Since we are on the topic of spring, my wife and I realized that our loving and larger than life (in every sense of the word) boxer, Athena was in desperate need of a bath. If anyone owns a boxer or knows anything about them, you know that bathing them can be quite a challenge. I'm not even sure we would be able to fit her in our tub and started looking for other places that offered dog grooming services.
I found a place on Main Street in Milltown, NJ that seemed to fit the bill. I reside in Milltown and try to do as much shopping as I can to support our local businesses. Main Street has several boutique shops and restaurants. It's truly quite quaint actually and reminds me of towns you read about in books. It's the type of place where people stop to say hello on the street, neighbors are always willing to lend a hand and residents sit on their front porches just to enjoy the night.
The Barking Spa offers salon and spa packages for your pets. They offer a hydro surge massage therapy bathing system. Sounds fancy and believe me, it is the best thing we ever did. The bathing removed all of Athena's excess hair and dead skin and it included a massage which she loved. Our boxer is a little rough around the edges to say the least and we were skeptical at first about getting her such a fancy treatment. It was well worth it. She had not one loose hair and her coat was so shiny and smooth. My wife and I are thrilled to have a non-shedding boxer - for a little while anyway.
If you are local to the area and have a pet that needs to be groomed, check out the Barking Spa. Not only are their services great, but their staff is fabulous as well. Be sure to support the local businesses in your hometown. It's important in building strong communities and linking neighbors together.
Friday, April 8, 2011
Short Sales 101
Short Sale: selling a home for less than is owed to the mortgage lender. In the current housing market and economic strife that the country is facing right now, homeowners are finding it harder and harder to make ends meet. Whether the reason is job loss, disability, death, mortgage rates, increased cost of living, there is still a way out without having a foreclosure on your credit report. Over the last 48 months, lenders have been taking a beating with foreclosure rates. Sadly, foreclosure rates are the highest they have been in years; 1 out of every 54 homes having a foreclosure filing within the last year. New Jersey is ranked the 10th highest state with foreclosure rates in the country with almost 70,000 homes that have had foreclosure filings in 2008.*
What this means to banks is losses. Severe losses due to costly attorney fees for the foreclosure, eviction, and sale; Realtor fees at 6% and sometimes higher; costs to clean the property out; then cost to maintain the property until it sells lawn, snow, electricity, heat (if not winterized) etc. All these little things add up to large sums of money and extremely large losses to the lender.
Doing what is called a Short Sale is a win-win situation for both the distressed home owner as well as the lender, enabling both parties to ease the pain and burden of a foreclosure while minimizing the embarrassment and after effects of a foreclosure. In a short sale, the bank agrees to take less than is owed on the mortgage, the balance is forgiven and the borrower is spared from a foreclosure on their credit report. The only real negative effects on the borrowers credit report is that the mortgage will be marked as settled which will have a small effect as compared to the long lasting effects of a foreclosure.
The first key to a successful short sale is choosing the right real estate professional to assist you in the process and get your home listed for market value. Pricing is paramount at this point because if the house is listed for too much buyers will not be interested enough to come see your home and make offers. The next step is to contact the mortgage servicer and provide them with the documentation they require for approval to speak with your Realtor and real estate attorney. Once the bank receives that information the agent can then contact the bank and find out exactly what they are going to require in order to begin reviewing a short sale.
Each bank has slightly different requirements as to what they need to review in order to process and approve a short sale however they all require the following basic information. The first thing they will require is a hardship letter explaining why the homeowner is in the current situation. Next they will be looking for a financial worksheet some lenders require this on a specific form detailing exactly where income comes from and exactly where it goes all the way down to entertainment. They will also likely want to see either pay stubs, W-2s, tax returns for the last 1-2 years or something of this nature to verify the income levels that you have stated. If the owner is self-employed or works on 1099 then make sure to ask what they would like instead sometimes they will be satisfied with a current profit and loss statement. They will also need a copy of the listing agreement and possibly a copy of the MLS listing. Once all of the requested documents have been put together they must be faxed in to the mortgage holder. Once an offer is received and accepted the bank will require a copy of the sales contract, estimated HUD-1 (statement showing all closing charges and monies exchanged), and buyers pre-approval letter or proof of funds for a cash deal. The mortgage company will also want to see a copy of the MLS listing as well as a copy of the listing agreement between the seller and Realtor. IMPORTANT each page must include the following: borrowers name, loan number, signature, date. If any of the above is missing it will delay the process.
Once all the required information has been submitted the Realtor® should call in 2-3 days to ensure they have received all the documents and they are not missing anything that they require. If they have all the information the next step will be for the bank to assign a negotiator to the file to begin reviewing everything. The Realtor should call every 2-3 days to check the status of the short sale and make sure there is nothing else required by the bank. Once the bank gives approvals on the short sale they will normally require the purchaser to close the deal within 30 days otherwise they may require all the paperwork to be submitted again.
It seems like a lot, but a Realtor that has done a few knows and understands the process and will foresee the pitfalls that may come up and assist in navigating through them successfully. This information is not meant to replace the advice of an attorney or tax advisor. Laws may be different from state to state, please consult a professional in your area for a referral, contact me at jaspelund@remax.net or via cell at 732-207-1908. Please visit my website at www.gardenstatemoves.com for other information as well.
* Statistical data from an article written for REALTYTRAC® written on Jan. 15, 2009 by Michelle Sabolich
What this means to banks is losses. Severe losses due to costly attorney fees for the foreclosure, eviction, and sale; Realtor fees at 6% and sometimes higher; costs to clean the property out; then cost to maintain the property until it sells lawn, snow, electricity, heat (if not winterized) etc. All these little things add up to large sums of money and extremely large losses to the lender.
Doing what is called a Short Sale is a win-win situation for both the distressed home owner as well as the lender, enabling both parties to ease the pain and burden of a foreclosure while minimizing the embarrassment and after effects of a foreclosure. In a short sale, the bank agrees to take less than is owed on the mortgage, the balance is forgiven and the borrower is spared from a foreclosure on their credit report. The only real negative effects on the borrowers credit report is that the mortgage will be marked as settled which will have a small effect as compared to the long lasting effects of a foreclosure.
The first key to a successful short sale is choosing the right real estate professional to assist you in the process and get your home listed for market value. Pricing is paramount at this point because if the house is listed for too much buyers will not be interested enough to come see your home and make offers. The next step is to contact the mortgage servicer and provide them with the documentation they require for approval to speak with your Realtor and real estate attorney. Once the bank receives that information the agent can then contact the bank and find out exactly what they are going to require in order to begin reviewing a short sale.
Each bank has slightly different requirements as to what they need to review in order to process and approve a short sale however they all require the following basic information. The first thing they will require is a hardship letter explaining why the homeowner is in the current situation. Next they will be looking for a financial worksheet some lenders require this on a specific form detailing exactly where income comes from and exactly where it goes all the way down to entertainment. They will also likely want to see either pay stubs, W-2s, tax returns for the last 1-2 years or something of this nature to verify the income levels that you have stated. If the owner is self-employed or works on 1099 then make sure to ask what they would like instead sometimes they will be satisfied with a current profit and loss statement. They will also need a copy of the listing agreement and possibly a copy of the MLS listing. Once all of the requested documents have been put together they must be faxed in to the mortgage holder. Once an offer is received and accepted the bank will require a copy of the sales contract, estimated HUD-1 (statement showing all closing charges and monies exchanged), and buyers pre-approval letter or proof of funds for a cash deal. The mortgage company will also want to see a copy of the MLS listing as well as a copy of the listing agreement between the seller and Realtor. IMPORTANT each page must include the following: borrowers name, loan number, signature, date. If any of the above is missing it will delay the process.
Once all the required information has been submitted the Realtor® should call in 2-3 days to ensure they have received all the documents and they are not missing anything that they require. If they have all the information the next step will be for the bank to assign a negotiator to the file to begin reviewing everything. The Realtor should call every 2-3 days to check the status of the short sale and make sure there is nothing else required by the bank. Once the bank gives approvals on the short sale they will normally require the purchaser to close the deal within 30 days otherwise they may require all the paperwork to be submitted again.
It seems like a lot, but a Realtor that has done a few knows and understands the process and will foresee the pitfalls that may come up and assist in navigating through them successfully. This information is not meant to replace the advice of an attorney or tax advisor. Laws may be different from state to state, please consult a professional in your area for a referral, contact me at jaspelund@remax.net or via cell at 732-207-1908. Please visit my website at www.gardenstatemoves.com for other information as well.
* Statistical data from an article written for REALTYTRAC® written on Jan. 15, 2009 by Michelle Sabolich
Spring has Finally Sprung!
Spring has finally made its' appearance. Now that the weather has warmed up, people are starting to come out of their homes to enjoy the warmer weather, sunshine and the fresh air. Spring is a time of new beginnings. You are able to see new life begin with buds on the trees and flowers growing through the soil.
It truly amazes me how many people hole up inside their homes during the winter months and forget about life outside the four walls of their home. If you are one of those people, then chances are you've got a lot of work to do outside your home. Spring market has already begun and home sellers should get outside and start freshening up their yards and gardens. After all, a buyers first impression of your home begins at the curb. Homes need to have great curb appeal. You want buyers to be excited to enter your home and see what else it has in store for them.There are a few simple and relatively inexpensive things all home sellers should be doing this spring:
- Clean up the yard. Pick up those twigs that have fallen from one of the many storms we've had over the past few months. Sweep up your walkways, driveways and sidewalks. Remove any leftover leaves or debris from your property by raking the grass. Be sure to mow the lawn and put down seed and fertilizer.
- Plant flowers. Be sure to plant some brightly colored flowers to dress up the front of your home. Weed out your flower beds, put down fresh soil and mulch.
- Power wash the exterior of your home and clean the windows. You want your home to sparkle and shine. Buyers like to see homes that are well kept and clean. If their first impression of your home is that it is dirty, chances are they are going to look for other things inside your home that follow the same theme.
Once you've completed the list above, you will be off to a great start. If your home is already on the market, be sure to leave down doormats, so that prospective buyers and agents can clean their feet before entering your home. April showers not only bring May flowers, but muddy shoes in to your clean homes. And if you are able to find some time for yourself, take a stroll around the neighborhood and enjoy the fresh air. Spring is a time of new beginnings and your new beginning will hopefully begin with a SOLD sign!
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