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Wednesday, April 27, 2011

Existing Home Sales Rise

R I S M  E D I A, April 21, 2011—Sales of existing-home sales rose in March 2011, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops.

All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.

Some renters are looking to homeownership as a hedge against inflation. The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years. As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.

Give me call at 1-877-311-GARY or visit my site at for much more additional information!

Wednesday, April 20, 2011

How To Get A Loan After A Short Sale Or Foreclosure

What are the absolute bare-minimum * guidelines * to obtain a mortgage?
….and perhaps more interesting…how to obtain a mortgage soon after a Short on…
By far the easiest mortgage to obtain is a FHA loan:
1) 3.5 percent down payment, based on the purchase price of the home (e.g., $7,000 on a $200,000 home), or a gift of that same amount;
2) 3 percent to 6 percent of the purchase price, on top of the down payment, for closing costs, or a credit from the seller of the same amount; and
3) 640 FICO credit score — the middle score of those generated by the three credit bureaus (some banks will lend to borrowers with middle scores lower than 640, but will require more than the minimum down payment).
Lenders will want you to document income, asset and job history documentation, current paycheck stubs, two months’ bank statements and two years of W-2 forms or tax returns, and:
  • a minimum of two years have passed since the discharge of a bankruptcy;
  • a minimum of three years have passed since a foreclosure;
  • anywhere from zero to three years have passed since a short sale, depending on the circumstances surrounding the short sale.
As a professional can tell you it would have to be an awfully good reason for the consumer to have done a short sale to get the underwriter to sign off on it. Something like being transferred to a job in a different area, and not being able to rent the home out because it wouldn't pencil. You would need to deal with an experienced mortgage professional who was licensed, and has the knowledge of how to document what happened. We used to call FHA loans, "tell the story of what happened loans." An Underwriter has the ability to sign off and approve the loan if it meets certain very stringent guidelines. That said, the problem we are all having these days is "investor overlays." That's when the investor that purchases the loans lays their guidelines over, or in addition to HUD's.

Additional info on the statement “depending on the circumstances”… are a couple.
1.) Short sold home must have had 0 Late payments in the previous 12 months.
2.) Borrower must have proof of severe circumstance (ie. death of spouse who was previous joint borrower / income earner to pay previous short sale mortgage, forced job transfer to a different state or “significant distance” to remain employed, etc.

*Information culled from various sources. Please always contact a professional to get the most current information.
If you have any questions please contact Gary Tippner!
So, give me call at 1-877-311-GARY or visit my site at

Monday, April 18, 2011

Foreclosure mess

Scott Pelley of "60 Minutes" spoke with one former robo-signer, Chris Pendley, a man who had been paid to sign the name "Linda Green" thousands of times over the course of an average workday on mortgage documents.
"When you came in to Docx on your first day, what did they tell you your job was gonna be?" Pelley asked.
"They told me that I was gonna be signing documents for using someone else's name," Pendley remembered.
"Did you think there was something strange about that in the beginning?" Pelley asked.
Yeah, it seemed a little strange. But they told us and they repeatedly told us that everything was above board and it was legal," Pendley said.
Pendley told Pelley he had no previous experience in banking, in legal documents, and that there were no requirements for the job.
"You had to be able to hold a pen?" Pelley remarked.
"Hold a pen," he agreed.
Asked if he understood what these documents were, Pendley said, "Not really" . . . .
Pendley showed us how he signed mortgage documents as "Linda Green." He told us Docx employees had to sign at least 350 an hour. Pendley estimates that he alone did 4,000 a day.
There was an actual Linda Green, Pendley discovered, but she was no bank president either; she is a former shipping clerk for an auto parts store who was also hired on as a robo-signer at Docx. One plaintiff in a pending lawsuit discovered that Green is named as a vice president for 20 different banks in different mortgage documents, all bearing strikingly different renditions of her signature. She didn't agree to an on-camera interview, but she told Pelley that the company selected her name because it was short and easy to sign rapidly on the doctored ownership documents.
All 50 state attorneys general are currently conducting an investigation into the foreclosure mess--including cases that involve forged documents like these. And Shelia Bair, head of the Federal Deposit Insurance Corporation, told CBS she thinks the banks should have to pay billions to set up a compensation fund for those who are being forced to accept foreclosure without proper documentation.

Be sure to work closely with your agent AND title company during any real estate transaction.  I will work hard to gain your trust and prove this over the years together to you and your friends and family.

So, give me call at 1-877-311-GARY or visit my site at

Saturday, April 16, 2011

Nearly 4,500 HAFA Short Sales and Deeds-in-Lieu Completed

Filed under: Why is this NATIONWIDE number so low fer cryin' out loud!

The Treasury Department released a new report on the government’s foreclosure prevention efforts Friday. In addition to the Home Affordable Modification Program (HAMP) numbers that are regularly recounted, new this month are details on short sales and deeds-in-lieu, as well as second lien modifications.

Treasury reports that as of the end of February, 4,488 homeowners completed a short sale or deed-in-lieu (DIL) under the Home Affordable Foreclosure Alternatives (HAFA) program. The federal program provides up to $3,000 for relocation assistance after a homeowner exits the home.
Another 10,177 homeowners have agreements in place with their servicers for HAFA short sale and DILtransactions. Treasury notes in its report that the HAFA short sale timeline “lasts at least 120 days,” and requires the cooperation of junior lien holders in order to complete the transaction.

So, give me call at 1-877-311-GARY or visit my site at

Thursday, April 14, 2011

How Much to Offer or Ask for Your Home

There is a pretty short list you need to take to make a smart offer – one that gets you a great value, but is also likely to be successful at getting the property. (A low offer does not make for a great deal if you don’t get the house!)  And most of the same steps apply to sellers trying to set the list price that will lure the most buyers (and net them the most cash)!

 What do the “comps”(comparable properties to yours) say?  First things first. When it comes to pricing a home, or making an offer to buy one, the ‘first thing” is the home’s fair market value. Both buyers and sellers should work with an experienced, local agent to understand what the home’s value is. Most agents will do this by offering you a look back at similar properties that have recently sold in the neighborhood – i.e., the  comparable sales, or comps.
BUT, TO GET A THIRD PARTY SENSE OF CONFIRMATION IN YOUR MIND.....You can also find comps for a home listed on Trulia by scrolling down to the section labeled Sold Homes near 1234 YourStreet Lane on the property's Trulia listing page. Zillow has similar. 
Ideally, look for comparables that are very recent sales (3 months or less before you’re listing or buying), very similar properties (i.e., same number of bedrooms, bathrooms, square footage; and similar style, condition and amenities). If you do get into contract, these may be the same comparables which will be considered by the appraiser, so looking at them before making an offer can:
(a) provide factual support for a lower-than-asking offer or for the asking price, in a negotiation, and 
(b) result in a sale price at which the property will actually appraise, later on - avoiding the common glitch of the deal falling through because the appraisal comes in way below the agreed-upon price.
Also, looking at comps is the first step for locating a home’s seller and prospective buyer in the reality-based universe of current home values.  The fact that you bought or refinanced the place at a given value 5 or 6 years ago is entirely irrelevant to what it’s worth today, as is the buyer’s belief that the place was worth $100K less at the trough of the market, in 2009.

What can you afford?  This step is much more critical for buyers than for sellers. (Unfortunately, sellers, the facts that you need to net a particular amount to buy your next home or pay your existing mortgages or credit card bills off has no relationship whatsoever to the price at which you should list or will sell your home.)
Buyers – it’s a must to make sure that your offer price for any given home falls within the range of what is affordable for you.  This includes offering a price within the range for which your mortgage was preapproved, but also includes making sure that the monthly payment and cash you’ll need to close the deal (down payment + closing costs) are affordable in light of the particular house. If, for example, the property (the one you're selling and or buying) will require repairs for which you’ll need to conserve cash, or has HOA dues you hadn’t planned on, you may need to rework your offer accordingly.

 What’s your competition? (And what’s theirs?)  This is another step at which it’s critical to check in with your agent. You need to know what level of competition you’ll face – whether you are a buyer, or a seller.  As a seller, you can find this out by looking at things like how many comparable homes are listed in your town or your neighborhood in your general price range (your agent will brief you on this).  Sellers should also consider what type of transactions their home will be up against – the more distressed properties (foreclosed homes and short sales) with which your home must compete, the more aggressive you must be with your pricing to get your home sold.
The more competition you have, as a seller, the lower you should tweak your list price to attract buyers to come see your home. (And the more buyers come to see your home, the more likely you are to get an offer!)
Buyers should also be cognizant of the competition level they will face for homes.  Believe it or not, even on today’s market there are properties and neighborhoods in which multiple offers are the name of the game. Work with your agent to understand the list price-to-sale price (LP:SP) ratio , which lets you know how much under or over the asking price properties are selling for in your target home’s neighborhood; the lower the LP:SP ratio, generally speaking, the less competition there is among buyers. 
Your agent can also brief you on:
(1)  (1)    The number of offers – if any - that have been presented on “your” property (which the listing agent will usually, gladly tell).  If there are other offers, you’ll want to make a higher offer to compete successfully against them; and
(2)    (2)  The number of days the home has been on the market, relative to how long an average home stays on the market before it sells – the longer it has, the more pressure is on the seller, price-wise, and the less competition the buyer is likely to have.  (One exception is the sweet spot scenario, when a property that has been on the market for a long time has a price reduction and gets a bunch of offers as a result! )

4.  How much do they need to sell (or buy) it?  Buyers: Has the listing in which you’re interested been reduced at all? By how much?  Has the listing agent informed you that her clients are highly motivated, flexible or have an urgent need to sell?   
Sellers – most buyers are not in a high state of urgency to buy these days, given the long-term, high affordability of homes and interest rates, except when they have an urgent personal reason for moving, e.g., buyers who are relocating for work.  Of course, all of real estate is hyperlocal, so it’s important to understand how motivated buyers are in your local market, generally speaking, before you set your list price.

5.  How much do you want to buy, or sell, the place?  The above was about taking the motivations of the folks on the other side of the bargaining table into account when formulating your offer and your list price.  This step is all about you – what’s your level of motivation?  Now, buyers, you certainly shouldn’t offer a price way above what the place is worth (see Step #1) just because you really, really want it, unless you have the cash to throw around.  But within the range of the home’s fair market value, it may make sense to move higher within that range if you are highly motivated to get that particular property.

Sellers: think of your list price as the most powerful marketing tool at your disposal. if you really want or need to sell, get aggressive about setting your price as low as makes sense for your your home's value and local market dynamics to attract qualified buyers and help your home stand out against all the competition. Which, in today's market, there are ALOT of homes for sale. Near you.

Article courtesy of  T r u l i a . c o m 

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