Real Estate and Beyond Blog

ARIZONA SHORT CLOSES ON THE LAST DAY SELLERS MOVE IN 24 HOURS OR NO SALE

Here is a picture of a closet full of shoes that were left behind from a family that needed to move in 24 hours or my buyer was not going to purchase the home. The seller had plenty of warning to move from this house. Yes, it was a divorce situation. The Ex-wife was getting back at her husband by refusing to move. I informed the selling agent that we need to ensure the house is empty before 5 PM.

Well, there were three moving trucks and nine people moving items from this home. There were things everywhere both in the front and back yard. Some of the neighbors were willing to buy items from the lady to relieve the load.

I was able to conduct the final walk through with items still left in the home. However, the ex-wife said she had enough and left the remaining items in the home. Yes, it was mainly junk. So, we secured the home by installing new locks. My crew started the next day to trash this home out.

Just another Done Deal with Delia.

ARIZONA SHORT SALE SELLER MUST MOVE BEFORE CLOSE OF ESCROW ONE DAY LEFT OR NO DEAL

There is never a dull moment when it comes to Arizona Real Estate. Let me tell you a quick story when it comes to closing on an Arizona Short Sale transaction. The real estate investor was purchasing this home as a rental. The sellers were husband and wife who were obtaining a divorce. They wanted to complete the short sale so they could get the house out of their names. OK! The bank accepted the offer.

The listing agent calls me about two weeks before closing stating that the ex-wife would like to know if she could stay in the home to rent from my investor. My first response to her question was NO. It clearly states from the bank addendum that the previous owner cannot rent back house from new owner. She will need to find another place to live.

We have a week to close this deal and the ex wife is still in the home. I informed the listing agent that we cannot close on this deal until this person has vacated the home. We have until close of business day on August 31, 2011 to close this deal or we have no deal. You got it! The ex wife did not start moving from this home until the day before to zing it to her ex husband. The buyer did not want to deal with this mess after the closing.

Here are some pictures of the final walk through taken by me Harry Delia

This picture was taken at 1:00pm

Food was all over the counter and floor

Beer cans in the backyard

Yes, we did close the deal that day. I had the locks changed at 5:01PM for the new owner. It was just another normal day in Arizona Real Estate Short Sales.

NETWORKING WITH OTHER REALTORS IN CDPE DESIGNATION CLASS

I finally obtained my Certified Distressed Property Expert(CDPE) designation this past week. Now, they do offer this via online. However, I always enjoy attending a live class to network with other real estate professionals. First, the class was exactly what I needed to better understand on how to better serve people who are upside down on their home. The process is all there for all who wish to learn and implement.

I was able to network with fellow real estate professionals who practice in my local market. I would highly recommend to sign up for the CDPE class to be the local expert when it comes to distressed properties.

Blue bars on the chart represent the recast schedule if all the loans were to recast five years after origination date. Gray bars represent the expected schedule of option ARM resets, which show loans recasting sooner after hitting the principal cap. Credit Suisse

This has been taken from a Businessweek article on option ARMS. We have another wave of foreclosures coming up. Are we ready for it? How can the Government prevent this one. Most people who I talk to on the radio have this type of mortgage and only pay the minimum payment. That means they will be heavily upside down when this loan recasts. There will be no equity to do a refinance.

AHHHHHHHHHHHHHHHHHHH! Comments

SENIOR CITIZENS ASKING FOR ASSISTANCE WHEN DOING AN ARIZONA SHORT SALE

Everyone has their opinion when it comes to short sales. Many real estate agents have decided not to touch short sales because it is too difficult. I have to agree with them if they have the Long Ranger mentality. I do not like to work alone. Real estate is a team sport. The only way to win at short sales is putting a team in place. So, I have assembled my Arizona Short Sale team to win. I will be taking a short sale listing this weekend from an 80-year old man who had decided to inquire about a short sale because he does not know what to do. I am sure there are many senior citizens in America that are in the same situation. Who do they call for HELP? Are you listening to their cries for help?

This real estate bubble has hurt many senior citizens that had purchased homes at the height of the market to only be upside down in their homes three years later. I had one client who was over $100,000 in his current home. He decided to do a short sale on his home because he does not have time to ride out the market. His current finances were limited.

Finally, please visit www.ArizonaShortSaleandBeyond.com to learn more about doing a short sale on your current home. We have assembled a great team for you.

1. Make the Call
2. Set the Plan
3. Do the Deal

HOA TAKES ON ANOTHER MEANING IN REAL ESTATE WHEN DOING SHORT SALES

I just closed on a short sale today. Yes, it took all of us time and patience to close this deal. Wow, real estate is a team sport on this deal. We had to deal with the HOA in this transaction. What is a HOA? HOA stands for HOME OWNERS ASSOCIATION. What does an HOA do? That is a great question. Their number one job is to govern a residential community. Many of the board members volunteer their time. The HOA enforces the standards all agreed upon within a community. It is a great experience for anyone to sit on a HOA board for a term. You will learn a great deal.

Let's look at the following fees that were on the final approved HUD

• Advance Assessments $155
• Late fee to HOA $15
• Outstanding Assessment to HOA $232
• Reserve Fee to HOA $155
• Resale Cancel Fee to Property Management $75
• Statement fee to Property Management $50
• Transfer fee to Property Management $150
• Resale Disclosure Fee to Property Management $150

This added another $922.00 of closing costs to the entire transaction. This is with me negotiating with them to lower their fees. They know the transaction will not close until they are paid in full. Yes, many HOAs and property management companies were furt financially during the foreclosure boom. It seems they are finding other ways to make it up.

We are becoming a fee society in all industries.

I have a new one HOA-HOLD ON AMERICA

Is this same practice happening in your local real estate market? Love to hear from you on this one.

AMERICANS HAVE TO MAKE HARD DECISIONS WHEN IT COMES TO SHORT SALE OR NOT THEIR HOME

Experts state that there are over 11 American households under water when it comes to their mortgage. Also, 7 out of 10 people that have experienced a foreclosure never contacted a professional Realtor to assist them. I believe we all want to do the right thing. However, we have to admit things have changed dramatically in America

• National unemployment rate just under 10%
• 118 banks have been closed of August of 2010
• Issues with Fannie and Freddie moving forward
• America still at war in the Middle East
• Overall economy growing very slowly compared to other years
• Banks continue to foreclose on homes at record pace
• Loan modification program not working for troubled home owners
• Presidents overall popularity with Americans has dropped to 41% in favor

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We all had an Etch A Sketch when we were children. Heck, my own kids have an Etch a Sketch. The purpose of this game was to draw a picture. Then, we could shake it up to have a blank screen to draw another picture. Many people who I have consulted wish it was only these easy. We have Americans hurting financially at the present time. They are too embarrassed to receive assistance because they believe everything will be OK. HOPE is not a game plan. The home owner upside in their current home only has the following choices at the present time:

1. Keep the present home and ride out the market
2. Loan modification
3. Short Sale
4. Deed In Lieu Of Foreclosure
5. Foreclosure

Real estate is a team sport. I would advise home owners to consult with the following professionals to obtain needed information to make an informed decision when considering to short sale their home:

• Realtor
• Mortgage professional
• Certified Financial Planner
• Real estate lawyer
• Certified Public Accountant
• Credit restoration professional

I believe the Seller needs to collect all the information from the following experts to make an INFORMED decision for their family. It really is a personal decision since each short sale has its different hardships. Yes, Americans are forced to make the tough financial decisions. I just want to let everyone know that they are not alone in their pain. Reach out to local professionals in order to gain vital information in order to bounce back financially down the road. We will all get through this together.

CONTACT HARRY FOR MORE INFORMATION

I AM NOT HELPING OUT MY LANDLORD NO WAY

I met an interesting couple the other day while I was showing my listing as a rental. I met two ladies who were looking for a rental. They gave me many compliments on the house. I informed them of the monthly rent, required deposits and background checks. They seemed perfectly fine with this procedure. It is very normal under the current circumstances. I asked them if they were in a current lease or not at the current time. They informed me that they are in a current lease. However, the know that the owner of the house is being foreclosed upon.

So, I continue to ask them more questions about their current rental. They told me that the seller is six months behind in payments. They have never missed a rental payment. Both ladies are quite mad because seller will not fix anything at the house. Well, I am sure the seller has no money to fix repairs. So, these two ladies want to secure a roof over their heads before they get kicked out of their house. Hey, they are just looking out for the families. They are furious with their landlord. It is not a win win scenario in their minds.

It seems like the seller needs a Realtor to discuss options on the current house. So, I ask the ladies for their seller's phone number in order to set up a meeting with the seller to discuss a possible an Arizona short sale. Plus, the tenants may possibly be able to stay longer in the home. Here was her response to me

"I AM NOT HELPING OUT MY LANDLORD NO WAY."

Again, I was just offering my services to both parties. I was thinking of my grandfather who always believe in the GOLDEN RULE IN LIFE- treat others the way you want to be treated. It is sad for both sides in this current scenario.  

There are people out their in your local community who need your services right now when it comes to real estate.

www.ArizonaShortSaleAndBeyond.com

TOP 6 THINGS TO KNOW AS A SELLER WHEN CONDUCTING AN ARIZONA SHORT SALE

Arizona has experienced many bank foreclosures over the past three years. Arizona short sales continue to increase here in the Phoenix real estate market. The Real Estate and Beyond Team is ready to help home owners who are in need to do a short sale on their home due to hardship. While selling property through a short sale is generally a better financial and personal decision for many homeowners there are still some potential negative implications that may arise when you complete a short sale. If you are concerned about any of these issues, CONTACT HARRY TODAY.

www.ArizonaShortSaleAndBeyond.com

If you are considering a short sale, then the seller needs to know TOP 6 THINGS WHEN CONDUCTING AN ARIZONA SHORT SALE

1. Short Sales are never guaranteed. While we have an extremely successful closing ratio there is no one who can guarantee a short sale will be approved and/or successfully close.

2. Your credit will be affected. Although the affects of a short sale are usually far less severe than those of a foreclosure you should know that you will likely face at least some impact to your credit. There is no way to determine the impact a short sale will have on your credit, however, the attached chart shows how much of an impact most people can expect to see. If you are interested in repairing your credit after completing your short sale we can refer you to an extremely reputable credit repair company that offers a discount to our clients.

3. In most cases you can obtain another Fannie Mae backed mortgage in 2 years. Due to new lending guidelines there is now only a 2 year waiting period to receive a mortgage backed by Fannie Mae, one of the largest investors in the country - and you may be able to receive a mortgage through other investors even sooner. A foreclosure will prevent you from receiving a loan through Fannie Mae for up to 7 years.

4. If proper release is not obtained your lender may seek a deficiency judgment. We always make every effort to obtain a full satisfaction of mortgage from your lender and receive written documentation stating that they will not seek a deficiency judgment or attempt to seek payment on the deficiency.

5. Your lender may ask you to sign a promissory note or contribute money to close. Although rare, some lenders and private mortgage companies will require you to sign an unsecured, interest free promissory note or bring a cash contribution to the closing table. Because our network consists of investors and a professional negotiation company we are able to negotiate with your lenders and/or avoid this requirement completely. If your lender requests that you sign a promissory note be sure to read the note carefully - in many cases the lender can obtain a judgment or attach the note to any of your real or personal property.

6. In rare instances there are tax implications related to a short sale. The Mortgage Debt Relief Act protects most sellers from potential tax implications; however, if the loss is over $1 million or you are selling property other than your primary residence you should seek the assistance of a tax professional.

There may be additional issues that could affect you when completing a short sale that we have not mentioned here.  We strongly encourage anyone that is considering completing a short sale on their home to speak with their attorney, tax professional, financial planner and any additional trusted advisors and professionals that may be able to further assist you in making the right decision for your personal situation.

CONTACT HARRY TODAY

COST OF NEGATIVE EQUITY IN REAL ESTATE 

We have 11 million American households underwater when it comes to what they owe on their mortgage vs. the value of the home. Many people are walking away from their home because they become frustrated with the whole system and just want it to be over. So, they take matters into their own hands. Statistics show us 7 out of 10 homeowners who have faced foreclosed did not contact a professional Realtor to assist them. The Real Estate and Beyond Teamhas create a web site dedicated to assist people who wish to learn more about their options before being foreclosed upon by the bank.

www.ArizonaShortSaleAndBeyond.com

Have you ever thought what it is costing someone to have negative equity in their home? When considering a short sale many homeowners overlook the very expensive cost of carrying negative equity over a long term. What many people don't take into consideration is that at the national average appreciation rate of 6%, it can take homeowners several years to recoup their loss just to break even! Here is an example of the cost of negative equity to the average homeowner:

Jane Seller purchased her home in 2005 for $200,000. Because of the market crash, her home is now worth $100,000. Jane put no money down on her home and owes just under $200,000 now. At the average national appreciation rate of 6% it would take Jane approximately 12 years for her home to be worth $200,000 again or 9 years before she could sell her home and break even, making $0 profit and paying her own commissions and closing costs.

If Jane sold her property in a short sale, she could rent a home for the next 2 years and then purchase her exact same home for nearly half the monthly payment. If she was paying $1,250 per month for her old home, her new home would be closer to $700 per month! That is $550 a month that she can put back in her pocket!  If Jane stayed in her home for the 9 year period it would take her to break even she would spend nearly $60,000 in higher mortgage payments and a total of $135,000 on mortgage payments just to break even!

The Real Estate and Beyond Team is here to assist all homeowners located in Arizona to define their options in a more detail manner in order to make a better informed decision.

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