Over the years I’ve conducted hundreds of consultations for buyers & sellers.  Once in a long while you have those “lightning in a bottle” situations where you’re so excited for your clients (and maybe a little envious because you’d love to trade places).  I’ve worked with roughly 10 families in the last 3 years from the same church group (and I’m not even a member of their church) & thankfully, yet again they were referring me to another young couple looking to purchase their 1^st home.

We discussed the unique circumstance, challenges, and procedures for how we’d approach finding the right home for them.  We always start with “What criteria does your ideal home have? And if something had to be sacrificed which pieces of criteria would need to be non-negotiable?”. As I advise all of my potential clients, before we meet I’d like to have you pre-approved or at the very least have you talking with lenders and about to be pre-approved (always done prior to ever going to see properties……this situation was the perfect example of this – because without a pre-approval letter or proof of funds you can’t submit an offer).

We’ll call them Tom & Betty for the sake of privacy, came in to my office for a 1 pm buyer consultation.  After discussing their criteria, timeline, the types of seller scenarios we commonly run into (bank owned, short sale, and traditional resale), search process, basic expectations, etc.  I told them we’d truly be looking for a needle in a haystack that we’d have to jump on immediately if/when it hit the market to more than likely compete in a multiple-offer highest & best situation that can occur when banks release the occasionally great foreclosure at an extremely low price…..basically creating a bidding war similar to a shark feeding frenzy because someone just dropped blood in the water.

As is standard practice we ran a preliminary search for homes meeting their criteria at the  end of the consultation, more or less to show how the MLS system works and what to pay attention to when viewing listings online initially.  And then it happened…..BAM – the needle in the haystack had literally hit the market the evening before and just come through on the FMLS.  We discussed all of their criteria & my knowledge of the properties in the area as well as what I anticipated the listing agent to tell me when calling to confirm availability. We called the listing agent (I had it on speaker phone just so the buyers could hear what she had to say & know I wasn’t b.s.ing them.)  We were informed there were multiple offers & there was now a highest & best deadline of 4 pm today……we basically had less than 2 hours to finish the pre-approval, go view the home, and potentially write an offer on the type of home that I wasn’t sure we’d see again for another 6-12 months.

Tom, Betty, & I went to view the foreclosure – a 2 story Charleston style home with all the bells and whistles of newer construction – granite counters, stainless steel appliances, hardwoods, etc. - along with upgrades including surround sound – previously sold in the high 200’s was now on the market for 90k.  I’ve viewed possibly thousands of foreclosures of the years…..this one left me completely shocked.  Only 1 other foreclosure I’d ever walked into looked as well taken care of & functioning properly with all utilities still on – that property had been over a million dollars.  Not only was the interior in pristine condition, nothing was vandalized on the exterior (stealing a/c condensers on vacant homes is a very common trend at all price points around the city….even the nicest well-established historic districts with million dollar homes fall victim to this practice.

I let Tom & Betty know that whether we looked at 5 more today or for another 5-6 months I expected every home to fall short of their expectations because the bar had just been set ridiculously high & nothing would compare.  Tom & Betty went by another home in the area that was considered a “comparable” just to gain a bit more perspective on what to expect, and it further solidified ---we’d found the needle in the haystack on the very 1^st home….again, this had never happened with any of my buyers previously yet it was WAY TOO GOOD TO PASS UP.

We went back to my office – reviewed the comps once again, they saw for themselves what others had recently paid for homes in ranging in the level of repair needed to make the homes livable on the same street and how this was light-years ahead. It also didn’t hurt for them to have friends who live in the area come by to look at the property…virtually all of them fell in love with the home instantly as well & validated their amazement at the condition of the property.

All of this happened with 4 hours – that’s right:

Buyer Consultation/Preliminary Search Established

Pre-Approval

Viewing of the ideal home for their specific criteria

Writing an offer to participate in a multiple offer highest & best situation

This all took place on late in the week & the Buyers had to sweat it out over the weekend waiting to hear back….yet that gave them more time to process the transaction and get comfortable with the decision to submit an offer.  In these REO multiple offer situations I stress that there’s no harm in submitting an offer – it can be withdrawn if you later decide to pass on the opportunity (prior to it being signed off by both parties & actually going binding), and we still have a due diligence period for the home to be inspected & appraised….which is another time period where we can basically pull the rip chord & eject ….get the heck out of the deal and have your earnest money returned.

Thankfully, we received the great news that they’d won the multiple offer scenario with a bid of 95.2k & 3 % seller cc’s included……they now had a mortgage payment on a 3/2.5 Charleston Style home with an attached 2 car garage for less than the 2 bedroom condo they’d previously been renting.

This was definitely Lightning In A Bottle as I’ve never seen a home this immaculate as a foreclosure, nor have I ever gone from consultation to contract in less than four hours……most people spend more time in a car dealership than Tom & Betty had to spend deciding/negotiating their home purchase.  The awesome bonus is the fact that Tom & Betty specifically chose this neighborhood so they could support the children of the neighborhood by participating in afterschool & weekend programs.

This was truly a win-win-win scenario & I’m fortunate to have been a part of making their dreams a reality while they in turn help support the dreams of numerous children.

I can’t promise to capture more Lightning In A Bottle, yet I know this wasn’t a matter of luck – it’s about the preparation & being ready/willing/able to act when opportunity presents itself (and knowing what is truly an excellent opportunity).  With years of experience in working the foreclosure market & statistical analysis of neighborhoods – I’m able to identify the inventory that truly will “fly off the shelves” and help my clients help fulfill their goals by ensuring they have the best chance win.

If you or someone you know would benefit from this type of service – please feel free to email or call me & it will be my pleasure to schedule a consultation….who knows, you may just write an offer the same day…we’ll just have to find out.

Call Mike for Results You’ll Like!

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

I consider myself an ITP guy (Inside The Perimeter) – while I occasionally assist clients who want to explore areas outside of I-285, my primary focus has always been the intown neighborhoods -(I love selling in Morningside, Virginia Highland and the surrounding neighborhoods).  Yes, I’ve sold homes in Alpharetta, Sandy Springs, Dunwoody, Marietta, Roswell, Cascade/Campcreek, Tucker, & Stone Mountain to name a few…..yet nearly 90% of my business is ITP.

A past client asked if I might be able to assist her co-worker who’d recently relocated to D.C. for a new position and was struggling to get her home sold.  There are a number of programs out there where employers offer relocation incentives, yet require buyers/sellers to use their “approved” agents in order to qualify.  Unfortunately, the relocation companies take a massive percentage of the agents’ commission – therefore you don’t have a great deal of top agents willing to participate in the program.

The seller had a few of the progam affiliated agents come out and give comp’s & suggest list prices in February…..let’s just say the market wasn’t anywhere near the numbers she was quoted – the median suggested value was more than 20% above where she should have been.  After the required 90 period the relocation program required her to use their affiliated agents was up she was fed up & ready for a change.

She called me & explained the situation. The seller had a home in Clarkston, just outside of I-285 (not too far from the Dekalb Farmer’s Market)….yet not really a location that had a lot of demand from buyers currently in the market.  I told her that I tend to give the brutally honest truth to sellers and don’t always have the information they find comfortable or exciting to hear, yet it is the true market activity & how they chose to act after hearing it is totally up to them. (For most sellers that means staying in their homes right now as they often are inverted or don’t want to lose all of the equity they’ve worked hard to achieve, which is totally understandable considering our current economy).

I developed the comparative market analysis & let the seller know that it would required more than a 20% reduction to even get in the range where buyers would consider her property…..and that wasn’t a guarantee that they’d pay that amount & even more importantly, that the home would actually appraise for that amount due to a lack of recent sales in the area of comparable properties.

My advice was either to rent the property for the foreseeable future or attempt the 20% price reduction and be prepared to cover Buyer Closing Costs up to 3% of sales price & some repairs (typically in the 1^st time homebuyer price range it is wise for seller’s to have $1,000-$1,500 set aside following the Buyer’s home inspection for additional repairs – as long as all of the mechanical, electrical, plumbing systems are working properly). 

2 Weeks later we had her home repositioned on the market & Buyer showing traffic increased from what she’d seen in the prior listing period. Within 3 weeks we had an offer on her property….we actually ended up with 2 offers on the property (one was too low – which helped reinforce the data I’d sent the now out of state seller as to how the values had significantly dropped in her area – plus there was a new foreclosure listing on her street). 

We were able to make one of the offers work – at roughly 98% of list and under contract in less than 30 days.  While many would celebrate….I looked at this at yes, the 1^st major hurdle – but far from the finish line.  We negotiated & addressed repairs following the Buyer’s Inspection, and then I got to what I considered the biggest hurdle….the FHA appraiser.

Since these appraisers can come from anywhere and have no intimate knowledge of the neighborhoods  I do my best to protect my clients interest & provide local knowledge to help ensure the appraisers are on the right track (some live in Macon or Acworth and then travel down into the city of Atlanta/metro area and conduct appraisals on areas they truly don’t know well at all – yet they look for comps within a 90 day window, sometime 180 day window in a specific radius of the property & don’t want to make more than a 15% adjustment on values).  It’s a tough job – banks are breathing down their necks because they’re scared to have bad notes/artificially inflated values, so the appraisers are looking to minimize risk by scrutinizing values and keeping them as low as possible, which may or may not support the sales price.  Considering the amount of work & time they have….I tend to try to assist in the process by providing my CMA of actives & solds along with distances from my listing, dates of sale, and a paragraph explaining the differences we’ve seen from actually having been in the other properties. 

I see this portion of the transaction one of the most value-added components of the process I provide to my clients, yet they usually don’t understand the importance of it – considering they see a buyer & themselves having already agreed to a price & are looking forward to a closing date. But believe me, if they suddenly lose an additional 10k-20k or even as much as 100k because an appraisal came in below the agreed upon sales price & the buyers couldn’t get financing for the deal…..they’d be devastated.

We were able to proceed with the closing, ensuring the seller didn’t have to make any more mortgage payments on a now vacant home & allowing her to move on with her life – which now could be focused 100% in the D.C. area.

It’s about being realistic, staying up to date with market data/trends, and being the eyes & ears for your clients – especially when they are no longer in the area.  We take an oath as realtors (not as mere licensed agents) to subscribe to a code of ethics & commit with our brokerage agreements to serve the best interest of our clients.  I take this responsibility very seriously & believe that when you are given the opportunity to positively impact the lives of others, especially when handling some of the largest financial decisions of their lives, you must live by the Platinum Rule (do onto others as they’d like for you to do on to them) & remember that when you do good, more good will come your way.

If you know someone facing the challenge of selling their home, while encountering challenging market conditions…. definitely if they are relocating out of the Metro-Atlanta area, please let me know & we’ll be happy to assist them during this important transition within their lives.

With recent appearances on Good Morning America, ABC World News, HGTV and in the AJC….I’m glad to know when we consistently deliver a truly value-added service, people take notice & appreciate our efforts.  My goal is to positively impact as many lives as possible in the Metro Atlanta area, 1 family at a time.

Call Mike for Results You’ll Like!

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

No one should claim the short sale process is simple, easy & quick….yet it’s a very necessary component in stabilizing our market & enabling people to transition onto the next chapter of their lives.

We work long hours & dealing with banks can be incredibly frustrating at time, which is why I keep thank you letters like the one below that I just received from a seller in Atlanta who we recently helped successfully complete a short sale posted on the walls in my office as a constant reminder of whom we’re helping. It helps to fuel the internal fire to push forward and find a way to be successful on each negotiation.

Time to keep fighting the good fight…..

“Hi Michael,

I do want to take this opportunity to thank you so much for all your diligent work in guiding me through a successful Short Sale. I understand that short sales require much more work for the realtor than a traditional sale and not all realtors are knowledgeable on the subject. But you fully understood the entire process and knew exactly what the banks would be looking for. You provided excellent guidance and council and were fully prepared to deliver to the bank/investor the necessary documentation to prove that we were delivering the best deal they could acquire.

I so much appreciate you continuing to negotiate after the bank asked me to sign a Promissory Note and pay a substantial amount of cash. 

Your final negotiations were a success and I was so amazed that I went to closing not owing a penny and relieved that BofA provided a waiver so I never have to worry about them coming after me with a deficiency judgment.

Thank you again for your professionalism, guidance, and council. I have and will continue to recommend you to anyone looking for an outstanding realtor!

Best Regards,

Sherry”

So, if there’s a “Sherry” in your life, or you identify personally with “Sherry” and are facing financial hardship and need assistance in avoiding foreclosure and negotiating a short sale in the Metro Atlanta Area, give Michael Neville a call (404)-310-8364 or drop an email (Mike@LiveInAtlantaGA.com ) .....let us do the heavy lifting, it’s our pleasure to relieve peoples’ burden & help stabilize our market in the process.

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Late last fall I was contacted by a woman who’d been surfing the web looking for a local short sale expert…when she came across info about my track record of success in the Atlanta area.  We discussed her situation over the phone – 2 years after being laid off, she’d thrown her hands up and admitted she needed help and had to get rid of the burden of her home mortgage.

My only disappointment in the whole situation is that she hadn’t contacted me earlier, as she’d been pulling money out of her retirement fund to pay the mortgage for nearly a year…..something I NEVER want to see my clients have to do.

We immediately qualified her & got the listing process started.  Her townhome community across from the Glenwood Park development in Glenwood Green, officially in Ormewood Park & close to East Atlanta Village, had been hit hard by declining values. 

We initiated a strategic price reduction schedule to ensure the bank knew we were attempting to get top dollar, yet have the supporting documentation to show how the listing appointments correlated with different price points. I’d informed the seller I anticipated exactly where offers would be accepted based on comps & thresholds of loan value recovery from the bank, it was a matter of being methodically so the bank would be in agreement with taking a nearly 50% loss on this loan.

We had low-ball offers & half-hearted offers, yet when they saw our required special stipulations & offer instructions those parties either retracted their offers or my seller respectfully declined them as we knew those weren’t serious candidates to commit to the process or reach approval from the bank.

By the end of March, we’d received a solid offer at exactly where I anticipated would be the bottom of the threshold (the outstanding mortgage was roughly 230k…the offer came in at 125k with 3k seller cc’s & standard commission…the bank would net roughly 113k).

We supplied all necessary documentation, provided a detailed packet prior to the bank BPO (some would refer to this as to as the equivalent bank’s own internal appraisal of value), and then received Bank of America’s response.

They approved the purchase & sale agreement, except they wanted another 18k in the form of a promissory note from the seller…..so it was time for more fun negotiations –after being proactive & praising the negotiator for prompt responses, it was time to clearly convey that someone who’d been depleting their lifesavings for over a year & no employment options on the horizon would not be bringing a dime to the table – yet this short sale ensured they’d save thousands on processing a foreclosures with attorney fees, eviction, holding costs in queue for being brought to market, as well as potential damage/theft to a vacant property, etc.

B of A came back 2 weeks later with a full approval, no promissory note, and a full discharge.  Thanks to clear lines of communication & setting the proper expectations, we were able to have the buyer’s side get their FHA loan completed within 3 weeks & closed this short sale just 3 days prior to the foreclosure auction date. From Contract to Close we got this short sale done in just over 2 months!

  ANOTHER SUCCESSFUL ATLANTA SHORT SALE NEGOTIATION!!!!!!!

This was a win for the seller getting out from over 100k in additional debt and avoiding further damage to her credit score, a win for the buyer who got in below other distressed property transactions closing around us (plus he got upgrades throughout & a move-in ready, well-cared-for home), and definitely a win for the realtors as I was able to protect our full commission & add to our legacy of successful short sales in the Atlanta market and know that we’re helping people move forward from difficult chapters in their lives.

The keys to a successful short sale are knowing the types of loan(s) involved, master servicer(s) …what many refer to as the bank – (yet most banks don’t actually hold the loan, it’s held by an investor & they just service the debt collection), the systematic approach to presenting documentation for approval & demonstrating the values are in line with optimal market position. Having a great closing attorney office in your corner helps tremendously as well, as they prep & revise HUD-1’s quickly & run preliminary title so you don’t waste your time on a short sale file that has countless liens that will stop you from reaching the closing table. My attorney of choice for all of my short sale listings is Travis Lackey of McLain & Merritt in Buckhead. Oh….it also doesn’t hurt to be persistent & have open lines of communication with clear expectations J

So, if you or anyone you know is facing financial hardship and need assistance in avoiding foreclosure and negotiating a short sale in the Metro Atlanta Area, give Michael Neville a call (404)-310-8364 or drop an email (Mike@LiveInAtlantaGA.com ) .....let us do the heavy lifting, it’s our pleasure to relieve peoples’ burden & help stabilize our market in the process.

Michael Neville

Realtor, CDPE, Short Sale Expert

Keller Williams Realty Atlanta Midtown

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Yesterday afternoon we shot the piece that aired this morning on Good Morning America.  4 Hours of taping condensed into less than 2 minutes almost ensures that part of the key components hit the editor's floor...so here' the rest you should know.

While we’d all love to buy a home for under $100,000 – it’s not always that simple.  The fundamental components to what I was interviewed on & aired this morning on Good Morning America was the fact that we are in an unprecedented period in time where people are capable of purchasing property with an incredibly large volume of homes on the market & with great interest rates.  The combination of these components leads to an unrivaled period in modern America to purchase a home.  The % of your total income that would be utilized to pay for principal, interest, tax, and insurance is a fraction of where it has been previously.

Without a doubt, people are able to cut their monthly expenses by purchasing a home in the current market rather than throwing money away as renters.  Now, there are people and situations that dictate whether people should rent rather than buy, yet for those who are ready, willing, able & have explored their exit strategies….right now is an absolutely incredible time to purchase a home or homes. 

Yes, that’s right – HOMES. This isn’t a secret, numerous experts & best-selling authors (Richard Kiyosaki and Gary Keller are the first 2 that come to mind) about the concept of creating passive income and long-term wealth by developing a portfolio of real estate.  The current market is a prime example of the “Buy & Hold” strategy where you can rental properties that create positive cash-flow instantly while paying down the principal loan amount on recently acquired investments.

For others, it’s about the opportunity to acquire their primary residence at incredible value – possibly cutting down their monthly expenses or finally being able to move-up to the neighborhood they never thought they could afford.  No matter the reason, Buyers ARE making those dreams a reality. 

The home featured in the Good Morning America segment is in the “Metro Atlanta” area – it actually is in Decatur, GA 30034 – OTP (Outside The Perimeter).  Depending on the distance from the heart of the city and the commercial infrastructure that was in place prior to the boom – the ripple effect following the crash could have ranged from what some would consider 5 foot waves to that of a Perfect Storm.  Areas that saw rapid expansion, cookie cutter large scale developments, massive predatory lending, and limited commercial infrastructure have been impacted in a devastating manner.

Historically, all cities grow systemically out as a common practice, and if there is a period of retraction….the property on the outskirts will experience the greatest drop off in value from the peak of the market.  For this reason, a home that previously sold for $180,000 – with refinances reaching well above $225,000 with supporting appraisals….can now drop as low as $50,000.

When buyers come in with their wishlist it can sometimes sound like this: “I want a 3 bedroom, 2 bath home in the heart of the Atlanta – possibly Virginia Highland or Inman Park for under $100,000 with granite counters and stainless steel appliances, can you make that happen for me?”….Rather than dismissing their dream, & trust me that request is a pipe dream for those neighborhoods where you’d be a hero for finding a quality home in the high 300’s or low 400’s that met the other initial criteria, it’s about asking “What are the key components for you? Have you looked at the recent sales/comps in these neighborhoods and those of the surrounding neighborhood? When can we conduct an initial consultation where we’ll walk you through the home-buying process scenarios in the current market & ensure you get pre-qualified for a loan if you require financing”  Basically, it’s about educating the buyers and then being able to assess their situation & desires. If the key is under 100k then we’re going to look at a completely different neighborhoods in Metro Atlanta, and they won’t have the high reputations of Virginia Highland or Inman Park.  If it’s about being in the heart of the city then we’re going to have to discuss price points and bed/bath count.  We had a “steal of a deal” for the Morningside neighborhood with a 4 bedroom/4 bath home with the rare 2 car drive under garage for just over 500k….but it’s all relative to where the values were, locations, and surrounding circumstances.

The condition of the properties makes a huge difference in how the buyer pool will respond, as well as impact what loans they can qualify for.  If a property is missing it’s hvac condensers, all built-in kitchen appliances (stove, dishwasher, refrigerator) then it more than likely won’t qualify for a very common 1^st time buyer loan…the traditional FHA loan.  You’ll notice I’m not saving NEVER, as HUD homes are allowed to have escrow accounts for repairs.  There’s also the FHA full 203k or 203k streamline, which are renovation loans….but there are additional expenses involved with these loans beyond what the traditional FHA loan involves.  Conventional loans can vary from lender to lender and there’s always the CASH Buyer, who often times in this market likes to flex his/her muscle by demonstrating the ability to close quickly and with limited/no contingencies in order to demand the lowest acquisition price possible.

Whatever the case may be, it helps tremendously to have experienced advocates on your side in the form of a great realtor & a quality lender that look for solutions to “speed bumps” rather than saying issues of a home is a complete roadblock.  There’s always a solution, it’s just a matter of evaluating the time and money involved to see if it’s ultimately worth it.

If you or someone you know is in need of an Expert Realtor to best serve their interests in Buying or Selling Real Estate in the Metro-Atlanta Market, please don’t hesitate to “Call Mike For Results You’ll Like!”

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

#1 Individual Realtor for KW Atlanta Midtown '09

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Short Sale Info & Avoiding Foreclosure: www.AtlantaDignifiedSolutions.com

Michael Neville goes beyond the "call of duty" for a seller.

He found me when I did not know I needed a realtor, gently guided me toward clarification of my amorphous goals, led me to state my needs for relocating, and even helped me empty my house after the sale.

To say that Michael Neville is a "full service" realtor is to understate.  Michael is a fine, well rounded human being who is tuned in to other human beings, their needs, and the variety of ways there are to meet human needs, not only for shelter, but for self expression, self fulfillment, and self knowledge. Allow him into your home and share your ideas about what your next steps might be. He's the man to see your dream through!  

Margo Dixon

* This was a letter of recommendation & validation I received from one of my recent clients whom I had the pleasure to assist.  I've had a handful of deals in the Morningside & Virginia Highland neighborhoods of Atlanta recently, and each is rewarding for its own reason.  Assisting Margo with the sale of her home was incredibly special & validating that we DO make a positive difference in peoples' lives through our work in real estate.  Having such a glowing endorsement is just icing on the cake.

If there's someone you know needing the assistance of a realtor in the Atlanta area & want them to be able to express similar sentiments after the experience is complete - please call or email me, Michael Neville, and it will be my pleasure to assist.

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

#1 Individual Realtor for KW Atlanta Midtown '09

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Short Sale Info & Avoiding Foreclosure: www.AtlantaDignifiedSolutions.com

So, I had a client who was a little savvier than some & who had a desire to reduce his monthly expenditures significantly.  He’s a single guy who has been spending just under $1,000 a month on rent.  We’ll call him Joe for the purposes of this blog entry.  Joe is a regular guy who doesn’t need or desire anything fancy.  He just wanted a place he can lay his head, that’s centrally located in the heart of Atlanta (only 5 minutes to his office), close to the nightlife of Buckhead & Midtown, preferably a gated-community, with reasonable HOA fees.

Joe’s idea was to get a 1 bedroom condo that would be adequate space for himself for the next few years & then he’d either look at renting the place or possibly selling….even if he just broke even or lost a few thousand at that time the economics I’m about to explain would be well worth it to him.

Joe’s goal was to buy a foreclosure condo in Atlanta for straight cash – thereby having NO monthly mortgage payment (nevermind the accrued interest on a loan) & he’d save on the closing costs as there’d be no loan origination fee involved either.  All Joe would have to pay for is his monthly HOA’s & the yearly taxes (which will be appealed to have them reduce the tax assessed value to more accurately reflect the current market value following the foreclosure acquisition).

There were a few developments in mind, especially in the Midtown area and leading up to Buckhead.  When it came down to it we wanted to keep the HOA’s as low as possible & found a great opportunity in the Collier Green development – only a few minutes from the heart of the city, just northeast of the Atlantic Station area.  We were able to acquire a move-in ready 1 bed/1 bath condo with stainless steel appliances in place for just over $30,000. 

Let’s break it down….combined HOA & Property taxes = roughly $325/month –even if Joe had done a 30-year mortgage on the property he would have had monthly expenses of roughly $500 for P.I.T.I (Principle, Interest, Tax, Insurance) & HOA’s a month --- roughly HALF of what he was currently paying a month on rent.  Buying at that rate would have saved Joe roughly $6,000 a year by purchasing rather than renting.

But….since Joe purchased with cash savings and has no mortgage, he’s saving roughly $675/month…meaning $8,100 in SAVINGS EVERY YEAR by OWNING rather than RENTING.

We’re blessed to have so much in this country that even a single person living in a 1 bedroom/1 bath condo is considered living well below their means, for others…..I’d say it’s just savvy living and positioning yourself to invest elsewhere – whether that’s investing in your retirement fund, purchasing another property, or enjoying a slightly higher quality of life with an extra meal out or trip….with plenty left in the piggy bank.

If you know someone trying to make a similar strategic move in the Atlanta area, please let me know and I’ll be happy to assist. It doesn’t necessarily have to be all the way down to a 30k property & $325/mo expenses, even if you just want to downsize from 350k to 150k –it can be done!

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

#1 Individual Realtor for KW Atlanta Midtown '09

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Short Sale Info & Avoiding Foreclosure: www.AtlantaDignifiedSolutions.com

I was contacted by a woman in the Fall about a few homes in the Kirkwood & East Atlanta neighborhoods that her mother had owned.  Now, as the executor of the estate - it was time to sell them and move on.  She'd seen my signs in the area & decided to give me a call. I'm not sure there are too many realtors willing to deal with the banks in a situation involving multiple liens and small properties (each less than 80k).

The outstanding loan balances on her mother's former primary residence was well more than double the market value, not to mention additional credit card debt, taxes, etc.  We were in for a "fun time" with Bank of America on this one.  Honestly, I usually enjoy dealing with Bank of America and the equator system compared to some of the other banks that can be even harder to reach/communicate with.

What was amazing is how many hands touched this file & directed it in the wrong channel or merely didn't read the obvious important facts......like the fact there was a death certificate, letter of testamentary, etc. --- so when they ask:

Why is the signature different than the original loan documents 20 years ago? (um...really -ok, I'll state it again - she is deceased & the executor signed everything --I was only asked this at least 15 times)

Does the signee still reside in the home? (again, she is deceased....as the death certificate indicates)

Where is the signee's 2010 tax returns & last 2 paycheck stubs? (um...again, she is deceased)

And so many more lovely questions where we had truly already answered them in Equator during the uploads & gave explanations/supporting docs....but the calls & emails from employees who are overworked, underpaid, and definitely not encouraged to take the time to process information & think were struggling to piece it all together for themselves.

It gets to be a little frustrating to continuously explain.....she is deceased, not to mention this is already an understandably emotional & trying chapter of her daughter's life - but to have the bank keep asking the same questions & even rejecting the short packet (don't worry we kept send it back in --unfortunately we ended up having to make the header of each page read "DECEASED - ESTATE SHORT SALE" just so they wouldn't keep trying to code it for loan modification, HAFA, etc.

We had BofA approve the 2nd lien position in just over 2 weeks!

We had BofA miscode/misdirect the 1st lien position for over 3 months - changing departments and then negotiators 6 times.....after a yet another error & denial of the packet - we made countless calls, resubmitted the packet, head an executive review of the previous mishandling & had it escalated - with an approval within 2 weeks.

It took 4 months - but in the end we had multiple loans & additional liens cleared to sell this Kirkwood home.

The 2nd property is about to be listed (no outstanding loans on this one thankfully).  But no matter what, if it's possible to get a short sale done so homeowners/their families can move forward with their lives - we are here to get it done. 100% of the short sales we listed in 2010 were approved & CLOSED. 

I am CDPE & fight hard to ensure my clients get the dignified solution they desire.  So if you or anyone you know is facing foreclosure in the Metropolitan Atlanta area just "Call Mike for Results You'll Like".  We handle short sales on single family homes, townhomes, condos, even multi-family developments.  Our favorites are the Jumbo Loan market negotiations. It takes a special touch to be able to get a bank negotiator to understand that taking a $300,000 loss on a $700,000 loan is truly in their best interest....but that's what we're here to do - so people can move forward with their lives & we can help to stabilize neighborhoods throughout the city.  It doesn't matter where you are: Morningside, Virginia Highland, Kirkwood, East Atlanta, Grant Park, Buckhead, or Brookhaven - Short Sales are impacting each neighborhood and will be a significant part of the real estate landscape for the next few years in the Atlanta area.

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

#1 Individual Realtor for KW Atlanta Midtown '09

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Short Sale Info & Avoiding Foreclosure: www.AtlantaDignifiedSolutions.com

Last summer, I was contacted via email by a woman well in to her retirement looking to know the value of her Morningside home.  She’d been in the home for the last three decades and wasn’t sure of what values were these days, especially with foreclosures and short sales impacting every segment of the market.

I offered to visit her home so I’d be able to then compile a list of comparable sales in the area.  What I entered into that summer afternoon was not merely a home, it was more of a portal back in time to the “good ol’ days” and the memorabilia of a 30 year marriage.  This wonderful woman was filled with countless stories about her husband, son & daughter in this home, a lot of information to digest, a color past & a hilarious sense of humor. 

 We’ll call her Mrs. Smith for the sake of privacy.  When I came in it was clear that Mr. & Mrs. Smith could have possibly been conservationists, while others may have considered it hoarding.  Thirty years of living was contained within these walls & every trinket you could imagine was there to document their lives in this home and honestly items all the way back to their school days too. 

Mrs. Smith escorted me around as I checked the condition, flow, usable space/square footage and improvements on the home.  Some rooms were literally filled floor to ceiling with items – Mr. Smith had always been incredibly resourceful and built countless contraptions/tools.  Mr. Smith was eco-friendly long before it was ever considered cool. Mrs. Smith had a unique hobby & collection of let’s say figurines which was endearing and sweet, but took up a tremendous amount of space.

While walking through the home Mrs. Smith revealed the real reason she wanted to know the value of the home was the fact it was time to sell and move on.  She’d had to place her husband, suffering from severe condition, in an assisted living facility as unfortunate as it was because Mr. Smith’s need were beyond what she could address on her own.

This was not merely going to be the sale of a classic home in a great intown neighborhood, this was going to be the physical and emotional transition of a woman who’d just had to be separated from her husband for the first time in 30 years.  Needless to say, this process was going to require care, understanding, patience, perspective, and an ability to think outside the box for solutions/strategies that aren’t used on a regular basis in the current market.

Over the next few months, Mrs. Smith and I would touch base every few weeks – with setting goals to have 1 room purged a month to eventually reach a point where we could consider bringing real estate agents in to preview the home….as it would be several more months, if not a year, before the home could be “show worthy” for the FMLS.  Friends, other agents, & neighbors had suggested getting a professional company to purge everything. Heck, the thought crossed my mind more than a few times. But, it was clear if you sat down with Mrs. Smith and truly listened to her, she needed to do this in her own way – 1 box at a time. 

It wasn’t the financial expense of a cleaning crew that was the major barrier. It was the fact that Mrs. Smith needed to be able to say good-bye to her husband, her family memories, and so much more one box at a time.  Without acknowledging the keepsakes in each box – the reflection on people and events near and dear to her, Mrs. Smith would not be able to move forward to the next chapter of her life & respectfully say farewell to the past.

Between trips to the recycling stations and giving away things via the internet, there were requests for assistance with moving heavy items or boxes to be brought up from the basement so Mrs. Smith could sift through everything and whenever I came by to assist I knew each visit would include a few special stories.

The stories ran the gamut from stories about inventions Mr. Smith had created for around the home or at Georgia Tech, the family lineage having to change names & religions to avoid persecution more than 70 years ago, to her travels across the country.  Heck, there were pictures & stories about her mother in school back in the 1920’s, an old record player & records (45’s), each with its own wonderful story.  While in today’s society we’re always in a rush to get to the next thing, I knew it was critical that Mrs. Smith have the opportunity to reflect and share these stories.  They were a source of pride, humor, heartache, and those emotions needed to be shared.  Each trip had a therapeutic quality to it as I could see Mrs. Smith facing this chapter of transition and reflecting on everything over the last 30 years of marriage and seven decades of life.  It was a unique opportunity to learn about topics & events from her, while providing Mrs. Smith with an outlet to come to terms with everything and identify more about who she is today rather than who she was in years past.

 The interesting thing about moving, is it helps individuals take stock of the people who’ve surrounded them regularly for a long time.  For Mrs. Smith, those contacts began to show their true sentiments and the strength of the bond of “friendship”.  She’d joke regularly about how much she’d been lost for so many years in a manner of allowing certain people drag her down. They’d developed routines of speaking with her every day for years, yet never had anything positive to say……she was going to be happy to move and have a new phone number in a different state to help snap that cycle of negativity.  Others, showed their love, compassion, and character by offering to help, take her out for lunch/diner, or just to visit.  After 30 years with your spouse – living by yourself can be understandably incredibly lonely.  Thankfully, Mrs. Smith had one of the cutest puppies ever to help fill the void as well.  We’ll call the puppy Snoopy. I’m not a dog person, but Snoopy was one of the most lovable little guys in the world.  He was high energy, yet not out of control. He didn’t bark much, except out of excitement when you came to the front door.  And he loved to be petted.  He’d often sit at Mrs. Smith feet when we talked, or when she was having a difficult time sharing an emotional story Snoopy would pop up on the couch next to her at just the right moment to snuggle with her and be by her side.

By late Fall/early Winter we’d reached a point where other brokers could preview the home.  I’d brought two colleagues by about a month earlier prior to the home truly being in even a pre-marketing stage.  I wanted their input on a few things & honestly I knew the bones/flow of the home were solid and their presence would probably motivate Mrs. Smith to push through on continuing to purge, which she then kicked into overdrive.  We call these “pocket listings”, where you already have a brokerage agreement signed but the official marketing is scheduled to begin at some time in the future.  Pocket listings have a special quality to them if they are a true value deal that excites Buyers to take action.  For all of those that could look past the countless boxes & 50+ years of collectibles, this was one of those true values….it just required a little vision.

We made it simple, with a private viewing party for specially identified realtors with a track record of activity in the Morningside area & other realtors who may not necessarily have active clients but know a great deal of realtors that in turn have ready, willing, and able buyers for the Virginia Highland & Morningside neighborhoods. With a price that reflected an acknowledgment of where the market truly is, as well as enable Mrs. Smith, the seller, to dictate certain terms – including: limited interference in her personal life with a consolidated showing schedule for only serious buyers (no “looky lou’s or curious neighbors), a very extended closing (a lifetime of possessions still to pack up or purge between going under contract, close, and extended exit date…which ultimately ended up being a 3 month period), limited repairs, etc.

There were a few moments of clarity for Mr. Smith as Mrs. Smith would visit him in the assisting living facility & his words gave proof that he truly loved Mrs. Smith and wanted to ensure that SHE was going to be okay and cared for.  Even though Mr. Smith was the one who needed the daily assistance, he still clearly saw his role as the protector and provider for his wife.  This was humbling to be a part of and helped put a number of things/relationships in my own life in perspective. 

In the end, Mrs. Smith was able to move forward to a new chapter of life with an ability to chase a dream that many had dismissed or thought was far-fetched.  In my opinion, it is inspiring to see a woman willing to step out into the unknown and look to fulfill a vision she’d had for years but never had the time/focus to pursue.  From all of the stories she shared with me over our time together it was clear she was a resourceful, intelligent, and colorful woman that would find a way to make her dream a reality one way or another.  And there’s absolutely no reason at her stage in life she should live with anymore “what if’s”, instead she’ll be able to say “I’m glad I did”, with Snoopy by her side keeping her company and making her laugh.

This is one of the most fulfilling home sales I’ve ever had the pleasure of assisting in. It was one of the best reminders of why I entered the world of real estate, to assist people in critical periods of transition with some of the largest financial decisions of their lives while ensuring their best interests are protected.  For that, I thank you Mrs. Smith.

If you know a Mr. or Mrs. Smith that needs similar assistance in Morningside, Virginia Highland, or any other intown Atlanta neighborhood please let me know. It will be my honor to assist them in a similar home sale and each component of the process will be handled with the utmost care and respect.

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

#1 Individual Realtor for KW Atlanta Midtown '09

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Short Sale Info & Avoiding Foreclosure: www.AtlantaDignifiedSolutions.com

It's 2011 & time to save you some money!!! Each year I'm amazed by how many people haven't been informed that they need to file for their homestead exemption on their primary residence. You may remember at closing that I promised to follow up with you at the beginning of the year because this exemption can save you a small fortune if you file for it (it's only for your primary residence and will renew every year..no need re-apply as long as the home remains your primary residence.)

There are a number of people who don't seem to know this or aren't sure how to do it - so please, if you have friends who purchased in the last 12-24 months pass this post along to them, even if they didn't use my services previously it's okay -- they still deserve to be guided/protected & save some money :)

Each county has different rules & applications ....even within the county things can be different - as an example - Fulton County/City of Atlanta only requires 1 application through (instructions & links to the important websites are below for each situation).

In order to submit your application, your motor vehicles must be registered to the county where you claim homestead exemption (some counties will automatically change your tags for you when you apply others will want proof prior to processing your application)

For Cobb County you must apply by April 1 to receive the exemption for that tax year.

City of Marietta, Austell, Acworth, Smyrna, Kennesaw and Powder Springs residents must also apply for any city exemptions with the city tax office.

The Cobb County Tax Commissioner's office mails Homestead Exemption applications around the end of January to homeowners on record who purchased or transferred property the previous year.  If you do not receive an application you can print one from the following website or call (770) 528-8600 to request one.  http://www.cobbtax.org/forms/htmlframe.aspx?mode=content/generalinfotax.htm

The applicant's name must appear on the deed to this property in order to qualify.  By law, you must pay your motor vehicle taxes in the county where you claim Homestead Exemption.  A current registration or receipt of motor vehicle taxes paid in Cobb County must be provided for all personal vehicles you own at the time you apply for exemptions.  You must also provide legal evidence of residency and United States citizenship, such as a Georgia driver's license, Georgia ID card, etc.

Homeowners can apply for most exemptions by Certified Mail, or you can visit our office at 736 Whitlock Avenue, Suite 100, Marietta, GA.  Our mailing address is P O Box 649, Marietta, GA  30061-0649.  Applications can also be completed at the East and South Cobb Government Service Centers located at 4400 Lower Roswell Road and 4700 Austell Road.  Applications must be received or postmarked by April 1, 2011 to affect taxes for the 2011 tax year.

For City of Marietta Residence they must also apply separately with the City. You can use the links below:

http://www.mariettaga.gov/services/forms.aspx (Bottom of the page for homestead exemption)

Here’s a link for the actual application in pdf form: http://www.mariettaga.gov/departments/finance/tax/docs/exemption.pdf

If you have questions feel free to county the county offices or just give me a call.

Michael Neville

Real Estate Consultant

Keller Williams Realty Atlanta Midtown

#1 Individual Realtor for KW Atlanta Midtown '09

404-310-8364

Mike@LiveInAtlantaGA.com

www.LiveInAtlantaGA.com  (website)

http://activerain.com/blogs/mpneville (blog)

Short Sale Info & Avoiding Foreclosure: www.AtlantaDignifiedSolutions.com