Blog

Displaying blog entries 1-3 of 3

Q&A on Short Sales!

Sunday, November 09, 2008
by Kevin Geraci
How do I learn about real estate "short sales" without spending money to learn?
I would like to know how to get involved with real estate "short sales"...I love customer service, but I want out of retail and the R.E.S.S. breed of service can save a lot of people a lot of money, as apposed to convincing them to spend more money as you so often find yourself doing in the retail environment. However, I don't have money to spend on seminars, boot-camps and other such conveniences or money traps (should that be the case). I would really appreciate anyone who would be willing to take their time to teach me at no cost up front...and I have no problem arranging appropriate kickbacks for the kindness once I get going. Thank you in advance for your time.
 
  • You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a "short pay" or "short sale."

    Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department.” More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.

    Now mind you if you are doing this for yourself (you as the investor), you do not need a license. But if you are trying to do it for others, you will need a license. Also consider investing with other real estate ventures as defined in the book below.
Source(s):
Investing without Losing: The Beginner's Guide to Real Estate Tax Lien and Tax Deed Auctions (ISBN: 0978834607) from Barnes & Noble

Wheeler's Monthly Mortgage Insider

Friday, June 06, 2008
by Kevin Geraci
Heading into the summer season of back-yard cookouts, baseball games, and pool parties, we sometimes scratch our heads at mortgage rates.
With all the negative news to our industry, mortgage rates have remained somewhat steady during the housing slow-down....which makes it a great time to purchase a 1st home, vacation home, or an investment home to help fund your family’s retirement.
With such a large supply of homes on the market today, buyers have more choices than ever to ultimately to find the home of their dreams at a great price.
 
Although mortgage financing has changed slightly since the sub-prime sector fall out, there are still a lot of options for buyers.
The FHA program seems to be the best fit for first time home buyers but also many other buyers because it offers good rates, lower credit guidelines to qualify, 100% financing programs with down payment assistance, as well as low closing costs. (For those of you unfamilar with FHA, it is a division of the US Dept of Housing and Urban Development responsible for setting standards for lending and construction).
Conforming financing is still the most popular when you have a down payment of 5% or more when purchasing a property; but these days it might be more beneficial to look at a FHA loan to see which loan makes the most sense for your situation.
 
Getting pre-qualified for a mortgage loan is a quick and easy process.
This will give you and your realtor an idea of a price range that you can comfortably afford.
During the pre-qualification process, a loan officer will review your credit report with you, discuss a payment scenario, and give you a full analysis of what to expect from the time you make an offer until the day you close on your loan.
It’s always a good idea to talk to your realtor about recommendations for a loan officer as it is often the biggest financial purchase you will make in your lifetime.  Your realtor will be able to guide you to a professional who will help you get the best rates.

Home Buying Tips

Monday, May 19, 2008
by Kevin Geraci

1. Commit yourself to your new home for at least two years before moving into a new home.

2. Money matters. If you're considering a mortgage, shore up your credit and get a copy of your credit report.

3. Get pre-approved and save yourself the time and grief of looking at houses you can't afford.

4. Determine how large your mortgage can be. Explore different loan options to determine what is best for you.

5. Decide what (and where) you want to buy. Prioritize your needs (i.e.,location, schools, amenities).

6. Consider your re-sell value. Even if you don't have school-aged kids, a strong school district is a good thing.

7. Do your homework. Bid based on sales trends of similar homes in the neighborhood.

8. Calculate the hidden costs such as property taxes, insurance, maintenance and association fees.

9. Don't be house poor. Double and triple check to be sure you haven't maxed yourself out on the cost of your home.

10. Hiring a Realtor to get the most for your money. It pays to have someone looking out for your interests.


Last modified: 10/24/08