From House to Home Lynn DeSena Realtor

2012-02-17T09:02:00.001-08:00

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2012-02-07T08:46:00.001-08:00

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2012-02-07T08:43:00.001-08:00

http://ow.ly/8VsEEHousing Crisis to End in 2012 as Banks Loosen Credit Standards

2012-02-07T08:35:00.001-08:00

http://ow.ly/8VrAX Real Estate Market Statistics for
Stafford County, VA

2012-02-06T07:38:00.001-08:00

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2012-02-05T18:07:00.001-08:00

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2012-01-20T10:57:00.001-08:00

http://ow.ly/i/qhzH Century 21 Will have a Super Bowl ad. If you are in the market to buy or sell please give me a call Lynn DeSena (540) 720-7700

2012-01-10T11:35:00.001-08:00

To all my friends and family, A new year is upon us and if you or anyone you know is interested in buying or selling real estate please let me know. Even if it is not in VIRGINIA. I can help place you or a family member in our Friends and Family program and make sure they get the help they need with all their real estate needs.

2011-12-08T07:42:00.001-08:00

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2011-12-07T07:12:00.001-08:00

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2011-11-28T06:58:00.001-08:00

Tree Falls Over Property Line: Who Pays? Who Picks Up the Pieces? http://ow.ly/7H7Dw http://ow.ly/7H7FJ

2011-11-28T06:57:00.001-08:00

Tree Falls Over Property Line: Who Pays? Who Picks Up the Pieces?

2011-11-23T10:33:00.001-08:00

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2011-11-16T06:30:00.001-08:00

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2011-11-16T06:14:00.001-08:00

http://ow.ly/7vmmD 5 Tips for Selling Your Home Quickly in Today's Market

2011-10-28T12:17:00.001-07:00

September 2011 Real Estate Market Statistics for
22554 Stafford, VA http://ow.ly/7cmZl

2011-10-21T10:58:00.003-07:00

2012 Color Predictions Offer Fresh Perspective within Home's Interior Design Scheme
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2011-10-21T10:58:00.001-07:00

2012 Color Predictions Offer Fresh Perspective within Home's Interior Design Scheme
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FHFA Directs Fannie Mae and Freddie Mac to Switch Foreclosure Attorney Networks

2011-10-21T10:53:00.001-07:00

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to transition away from current foreclosure attorney network programs and move to a system where mortgage servicers select qualified law firms that meet certain minimum, uniform criteria. Under current practice, in certain states each Enterprise designates law firms eligible under the Enterprise’s criteria to undertake foreclosure work and mortgage servicers then select and work with these firms.

The new approach is in line with FHFA’s Servicing Alignment Initiative that produced uniform foreclosure processing standards to assist servicers, homeowners and lenders. FHFA believes these efforts will lead to greater transparency and benefit delinquent borrowers who become subject to the foreclosure process. Further, the change will be supportive of the Consent Orders entered into by financial regulators and servicers.

The changes will be implemented after a transition period in which input will be taken from servicers, regulators, lawyers and other market participants. During this period, existing contracts remain in place and in effect.

For more information, visit www.fhfa.gov.

2011-10-18T09:55:00.001-07:00

U.S. Q3 foreclosures down 34%: RealtyTrac http://ow.ly/718on

2011-10-14T07:04:00.001-07:00

More parents finance their kids' mortgages http://ow.ly/6XmxN

2011-10-04T04:44:00.001-07:00

Experience can ease home buying process
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2011-10-04T04:40:00.001-07:00

See how the new HOT lanes will work http://ow.ly/6MLY1

2011-09-25T08:12:00.001-07:00

September News Letter http://ow.ly/6EaAB

2011-09-22T12:23:00.001-07:00

New Online Guides Teach Consumers How Building Codes Make Homes More Energy Efficient

2011-09-17T17:51:00.001-07:00

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2011-09-17T17:49:00.001-07:00

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2011-08-31T11:35:00.003-07:00

2011-08-30T10:50:00.001-07:00

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July 2011 Northern Virginia MarketWatch

2011-08-24T13:47:00.000-07:00

2011-07-28T08:03:00.001-07:00

What does CNTG/NO KO or CNTG/ KO mean?

2011-06-28T10:12:00.001-07:00

http://homebuyersblog.wordpress.com/2011/06/24/what-does-cntgno-ko-or-cntg-ko-mean/

Long & Foster Apps!

2011-04-21T11:59:00.000-07:00

All the real estate information you need—right at your fingertips. Download my app today!
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Receive alerts that will let you know when a property meeting your criteria has been added to the market
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Downloading my app is easy and only takes a minute:

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2011-04-21T08:34:00.001-07:00

The Long & Foster iPhone / IPad APP - The Easiest Way to Search for Homes

2011-04-21T08:24:00.001-07:00

2011-04-09T18:53:00.001-07:00

Marketers embracing QR codes, for better or worse

2011-04-01T07:10:00.000-07:00

http://articles.cnn.com/2011-03-28/tech/qr.codes.marketing_1_qr-smartphone-users-symbian?_s=PM%3ATECH

Five Common First-Time Homebuyer Mistakes

2011-03-28T07:51:00.001-07:00

1. They don’t ask enough questions of their lender and miss out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who is willing to help them through the homebuying process.

4. They don’t do enough to make their offer look good to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com)

Page 17 Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright 2003. All rights reserved. www.REALTOR.org/realtormag

Prepare your home now to sell in the spring - chicagotribune.com

2011-02-08T08:14:00.000-08:00

Prepare your home now to sell in the spring - chicagotribune.com

Short-sale incentives revamped again

2011-01-16T14:56:00.001-08:00

2010-09-13T07:26:00.001-07:00

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2010-09-07T09:57:00.000-07:00

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2010-08-31T07:42:00.000-07:00

Housing Affordability from Long and Foster

View more presentations from The Long & Foster Companies.

Another Home Buyer Tax Credit? - CNBC

2010-08-31T07:33:00.000-07:00

Another Home Buyer Tax Credit? - CNBC

Land use under discussion in Stafford County

2010-08-17T05:45:00.000-07:00

Land use under discussion in Stafford County

New US Home Sales Surge in June, Inventory at 42-Year Low - CNBC

2010-08-09T12:08:00.000-07:00

New US Home Sales Surge in June, Inventory at 42-Year Low - CNBC

First Time Home Buyer Tax Credit Closing Date To Be Extended? | Mortgage Rates & Trends: Mortgage Blog From Total Mortgage

2010-06-22T10:20:00.000-07:00

First Time Home Buyer Tax Credit Closing Date To Be Extended? | Mortgage Rates & Trends: Mortgage Blog From Total Mortgage

Fredericksburg.com - Stafford growth may get a boost

2010-06-04T16:01:00.000-07:00

Fredericksburg.com - Stafford growth may get a boost

REALTOR® Magazine-Daily News-BofA Rolls Out Plan to Forgive Principal

2010-06-04T15:19:00.000-07:00

REALTOR® Magazine-Daily News-BofA Rolls Out Plan to Forgive Principal

Jobs coming back: Unemployment rate drops

2010-06-04T15:16:00.000-07:00

Jobs coming back: Unemployment rate drops

How foreclosure impacts your credit score

2010-05-14T06:46:00.001-07:00

How foreclosure impacts your credit score

Posted using ShareThis

REALTOR® Magazine-Daily News-Mortgage Rates Hit 6-Week Low

2010-05-10T08:38:00.000-07:00

REALTOR® Magazine-Daily News-Mortgage Rates Hit 6-Week Low

2010-05-03T06:55:00.001-07:00

Things Buyers Might Not Know About Title Insurance

2010-04-06T13:25:00.000-07:00

1. Your mortgage lender is going to require it. Title insurance protects the lender and the secondary markets to which they sell the loans from defects in the title to your home and property. It ensures the validity and enforceability of the mortgage document. Title defects could include mistakes made in the local property office, forged documents and claims from unknown parties. The amount of the policy is equal to the amount of your mortgage at its inception. You pay a one-time fee as part of your closing costs. If you are purchasing a home, you should also purchase an owner’s policy which provides coverage up to the purchase price of the home you are buying. In some states it is customary for the seller to purchase the owner’s policy on your behalf.

2. You have the right to choose! And it’s now it’s easier than ever. You can shop around for a lower insurance premium rate on line at sites including Closing.com, EasyTitleQuote.com and FreeTitleQuote.com. You can also ask your lender or real estate professional for help in getting quotes.

3. Check the companies out before you select one. Make sure the title insurance company you choose has a favorable Financial Stability Rating® with Demotech, Inc., the leading title insurance rating company (www.demotech.com).

4. It’s easy to save money on title insurance. Request quotes from a few companies and then reach out and speak to them. Ask about hidden fees and charges which could make one quote seem more attractive than another. Ask about discounts. There are often discounts available if you are refinancing and sometimes even when you are purchasing if the current policy issued to the seller on the property isn’t too old.

5. Even new construction needs coverage. Even though the home is new, the land isn’t. There may be claims to the land or liens placed during the construction which could negatively impact your home.

Source: ENTITLE DIRECT, Direct-to-Consumer Title Insurance, www.EntitleDirect.com

2010-04-01T08:32:00.001-07:00

2010-04-01T07:54:00.001-07:00

Stafford County CMA March 2010

2010-04-01T07:49:00.001-07:00

Basic Statistics - grouped by Status
Provides Basic statistics on listings


Status: ACTIVE (690)
		List Price	Bedrooms	Baths	FB	HB	DOMM	DOMP	Lot Sqft	Yr Built
	Min	$660	1	1	1	0	0	0	0	1700
	Max	$1,539,000	6	7	6	3	1,686	1,686	4,357,433	2010
	Avg	$289,299	4	3	2	1	104	120	71,104	1991
Status: CNTG/NO KO (247)
		List Price	Bedrooms	Baths	FB	HB	DOMM	DOMP	Lot Sqft	Yr Built
	Min	$45,000	2	1	1	0	0	0	0	1900
	Max	$1,145,000	8	7	6	2	931	998	37,940,760	2009
	Avg	$242,311	4	3	2	1	57	61	189,089	1991
Status: CNTG/KO (21)
		List Price	Bedrooms	Baths	FB	HB	DOMM	DOMP	Lot Sqft	Yr Built
	Min	$78,000	0	0	0	0	2	0	0	1856
	Max	$429,900	5	4	4	1	110	232	220,326	2010
	Avg	$222,843	4	3	2	1	35	51	29,186	1986
Status: CONTRACT (199)
		List Price	Bedrooms	Baths	FB	HB	DOMM	DOMP	Lot Sqft	Yr Built
	Min	$50,000	1	1	1	0	0	0	0	1840
	Max	$859,900	7	6	5	2	517	881	488,538	2010
	Avg	$237,321	4	3	2	1	56	56	38,287	1989
Status: SOLD (99)
		List Price	Bedrooms	Baths	FB	HB	DOMM	DOMP	Lot Sqft	Yr Built
	Min	$51,500	2	1	1	0	0	0	0	1947
	Max	$699,000	6	5	5	2	568	568	455,577	2010
	Avg	$255,050	4	3	2	1	63	82	43,047	1993
Status: All (1256)
		List Price	Bedrooms	Baths	FB	HB	DOMM	DOMP	Lot Sqft	Yr Built
	Min	$660	0	0	0	0	0	0	0	1700
	Max	$1,539,000	8	7	6	3	1,686	1,686	37,940,760	2010
	Avg	$268,012	4	3	2	1	83	94	86,044	1991

Criteria:

CCounty is 'Stafford, VA'

SStatus is one of 'Active', 'Cntg/KO', 'Cntg/NO KO', 'Contract', 'Sold'

CCloseDate is on or after '3/2/2010'

making home affordable

2010-03-31T11:34:00.000-07:00

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New Program to Speed 'Short' Sales

2010-03-31T10:27:00.000-07:00

Short sales are a valuable tool for struggling homeowners. But they've been notoriously difficult to complete, with buyers and sellers often playing a long waiting game before hearing back from lenders.

Now, however, a new government program plus some lender initiatives may make for shorter wait times and a smoother process. "Any structure is better than what we've had," says Kathryn Bovard, a broker/manager for Prudential Americana Group in the Las Vegas area.

Short sales are useful for borrowers who are underwater on their mortgage, owing more on the home than it's currently worth. In a short sale, the homeowner's lender accepts less than what the borrower owes on the mortgage in order to complete the sale. Both parties thus avoid the foreclosure process.

The government's Home Affordable Foreclosure Alternatives (HAFA) program goes into effect April 5.

"It's an extension of [the Home Affordable Modification Program] to provide a default solution before it gets to the worst," says Arvin Wijay, chief executive of Retreat Capital, a provider of products and services that facilitate short-sale management and loan modifications. If the borrower doesn't qualify for a modification, loan servicers will then assess the possibility of a short sale through the HAFA program.

Here are some ways HAFA is expected to improve the traditional short-sale process:

-- Borrowers will receive pre-approved short-sale terms before listing the property, including either a list price approved by the servicer or the acceptable sale proceeds, according to the U.S. Treasury Department. That way, sellers know what lenders will accept before listing the property.

-- There's a set timeline, with deadlines for lenders and sellers to keep the short-sale process moving.

-- At the completion of a sale, borrowers may get up to $1,500 for relocation expenses and servicers may receive compensation of up to $1,000. Up to $3,000 of proceeds are available to distribute to subordinate lien holders, making it possible to compensate second-mortgage lenders.

Still, some in the industry are skeptical that the new program will be a great help to people.

"The homeowner should be encouraged that the government is doing something," but people should not expect it "to change the world overnight," says Fred Weaver, co-owner of Group 46:10, a team of agents who focus on short sales as part of Keller Williams Arizona Realty, in Tempe, Ariz.

Successful implementation also depends on servicers' staff. "Some servicers are good at finding the right people, and have the right technology," says Mr. Wijay. Some, he says, are not.

In the past, it was common for one mortgage-servicer employee to be responsible for managing hundreds of short-sale applications. But the method with which short sales are approved is starting to improve at some firms, and some banks have made staffing adjustments to better handle the volume.

"Banks are trying to put programs in place to facilitate more short sales in a shorter period of time," says Mr. Weaver.

Some of the most recent efforts have allowed borrowers and real-estate agents to use an Internet portal to help improve communication, allowing them to submit paperwork electronically instead of faxing it, a practice that's under way at GMAC Mortgage and Bank of America, according to Mr. Weaver. And lenders including Wells Fargo have committed to increasing their staff to deal with short sales, Ms. Bovard says.

Lenders "have finally gotten on board with the fact that short sales will be a large part of the market over the next 24 to 36 months," says Ms. Bovard.

While the popularity of short sales differs by market, in the Las Vegas brokerage that Ms. Bovard runs, 70% of pending sales are now short sales, she says.

According to the latest Campbell/Inside Mortgage Finance survey of real-estate market conditions, short sales were the most popular category of sales for distressed properties. In January, short sales accounted for 15.9% of home-purchase transactions, compared with 13.4% of sales that were damaged bank-owned properties and 13.8% of sales that were move-in-ready bank-owned properties.

Short sales typically sell for 91% of their listing price, according to the survey results. Move-in-ready bank-owned properties typically sell for 99% of their listing price.

For homeowners considering a short sale, Ms. Bovard says it's important they speak to their trusted advisers, including their attorney and tax accountant, as well as a real-estate agent who has a short-sale designation.

When looking for a real-estate agent, says Kevin Kauffman, co-owner of Group 46:10, homeowners should ask about the agent's track record with short sales: "How many have you closed? The follow-up question: How many did you fail on -- how many went into foreclosure?"

Also, ask questions about the agent's strategy in getting the job done, he says.

For buyers, a lot of patience is required to finish one of these deals, says Ms. Bovard. "It's a long, involved process. But the payoff is getting a tremendous value."

---Amy Hoak. Wall Street Journal. (Eastern edition). New York, N.Y.: Mar 14, 2010. pg. 3

Market Report for Stafford County

2010-03-30T09:53:00.001-07:00

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2010-03-29T07:52:00.000-07:00

NAR President says another extension of the homebuyer tax credit is “unlikely”
by BEN MARTIN on MARCH 25, 2010

Vicki Cox Golder, the 2010 NAR President, circulated this memo to association leaders yesterday indicating that the homebuyer tax credit will probably come to an end when the current deadline of April 30 rolls around.
As you know the deadline for the Homebuyer Tax Credit is fast approaching. Buyers must have a contract in place by April 30, 2010 with a closing date no later than June 30, 2010 to claim the credit. We expect that REALTORS® will be asking you what NAR is doing to extend the tax credit. NAR has had extensive discussions with our congressional allies and concluded that an additional extension of the tax credit is unlikely. While lawmakers recognize that the tax credit helped stabilize the market, it appears that much of the benefit has been realized. NAR is now focused on working with our REALTOR® Party champions to improve the availability of financing, which continues to be an issue. Specifically, we are working with Congress to strengthen FHA and to help develop a new business model for the secondary mortgage market giants Fannie Mae and Freddie Mac.

How to Set Your Selling Price

2010-03-04T08:33:00.000-08:00

If you're selling your house, one of the first steps you'll take is setting an asking price, a maneuver that requires the ability to find the perfect balance between attracting solid offers and ultimately receiving top dollar.
If you're working with a Realtor or other industry professional, you'll probably hear talk of fair market value, which typically means the highest value an educated buyer will pay. Fair market value is usually not the asking price.
Many agents will begin by conducting a competitive market analysis of your house and give you an estimate of the fair market value of your home, which is a range that will fluctuate depending on the housing market in your area and how much similar homes in your neighborhood are selling for.
If you're in a hot seller's market, like many communities throughout California and much of the West, you'll have the advantage.
"The market has been gaining steam, and the seller is taking control," said Nashat Benyamein, a broker in Long Beach, Calif. "Our average number of days on the market went from 30 days to 7 days or less."
While overpricing to some degree can be beneficial, you'll still want to be careful and avoid pricing your home too high, which almost always is nonproductive.
As you work with your agent and set your price, you'll want to recognize the factors that may prompt you to raise your asking price too much when it isn't warranted. Some of those factors include:
• Upgrades have been added. While many home improvements will help you recoup a good chunk of your investment, it won't give you 100 percent of what you paid. Also, the more personal the improvement—a swimming pool, a sunroom, purple floors—the less likely it will be viewed favorably by potential buyers.
• The need for money.
• You're moving to a higher-priced area.
• The original purchase price was too high.
• The seller lacks factual comparable sales to prove what the market value is.
• The seller wants bargaining room (listing more than 1-3 percent above market value actually reduces bargaining power).
• An unnecessary move, so you're not motivated.
On the other hand, if you're in a neutral or buyer's market, like in Minneapolis, you'll really need to be cautious in setting your price.
"While a few select neighborhoods are experiencing good activity, the market generally is favoring buyers," said Mary Jo Oren, a Realtor in Minneapolis, Minn. "Price reductions are becoming more common and sellers are having a tough time adjusting to fewer offers, fewer multiple offers and increased market time to sell. Buyers are less emotional and not afraid to offer significantly less than list price plus ask for additional seller participation."
Generally, the asking price—the price advertised when it goes on the market—is set slightly higher than market value, usually 1 to 3 percent above market value.
You should assume that negotiation will be necessary to reach an agreement with the buyer. If you price your home too much above market value, you'll get fewer showings and offers in which the potential buyer is fishing to determine how low you'll go.
You'll want to establish your priority list: Are you more concerned with selling quickly or getting the most money possible? You'll also want to contemplate whether you think the agent's suggested price is reasonable and whether you'd pay that amount if you were a buyer.
Your agent, as well as friends, relatives, and neighbors, will help you point out your house's advantages and disadvantages that you may not have thought about because you're too close to the house and not as objective as others.
A third party will help you think of your house as a commodity—something with positive and negative selling points. At that point you can decide on a price that you deem competitive and in line what other houses in your area have sold for.

By Michele Dawson
Copyright © by Realty Times

REALTOR® Magazine-Daily News-4 Reasons to Sell Now

2010-02-16T08:00:00.000-08:00

REALTOR® Magazine-Daily News-4 Reasons to Sell Now

Short Sales Tips for Sellers

2010-01-30T10:41:00.000-08:00

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

* Your property is worth less than the total mortgage you owe on it.
* You have a financial hardship, such as a job loss or major medical bills.
* You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:

* Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
* Help you set an appropriate listing price for your home, market the home, and get it sold.
* Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
* Ease the process of working with your lender or lenders.
* Negotiate the contract with the buyers.
* Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

* A hardship letter detailing your financial situation and why you need the short sale
* A copy of the purchase contract and listing agreement
* Proof of your income and assets
* Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

* If you have only one mortgage, the review can take about two months.
* With a first and second mortgage with the same lender, the review can take about three months.
* With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

* You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
* Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
* Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Copyright THE NATIONAL ASSOCIATION OF REALTORS® | Headquarters: 430 N. Michigan Ave., Chicago, IL 60611 | DC
Office: 500 New Jersey Ave. NW, Washington, DC 20001 | 1 800 874 6500

What's a Short Sale

2010-01-30T10:38:00.000-08:00

Housing Counsel: What's a Short Sale
by Benny L. Kass

Question: We are in financial trouble. Our house will not sell for enough money to even pay off the mortgage, let alone a real estate commission. Our real estate agent suggested that we do a "short sale".

What exactly is this?

Answer: This is a method of disposing of your home without having the lender foreclose on you.

You are unfortunately what lender's call "upside down."

Let's take this example: you bought the house last year for $500,000, and foolishly took advantage of the mortgage broker's sales pitch and obtained a 100 percent loan. Now, the house will probably only sell for $475,000, and you lost your job and cannot afford to continue with the monthly mortgage payments.

A short sale is an arrangement with your lender whereby they will allow you to sell the property for less than the amount of the current mortgage.

Why would a lender permit this? First, you should understand that not all lenders will allow a short sale. Their decision depends on a number of factors: where is your house? how much loss will the lender suffer? What is the possibility that a speculator/investor will buy at a foreclosure sale?

Lenders have their own requirements, so I can only provide general information; you will have to consult your specific lender to determine what they need in order to move forward with the short sale process.

The first step is to contact your financial and legal advisors. Do not contact the lender until you fully understand the potential risks involved. Under Federal law, when a debt is forgiven, it can be treated as ordinary income on which tax must be paid. Thus, if your lender allows you to sell the property to $475, less a 2 percent commission, you will pay off your $500,000 mortgage and have a deficit of almost $35,000. According to many tax professionals, you will have to pay income tax on this amount even though you did not actually receive the money.

Furthermore, you want to make absolutely sure that even should the lender approve the short sale, you will not be obligated to make up this difference, which is called a deficiency. Unfortunately, most lenders will not put their agreement in writing, so your legal advisors will have to satisfy themselves -- and you -- on this matter.

In fact, many lenders have been known to use this "forgiveness of debt" issue as a way of dissuading their borrowers from pursuing the short sale approach.

After you are satisfied that you understand the concept and are prepared to move forward, you should contact your lender. Go up the corporate ladder as high as you can and talk with the manager of the short sale department. Typically, the lender has a "loss remediation" department that handles these matters.

If you have authorized your attorney or your real estate agent to act on your behalf, the lender will need a letter of authorization from you. The Privacy Laws enacted after 9-11 prohibit lenders from discussing personal and financial information with a stranger without such written authorization. This letter will include your name, property address and loan number.

You (or your agent) should then prepare a comprehensive letter explaining why you are requesting the short sale. Emphasize -- but not as a "sob story" -- your hardship. It would also help if you include a market analysis which will show what houses in your area are currently selling for. And finally, spell out your request in detail: what price are you asking the lender to approve, what percent commission will the real estate agent be allowed to accept, and what closing costs will be associated with the settlement. Keep in mind that in many jurisdictions, there is a recordation and transfer tax which is typically split between buyer and seller.

Your proposal should be as specific as possible. You don't want to learn at settlement that you still have to come up with a lot of cash, because your lender did not authorize certain out-of-pocket expenses.

You should also request from your lender the amount of your outstanding balance. The lender has a legal obligation to provide this to you on request, and the burden is on the lender to provide an accurate accounting. Review this carefully to make sure that there are no charges which have been erroneously added. If you have missed some payments, you will be assessed late fees. When you present your proposal to the lender, try to get these charges deleted from the amount of the outstanding mortgage balance.

Your proposal should also include your financial situation. Keep in mind that many loans in the past few years were what are called "no-doc" -- in other words, the lender made the decision to fund your loan based on the value of the property and not on your financial status. In your case, since you lost your job, include proof with your letter.

The more documentation you can provide the lender, the faster the decision will be. However, currently lenders are swamped with these requests, since you are not the only one facing a possible foreclosure.

Thus, the earlier you can start the process, the better chance you have of getting it approved.

But the lender's approval to proceed with a short sale does not end the process. When you or your real estate agent find a prospective purchaser, the contract must state that it is contingent on lender's approval. You have to send the contract to the lender, and it would help if you would include an accounting of all expenses which you will have to pay at settlement, and a final number that the lender will receive when settlement takes place.

In fact, if you can have a HUD-1 settlement statement prepared, this would be helpful and would expedite the process. Your lender will then review the documentation, and may reject certain expenses. For example, if the contract provides that you will give your buyer XX dollars for "closing costs" -- or that you will pay some items which are traditionally the buyer's obligation (such as title search and survey) -- the lender may not allow such payments.

You want to go into the settlement knowing exactly all of the terms and conditions on which your lender will accept the short sale, including whether or not you will have to come up with money at the settlement table.

You are in financial trouble. If you have already missed some payments, your lender may already have reported this information to the credit reporting companies. You should try to convince the lender not to report any more delinquencies, but unfortunately, that's in your lender's sole discretion.

The short sale process works, but is complicated, time-consuming and uncertain. If you can start now -- before you are actually in default -- you will be ahead of the game.

Copyright © 2007 Realty Times. All Rights Reserved.

With an award winning staff of writers providing up to the minute real estate news and advice, thousands of REALTORS® in North America reporting daily market conditions, and a nationally broadcast television news program, Realty Times is the one-stop shop for real estate information. That's why over 10,000 real estate professionals have turned to us for their publicity needs.

Homes Sales Rise 7.4%

2010-01-30T09:35:00.001-08:00

Home Buyers Tax Credit

2010-01-09T07:48:00.000-08:00

Questions to Ask When Choosing a REALTOR®

2009-09-28T08:46:00.001-07:00

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS, which require that agents take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.

3. How many homes did you and your company sell last year?

4. How many days did it take you to sell the average home? How did that compare to the overall market?

5. How close to the initial asking prices of the homes you sold were the final sale prices?

6. What types of specific marketing systems and approaches will you use to sell my home? Look for someone who has aggressive, innovative approaches, not just someone who’s going to put a sign in the yard and hope for the best.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the agent’s obligations lie. A good agent will explain the agency relationship to you and describe the rights of each party. It’s also possible to insist that the agent represent you exclusively.

8. Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done? Keep in mind here that agents should generally recommend more than one provider and should tell you if they receive any compensation from any provider.

9. What type of support and supervision does your brokerage office provide to you? Having resources such as in-house support staff, access to a real estate attorney, or assistance with technology can help an agent sell your home.

10. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent—fast sales, service, etc.—and determine how closely the agent’s goals and business emphasis mesh with your own.

11. How will you keep me informed about the progress of my transaction? How frequently? Using what media? Again, this is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don’t want to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit?

12. Could you please give me the names and phone numbers of your three most recent clients?

REALTORï¿½ Magazine-Daily News-Smooth Short Sales: Tips from a Lender

2009-09-28T08:41:00.001-07:00

REALTORï¿½ Magazine-Daily News-Smooth Short Sales: Tips from a Lender

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Understand Agency Relationships

2009-09-20T14:43:00.000-07:00

It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you:

Seller's representative (also known as a listing agent or seller's agent)
A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

Buyer's representative (also known as a buyer’s agent)
A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or through a commission split with the seller’s agent.

Subagent
A subagent owes the same fiduciary duties to the agent's customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

Disclosed dual agent
Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

Designated agent (also called appointed agent)
This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

Nonagency relationship (called, among other things, a transaction broker or facilitator)
Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

Short Sales: The Basics for REALTORS from the National Association of Realtors

2009-09-20T14:35:00.001-07:00

Short Sales: The Basics for REALTORS from the National Association of Realtors

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2009-09-20T06:40:00.000-07:00

Short Sales Tips for Sellers

2009-09-19T20:00:00.000-07:00

Your property is worth less than the total mortgage you owe on it.

You have a financial hardship, such as a job loss or major medical bills.

You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:

Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

Help you set an appropriate listing price for your home, market the home, and get it sold.

Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

Ease the process of working with your lender or lenders.

Negotiate the contract with the buyers.

Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

A hardship letter detailing your financial situation and why you need the short sale

A copy of the purchase contract and listing agreement

Proof of your income and assets

Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

If you have only one mortgage, the review can take about two months.

With a first and second mortgage with the same lender, the review can take about three months.

With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.

Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Copyright THE NATIONAL ASSOCIATION OF REALTORS® Headquarters: 430 N. Michigan Ave., Chicago, IL 60611 DC Office: 500 New Jersey Ave. NW, Washington, DC 20001 1 800 874 6500

U.S. Department of Housing and Urban Development (HUD)

2009-09-19T11:45:00.001-07:00

U.S. Department of Housing and Urban Development (HUD)

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