Noel's Blog

4 Important Tips for Repairing Your Credit

Noel Crider (Keller Williams Realty) — Sun, 15 Nov 2009 20:02:14 -0600

By Scott Cooper

Scott is a regular contributor to my blog.

Credit repair does not have to be complex and can be boiled down two basic ideas: First, positive accounts will counteract the negative accounts. Second, time heals all credit.

If you have positive accounts, keep them. Do not close any accounts that have good payment histories as they will help balance the negative. In addition, older, unused accounts with a zero balance may help improve your score.
If some of your positive accounts are credit cards, keep the balances below 50% by paying them down, or transfer part of the balance to another card so the balance does not exceed 50% of the limit.
If you do not have at least 3 accounts that report to the credit reporting agencies, open up more accounts. With negative credit, opening new accounts may be difficult, so open a "secured" credit card. With a "secured" credit card you will need to send the credit card company a specific amount of money, and then you will receive a credit card in that amount. The new accounts will help you establish a positive credit history.
WAIT. While this may not seem like a plan packed with insider secrets, the fact of the matter is...time heals credit. Remember, this is a marathon not a sprint. If you maintain at least 3 accounts with perfect payments, your credit will progressively improve.

So, now you are 2 to 3 years in the future and what is the payoff for sticking to the plan? Your credit will be good enough to buy a home again. Don't let the setback of a short sale or foreclosure make you feel hopeless. You have options, and with the proper course of action, you may become a homeowner again much sooner than you thought possible.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

Buying a home after a Short Sale or Foreclosure???

Noel Crider (Keller Williams Realty) — Sun, 15 Nov 2009 19:29:55 -0600

by Scott Cooper, Big Valley Mortgage

Scott is a featured contributor to my blog.

Many people believe they won't be able to purchase a home for at least 7-10 years after a short sale or foreclosure, however, I am happy to inform you that is not the case.

Although your credit will be affected, you will be surprised how quickly you can buy again. The following are some commonly asked questions and answers you may find useful:

Q. How long after a short sale before I can buy another home?

A. New FHA guidelines state there is no minimum wait period after a short sale before you can buy another home if you do not have late payments on your mortgage and your credit history is acceptable.

Q. If I have late payments along with a short sale, how long before I can buy again?

A. The current guidelines require a two-year waiting period.

Q. How long after a foreclosure before I can buy again?

A. With an FHA loan, the minimum wait period is 3 years after a foreclosure.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

5 Tips to Getting Your Short Sale Offer Accepted

Noel Crider (Keller Williams Realty) — Tue, 03 Nov 2009 13:32:31 -0600

Why is it so competitive for buyers? The answer is that 68% of distress sales are receiving multiple offers. This is especially true in the affordable home range. Here are some strategies for your offer to make its way to the top of the pile.

Ask your lender to provide FULL loan approval and submit it with your offer. Your offer will have a huge advantage over others because it shows that financing will not be an issue in closing the transaction.
Submit your offer with Direct Lender approval. If your lender is not a direct lender, you can seek a preapproval from a direct lender, such as Bank of America, but you are under no obligation to use that lender.
Use Rebate Pricing to help pay for closing costs and minimize seller contribution. As a buyer you pay a slightly higher interest rate (.25 or so) and the lender credits additional commission back the buyer to assist with closing costs.
Ask your lender to contact the listing agent on each offer you submit. A good lender will communicate the highlights of you as the borrower and instill confidence about closing on time.
Communicate to the seller through your Realtor® that you are a committed buyer and will stay the course through the sometimes difficult transactions we are experiencing in this market.

If you have questions, or need a referral to a lender who can assist you with this high level of service, contact me and I will forward you on to the right person.

Will the First-Time Homebuyer Credit be Extended?

Noel Crider (Keller Williams Realty) — Tue, 03 Nov 2009 13:18:28 -0600

"First-time buyers would continue to get an $8,000 credit, while repeat buyers of primary residences would be eligible for a credit of $6,500."

In an article on the CNBC website, we are told that key senators have agreed to extend the popular first time homebuyer tax credit through April of next year. In addition, the credit will apply to non-first time homebuyers in the amount of $6,500 for the purchase of primary residences. First time homebuyers make up a large percentage of home purchases, and extending it is key in keeping the housing market going. Read the entire article here. If you would like more information on taking advantage of the credit, give me a call!

How do I file for the First Time Homebuyer Tax Credit?

Noel Crider (Keller Williams Realty) — Tue, 03 Nov 2009 13:15:04 -0600

If you are a First Time Homebuyer who qualifies for the First Time Homebuyer Tax Credit, here's how to file and receive your credit.

You have two choices: you can file to amend your 2008 tax return, or wait and file in 2009.

How to amend your 2008 tax return:

Download Form 5405 "First -Time Homebuyer Credit" from the IRS website. Use this link to determine the amount of your credit.
Then download Form 1040X "Amended U.S. Individual Income Tax Return" to amend your 2008 return.
Fill out the amended credit amount on Line 15 under Payments.
File Form 1040X along with Form 5405.
Any refund due will be sent to you.

Filing for your credit in 2009:

File Form 1040 as usual.
On Line 69, enter the amount of your credit calculated using Form 5405;
Be sure to attach Form 5405 to your return.
Your refund will be sent to you.

Be sure to consult your tax professional for further information.

Contact me for assistance in purchasing your first home.

9 Alternatives to Foreclosure - Things to think about before you "Just Walk Away."

Noel Crider (Keller Williams Realty) — Mon, 19 Oct 2009 10:22:26 -0500

Before you decide to "Just Walk Away," here are some alternatives that you might not have considered that could reduce the negative impact to your credit score, and allow you to get back in the housing market sooner.

1. Loan modification - The lender and the homeowner agree to change one or more of the original terms of the note in order to make payments more affordable. (Be careful when hiring a loan modification company!) Common loan modifications include:

Adding missed payments on top of the existing loan balance
Turning an adjustable-rate mortgage into a fixed-rate mortgage
Extending the number of years the homeowner has to repay the loan

2. Forbearance - This allows the homeowner to pay less than the full amount of their mortgage payment temporarily for a prescribed period of time. Forbearance might be considered if the homeowner can show there is some source of future income that will bring the mortgage payments current.

3. Reinstatement - The homeowner brings current the amount they are behind, usually by an agreed upon date. A reinstatement is often in conjunction with forbearance.

4. Repayment plan- The lender gives the homeowner an agreed upon period of time to repay the amount they are behind by combining the homeowner's delinquent portion along with their regular monthly payment. At the end of the repayment period, the homeowner should then be current.

5. Refinance - Refinancing requires income, credit and equity to support a new mortgage or deed of trust. If your current income cannot pay your present mortgage, it may be difficult to convince another lender to offer you a loan with a reasonable interest rate. Based upon the tightening of qualifying criteria for loan applications, refinancing in today's market is becoming less and less of a viable option. It goes without saying that the only reason to refinance is to lower your monthly payment.

6. Short-Refi - This is the latest trend for lenders in working with delinquent borrowers to avoid foreclosure. The lender agrees to refinance the home with a reduction in the principal balance. Sometimes the lender will also reduce the interest rate as well on the new loan. The borrower needs to provide proof of a "hardship" and fully document the ability to pay the new mortgage.

7. Short Sale- If the sale proceeds are less than the total amount owed to the lender, the lender(s) may agree to a short payoff or "short sale" and write off the portion of homeowner's mortgage that exceeds the net proceeds from the sale.

8. Deed-in-lieu of Foreclosure - If the homeowner agrees to voluntarily transfer title of the property to the lender in exchange for cancellation of their mortgage debt, the lender may agree to a deed-in-lieu of foreclosure. In most cases though, the homeowner must attempt to sell the home for its fair market value first (at least 90 days before a lender will consider this option). This option might not be available if there are other liens on the home, such as judgments, second mortgages or tax liens.

9. Bankruptcy - A bankruptcy may allow the homeowner to discharge some debt and reorganize others to keep the property. However, if a homeowner doesn't or can't make the house payment after the bankruptcy, the home is foreclosed on anyway. It is not recommend for real estate agents to list the property and try to negotiate a short sale while the homeowner is going through this process. Homeowners need to seek legal counsel if they want to pursue this option.

Contact me if you have any questions, or need a referral to a trusted professional such as a loan modification specialist or bankruptcy attorney.

What is a Short Sale?

Noel Crider (Keller Williams Realty) — Mon, 19 Oct 2009 10:12:15 -0500

Are you considering a short sale? Here are some basics to get you started.

What is a short sale?

When a homeowner owes more on their mortgage than their home can sell for in the current market (a.k.a, upside-down), the homeowner can try to avoid foreclosure by negotiating with the lender to accept a "short" payoff.

Are you a candidate for a short sale? Ask yourself this question:

Do you have a true hardship that is keeping you from making your payments?
Think job loss, job transfer, illness, or other challenge. Discuss your particular situation with your lender. Loss in value due to market condition does not qualify as hardship.

What do you need to do to prepare for a short sale?

First, find a Realtor® who is experienced with the short sale process, who knows how to negotiate with banks, and will be your partner to get the transaction closed.
With the help of your Realtor®, compile your hardship letter and other necessary documentation which comprises the Short Sale Packet.

What goes in your hardship letter?

In your own words (and in your own handwriting is best), describe the circumstances that have caused you to be unable to make your monthly mortgage payments.
Be personal and sincere about your situation, and include as much detail as possible. We want them to want to help you.

What goes into the necessary Short Sale documentation packet?

Proof of income & assets, including:
- Bank Statements
- Pay Stubs
- Assets (investment accounts, stocks, CDs, other properties)
Proof of hardship, which might include:
- Bills
- Unemployment Records
- Death certificates
- Divorce papers
Preliminary net sheet, prepared by your Realtor®, reflecting the price you hope to get, less the cost of the sale. Include a comparative market analysis, prepared by your Realtor®.

Prepare your home for sale

With the help of your Realtor®, price your house to generate an offer.
Prepare your home for sale.
If you do not get showings and/or an offer in the first 2-3 weeks, lower the price.
Keep lowering the price until you receive an offer.

Submit offer to the bank along with the short sale package

Your experienced Short Sale Realtor® will take it from here
- They will submit the package to the bank
- They will follow up to make sure it has been received
- They will be assigned an asset manager with whom they will communicate throughout the short sale negotiation
- If all goes well, the lender will approve the short payoff, and your Realtor will follow the transaction through to a successful close

For more information, contact short sale specialist Noel Crider or visit my website at http://www.viewfromthefoothills.com.

Marketing advice for a luxury home rookie...

Noel Crider (Keller Williams Realty) — Wed, 19 Mar 2008 10:28:03 -0500

I have an opportunity to propose a marketing plan to a current client (spec builder) who is finishing a home in the $2.8M range in California. Does anyone have any great luxury marketing resources and/or advice for me? I am scouring the web for ideas and resources. Thanks in advance.

A short sale miracle!

Noel Crider (Keller Williams Realty) — Tue, 18 Mar 2008 19:59:33 -0500

On Friday, March 8th, I placed the first call to the lender on my short sale listing, with listing agreement, offer, hardship letter and authorization in hand (along with all other required paperwork). Tuesday, March 12th I had the first call from my point of contact. Friday, March 14th I had an approval letter in my email inbox!!! And all of this happened with politeness and efficiency, contrary to all of the groans of misery and frustration I hear around my real estate community. Now I wait for response on the four offers I have out there on other short sale opportunities. Back to the real world. But hey, there's hope! Maybe lenders are starting to realize that if they drag their feet too long, the buyer will be long gone.

Any Senior Real Estate Specialists out there?

Noel Crider (Keller Williams Realty) — Tue, 18 Mar 2008 19:28:43 -0500

Hi KW family! I would like to set up a referral network of KW agents who are specially trained with an SRES designation to cater to the Senior community. My goal is to have a national network of lead agents who have set up a team of ancillary service providers who they know are kind, patient, honest and big-hearted, and who love seniors. These include a home stager, professional organizer/down-sizer, financial counselor, trust attorney, among others. Are you or someone you know in that category? If so, let me know! We are in the infancy stage, but I am excited about the future. This market segment is growing, and it is somewhat economy proof. I am closing my first deal this month from a senior seminar that my stager, organizer & I put on a couple of months ago. It was a blast!