best returns. The best way to compensate for a poor location is to reduce your asking price.

You chose the wrong listing agent

Sorry that this happened but it is common. Some agents will take a listing at any price just to have a sign in a yard. Some agents just put the house in the MLS and nothing else.  Again, the rules have changed. You need to make sure that you have a proactive Realtor with a high-tech marketing campaign. Also make sure your agent has a good reputation in the area. I try very hard to establish good relationships with my fellow agents. After all, they are really my biggest customers 

You have no ongoing marketing for your home

In this day and age, most home marketing is done online. We use a variety of channels to market our listings. Our listings are marketed using a combination of many portals such as YouTube, Twitter and Facebook. Our web site shows a page describing your home. Google instantly indexes our site to show all of our listings within minutes of them being posted. We have gotten very creative with ways to get the eyes of buyers on your home.  We can’t afford to just sit back and wait for something to happen!

Take action now! 

If you would like to talk to us about why your home is not selling or if you have not yet listed with an agent and want to make sure that your home does sell, contact us. We would love to help you achieve success!

Outwit, Outlast, Outplay

If you are a fan of the TV show Survivor, then you know exactly how the game is played. The most successful contestants first form an alliance of other people to stay in the game. In the real estate game, you need an alliance as well. Step 1 is to assess where you are at in the market. If you are already a home owner, the first person to connect with is me! I am your source for all market information.

 Make a plan

Things change very quickly in the current market! You need a trusted advisor to help you make your game plan. Once we have made your plan we can go forward and invite other players to join our alliance. If you are selling your home, we need to decide what your long term goals are. Are you moving to another city or staying in town? Will you be buying another home or do you need to rent for a while. If you need to sell your house short (AKA short sale) we will need to ally with your current lender to get the transaction completed. If you want to sell your home with or without doing a short sale, we will need to ally with a new buyer. I will make sure that the buyer is qualified before even writing an offer to purchase your home. Lending guidelines are also changing frequently so this is a critical step in the process.

Win the challenges

If you want to win an immunity challenge, you might need skills in puzzle solving. This current market is a huge puzzle! This is where outwitting our opponent comes into play.  If you want to get top value for your home but still sell quickly, there are many things that we will have to do together in order to sell quickly. Your level of motivation for selling is the most critical piece of this puzzle. The game hopefully will end with you getting what you want–your home sold quickly at the highest possible value. Contact me to begin forming your alliance today!

The home owner needs to contact us for a 5-10 minute consultation about the home, the situation and the timeline for a move. After that, the specifics can be evaluated and a fair offer can be made for the home.

We can close fast – if necessary, within 24 hours – or, we can fit your schedule.

We can take your property in “AS IS” condition.

We can offer you a fair price.

We can work with you on the timing of your move.

We are creative solution providers who can offer you a variety of options to get your home sold quickly with no hassles in Colorado Springs Colorado.

We have solutions for you if your house needs repairs, if you’re relocating, behind on payments, in foreclosure, going through a divorce, being transferred or just want out!
We require no fees or commissions up front. If you are not fully satisfied with the terms of our Agreement, you will never be under any obligation.

All of our transactions are very discrete. No one will ever need to know your situation. Everything is handled with your privacy concerns in mind. Contact us today or leave a comment below.

Currently, when a home owner falls at least 30 days behind on a payment, the bank will start their action plan. The first thing they might do is to order a BPO or broker price opinion. The homeowner will not even know about this but a qualified professional (someone like myself) will drive by the home, take a few photos and then assess the current value of the home. By this time the home owner has been fielding annoying phone calls for about two weeks from the mortgage company. They want to know when they can expect a payment to be made. This is the time to call or contact me about ways to solve the problem.

If you act early in the process it may be possible to modify the loan with the mortgage company. To do this, the home owner must prove that they have good reason to be behind in their payments. Financial statements, pay stubs and all bank statements from the past 3-6 months are then provided to the lender. No lender will approve a loan mod if the borrower has any liquid assets that could be used to pay the payment. This means if you have stocks, bonds or cash not in an IRA or 401K, you need to just go ahead and keep paying. Using the excuse of “my neighbors are not paying so why should I” is not an excuse.

The next and really best option is to put the home on the market for sale and attempt to get an approved short sale done. Most banks are getting better at approving short sales for home owners in distress. Be sure to contact an experienced short sale Realtor that knows how to get the transaction completed. There is much more to a short sale then just getting it under contract with a low price. Having an agent that understands the process is half the battle!

The final thing to do if the above two options have failed or are not possible, is to wait for the foreclosure to occur. As soon as hte sale has happened, the home owner or tenant will have a visit from the listing agent that will be handling the REO listing for the bank. This agent will make an offer of CASH or the occupants to vacate the property. We REO agents call this Cash For Keys or Financial Relocation Assistance. The home owner or tenant must sign a form stating that they agree to move out on a specific date (usually fairly quickly), leave the property in broom-clean condition and then a check will be presented as compensation to the tenant or former owner. Tenants may have the right to stay for up to 90 days if they can provide a copy of their current lease. No rent is paid and the cash offer still applies.

The best thing to do when having trouble with house payments is to make an action plan and contact me for assistance. I specialize in helping distressed home owners solve their mortgage problems. I have seen many different situation and problems get solved but it takes the initial contact to get things started. I have found that the home owners stress level is greatly decreased when I can offer my assistance. Contact me now if you are facing this problem. I am here to help!

No surprise here!

This chart from The Business Insider shows recent activity for the major US loan servicers for loan modifications.  It just so happens that my servicer, Bank of America is failing (just my opinion) at their attempt to modify mortgages in their portfolio. According to this chart, BOA is offering loan mods to only 21% of eligible borrowers! That’s right only 21%! What happened to the Making Home Affordable program set up by our president and his genius staff???

I have a loan serviced by BOA so I gave them a call a few months ago to talk about doing a loan mod to make my loan more affordable. That was in May 2009 and this is now November. No word from them officially but I did make a few follow up calls only to be told that I did not qualify for their program. They can’t seem to tell me exactly how I can qualify for the program either. Bottom line here is that they don’t really want to modify loans. My revenge will be to just get busy and pay off my mortgage as soon as possible. I will feel vindicated knowing that I took as much interest income away from them as possible!

Scan the chart and see that the other major banks are not doing much better. Citi is modifying 50% and Wells Fargo is at 41%. Not good but better than BOA.

This data tells me that home owners who hope to modify their loan in order to avert a crisis will have to go to Plan B. If you are facing financial difficulty, please contact me now. There are other things that we can do to save your credit if a loan mod cannot be done. The best solution would be a short sale. I am experienced in short sale transactions and the odds of getting to closing are improving daily. For details on how to modify a mortgage or to list your home for sale, please contact me. I am here to help you!

Real Help!

Many Colorado Springs home owners are under great stress right now while trying to stay current with their mortgage. Home values have dropped considerable in many parts of the city leaving those who need to sell their homes in a real bind!

We Have A Solution!

Our office has cash buyers waiting to buy homes in Colorado Springs right now! They understand the pitfalls and hassle of buying short sales and are willing to wait for offers to be approved by banks and lending institutions.

What Is A Short Sale and How Can It Help You?

A short sale is a real estate term meaning a “short payoff” or “preforeclosure workout” with your lender. If you owe more than your home is worth you have two options: bring a lot of money to the closing table or do a short sale. The short sale is negotiated between you and your mortgage lender. The lender will agree to accept less than the origianl amount that is owed on the property when it is sold to a third party. This releases the borrower from the mortgage obligation and prevents foreclosure.

What Are The Benefits of A Short Sale?

The short sale is done at absolutely no cost to the home seller. The bank will agree to pay all of the real estate fees and closing costs for the seller. Our services to you are absolutely free!

A short sale can help preserve your credit. When a homeowner has a foreclosure on their credit, it can be damaged for at least 7 years. Short sales are much less hazardous to your credit health!

Stress can cause real health problems! We know that seller’s facing foreclosure have extremely high stress levels while just trying to keep it all together.  Our services are discreet and will help take the load off of your shoulders during this time.

How Do I Sell My Home With A Short Sale?

Simple–call eSaleHomes Realty now at 719-264-7777! We will evaluate your home and its present value. We will asses your situation and present a plan of action. This will allow you to understand the process and how we can help.

Feel free to leave a comment or contact us. We are here to help.