Joan's Blog

The Graying of Divorce

Joan Rogliano (Rogliano Real Estate Group) — Tue, 30 Apr 2013 11:37:28 -0700

Did you know the divorce rate for people over 50 years old has doubled in the past two decades? Listen to Jennifer Seeley and I discuss the increase in divorce in the boomer generation on Boomer Radio Network:

http://wildflowergroup.net/wp-content/uploads/2010/05/Boomer-Radio_-Graying-of-Divorce-part-1.mp3

To learn how you can start working with the Boomer Divorce Market go to http://wildflowergroup.net/wildflower-kit

Divorce and Your Home Part I: Explore Your Options

Joan Rogliano (Rogliano Real Estate Group) — Tue, 23 Apr 2013 12:47:49 -0700

Are you considering or going through a divorce and are uncertain what you should do with your home? Watch Part I of Divorce and Your Home focusing on Exploring Your Options to find out:

http://wildflowergroup.net/archives/451

Buying a Home Before the Divorce is Final

Joan Rogliano (Rogliano Real Estate Group) — Tue, 05 Mar 2013 11:28:21 -0800

Buying a Home Before the Divorce is Final: http://www.youtube.com/watch?v=TTAoxMKBkdU

Buying a Home Before the Divorce is Final-Be Informed

Joan Rogliano (Rogliano Real Estate Group) — Thu, 14 Jun 2012 05:54:45 -0700

As each state has different laws, please check with a legal adviser in your home state. As I am a licensed Realtor, (not an attorney) in CO, the illustrations I'm using are based on CO law. Many people transitioning through a divorce want to distance themselves from the other party as quickly as possible and this can result in poor, and ultimately expensive, mistakes. Prematurely paying off joint credit cards, selling personal property, and buying or selling real estate are some examples that require extreme caution prior to the final settlement. Buying a new home is a common first step to cleanse a person of the divorce experience. They want to leave the marital home and strike out on their own, make a fresh start and solidify their independence. What better way to express their new situation than to create an oasis in the form of a new home. The question arises frequently. Can a person purchase a new home prior to the final divorce decree? Usually, but it must be done very carefully. The buying party must have legal counsel mapping the way, and preparing the necessary documents. If care is not taken with the correct legal process, approved by the court, the shiny new home can go into the pot of marital property. An attorney must be retained to negotiate and prepare an agreement between the parties that will hold up in court. In order for the agreement to allow a spouse to buy a new home that is excluded from the marital property division process, the agreement: 1. Must be in writing, signed by the parties and approved by the court 2. Contain terms concerning the title and the equity 3. Be signed only after there has been full financial disclosure of both parties. If these items are not fulfilled, the agreement may be deemed invalid. This could result in the home, or the increase in the value of the new home, declared marital property subject to division. The topic of furnishings for the new home must also be addressed to establish clear ownership. Imagine the worst case scenario. A supportive family wants to help their divorcing relative make a new start and gives them funds to buy a new place. They, of course, did not intend the property to be for the benefit of both parties and carefully confirmed the title was only in one name. The title can be immaterial, the home determined marital property and a sale forced by the court. Proceeds to then be equally divided A current client has an extra wrinkle because her family is South American. She is dealing with the exchange rate, foreign bank regulations, and the need to provide a gift letter from her family. They must show a paper trail of the funds leaving their account in South America to eliminate any suspicion of money laundering. While the situation is currently amicable and her soon to be ex husband assures that he will not lay claim to the new house, she has retained an attorney to draw up the necessary legal documents to be filed with the court. She'll absorb the expense now to save a lot of aggravation, possible heartbreak, and greater expense later.

What's in Your Negotiation "Cocktail"?

Joan Rogliano (Rogliano Real Estate Group) — Thu, 31 May 2012 06:56:58 -0700

After 25 years as a Realtor, the challenge remains when it comes to negotiations. Now that we are experiencing a livelier market we need to hone our negotiation skills and prepare for the main event! Negotiations don’t necessarily mean conflict. It’s not a war nor is it a game. In the current market, where we are experiencing multiple offers, we must prepare in order to create a win win result and a satisfied client. Some suggestions for your negotiation “cocktail”. 1. Carefully review all the documents and highlight the points you want to make clear to your client. They will be anxious and rely on you for clarification. Present the points that you anticipate negotiating for them in a clear and concise manner. Perhaps there are issues they mentioned as non negotiable. Verify that this is still their position. This can help set the stage for a compromise on that issue should they receive another term, they hadn’t anticipated, in exchange. 2. Probe for deal breaker items that truly are not negotiable. This has to be transparent in your conversation and can actually present a clear path in your negotiation. Prepare to explain to your fellow negotiator that this is not up for discussion, so you must work together to find another solution. Agents usually appreciate a collaborative, rather than adversarial, approach. 3. Brush up on non verbal signals as a lot of negotiation is done on the phone. Try not to negotiate in a non verbal manner ( text or email) as that erases a lot of possible clues. Voice inflection, coughing, silence and volume of voice can all be helpful or misleading. Some of the toughest negotiators I’ve had the pleasure of doing business with, had the softest voices. Be open and alert. 4. Identify, and have an understanding of, cultural differences. With our global economy and cultural diversity in real estate transactions, this is a must. It can tip the scales and move the process more smoothly toward resolution. This effort sets a tone of respect and removes the possibility of offending anyone. 5. Set the stage for compromise with your client. If they feel there is no need to compromise on anything, your job of creating a win win scenario will be much more difficult. Ask them to put themselves in the other party’s shoes, which can soften a stance. I ask them to put on their “buyer/seller hat” which can lighten the moment. According to Gerard I. Nierenberg author of The Complete Negotiator, the 5 steps in negotiation are: assumptions, facts, issues, positions and decisions. If we have calm and clear communication skills and a patient understanding of the first four, the desired decisions will follow. This is created by confidence and a clear understanding of your client’s position. Preparation, rather than an impromptu atmosphere, helps create the win win result and present you as a true professional.

Divorce and the Home- Are you Listening?

Joan Rogliano (Rogliano Real Estate Group) — Wed, 16 May 2012 07:59:17 -0700

"What do you mean you talked them out of listing the house?" That's a question I've heard many times from colleagues. Called by a client to list the home I helped them to buy, our discussion revealed one of them really didn't want to sell. So, I put the Listing Agreement aside to continue the conversation and explore how to best assist them in navigating this difficult transition. As professionals we must listen, and help the family explore their options. It shouldn't be about making a sale or having too many clients. I actually had one attorney tell me " It doesn't matter what she is saying. I'm too busy to deal with this, so the house has to go!" If we're not therapists we can't play that role, but we can bring our individual expertise to the discussion. Explain real estate market conditions and if they should improve in the near future. Consult with a loan originator to establish the ability of one party to refinance. Counsel them about short and long term financial goals or tax consequences. If they are keeping the current mortgage, be sure both parties have access to the loan information to assure it is current. For most of us, a home is more than just a roof over our heads. It is a foundation for family life, a safe harbor from the demands of the world, and an expression of who we are. So when those things are shaken during a divorce, what to do with the home is frequently an emotional and financial dilemma. Barraged with major life decisions during a divorce, families need advisers who are listening. The divorce is about their family and not the professionals they turn to for guidance.

Check out a New Kind of Checklist for Your Transactions

Joan Rogliano (Rogliano Real Estate Group) — Tue, 17 Apr 2012 06:48:33 -0700

Working with divorcing families can be very rewarding and sometimes a bit of a challenge. Using this checklist can help avoid surpirses and make the transaction smoother for everyone. That results in happier clients!

1. Meet with each party.
It's important that you meet in person with each of the owners of the home to assess the environment in which you'll be working. There can be collaboration or high levels of conflict, in which you play the go between. A Realtor can contribute to minimizing the stress involved with the sale by setting each of the parties at ease. It could also be revealed by these meetings that this is a transaction that you prefer not to be involved with.
2. Review the Final Divorce Decree
You don't need to, nor would you want to, read the entire document, just the part pertaining to disposition of the home. Frequently, with everything that has gone on and the high levels of anxiety, parties can be confused and will provide the wrong information. It’s also helpful to understand the dynamics before you move forward. I did have a situation in which the court gave the husband complete power to make decisions regarding the home, and all of the proceeds. The wife was still on title and didn't want the home sold. You can see where this was headed, and yes, she dragged her feet on everything. It was helpful to anticipate this possibility before it became a reality. It would have been easier for her to Quit Claim her portion over to her husband, but her attorney wouldn't agree.
3. Make introductions to all other team members,
Usually there is a team of advisers in place: attorneys, mediators, financial planners etc., You're all working together for the benefit of the client, so it's helpful to have open communication. You will probably have to take the lead on this one, and it shows your professionalism. A phone call is usually appreciated by everyone.
4. Provide a list of professionals referrals
Realtors can be the first call when a divorce is on the horizon. Usually the largest asset they own, families want to know the value of the home and their options as they move forward. It furthers your level of service to have a group of trusted advisers to offer, and establishes a referral network for your business.
5.Clarify the lines of communication
Technology offers an assortment of options and many people are particular about their preference for communication. If you frequently use email and one of the parties never checks email that will present a problem. Be sensitive to a possible generational preference, and also that sometimes a phone call is needed. A person's voice can convey what a text or email cannot.
6. Separate but equal communication.
Yes, sometimes it feels we do twice the work when helping divorcing couples. To avoid hard feelings, or one party feeling you are playing favorites, you must be sure to copy each person on all communication. Occasionally, one party wants everything copied to their attorney. Be sure the attorneys are supposed to be in the loop and this has been verified. The attorneys I've worked with charge for each email they read, so be sure this has been cleared with the client.
7. Create a realistic time line for communication and put this in your Listing Agreement
When working with a hesitant seller, one that resides out of town or travels a lot, your level of frustration can quickly escalate with their lack of response when you need one. Timely communication is key in our business. Gain consensus that 24 hours (or whatever is agreed) to respond is reasonable and necessary to keep the process moving. When the market catches fire again, which is starting now, buyers won't wait long for an answer. This is a great way to set the tone for expectations, and you can refer back to your agreement.
8. Confirm financial responsibilities.
Who is going to pay for the repairs to get the house ready for sale? How are the proceeds divided? I just had a transaction where the sellers were upside down and the husband's company was going to give him the funds necessary to close. It was noted in the Listing Agreement so everyone was clear the funds were available. This assures there are no surprises or last minute negotiations on costs, and you have confirmation there won’t be a shortage of funds to close.
9. You're a Realtor not a therapist
When emotions are running high and people want to vent, don't be the target. When just starting out, I used to spend hours listening and now I am adept at steering the conversation back to real estate. Remind them this is not your area of expertise and refer them to a mental health professional if needed. As always, be sure to offer multiple resources.
10.Document, Document, Document
It’s important to document everything for your files, but for these transactions it is especially important. Sometimes emotions run high and people aren't listening as closely as we wish they would. It's vital you keep a paper trail of all communications, and it will really come in handy should you be called as an expert witness or as part of mediation.

Divorce: It Takes a Team

Joan Rogliano (Rogliano Real Estate Group) — Wed, 07 Mar 2012 08:17:16 -0800

My divorcing client was involved in a multi million dollar sale of her home and final settlement. When I asked who her financial planning professional was she shared that " her attorney's paralegal was handling that for her". Speechless, I just stared, Was she teasing?

When I referred another client to an attorney for divorce proceedings the attorney called a few days later, not with a thank you, but to ask me questions about using Zillow. He was counseling her on the value of her home. Then he had the audacity to bill her for his conversation with me, which consisted mainly of my reminding him that I was the Realtor and he was the attorney.

With the divorce rate stable at 50% and home ownership at 62%, there are a lot of families who need professional guidance as they navigate this major life transition.They need professionals who recognize what they contribute and then defer to other professionals outside their areas of expertise. The sale of the marital home is not an isolated decision. There are short and long term financial, emotional and tax consequences. A team is needed to help the family sort through all of these

The goal should be a client that has their individual needs met and is making informed decisions from a knowledgeable place. Teamwork is the winning formula.

Agents Can Kill the Deal

Joan Rogliano (Rogliano Real Estate Group) — Tue, 28 Feb 2012 08:35:01 -0800

Communication is key between agents, and this business demands that we not get in the way of our buyers and sellers. When I call the other agent involved in a contract, and ask for a return phone call ASAP and don’t hear from them for 48 hours, that’s a problem. Then, when I finally get a call, I’m told they have just been too busy. Perhaps that means they should turn the deal over to someone else on their team. It was to be a short Amendment adding 3 days to the Inspection Resolution. Now, with no prior discussion, it was also adding a month on to the Closing Date. I was told there was a discussion, it just happened to be with the loan originator, who determined the new date. Where did that come from and how did they not understand that the seller was very upset- unfortunately with the buyer. The other agent suggested this was my fault for not understanding how to present an Amendment in a “positive manner”. Can someone please share what the “positive” is for the seller? This business is very challenging right now, and we must work together and keep the lines of communication open. Everyone is anxious, so please pick of the phone and let’s talk about what our clients want. Don’t tell me your buyer loves the house and you told them not to buy it. Right now the buyers might lose this house because of your lack of follow through. Please, just do your job and that involves communication.

True Time Savers

Joan Rogliano (Rogliano Real Estate Group) — Thu, 23 Feb 2012 06:06:56 -0800

The bad news is time flies. The good news is you're the pilot. - Michael Althsuler Networking is fun but what to do with all those business cards. I don't know about you, but I had a stack of cards on my desk that I just kept adding to. Well not anymore! Here's a resource for scanning business cards to your phone to have them automatically download to your contact database. Visit Shape Services for the app that fits your phone and start this fabulous time saving process. It's such a breeze! http://www.shapeservices.com/en/company/ We all need a source for national public records and Netronline is the site to visit http://publicrecords.netronline.com/ This Public Records Online Directory is a portal to official state websites, and those Tax Assessors' and Recorders' offices. An easy way to access public records over the Internet. Many of these state sites have birth and marriage records available online too. Most have home pages, and where neither is available, a phone number has been provided. It's always a challenge to creatively keep in touch with clients. Everyone likes to be remembered on their birthday, and a phone call or card say a lot. What a quick and thoughtful way to stay connected to clients. To research birth dates for free, visit http://www.birthdatabase.com/query.php

Concessions on Seller Concessions

Joan Rogliano (Rogliano Real Estate Group) — Thu, 26 Jan 2012 10:40:25 -0800

Has your year gotten off to a good start? 2012 appears to be more encouraging on the home front! If you recall, last year FHA, in all its wisdom, announced intentions to drastically reduce the maximum seller concessions from 6% to 3%. Not good news for buyers, sellers or the industry in general. So many transactions rely on FHA and seller contributions, and couldn't happen without them. Well the troops mobilized with voices from lenders, Realtors, builders and consumers and HUD wants you to know they're listening. The details haven't been finalized, but word is out that there will be higher seller concessions allowed than originally proposed. They're talking between 4 and 5% rather than 3%. Stay tuned for the formal announcement intended to offer a good compromise for continued recovery of our fragile economy, and protection for the FHA insurance fund. More good news yesterday from the Federal Reserve. They plan on expanding the time frame to keep the prime rate very low, through at least the end of 2014! Share this news with your clients and sphere, so you become their trusted resource for real estate insights!

Create a Single Women Handyman Support Group

Joan Rogliano (Rogliano Real Estate Group) — Tue, 13 Dec 2011 10:50:21 -0800

A beautiful 70 degree Saturday in Denver offered a test drive for our support group. We are single women homeowners who are independent, spirited and have a can do attitude. We had agreed that if any of us had a repair problem, particularly those just required an extra set of hands, we'd be there for each other. While the afternoon was balmy, the forecast called for a snowstorm that evening, to continue on into Sunday. Hard to believe, but that's the mercurial nature of nature in Colorado. That wouldn't ordinarily be a concern, but today I had a problem. My sliding glass door was jammed and wouldn't close completely. Not conducive to comfort or conservation of energy with a major storm rapidly approaching. What's a woman to do , especially on a Saturday. I fiddled with the door and tried to locate the source of the problem for quite a while. It was futile, the door wouldn't budge. It appeared the door would have to be removed for further diagnosis and I certainly couldn't manage that task solo. So, I called Charlotte. A Southern belle who exudes charm and confidence, Charlotte arrived a short time later with her tool belt fashionably slung around her tiny waist. We had a good laugh at the contradiction and went to work. Literally minutes later, Charlotte assessed the situation. A pin had come out of its slot and was jamming the path of the door. Charlotte whipped out her crow bar and jimmied the door a bit so I could push the wayward pin back in its proper place. Of course we sat and talked awhile, decided we'd worked up an appetite, and went out for dinner. Mission accomplished, plus we enjoyed an impromptu glass of wine and dinner! So suggest to your single women clients and friends that they establish this valuable network for themselves. It doesn't take much time and provides peace of mind and security that there will be help when you need it. I know I'm heading to the store for a tool belt, just as soon as I finish shoveling the eight inches of snow off the deck!

Women, Divorce, and the Family Home

Joan Rogliano (Rogliano Real Estate Group) — Thu, 10 Nov 2011 10:03:03 -0800

The very word divorce can create unease in most people. Divorce presents change and choices- some that people would rather not make. Topping the list is what to do with the home the family has shared for so long. For many women, the home is the foundation of family life and a safe harbor from everyday demands. Women typically have stronger emotional attachments to the marital home, and as a result, to sell or stay can be an emotionally and financially wrenching decision. Many might not understand the options and are often told there is no choice, the easiest path is to sell, wipe the slate clean and move on. This is mentioned because statistics show that women, on average, experience a 73% reduction in their financial position. They are frequently the primary care givers in the family and work history and income can reflect this role. They leave the workforce to care for children and scale back to care for aging family members. For every dollar a man earns a woman averages seventy nine cents. These facts present a hurdle for women facing divorce as they anticipate the simultaneous family shift to traditionally be the principle caretaker and now, possibly sole financial provider. Counseling with the family making this transition is imperative. Explain fully the options based on real numbers and market conditions. It's easy to take a listing, but explore if that is really what all parties want. Should the woman feel staying is the best option, walk her through the numbers of what that will mean for her financially. Perhaps it will be revealed that staying just isn't financially feasible, and this will enable her to make a truly informed decision before signing the final agreement. With present market conditions in most areas it is more important than ever that families have a real estate professional to guide them as they asses their choices. We can create a trusted team of professionals, including a lender, financial planner, and tax specialist to do what is in their best interest. Discuss with them their present and future goals. The level of anxiety is high with both parties, but we as Realtors can play a vital role in helping to diffuse this conflict and fear.

Have the Rules Changed? IRS Seller Tax Tips

Joan Rogliano (Rogliano Real Estate Group) — Tue, 16 Aug 2011 08:58:34 -0700

Do you ever get the question from home sellers, “Is this deductible?” While as a Realtor it’s wise to never offer tax advice, you can pass along these ten tips from the IRS for home sellers. You can also refer your clients directly to the IRS website http://www.irs.gov/newsroom/article/0,,id=243682,00.html. 1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. 2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). 3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 4. If you can exclude all of the gain, you do not need to report the sale on your tax return. 5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses. 6. You cannot deduct a loss from the sale of your main home. 7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude. 8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time. 9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return. 10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change. For more information about selling your home, see IRS Publication 523, Selling Your Home. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676). Links: Publication 523, Selling Your Home ( PDF) Form 5405, First-Time Homebuyer Credit and Repayment of the Credit ( PDF) Form 8822, Change of Address ( PDF) Comments 0

Practicing Safe Real Estate with Apps

Joan Rogliano (Rogliano Real Estate Group) — Thu, 21 Jul 2011 08:48:20 -0700

Practicing Safe Real Estate With Apps In a strange house with a client you don’t really know and feeling a little threatened? Our business offers more challenges than I can remember in 25 years, and safety has risen on the list. Never before would I lock the door after entering a home with a buyer, and now it’s part of my showing process. Most of us have Smartphones and here’s another reason why they can be your best friend. Please, just take a minute and download one of the following apps to ensure your safety and increase your comfort level on the job. Most are free or have minimal cost, and work with Blackberrys, iPhones or Androids. Real Alert- For iPhone: http://itunes.apple.com/us/app/real-alert/id436455476?mt=8 Androids- https://market.android.com/details?id=com.realalert.android This offers some unique tools for a variety of situations. The push of a button notifies your emergency contact and two taps contacts 911. You can convert your phone to a flashlight, locate the nearest hospital or set off an alarm to deter a potential attacker. Cost $1.99 Moby- www.mymoby.com With this app you’ll have to be mindful because it asks you questions at predetermined times. If two are unanswered it will automatically notify your designated contact and send your GPS location. It includes a tracking tool and a message system so you can let contacts know where you’re heading. The upgrade also connects to a 24/7 monitoring system. Cost- Free or $9.95 per month or $99.94 annually for upgrade Safe TREC- http://safetrec.com With the push of the panic button an alert is instantly sent noting your location through your GPS. If you upgrade, a message will be sent to the 24/7 live call center which can notify emergency responders. In addition, you can upload your medical information such as blood type, physical conditions and allergies. Free and $9.95 per month for upgrades. Share this information with your family, friends and clients too! Comments 0

I'm a Realtor Not an Attorney, But I can Tell You This

Joan Rogliano (Rogliano Real Estate Group) — Tue, 14 Jun 2011 10:30:35 -0700

As a Realtor of 25 years, my niche market is working with couples who are divorcing. Yes, it is challenging but extremely rewarding. Each transaction provides new information that I can share with my next client, and today we experienced a new challenge.

In this transaction both parties are on title, and their Final Divorce Agreement was written giving one party the ability to make all decisions regarding the sale of the house. This might be adequate if the parties were communicating and cooperating, which is not often the case. Ironically, this action of giving one party the sole decision making role is usually put in a Final Agreement when there is an apparent lack of cooperation, and to prevent one party creating road blocks to the sale.

Both parties agreed that I was to be the listing agent, the listing agreement was prepared and the professional stager was scheduled. One party flatly refused to sign, which quickly called a halt to the sale. With our market, time is really of the essence at this time of year and this delay could cost them a sale or bring a reduced price.

When the Final Agreement is signed designating a decision maker, a Power of Attorney or Quit Claim Deed is also needed to reinforce that right. In this case, attorneys will need to be reengaged to have these documents completed, creating more attorney fees.

Please pass this information along to your clients, or anyone you know, going through a divorce with a home to sell.

Use This Information to Help Get Your Loans Approved

Joan Rogliano (Rogliano Real Estate Group) — Thu, 19 May 2011 09:38:39 -0700

Top Ten Underwriting Issues.

Mortgage loans today require more documentation than they did even a year ago. If a customer purchased a home 2 or more years ago, the loan experience is going to be much different. The documentation requirements are ever changing and many things that loan originators would not think of asking for 1-2 years ago, are now the norm. A lot of borrowers will question why, so it is helpful to set expectations upfront to assure a smooth transaction. The following list was provided by one of my lenders, with Cherry Creek Mortgage, noting the top ten items they see on a continual basis as

investor requirements.

1. Fully documented assets- All atypical deposits must be documented and explained. Underwriter's may require an explanation on a deposit as low as $100. Prepare your buyers.

2. Declining income is a HUGE issue. These files usually require more time to gather letters of explanation from CPA, employer etc.

3. Self employed borrowers must provide complete tax returns. all pages and all schedules. If borrower owns any portion of a Partnership or S Corp, they must provide a copy of the K-1 for each company. In some cases a Profit and Loss statement may also be required.

4. A credit refresh and employment verification will be completed the day prior to closing. If there is a new inquiry or large balance increase these must be documented and in some cases require the file to go back to the underwriter. Give your buyers a heads up.

5. FHA property flipping. If a home is resold or a change in title has occurred in less than 90 days, the seller is an individual, investor or LLC, and the new sales price is more than a 20% increase over the seller's acquisition cost, the file will need to contain a lender ordered property inspection ( in addition to the borrower's) and a 2nd appraisal. Borrower can pay for the second inspection but not the 2nd appraisal. Take into consideration when writing a contract.

6. Appraisals with declining property values take extra time for review. In some cases the appraiser is required to provide more information and comps. If the issue is not resolved a desk or field review from an independent firm might be required. A field review may take up to 10 days.

7. 30 days of concurrent legible pay stubs are required. Borrowers will be asked to provide updated pay stubs right until closing. Verification of employment must state that they will continue or they will not qualify.

8. IRS tax transcripts are ordered on each file prior to underwriting. If the transcripts show a loss by a spouse that is not on the loan, the loss is counted against the borrower.

9. If borrower has additional properties a copy of the mortgage statement on each property is needed. Statements must show taxes and insurance escrowed. If not, proof of insurance, taxes due and proof of HOA dues are required.

10. If current home is being retained or turned into a rental and the borrower has no previous rental history, they must qualify with the full payment and have 6 months of reserves for both properties. The exception is when the property has 30% or more equity on conventional transactions, or 25% equity on FHA. This must be documented by a full appraisal. In this case rental income could be used to offset payment and the reserve requirements are less stringent.

Divorce and the Real Estate Broker

Joan Rogliano (Rogliano Real Estate Group) — Thu, 31 Mar 2011 09:56:10 -0700

Divorce is a word that seems to make people uncomfortable. I’ve seen a physical response to the word from Realtors when I mention that this is the main source of my practice.
It happened quite by accident really.
Having been in the business for 25 years, many of my clients were divorcing, and needed assistance in determining the best course of action for dealing with the marital home. As the largest asset they had, and one that was frequently tied up with lots of emotion, it was a dilemma. It was also quickly revealed that clients were more often than not, receiving a lot of misinformation about their choices. They often were told there weren’t choices, the house had to go.This usually was neither true, nor their goal.
Yes, it does take a lot of patience and consistent communication, (frequently twice as much if the parties aren’t communicating) but the rewards are immeasurable. To assist people who are traveling through a painful and often anxious time, by providing all the resources they need to make the very best decision for their family, is what it’s all about.
What can be better than that- helping people while practicing real estate- two great passions!

Is Your Title Company Insured?

Joan Rogliano (Rogliano Real Estate Group) — Tue, 01 Feb 2011 11:54:14 -0800

Is the title company you use insured for theft? If not, your clients could find themselves in the following very serious dilemma.

Following a refinance, it was assumed the old mortgage would be paid off. It wasn't. The title company that handled the closing experienced an electronic raid on their escrow account and, unknown to the borrowers, the funds intended to pay off their old mortgage were stolen. When late notices arrived they thought it a mistake and didn't investigate until months had gone by. Now in a position of holding two mortgages on their home, they are facing financial ruin.

Most agents and consumers are unaware that a title policy might not cover for this type of theft. In this electronic age this happens more often than we hear about and should be discussed with consumers.

In Colorado, where title insurance companies are not required to have insurance to protect against these thefts, there is a rise in occurrences. Please be sure to check with your company of choice to protect your clients.

Divorcing Clients Can Qualify For a Mortgage

Joan Rogliano (Rogliano Real Estate Group) — Thu, 20 Jan 2011 09:41:20 -0800

FHA Qualification Guidelines

For Divorcing Clients

Have you ever had a divorced client who couldn't qualify because they didn't know they were still on the mortgage of the marital home?

This happens all too frequently- a person is quit claimed off the deed, but mistakenly left on the loan.

HUD Guidelines for an FHA loan qualification will allow a divorcing woman or man to qualify for a new mortgage while still remaining on the previous note.

Specifics

*No late payments on the current loan.

*The Final Divorce decree must be specific and clearly indicate that the spouse remaining in the marital residence will be fully responsible for all remaining mortgage payments.

*The spouse remaining in the marital residence must maintain all payments and continue to occupy the property until such time as they either refinance or sell. It can not become a rental property.

*All standard FHA qualification will continue to apply ( ratios,credit scoring and related credit guidelines, required minimum down payment etc.

The Deal That Keeps On Giving

Joan Rogliano (Rogliano Real Estate Group) — Wed, 27 Oct 2010 10:45:00 -0700

Do You Know About Resale or Recovery Fees?

Imagine you're at the closing with your sellers who also bought the home through you 5 years ago. On the Settlement Statement is a one per cent fee debited to them and paid to the developer they bought the house from 5 years ago. Oops, they are not happy.

What most agents aren't aware of is that hidden deep within a sales contract could be a clause that permits a developer the right to a fee every time the home sells. That's right, every time!

Also known as private transfer fees or capital recovery fees, these fees allow the developer to collect a per cent of the sales price every time there is a transfer of title. It is specified for a certain period of time, but why should it be allowed at all?

As stated in the New York Times, " Many developers see the resale fee as a creative way to get new financing. They are hoping to one day use the trickle of cash from these fees as collateral for a loan, or to get cash up front if pools of the fees are packaged into securities to be bought and sold on Wall Street."

The good news is that last month a bill was introduced in the House to amend RESPA to include prohibition of these fees. The Federal Housing Finance Agency also jumped on board with a proposal to prevent Fannie and Freddie from insuring loans that contain these fees.

In an attempt to protect consumers, The Coalition to Stop Wall Street Home Resale Fees has also been created, and they support the bill to amend RESPA.

Until this bill passes, be sure to read the developer contracts completely to assure these fees are not included. No one likes costly surprises at closing!

What Happens When You Don't Ask For Anything.

Joan Rogliano (Rogliano Real Estate Group) — Wed, 22 Sep 2010 13:52:54 -0700

Surprisingly, People Will Offer

When word got out we were establishing a new foundation, Wildflower Women's Foundation, the response amazed us. People wanted to help, and we've been "drinking out of a fire hose" with

so many stepping forward to assist in anyway they can. We even had someone donate $2.00, because that's all they could do!

Incorporate this into your business and leave the "I" out of your communication and conversation. When you communicate with your sphere, partner with a service provider to offer a discount on a service from that provider. Make this a monthly "touch". It works for everyone- your clients, the provider and you.

We have done this with lawn services, massage therapists, and hair salons to name a few, and the response has been well received. How refreshing, a Realtor not asking for anything, just giving. It sets a nice tone and has given our database a reason to contact us- just to say thanks.

Give it a try- you'll be pleasantly surprised and remembered!

With interest rates dropping, here are some things to consider...

Joan Rogliano (Rogliano Real Estate Group) — Thu, 15 Jul 2010 14:28:39 -0700

Interest rates are dropping across the board on all fixed loan structures for residential mortgages. Here are some things to consider:

- A non-Jumbo loan structure, fixed for 7 years with an interest rate of 3.50%

- Nothing fancy, no pre-payment penalties, amortized over 30 years, standard old FannieMae product

- In the 8th year, the rate can go no higher than 5.00% … so you’re protected for a total of 8 years

- This is not an FHA or VA product

There's never been a better time to purchase!

Joan Rogliano has been practicing real estate for 25 years. She is a Certified Luxury Home Marketing Specialist and a Certified Real Estate Divorce Specialist.

Lead Based Paint Requirement Delayed

Joan Rogliano (Rogliano Real Estate Group) — Wed, 23 Jun 2010 11:07:48 -0700

Good news for contractors and home remodelers living in older homes. The Environmental Protection Agency said on Monday, that it will delay until October 1 the requirement that all contractors be trained and certified to work on homes built prior to January 1, 1978. The concern is that the possibility of lead based paint in these homes presents a safety issue and specific training is necessary.
EPA requires that firms performing renovation, repair, and painting projects that disturb lead-based paint in homes built prior to 1978 be certified by EPA. Anyone remodeling homes, schools, and child care facilities must use certified renovators trained by EPA-approved training providers to follow lead-safe work practices. Contractors can become certified by taking an eight hour class from EPA certified instructors. Contractors must follow these three safety rules: contain the work area, minimize dust and clean up thoroughly.

Unique Women's Niche Marketing System Also Contributes to Community

Joan Rogliano (Rogliano Real Estate Group) — Thu, 17 Jun 2010 16:52:32 -0700

Unique Women's Niche Marketing System Also Contributes to Community

Wildflower Group Marketing System Targets one of the Fastest Growing Markets, Women in Transition, While offering Community Benefits.

Denver, Colorado (PRWEB) June 15, 2010 -- Joan Rogliano, A Realtor with 25 years of experience, has created the Wildflower Group(TM) Marketing System, www.wildflowergroup.net. This novel marketing program is for any professional interested in assisting women going through the transition of divorce and widowhood. The unique aspect of this system is that it effectively grows a business while contributing to the community.

The Wildflower Kit is a turnkey, step by step, easy to use system that generates qualified leads for any business. This effective marketing strategy enables the user to create a referral network team to assist women going through these transitions, by providing services and resources customized to their needs.

The Wildflower System has been so successful that it is now the source of a significant portion of my client base

"The Wildflower System has been so successful that it is now the source of a significant portion of my client base," said Rogliano. " Due to the human interest and broad appeal, the local media coverage has also boosted my business and provided much needed support for many families."

The kit maps out in a variety of programs, a fresh marketing approach, which includes hosting focus groups, establishing professional member networks, classes, presentations, workbooks, newsletters and events.

On average, women experiencing a divorce take a drastic reduction in their economic status and are in survival mode. They are underserved in handling the unique challenges presented to their families.

A rapidly growing demographic, the 2009 Harvard study of the Joint Center for Housing reported the number of households led by single women increased by almost 10 million from 1980 to 2000.

This exciting marketing opportunity simultaneously gives back to the community by establishing a Wildflower Support Group. An open, non fee based organization for women of all ages, members receive relevant information about real estate, career development, personal growth, lifestyle choices, and physical health and well being. It creates a forum for women to connect and network.

As a result of the needs identified, the Wildflower Women's Foundation, www.wildflowerwomensfoundation.org, was established this year, and a portion of the proceeds from each Wildflower Group Kit will go to benefit the Foundation.

For more information visit, www.wildflowergroup.net or contact Joan Rogliano,303-667-5485.