After a couple of profit-free years, I made the decision to close my real estate sales business and refer my callers to other active agents. Real estate taught me a lot, and I don't regret the effort made. I value the relationships forged and the soul-searching involved in this decision. Although I may continue to post from time to time, bear in mind that I am on the sidelines as an inactive license holder, no longer full time in the sales force.
Banks now own more than 45% of the homes on the market in many areas of the nation through Foreclosure and Short Sale status. This has affected the buyer's ordinary rights in purchasing a home, and will have significant long-term effects. Important consumer protection rights which are being eroded or lost in a market situation controlled by Banks through REOs and Short Sales include:
1. Buyer loses the ability to set a firm closing date.
2. Buyer cannot choose the escrow company.
3. Buyer cannot state a time frame to receive an answer from the bank (ordinarily 1-4 days for seller to respond to an offer; banks take months to return a signed contract).
4. Buyer gets a ‘verbal acceptance' rather than a signed contract. Some only sign the contract at COE.
5. Buyer must sign addendums giving up the right to basic warranties on mechanical functions of the home and appliances.
6. Buyer must receive the home in ‘As-Is' condition - in a normal real estate market this means as it is on the date of the offer; for REOs it means as it is on the date of closing. If vandals move in and destroy it between the date of the offer and COE, the bank holds itself under no obligation to return it to the state it was in at the time of offer.
7. Banks have electricity and water turned off, even on ‘Open House' days, so the unsuspecting buyer will not know if there are major leaks or problems with electrical systems without spending $300-$500 for a professional inspection.
8. Since the water is off, the landscape will die in drier climates, further degrading the value of the property over the 3-6 months the banks take to close the deal.
9. Swimming pools left without maintenance are the cause of further value loss as a great deal of money must be spent to bring it back into service. Furthermore, they become mosquito breeding grounds for the neighbors.
10. Vacant homes are easily vandalized. The protracted wait period makes vandalism easier and more likely, further degrading the home's value.
With the market so skewed against consumer protection, why are we surprised that buyers are non-existent? Wise buyers would do well to stay out of this Russian-roulette market; wise sellers (read: Banks) should allow consumer protections to remain in the contract to lure smart buyers back into the market.
You may have read and followed Widgets in 5 easy steps, and now you're ready for a bigger challenge. Check out the ‘Headline Animator' in the left panel of my blog - it flashes the titles of my last four blogs to catch your eye as you're reading this one. Or the mini version of my blog in a Springbox widget that allows you to scroll and read short clips of my blogs. Getting these customized widgets is a bit more complicated, so try inserting an ordinary widget first if you haven't yet.
1. The first step for customized widgets is to Log in to Active Rain and open your AR profile. Click "My Settings" in the left panel. Go into the small box labeled "Blog Description" (the middle box) and scroll down below the text you have placed there about yourself. Text is limited to 100 words, but the widget code you'll place there does not count as words.
2. FOR A HEADLINE ANIMATOR, open a new window or tab and go to http://www.feedburner.com/. Type your URL in the box on the opening page, http://activerain.com/blogs/yourusername/rss and push "Next," then continue through the sequence of menus. You'll be asked to give your feed a title and you'll need to register to create an account. You can choose to track visits and subscriptions to your feed. After clicking next several times, you'll be on a page that allows you to share your feed through a direct link to various blogging platforms, or to PUBLICIZE through a headline animator or a springwidgets box. Click "Publicize" and on the next menu, click "Headline Animator" to customize your banner. You can tweak size, color, and design (to an extent). When the sample looks like you want it to, click "Activate". You'll see your sample with your headlines flashing. You can send your animator directly to some blogging platforms, or you can select from the dropdown menu "Just gimme the code". Copy the code, and go on to steps 3 and 4 below.
3. Return to the "Blog Description" box on your open "My Settings" profile page. At the bottom of the text you should enter one or two blank lines, then paste in the code you copied (control-V). The code you copied should appear there. Click "Update" on the lower left of the Blog Settings box.
4. Click "My Blog" in the left panel to see the results of the code you chose and copied. If all goes well, you'll see your customized headline banner appear in the right panel of your blog from now on.
5. TO MAKE A WIDGET BOX OF YOUR BLOG: Open another tab or window on the internet. In this new window, go to http://www.springwidgets.com/ to create a tiny widget box of your blog to put in the right panel or on your website or another blog. Click "Express Widget" on the left panel. You will be asked for the URL of the blog you wish to showcase. Type in http://activerain.com/blogs/yourusername/rss, then click "submit". Now you will configure your widget (you should already see the titles of your blogs listed in the sample widget). Give your widget a name, a description, choose the dimension, color, and other options. Keep it simple if all this is new; you don't have to use all of the options (but you must use the description box). Now push "Publish my Widget." You will need to register at this point and then you'll be shown your widget in its final form. The "Share It" area on the left panel allows you to see the HTML code. Click the HTML button, the code will appear in a box below. Highlight and copy (control-C). Now follow steps 3 and 4 above to place the code in your blog.
The "Get Widget" button that appears under your widget will allow others to place your widget with your info on their desktop or myspace, etc., giving you free ad space. Enjoy your widgets!
Ever wondered how to put those cool widgets in the right panel of your AR blog? Here's how to do it, made easy.
1. Log in and open your AR profile. Click "My Settings" in the left panel. Go into the small box labeled "Blog Description" (the middle box) and scroll down below the text you have placed there about yourself. Text is limited to 100 words, but the widget code you'll place there does not count as words.
2. Open another tab or window on the internet. In this new window, go to http://www.widgetbox.com/ or another widget website. Choose a widget to download. Ask for the details (it may say "embed code") You can copy the code to your clipboard (control-C). The code will look like gibberish, for example: script type="text/javascript" src="http://widgetserver.com/syndication/subscriber/InsertWidget.js? --- etc., etc.
3. Return to the "Blog Description" box on your open "My Settings" profile page. At the bottom of the text you should enter one or two blank lines, then paste in the code you copied (control-V). The gibberish you copied should appear there. Click "Update" on the lower left of the Blog Settings box.
4. Click "My Blog" in the left panel to see the results of the code you chose and copied. If all goes well, you'll see your selected widget appear in the right panel of your blog from now on.
5. To customize a widget, you will need to set up an account in widgetbox and/or feedburner. It is free, you just register and then you can customize a widget to show the titles of your blog articles, etc. This is a more complex process. Easy Widgets, Part 2, will teach you how.
For additional sources of widgets, just run a Google search on "widgets".
If you're in the mood for a great Sunday afternoon in Phoenix, here's the answer: climb Piestewa Peak (formerly known as Squaw Peak). There are seven trails to choose from, ranging from easy to moderate to difficult. Only two trails go all the way to the summit; dogs and bicycles are not allowed on these two.
The trail to the summit is difficult, yet is tackled by 4,000 to 10,000 hikers per week. Plan a two hour hike on the Summit Trail, then be pleasantly surprised if it doesn't take you as long. You will be climbing 1,200 feet in elevation on the 1.2 mile long trail. Carry drinking water as well as a nourishing snack to fuel the climb. From the summit you have a view of the valley in all directions. Immediately to the east is the mountain preserve, to the south is the Biltmore area, with Phoenix and Glendale to the west.
Five of the trails are appropriate for equestrian use and dog walking. Dreamy Draw Nature trail even has hitching racks and a horse trough for watering your horse.
Parking is available for all the trails, and restrooms, drinking water and picnic tables are nearby for several. For more information about the Piestewa Peak trails, visit http://phoenix.gov/PARKS/hikphgud.html
If you'd like to live in a city with a mountain reserve in its center, call Marsha at 623 337-8990 for information about real estate in Phoenix. Or search for homes online at http://www.homekey.org/.
Homeowners who bought real estate in the '05-'06 boom, especially those who took out mortgages of near 100%, find themselves upside down with nowhere to turn. With a mortgage of $400,000 and a current market value of $320,000, many are frantic to sell and get the load off their back. But is selling the best answer for your situation? Find your scenario and assess your options:
SCENARIO 1: We are staying to raise our family/retire here.
If this is your situation, and your monthly payments are affordable for you, sitting tight may be the answer. Values will climb upward again as time goes by, and when you eventually sell, you will probably have equity. This may require a 2-5 year horizon, but if you love your community and have no financial or life pressures forcing you to move, it works for you.
SCENARIO 2: Our mortgage will re-set next month to a higher interest rate.
In this situation, you need to be doing some serious number-crunching. How much will your monthly payment increase? Do you have the income to maintain that new payment long-term? In some cases, you may be able to negotiate with your lender to keep that re-set from happening, but work it out before it's scheduled or before you miss a payment. If the lender won't negotiate, selling may be the answer. Selling for less than your mortgage payoff amount will require a short sale and the Lender's approval.
SCENARIO 3: We are already behind on our payments and we can't catch up.
Your situation is already desperate. Call a Realtor to discuss selling your home ASAP. This will be a short sale and you will need to give evidence to the Lender of the financial hardship which has caused you to fall behind. You may also try negotiations with the Lender's Loss Mitigation department to keep the house, but do it now - don't wait another day.
SCENARIO 4: We have received a Notice of Default from the bank.
Your homeownership is hanging by a thread. Waste no time - contact a Realtor who can explain the options of forbearance and short sale. Time is crucial and every minute counts to prevent the pain of foreclosure. The Notice of Default officially launches the foreclosure timetable, 90 days to auction/eviction in Arizona. Act now to spare your family this tragedy.
Being upside-down in your mortgage can present special challenges, but your real estate professional can guide you to the best answer for your situation. Contact Marsha Cleaveland at 623 337-8990 for your real estate needs. Or visit www.homekey.org.
Glendale attracts thousands of visitors and new residents every year. With a growing population and rapidly expanding business network, opportunities flourish. You'll want to know what to see, where to go, and who to meet while you're here. How can you find out about the city before your visit? Check these websites for information about the city and events:
If you're following the news, you've been hearing about the mortgage crisis in America. Three factors have converged to create a difficult situation for many homeowners:
1) The market spiraled out of control in '05 and '06 when many bought their homes at record-high prices.
2) Buyers took ARM mortgages in order to afford the high-priced homes, with low starting rates which they could afford. Now those rates are re-setting to higher, market rates, making the monthly payments too expensive, since wages have not risen dramatically.
3) Home prices have now begun to reduce to normal, affordable amounts - which is great for those in the market to buy right now, but difficult for those who bought when prices were high. Now they may owe more than the home would sell for in today's market.
What should homeowners do in this situation? First, know the terms of your mortgage. Do you have a loan that will adjust? If so, calculate what your new payment is likely to be, and begin putting money aside to carry you through those first tight months. This will give you a buffer to make a sound decision when the time comes.
If your mortgage has already reset, and you are struggling, what are your options?
1) Refinance at a fixed rate - the best option if your credit is good and your home is still worth the amount you owe.
2) Work out a forbearance plan with the mortgage company - they may freeze the rates at the present level for a period of time, to allow the market value of the property to catch up to the loan value.
3) Short sale - if circumstances have caused your finances to bottom out - job loss, major medical costs, etc., the mortgage lender may allow you to sell the home for less than you owe. You will lose any equity you may have built up, but the impact on your credit score will be less than for a foreclosure.
4) Foreclosure - the bank will foreclose if you do not pay your mortgage. Act immediately to pursue one of the above options if you receive a foreclosure notice from the bank, as foreclosure is to be avoided if at all possible.
A Realtor can help you evaluate the best choice for your circumstances. If you have already received notice from your bank, legal advice is highly recommended. Be wary of people ready to ‘help' who have no professional licensing or credentials. Some will take advantage of your predicament.
If you are in a tough situation, don't give up.Call a real estate professional who understands these options and more. There is a way out, and there are professionals ready and qualified to guide your journey. Learn the life lessons that come from the storms, and resolve to carry new wisdom into tomorrow.
For more information and an objective view of your situation, call Marsha Cleaveland at 623 337-8990. www.HomeKey.org.
Is Real Estate a National Treasure or a National Disaster?
Success leaves clues, and real estate is no different. What are the points on the secret map of real esate? Can we follow the trail to find our way to the City of Sold?
1. Follow the path left by successful realtors in past down cycles. Do the prospecting, the number-crunching, the study of your local market. Granted, it's hard work; easy money is out.
2. Be alert and ready to alter course when the situation arises. New marketing sources are available, new service techniques, and fresh real estate concepts present choices like a six-way intersection. Stay abreast of the changes and implement the ones that fit you.
3. Cultivate an adventurous spirit. Fighting through the challenges will take persistence, and not everyone will stay in the race. Perseverance and stamina will be required.
4. Think and plan. Market downswingscan bring out our best creativity and draw from our past experience and study. Deep thinking is our greatest asset in tough times. Sharpen your thinking and implement your plan.
2008 will be a year that draws out the best that we have within. Active Rain gives us a forum to share our best thinking. What are your "secret" clues to real estate success? Comment or leave a post with 'book of secrets' as a tag.
Marsha Cleaveland, Keller Williams Realty. Search for a home online at www.HomeKey.org.
Homes in Glendale, Peoria and Phoenix. Specializing in homes equipped for home office or home business. Professionals, teachers, independent contractors recieve skilled attention when buying a home. Marsha Cleaveland of Keller Williams Realty Professional Partners will help you find a great location in Maricopa County, Arizona.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Homeowners who bought real estate in the '05-'06 boom, especially those who took out mortgages of near 100%, find themselves upside down with nowhere to turn. With a mortgage of $400,000 and a current market value of $320,000, many are frantic to sell and get the load off their back. But is selling the best answer for your situation? Find your scenario and assess your options:
SCENARIO 3: We are already behind on our payments and we can't catch up.
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