Suzanne White\’s Blog

I do respect my fellow REALTORS but I also have to accept the fact that not all agents are good agents.   The following is an example of remarks from a fellow agent here in Memphis, TN   regarding a home for sale as a short sale in a Memphis neighborhood.   Appparently a contract has been signed and presented to the bank for approval.

PENDING — UNDER SORT OF CONTRACT BECAUSE THIS IS A SHORT SALE — SIGNED BY SELLER BUT NOT YET BY THE BANK — YOU KNOW HOW IT IS WITH THESE SHORT SALES!

Since when did a contract become sort of a contract?   It’s either a contract signed by the parties binding the contract or its not.   And the lender is not part of the contract.   The lender will agree to the terms set forth in the contract and then the parties to the contract – buyer and seller – can accept the terms or renegotiate.   If the lender wants more money than what the contract stipulates then the buyer or seller can agree to contribute cash to reach the terms acceptable to the lender.   If neither party wants to then the contract can be nullified but never is the contract between seller, buyer AND lender.   The lender is a third party that has to agree the terms of releasing the lien.   The bottom line is how much money does the lender want.   If the lender’s terms can be met, they will release the lien. This money can come from buyer or seller.  

When you find yourself in the Memphis area needing to sale a home and want to talk to someone about a short sale, give me a call.   FREE Consultation and I will work for your best interests and still follow short sale guidelines and contract law.   Don’t put your financial and credit future at risk by hiring an agent who is not skilled in short sales.  

Visit www.MemphisShortSaleTeam.com

Why do I love short sales?   Let me count the ways:

1.  Being able to be a part of keeping a homeowner  from foreclosure.

2. Keeping the homeowners’s dignity intact  by allowing them to  move on their terms.

3. Helping to keep home prices in Memphis from tumbling even further with 1 less foreclosure on the market.

4. Allowing a buyer to purchase a home with built in equity possibly from day of closing.

But, this can only occur when a SUCCESSFUL short sale transaction has occured, that means a closed one.   With the lenders’ front line customer service agents and even many times the loss mitigators themselves not understanding how a short sale is beneficial to all parties involved, including the lender, this becomes very frustrating.  

How can we increase the chances of having a succesful short sale transaction?

First the real estate agent needs to be educated on the short sale process.   I make a point to read other blogs, posts, videos, and the like from other  short sale specialists from around the country  to glean any and all information I can to be the best agent possible for my clients.   The required documents, when to gather them and how to prequalify a homeowner for a short sale are just the beginning steps.  

Not to slight any of  my fellow agents but there are way too many agents in our Memphis area taking short sale listings without really being trained and educated on short sale transactions.   When I hear the response “Well I haven’t heard from the bank” I know the agent doesn’t really know how to negotiate this type of transaction.   Only on rare occassions can a real estate agent sit back and wait for the bank to contact them.   It is an offensive game and we must play offense all through the transaction.   Knowing when to call the bank, how often to call the bank, what questions to ask the bank…this is how you succeed at short sales.

I recently returned from our Keller Williams Family Reunion (that is what we call our National Convention because it’s just like seeing your family again) and many of the training classes I took focused on short sales.   In our Memphis real estate market, there are currently over 8200 homes for sale and 410 are currently designated as a short sale transaction and I know many more are short sales and just not designated as such.   How many more homeowners are there facing a foreclosure and don’t know that a short sale is an option?   That is my goal to help educate and assist our Memphis homeowners who have faced a hardship and are having trouble making the mortgage payments.   Foreclosure is  your last option, not your only option when a hardship occurs.  

Even though it may take 10 times as much work to complete a short sale transaction as a traditional real estate transaction, and even though the bank will almost always try to get their hands on my commission, I still love short sales.   Call me crazy!

 www.MemphisShortSaleTeam.com

As a real estate agent with Keller Williams Realty in Memphis, TN, the office is constantly receiving requests from other companies to have some time at our team meetings to tell us about their business and how  we can do business with each other.   I really do love this part of our meetings because I get to hear about businesses in our city that I might not otherwise know about.   With this information I become even more knowledgable in my ultimate goal in proving the best possible service to my clients.

Jimmy Wilkins from Pop-A-Lock recently attended one of our monthly sales meeting and explained what his company could do for me and my clients.   Not only can his company help you when you have locked your keys out of your car but can also help you with rekeying your locks when you have bought your new home.   During the conversation with Jimmy while he explained what Pop-A-Lock can do, he explained his business model rather succintly, “I need to make a buck but you will be taken care of.”   How much better can a business be described?  

Although it’s a simple statement it’s not simplistic.   Businesses are in business to make money but not all businesses are in business to take care of the customer.   Just think about some of the businesses you have spent your money at lately.   Do you feel that you were taken care of?  

I think I am going to copy Jimmy’s philosopy and make it my own.   Actually this has been my business model from the time I got in the real estate business but I have never been able to explain it so concisely.   When you need Locksmith services, just give Jimmy at Pop-A-Lock a call (901-527-OPEN).  

This home can qualify for First Time Homebuyer’s Tax Credit!

With Memphis ranked 18th in the country in foreclosures according to RealtyTrac, what is a homeowner to do when facing the prospect of losing his or her home to foreclosure.   Job losses, illnesses, resetting ARMs, divorce  or a reduction in work hours all take their toll on a family’s pocketbook and with housing being one of the larges expenses, many homeowners find themselves unable to make a mortgage payment through no fault of their own.   These same homeowners who cannot afford the mortgage today may find themselves in a better financial position a few years from now.   So how do you handle today’s foreclosure crisis and come out with your credit reasonably intact to set yourself up for mortgage approval again in a few years?   Enter the short sale.  

If your bank agrees to a short sale, you then hire an agent to find a buyer for the house, you sell the house for a loss, and with the bank™s blessing, they agree to eat the loss (although they could still demand the homeowner make some kind of payment or share the loss).     Although this is overly simplified, this is the definition of a short sale.   It’s all the steps along the way that can keep this process from being successful.   There is  the seller’s short sale package that has to be completed and submitted to the lender, short sale disclosures to potential buyer’s and his agent, knowledge and expertise in knowing what a successful short sale purchase offer looks like (how much will the bank pay for closing, how much commission, etc), how to negotiate with the bank, and how to ensure all the required forms are completed and submitted will make a difference whether a homeowner ends up with a foreclosure on his credit record (which could remain for 10 years or more and make it more difficult to obtain a mortgage in the future) or a  successful short sale which will usually be reported as “settled” on a credit report and possibly only the late mortgage payments will adversely affect a credit report.   Of course, I am not an attorney and I always suggest my clients involve an attorney from the begining in a short sale transaction so that my client has access to the information he needs.  

When  I happen upon a homeowner having trouble making mortgage payments, the first step would be to try to assist him with a mortgage modification.   Only when all efforts have been exhausted to keep a homeowner in his home is a short sale an option.   But it’s always an option before bankruptcy or foreclosure.

Visit www.MemphisShortSaleTeam.com for more info.

Home renovations can be daunting, but financing them doesn™t need to be. Homebuyers considering a fixer-upper and homeowners thinking about doing major rehab work might want to consider an FHA 203K loan.

Often called rehab or renovation loans, 203K loans differ from traditional mortgage loans. Buyers who want to purchase a home in need of repair usually have to secure a loan to buy the property, get additional financing to complete the renovation and then get a permanent mortgage to pay off the interim loans. 203K loans, however, are made based on the after-repair value and include an escrow account, in which the money is dispersed in draws as the necessary renovations are being completed.

Renovation loans can be used in three ways: to purchase an existing home (and the land attached to it) and renovate it; to pay off existing debt on a current residence and renovate it; or to purchase an existing property and move it to a new piece of land. The types of improvements allowed on 203K loans are extensive ” painting, room additions, decks, bathroom and kitchen remodels, and even going green. Luxury items and improvements are generally not eligible.

Homebuyers need to work closely with their REALTOR ®   as well as a contractor to get a detailed statement about the extent and general cost of the rehab work and the expected market value of the property after the completion of the work. After finding a HUD-approved lender ” not all banks administer these loans ” and inspections and appraisals, the work can begin. For more information, go to www.hud.gov.  
Sources: Department of Housing and Urban Development, 203Kloan.net

A beautifully-landscaped property can work wonders when it comes to selling your home. The Free Landscaping Ideas Blog offers these suggestions on how to save money without sacrificing quality or beauty.

·    Make a plan that includes a schedule of tasks and rough sketches of your design to help you determine what items you need. For assistance, consult with an expert at a local gardening store or home improvement retailer.
·    Plan the project in phases and purchase products as money is available. The phased-in plan also helps you avoid the interest and fees associated with home-improvement loans or credit card purchases.
·    Don™t sacrifice quality. Ask the staff at local specialty shops for recommendations about the best products available. If you are inexperienced with landscaping, consider spending a little extra for professional assistance.
·    Carefully inspect plants for diseases and insect problems, especially if you didn™t purchase them from a nursery. Diseases and pests can spread to other plants. Also ask the gardening retailer if they offer warranties on their plants.
·   If you plan ahead, you can take advantage of off-season prices. For example, buy lumber in the winter when it is cheaper and store it until you are ready to use it. Shop for trees, shrubs, perennials, mulch and soil late in the season when prices go down.
·    Purchase products online or from catalogs, or join a gardening club, which may offer discount prices as well as helpful advice.   The Memphis Masters Gardeners organization can be found here
·   Your municipality may have mulch and compost available. Also, try asking people in charge of construction or demolition sites if they have used stones or bricks they might give away.
·      Ask neighbors if they™ll share some of the costs. By pooling all your resources, you may get some good deals on items bought in bulk, and you can split the cost of renting machinery for landscaping work  The best time of day to water a lawn or plants is early morning, so it has the entire day to dry.  Source: HGTV.com

There™s good news for first-time homebuyers who plan to purchase a home in 2009. Thanks to some of the provisions in the recently enacted American Recovery and Reinvestment Act of 2009, qualifying first-time homebuyers can earn a tax credit of up to $8,000 if they purchase a home before Dec. 1. They can claim the credit on either their 2008 or 2009 tax returns, according to the Internal Revenue Service. The best news is that the credit does not need to be repaid provided the home remains their main residence for 36 months after the purchase date. Buyers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately. The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.  For purposes of this credit, you are considered to be a first-time homebuyer if you (and your spouse if you are married) did not own any other primary residence during the three-year period ending on the date of the purchase.  The new law does not affect individuals who purchased a home between April 8, 2008 and Dec. 31, 2008. For these homeowners, the maximum credit remains 10 percent of the purchase price up to $7,500 for individuals, or $3,750 for married individuals filing separately. In addition, the credit for these purchases must be repaid in 15 equal installments over 15 years, beginning in 2010.  For more information about the tax credit or to find out how the new legislation affects homeowners, visit www.irs.gov or consult your tax accountant.