Lehigh Valley Short Sales - Making an Offer on a Short Sale - What Questions to Ask??? - As a Home Buyer and a Buyer Agent there are certain questions you should ask - A Few Important Tips shared here.

What is a Short Sale: A Short Sale is when a homeowner owes more on their Mortgage for their home then their home is currently worth at current market value.  The homeowner is trying to avoid Foreclosure by selling their home as a short sale. 

What the Consumer/Buyer should know about Short Sales

1) The number 1 most important part to thinking about buying a short sale is you need to be working with a Real Estate Agent who has experience negotiating and closing short sales...this way they know what questions to ask the Listing/Seller's agent to make sure the short sale is being processed correctly. 80% of the Real Estate Agents who list short sales have no idea what they are doing....most have never even closed on a short sale. You do not want to work with Agents who have no experience in successfully closing short sales.  It is a waste of time.

2) The most important way to decide if you want to make an offer on a short sale is if you are in a position where the type of home you are looking for is hard to find....meaning there are no other homes available on the market that are either Typical owner occupied sales or Foreclosures....because right now, We are in a Buyer's Market...so, as you know there is a large inventory of many types of homes.....if you can find a home that is not a short sale....then you may want to forgo the stress of making an offer on  a Short Sale.

3) Short Sales are most perfect for people who are in a current month to month renting situation or living with family...they are in no rush and have the time to wait around about 60 to 90 days just to get a reply to their offer from the seller's Bank.  Then close within 30 days later...Typically, the entire process is about 4 months until settlement.  If the short sale is processed correctly by the seller's agent or the third party negotiation company.

4) Short Sales will not take a home sale condition - So, if you need to sell your home....forget looking at short sales.

Questions you need to ask the Listing Agent - As a Consumer & Buyer Agent

1) You need to make sure that the Listing Agent has pulled a title report to verify what liens & judgments are against the seller.  Just because the seller said they only have 1 lien does not mean they only have 1 lien. THIS MUST BE VERIFIED.

2) You need to make sure that the seller is current and up to date with their water/sewer/trash bills through the local municipality and all taxes are also paid up to date IF THEIR TAXES ARE NOT INCLUDED IN THE LOAN PAYMENT.  Just ask the Listing Agent - If it has not been verified....again the title company can do this.  There are Banks who will NOT pay these defaults. FHA will not pay water/sewer/trash bills...the seller MUST keep these current.

3) How many Lien's are on the property and who is the Mortgage Company - What type of loan ie: FHA, Conventional etc. ?? If it is an FHA loan....that is a good thing as FHA will tell the seller exactly what they will accept for the property after the appraisal has been completed - it is 80% of the current market value to start...so this way the process is much easier and more likely to get a reply from the seller's bank faster.  Plus, you as a buyer know what you will be expected to pay for the home.  The Bank expects current market value or just a hair under.  Remember,  The seller already owes OVER CURRENT MARKET VALUE and the Bank is already loosing money at current market value.

4) If there are 2 Liens/Mortgages on the property - You must ask the Listing Agent if they have also started the short sale process with the 2nd Lien? This must be done at the same time....it is not uncommon for the 1st Lien holder to NOT pay the 2nd Lien off in full....the process for the 2nd Lien holder takes just as long as the first Lien holder and why this should be done at the same time.

5) If there is a Third Party negotiation company - This means that the listing agent is not handling the short sale.  You need to know who the negotiation company is and how they are going to process the short sale etc.  You should request weekly followup and communication. If there is a negotiation company - You the buyer will be paying for this service...NOT THAT I AGREE WITH THIS.  But, if the home is your dream home, 1% of the purchase price may be worth it.  You may also be charged 2% transfer tax instead of 1% as part of your closing costs.

6) If you need seller's assist - because you do not have all the money you need for the closing costs.  It is standard practice that Banks will only give a total of 3% seller's assist.  So, if you need 6% - don't even try.  The seller's Bank will most likely not give you 6% no matter what.  This is also True with Foreclosures....they will normally only approve 3% also - except Fannie Mae Foreclosures...they will give you 3.5%.

Well...that is pretty much the most important points to keep in mind. Weekly followup with the Listing Agent on how the short sale process is moving along is really important.

A good practice for your Buyer agent would be to investigate the listing agent by pulling their listing history to see if they have closed any short sales over the past 1 to 2 years....then you know what you are dealing with.

Listen the worst thing that can happen is you wait around for 60 days min and you do not get a reply from the seller's bank...at that point you will have the right to continue to wait by extending the time you are going to give to them in writing or just get out of the contract and get your deposit money back.

The worst part of making an offer on a short sale...is not knowing what is going on and not being able to make an

GOOD LUCK!  I hope this has helped you. offer on another home at the same time.

Lehigh Valley Real Estate & Selling Your Home: 12 Questions to Ask When Choosing Your Lehigh Valley REALTOR®

Make sure you choose a REALTOR® who will provide top-notch service and meet your unique needs. 

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate — like many other professions — is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS®, which require that agents take additional, specialized real estate training, are held only by about one-quarter of real estate practitioners.

3. How many homes did you and your real estate brokerage sell last year? By asking this question, you’ll get a good idea of how much experience the practitioner has.
 
4. How many days did it take you to sell the average home? How did that compare to the overall market?  The REALTOR® you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.

5. How close to the initial asking prices of the homes you sold were the final sale prices? This is one indication of how skilled the REALTOR® is at pricing homes and marketing to suitable buyers. Of course, other factors also may be at play, including an exceptionally hot or cool real estate market.

6. What types of specific marketing systems and approaches will you use to sell my home? You don’t want someone who’s going to put a For Sale sign in the yard and hope for the best. Look for someone who has aggressive and innovative approaches, and knows how to market your property competitively on the Internet. Buyers today want information fast, so it’s important that your REALTOR® is responsive.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the practitioner’s obligations lie. Your REALTOR® should explain his or her agency relationship to you and describe the rights of each party. 

8. Can you recommend service providers who can help me obtain a mortgage, make home repairs, and help with other things I need done? Because REALTORS® are immersed in the industry, they’re wonderful resources as you seek lenders, home improvement companies, and other home service providers. Practitioners should generally recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers.

9. What type of support and supervision does your brokerage office provide to you? Having resources such as in-house support staff, access to a real estate attorney, and assistance with technology can help an agent sell your home.

10. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals and business emphasis mesh with your own.

11. How will you keep me informed about the progress of my transaction? How frequently? Again, this is not a question with a correct answer, but how you judge the response will reflect your own desires. Do you want updates twice a week or do you prefer not to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit? 

12. Could you please give me the names and phone numbers of your three most recent clients? Ask recent clients if they would work with this REALTOR® again. Find out whether they were pleased with the communication style, follow-up, and work ethic of the REALTOR®.

Lehigh Valley Home Buying & Real Estate: 8 Reasons Why You Should Work With a Lehigh Valley REALTOR®

Not all real estate agents are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics.

Here are five reasons why it pays to work with a REALTOR®. 

1. Navigate a complicated process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multipage settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Help finding the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Negotiating skills. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5.  Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally pre-screen and accompany qualified prospects through your property.

6. Someone who speaks the language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. Experience. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. Even if you have done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Objective voice. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll every make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

Lehigh Valley Foreclosure & Short Sale Realtor Blog -Tips for Buyers & Seller's - Written & Created by a Certified Foreclosure & Short Sale Agent.

Finally, ALL THE ANSWERS YOU NEED - Directly from a Foreclosure & Short Sale Specialist - AND If they are not here when you come - JUST ASK and I will ANSWER!

A Blog Filled with Monthly Tips/Tricks/Advice ONLY about Lehigh Valley Foreclosures & Short Sales

Coming Soon. I will have 10 posts created and online by November 15, 2010. (at least)

5 Posts for Buyer's Relating to Buying Foreclosures & Short Sales ONLY.

5 Post for Seller's Relating to Avoiding Foreclosure & Selling as a Short Sale ONLY.

I can not wait to get started.....I will see you soon!

Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jump most significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase? The assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale. In Lehigh and Northampton County areas, Re-assessments are NOT triggers by the sale of a property.

4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate.

5. Does the current tax bill reflect any special exemptions that I might not qualify for?

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
Lehigh Valley Lender Checklist: What You Need for a Mortgage
5 Factors That Decide Your Credit Score in the Lehigh Valley
Top 5 Common First-Time Home Buyer Mistakes

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Real Estate & Homes - Common First-Time Home Buyer Mistakes

1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the homebuying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
Lehigh Valley Lender Checklist: What You Need for a Mortgage
5 Factors That Decide Your Credit Score in the Lehigh Valley
5 Property Tax Questions You Need to Ask

Source: Real Estate Checklists and Systems, www.realestatechecklists.com
Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Mortgage and Real Estate: Specialty Mortgages: Risks and Rewards

In high-priced housing markets, it can be difficult to afford a home. That’s why a growing number of home buyers are forgoing traditional fixed-rate mortgages and standard adjustable-rate mortgages and instead opting for a specialty mortgage that lets them “stretch” their income so they can qualify for a larger loan.

But before you choose one of these mortgages, make sure you understand the risks and how they work.

Specialty mortgages often begin with a low introductory interest rate or payment plan — a “teaser”— but the monthly mortgage payments are likely to increase a lot in the future. Some are “low documentation” mortgages that come with easier standards for qualifying, but also higher interest rates or higher fees. Some lenders will loan you 100 percent or more of the home’s value, but these mortgages can present a big financial risk if the value of the house drops.

Specialty Mortgages Can:

•    Pose a greater risk that you won’t be able to afford the mortgage payment in the future, compared to fixed rate mortgages and traditional adjustable rate mortgages.
•    Have monthly payments that increase by as much as 50 percent or more when the introductory period ends.
•    Cause your loan balance (the amount you still owe) to get larger each month instead of smaller.

Common Types of Specialty Mortgages:

•    Interest-Only Mortgages: Your monthly mortgage payment only covers the interest you owe on the loan for the first 5 to 10 years of the loan, and you pay nothing to reduce the total amount you borrowed (this is called the “principal”). After the interest-only period, you start paying higher monthly payments that cover both the interest and principal that must be repaid over the remaining term of the loan.

•    Negative Amortization Mortgages: Your monthly payment is less than the amount of interest you owe on the loan. The unpaid interest gets added to the loan’s principal amount, causing the total amount you owe to increase each month instead of getting smaller.

•    Option Payment ARM Mortgages: You have the option to make different types of monthly payments with this mortgage. For example, you may make a minimum payment that is less than the amount needed to cover the interest and increases the total amount of your loan; an interest-only payment, or payments calculated to pay off the loan over either 30 years or 15 years.
 
•    40-Year Mortgages: You pay off your loan over 40 years, instead of the usual 30 years. While this reduces your monthly payment and helps you qualify to buy a home, you pay off the balance of your loan much more slowly and end up paying much more interest.

Questions to Consider Before Choosing a Specialty Mortgage:

•    How much can my monthly payments increase and how soon can these increases happen?
•    Do I expect my income to increase or do I expect to move before my payments go up?
•    Will I be able to afford the mortgage when the payments increase?
•    Am I paying down my loan balance each month, or is it staying the same or even increasing?
•    Will I have to pay a penalty if I refinance my mortgage or sell my house?
•    What is my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?

Be sure you work with a REALTOR® and lender who can discuss different options and address your questions and concerns!

Learn about the NATIONAL ASSOCIATION OF REALTORS® Housing Opportunity Program at www.REALTOR.org/housingopportunity. For more information on predatory mortgage lending practices, visit the Center for Responsible Lending at www.responsiblelending.org.

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
5 Factors That Decide Your Credit Score in the Lehigh Valley
Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

Common First-Time Home Buyer Mistakes TOP 5

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Homes & Real Estate - Lender Checklist: What You Need for a Mortgage - Perfect for Home Buyers in the "just looking" Stage.

When you are in the "just looking" stages of Buying a Home is when you should start gathering all the documentation that will be needed to help you get a lehigh Valley Mortgage on your new home.

• W-2 forms — or business tax return forms if you're self-employed — for the last two years for every person signing the loan.
• Copies of at least one pay stub for each person signing the loan.
• Account numbers of all your credit cards and the amounts for any outstanding balances.
• Copies of two to four months of bank or credit union statements for both checking and savings accounts.
• Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
• Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
• Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
• Copies of your most recent 401(k) or other retirement account statement.
• Documentation to verify additional income, such as child support or a pension.
• Copies of personal tax forms for the last two to three years.

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards

5 Factors That Decide Your Credit Score in the Lehigh Valley

Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

Common First-Time Home Buyer Mistakes TOP 5

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Mortgage & Real Estate: 5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe.  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

For more on evaluating your credit go to www.MyFico.com

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
Lehigh Valley Lender Checklist: What You Need for a Mortgage
Common First-Time Home Buyer Mistakes TOP 5
Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Short Sales - Bank Negotiation Services for Real Estate Agents - KEEP Your Listing & Get Paid

EARN 50% COMMISSION - All you do is the Typical Listing Agent End & I will do the REST! CLICK HERE FOR THE DETAILS

Are you in one of the following Situations? I have some solutions for you.

1) Do you have a Short Sale Listing but really DO NOT have the time to do the weekly followup with the Bank or Banks that it takes to get a Short Sale approved?

2) Have you already taken a Short Sale Listing and it ended up going to Sheriff Sale and you never got paid...so now you just don't want the headace anymore?

3) Do you currently have a Short Sale Listing and You are not sure what you need to do to prepare the Short Sale package, why a Title company should be hired to help you, OR even if the homeowner qualifies for a short sale?

4) Do you have a Short Sale Listing and ALL YOU WANT TO DO IS LIST AND SELL THE HOME and NOT deal with any short sale paperwork or calling the bank weekly etc?

5) Is your Short Sale Listing ready to expire and you just could not get it sold BUT would like to STILL close this listing if you only could work with someone that knows what they are doing when it comes to Listing, Selling, and getting Bank Approvals within 30 days?

6) Do you stay as far away from Short Sale Listings as Possible? Let's work together...YOU SHOULD GET paid something on every lead you generate...they cost money don't they?

7) Are you currently working with an "investment company" and wonder if what they are doing is Legal or ethical? Are you working with this company where the only way they get paid is by the buyer or seller? Are they closing your deals in 90 days or less? Why not?

Do Any of these situations sound like YOU? Well, we can work together and both get paid :) Something. which is better then nothing!!!!!

Depending on what stage you are with your Short Sale Listing and what package of services you are looking for will depend on How much I will require as a Referral Fee for obtaining a Bank Approval for your Short Sale.

What will MY Short Sale Services Cost you? If you maintain your position as Listing Agent?

Least Amount = 1% of the Purchase Price
Greatest Amount = 50% of the Negotiated Commission Accepted by the Bank for the Listing Side.

EARN 30% COMMISSION - AS A REFERRAL FEE

Click Here to download The Agent Referral Agreement

You Also have an option of referring the entire Short Sale listing and Full Negotiations to us for a 30% referral FEE payable to you within 72 hours of settlement.  My partner and I will List, Market, and close on the short sale without any involvement by you.

MY Experience, Track Record, Resources...What can I do and What do I have in place to help???

AFTER becoming trained/certified to handle short sales - I opened a Full Service Lehigh Valley Short Sale Business in August 2009 where I work with a Real Estate Partner who handles the listing & Marketing and I handle all bank negotiations.

• Certified Distressed Property Expert Trained
• Short Sale & Foreclosure Resource Certified by NAR "SFR"
  
• The Short Sale Genius Trained & Ongoing Coaching Program Member
• Equator Short Sale Certified
• Trained by Wells Fargo Short Sale Department
  

MY Track Record - Closing 5 out of 6 Short Sales as of 5-30-10

• 6 Short Sales on the Books as of 5-30-10 since August 2009 with 90% coming from Online/personal Referral - No other Marketing currently being done.
• My first short sale closed at 83 Days on Market - I have been trained to do 90 days or better.
• My Bank Approvals are on Average 2 Weeks after the offer has been submitted but 30 days is the longest it has taken me.
• Settlements are within 60 days of the offer being executed - 30 days given for Bank Approval and 30 days for the Buyer to complete processing of the Agreement of Sale. - NOTE: FHA 203K takes 60 days from Bank Approval to close due to the loan requirements.
• 1 Short Sale Lost to Foreclosure - Due to the "investor" wanting to net over the BPO Current Market Value.

My Resources - Web Sites & Resources

1) Transaction Management, Ongoing Coaching/Training Programs - The Short Sale Genius
2) Consumer & Agent Education - www.LehighValleyShortSales.com & www.AvoidForeclosureScams.com
3) Weekly Followup - File Updates send an auto email to all parties of the Transaction and reporting is done via www.ForeclosuePrevention247.com

My Bank & Service Company Experience - As of 5-30-10
Chase - View Bank Approval Letter
Bank of America
GMAC - View Bank Approval Letter
Title 11 Funding - View Bank Approval Letter
Loan Resolution
ESSA Bank
HSBC Mortgage Services - View Bank Approval Letter
PNC Mortgage

My Short Sale Loans Experience
FHA & Conventional Loans
Fannie Mae & Freddie Mac Loans
1st & 2nd Liens