Buying Rhode Island & Southeastern Massachusetts Real Estate

"UP TO" $8000 - it is not an across the board $8000 first time home buyers tax credit.

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 09 Nov 2009 15:12:42 -0600

This is true for both the first time buyer credit, and the existing buyer credit... the amounts bantered about are MAX amounts, and not every purchase will get these amounts. Thought I would reblog this...

Via Kris Wales - Macomb County MI real estate blog & homes for sale search site (Keller Williams Realty - Lakeside Market Center):

One of the common misconceptions for home buyers (and some real estate professionals) is that the first time home buyers tax credit is $8000 for all buyers.

When reading the fine print of the IRS form 5405 there is an entry line to fill out asking for the smaller of 2 items: $8000 or 10% of the purchase price.

An example: Mr. Smith purchases a home for $65,000. If he meets the criteria to receive
the 1st time home buyers tax credit he would enter $6500 on line #1 of form 5405. If Mr.
Smith purchased a home for $90,000 then he would enter $8000 on that line.

Reiterating: The tax credit is for 10% of the purchase price of the home up to $8000. It is not a full $8000 for every home buyer.

Let's all help to stop the confusion to home buyers by using the words "Up to" in our articles.

Edit: The chart that NAR put out for their members to use states "$8000" but it doesn't say "Up to $8000". You may want to add the language to your own charts for accuracy.

Contact Kris Wales - A partner for your real estate needs in Macomb County MI

Search Macomb County MI homes for Sale with MLS provided data updated daily.

Want to chat about local real estate? Visit A Macomb County MI real estate blog

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Featured Listings: Rhode Island Real Estate

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 09 Nov 2009 15:08:30 -0600

Today I am starting a series of posts to provide links to our listings in Rhode Island and Southeastern MA... For today, I am featuring just Rhode Island real estate. Each week I will post other listings our agents have for sale.

For today:

24 Gallup Street, in South Providence (02805) -- 2 family house with 1st floor unit having 3 bedrooms, and the 2nd-3rd floor townhouse style unit having 4 bedrooms. The owner is also selling the vacant adjacent lot. For the house, $99.900. For the adjacent vacant lot: $36,500. If a single buyer acquires both, the seller is willing to negotiate the price of the parcel and house. See listing info: 24 Gallup Street Providence RI 02905

50 Mohr Street, Johnston RI (02919) -- Lakefront property on Oak Swamp Reservoir, with 2 docks for boating. 3 bed 2 bath, with detached garage and Gazeebo. Fanastic views. Classic library with built in mahagony book shelves. Wood buring stove. Marble fireplace. Reduced to $299,900. Will sell fast. See listing info: 50 Mohr Street, Johnston, RI 02919

20 Hall Avenue, in Warren Rhode Island (02885) -- Waterfront on Belcher's Cove. Multiunit capability, with 2 built out units currently existing. 2 buildings. Used to be a lumber mill. Possible 3rd and 4th units. Reduced to $299,900. Great investment property. See listing info: 20 Hall Avenue Warren RI 02885

Please call Mandie Sullivan, 401-293-0631, for details on these properties. I will be posting additional properties each week. Thanks.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Home Buyer Tax Credits Expanded and Extended

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 09 Nov 2009 08:13:20 -0600

The tax credit for first time homebuyers has been extended, and enlarged to allow hoigher income folks to receive the benefit. In addition, the credit has been extended now to existing homeowners who purhcase a new home. Here are some details:

First-time homebuyers

Most details for first-time homebuyers mirror the rules currently in existence. The maximum tax credit remains $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a “first-time buyer.”

• A purchase must be under contract by April 30, 2010.

• A purchase under contract by April 30 must close no later than June 30, 2010.

• After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.

• Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home’s cost.

Current homeowner tax credit

An existing homeowner who purchases a home may now claim a tax credit of up to $6,500. To qualify, that owner must have owned and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.

• This new tax credit is effective immediately. Eligible homebuyers do not have to wait until Dec. 1 to close in order to qualify.

• Personal income limits, maximum home value, and contract/closing deadlines are the same as those for first-time homebuyers.

Additional changes

The tax credit extension includes other new rules, such as:

• The new law also impacts dependent purchases of homes, which weren’t addressed under the old rules.

• The new law requires a buyer to attach documentation about the home purchase to his or her income tax return. An audit found that some buyers are claiming the tax credit when they don’t deserve it, and investigators continue to seek out fraud. To minimize tax abuse going forward, buyers won’t receive the credit without submitting proof to the Internal Revenue Service (IRS).

The homebuyer tax credit is collected as part of the normal income tax process. As a credit, it’s calculated separately from an individual’s income tax, and paid regardless of taxes owed or withheld from income. As always, however, only a tax planner can render specific advice to anyone seeking the credit. For more information on the credit, contact a tax planner or visit the IRS website at: http://www.irs.gov.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Jury Duty Scam Verified By The FBI - Identity Thieves

Rhode Island Real Estate -- Focus Professionals, Inc. — Thu, 29 Oct 2009 14:41:13 -0500

Thought this was worthwhile...

Via Heath Coker, Real Estate Broker (REindex.com & Cape Group Real Estate):

The FBI has verified, on their web site, that there is a "Jury Duty Scam". This is a phone related scam, so if you know anyone who doesn't use the Internet, especially older people, you should make sure they do not become a victim. The caller claims to be a court officer, and then accuses the victim of missing a jury duty appointment. After the victim is sufficiently worried about failing to report for jury duty, the caller then suggests that they verify if they have the correct person. It is at that point that they ask for ss number, birth date, and sometimes even credit information.

The caller works the conversation into a threat of a fine that can be paid over the phone by a credit card. What is amazing is that this has been going on in some form since early 2005! If you have one of these calls, or know someone who has, one thing to do is *69 after you hang up. This will give you the phone number that the call was made from. Then contact the FBI and report the incident.

You can also use *57 which records the phone call at the phone company as a "call trace". One web site says: "When you activate the Call Trace code (*57) immediately following the harassing call, the caller's phone number is recorded by the phone company." But *57 doesn't give you the phone number. The phone company has to get an authorization form before the harasser's phone number can be turned over to law enforcement and there may be a fee. Some phone companies charge you each time you use Call Trace and others have a monthly charge for an unlimited number of traces.

If the phone number is blocked, tracing the call may help the FBI or other law enforcement agencies gather enough information to go after the schemers even from the perspective of "Do Not Call" fines and penalties, especially if your phone is on the DNC list. In any case, don't get your identity stolen this way. Tell someone who might be a victim to be careful, too.
Heath Coker, Owner of Cape Group Real Estate
www.CapeGroup.com / capegroup@capegroup.com
508-548-8888 Licensed in MA
Its a beautiful day on Cape Cod!
@CapeGroup

REindex.com, The Site Engine®
508-495-1000 reindex@reindex.com
See our 2 Minute YouTube www.REindex.com/WhatIsREindex.html
@RealEstateIndex

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Open House: 1618 Fish Road Tiverton RI Sunday Oct 25th 1pm to 3pm

Rhode Island Real Estate -- Focus Professionals, Inc. — Fri, 23 Oct 2009 14:53:34 -0500

One of my agents is hosting an open house on Sunday, October 25th from 1:00PM till 3:00PM at 1618 Fish Road in Tiverton RI. This 2 bedroom house on just under an acre has been newly rennovated. Mandie Sullivan is the hostess for the open house, and we find this house to be a great location at a great price, and we welcome all comers.

The location is right off Route 24, about 20 minutes from downtown Providence and about the same to Newport. Boston is about an hour away.

The price has been reduced recently: See our listing information at http://www.homesalesri.com/CurrList_listing_5.php

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Welcome aboard: New Agent: Nancy Rosedale. New Broker: Glenn Russell

Rhode Island Real Estate -- Focus Professionals, Inc. — Fri, 23 Oct 2009 13:31:46 -0500

I wanted to take a moment to welcome Nancy Rosedale aboard to our real estate firm. She comes to us with 18 yrs experience as a mortgage loan originator, now affiliated with Shamrock Mortgage, with many years of experience as a property investor, owning a number of multi unit apartment buildings, and with great experience in real estate sales.

Nancy will be working the Northern Rhode Island region, from Providence North, and the Southeastern Massachusetts region, including Bristol County and the Cape. She will be working with buyers, listings, and of course, investors. She has been doing a large number of BPOs for foreclosed properties as well, and will continue to do so. Welcome Aboard Nancy!

We also want to welcome Glenn Russell to the world of brokers in RI... Glenn has been a Broker with us in Massachusetts for several years now, and just received his Rhode Island Brokers license this week. Congratulations Glenn on a job well done. Glenn is also a practicing attorney in MA, and has been handling a variety of property related cases there, including a land related suit that is precedent setting. We expect to hear about Glenn's work in this regard in the local and perhaps national media over the next few weeks.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Property flipping guidelines extended by FHA until May 2010! What does this mean?

Rhode Island Real Estate -- Focus Professionals, Inc. — Fri, 09 Oct 2009 13:20:16 -0500

Interesting notes on Property Flipping FHA Guidelines... Reblogged...

Via Colleen Craig (Southern California Mortgage Professional):

Property Flipping guidelines extended by FHA , until May 2010! What does this mean and who does this affect?

What is property flipping?

No .......it's not flipping your home with another couple as seen in trading spaces on TLC!



FHA GUIDELINES STATE THE FOLLOWING:

Property flipping is a practice whereby a recently acquired property is resold, often for a considerable profit.

Most property flipping occurs within days or a few weeks of acquisition and usually with only minor cosmetic improvements, if any.

While there is nothing illegal with selling properties within days of acquisition, some of these transactions are fraudulent because the condition of the property is misrepresented and/or the value of it is artificially inflated.

Effective June 9, 2008, FHA temporarily waived the property flipping rule 90-day waiting period, for homes that were foreclosed on and being sold by lenders or by property disposition firms on the behalf of lenders.

So if you have a property that was purchased by an individual investor,  or investment group, you must must wait 90 days to DO ANYTHING! We can not order an appraisal or case #, we can't open escrow, order title or apply for the mortgage. You can't even draw up the contract, or do inspections or the buyer will be in jeopardy of losing their deposit. There basically can be no record of any sale during that 90 day timeframe.

This has become an issue in recent months because of the lack of knowledge of the guidelines along with the anxiousness of all parties involved.   Day 91 is when it can all begin unless the exceptions apply.

We CAN however, apply for the mortgage with a property "to be determined "and get the buyer PRE-APPROVED.

So keep this in mind when you are putting your deal together and expecting your lender to jump through hoops on day 91 and close in two weeks!





The waiver applies to owner occupants only and does not apply to people/entities that purchase foreclosures either singly or in bulk for resale. Subsequent sales of such properties will continue to be subject to the standard regulatory requirements.

The temporary property flipping waiver has been extended and FHA will recognize sales agreements on foreclosed properties signed by the seller and buyer on or before May 10, 2010.

             Do you want more BORING                      but pertinent facts you MUST know if you encounter a flip     ????

The only exceptions to the FHA property flipping rule are:

1. Properties acquired by an employer or relocation agency in connection with the relocation of an employee.
2. Re-sales by HUD under its Real Estate Owned (REO) program. There are LOTS out there! And most homes can benefit from an FHA 203k streamline loan!

3. Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies.

4. HUD REO properties that were purchased by nonprofits at a discount with resale restrictions.

5. Sales of properties that are acquired by the seller through inheritance.

6. Sales of properties by state and federally-chartered financial institutions and government sponsored enterprises.

7. Sales of properties by local and state government agencies.

8. Sales of properties within Presidentially Declared Disaster Areas.

9. The restrictions do not apply to a builder selling a newly built home or building a home for a borrower.

10. The sale must be by the owner of record.

11. Appraisers are required to analyze any prior sales of a subject property in the previous three years for one to four family residential properties.

12. A lender must obtain a second appraisal by another appraiser if:
the re-sale date of a property is between 91 and 180 days following the acquisition of the property by the seller, and
the resale price is 100 percent or more over the price paid by the seller when the property was acquired
FHA reserves the right to require additional documentation from a lender to support the resale value of a property if:
the resale date is more than 90 days after the date of acquisition by the seller, but before the end of the twelfth month following the date of acquisition, and the resale price is 5 percent or greater than the lowest sale price of the property during the preceding 12 months.

Any subsequent re-sales of the properties must meet the 90 day threshold in order for the mortgage to be eligible as security for FHA insurance.

So remember to do your research!  We are the professionals and it is our job to know this information for our consumers. We will save time, money and problems if we know this up front.

Happy Selling, buying and financing peeps!



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Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Banks Making Short Sales Tougher: Will we see an increase in Strategic Defaults?

Rhode Island Real Estate -- Focus Professionals, Inc. — Fri, 09 Oct 2009 13:06:07 -0500

Below is a news brief published by Busines Week Magazine today. My question is, if the banks make it harder to obtain a short sale, will this adversely affect the rate of foreclosures? Perhaps an "unintended Consequence" of making short sales tougher to gain permission on will result in an increase in foreclosures, which will then drive home prices down further, resulting in even more strategic defaults, and a viscious cycle of downward spiraling values, sales.

What is your opinion? How would you recommend banks handle this sort of thing so that there is less negative impact?

From Business Week today, as quoted at Realtor.org:

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic.

When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale.

Today, banks demand 9.5 weeks to respond to a short-sale request, compared to 4.5 weeks a year ago, according to research firm Campbell Communications. Their reluctance is frequently stymieing sales and frustrating real estate practitioners.

"It drives me up a wall," says Robert G. Hertzog of Summit Home Consultants in Phoenix. "[The bank is] holding my client hostage."

Source: BusinessWeek, Christopher Palmeri (10/09/2009)

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

looking for a demolition crew to take down a 2 family house in East Providence, RI

Rhode Island Real Estate -- Focus Professionals, Inc. — Wed, 07 Oct 2009 11:22:38 -0500

We have need of a quote for complete demolition of a 2 family house in East Providence... we are hoping to get this ASAP... anyone have a recommended vendor for this sort of thing?

It appears that the house is rotten in structurally important areas, perhaps even termite infested... the structure was built c. 1920... We are seeking to get a quote for demolition of the building as soon as possible.

If you know of a good demolition crew that you have actually used before, please either pass their info on to me, or have them call us at my direct line 401-293-0131

Time is of the essence on this, so please bear that in mind...

The vendor will also be asked to quote design build services, if they provide such services, at the same time...

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Recruiting Agents: Southern RI and Kent County RI, Southeastern MA (Bristol County and the Cape

Rhode Island Real Estate -- Focus Professionals, Inc. — Thu, 01 Oct 2009 12:19:15 -0500

We are seeking to recruit motivated buyer and listing agents for Southern RI (Westerly area and West Greenwich) and Kent County RI. We are also seeking agents in Bristol County MA and the Cape. Compensation plan is very competitive, no desk fees, free website, well established lead generation system, no charge for leads.

We need buyers agents, and listing agents TODAY!

Give us a call 401-293-0131 or email us here...

We have loads of qualified buyers, and a great team.

Come aboard today!

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Mortgage Delinquencies - The Coming Storm

Rhode Island Real Estate -- Focus Professionals, Inc. — Thu, 01 Oct 2009 10:16:09 -0500

Great post below... worth reading...

Via Jeff Geoghan MBA - Lancaster PA Real Estate Expert (The Jeff Geoghan Realty Group, Coldwell Banker Lancaster PA):

This is one of those posts where I wish I didn't have to write it, but felt it was so important to my readers that I would be remiss not to at least talk about it.

Everyone out there probably knows somebody who is behind on their mortgage payments, looking for alternatives and likely also just finding out that their home's value has dipped below what their loan amount is. I know some within my own personal circles. It's a tough situation for me to advise them as a professional because it's such a personal challenge to their pride and self-worth, not to mention their plans and dreams for the family. The question we're asking is "when is this going to stop and where are we heading?"

I'm going to put up a few graphs that show the trends nationally with regards to mortgage delinquincies:

This chart is by quarter - Single-family mortgages set a new record delinquency rate in the second quarter of 2009, according to a quarterly survey by the Mortgage Bankers Association. Those of us in the real estate business see the foreclosure process (just visit the local Sheriff Sale docket to see the current numbers) but the looming delinqency-to-foreclosure issue is far, far larger.

The Wall Street Journal on 8/3/09 reported the following quote: “While subprime mortgages sparked the first round of housing problems two years ago, now "troubles are lurking further up the food chain," says Joshua Shapiro, chief U.S. economist at MFR Inc. White-collar job losses have accelerated while more adjustable-rate loans to prime borrowers are resetting to higher payments. ‘You put all that together, it leads me to believe that the next leg down on home prices is going to come from the top,’ he says.”

The first objection someone may have would be to say "yes, but historically those who are delinqent usually get their act together and come current on the mortgage after a while". That WAS true, but not anymore! We call that the "Cure Rate", that is the rate of delinquencies that go back to current. The Wall Street Journal reported on 8/24/09 about a Fitch analysis that found that the Cure Rate from 2000-2006 was 45% (which means about half of people fix their delinquency). However, as of July 2009 the rate had dropped to just 6.6%! That means that over 90% of delinquent customers are going to foreclosure. Take a look again at the above chart...

The next thing someone will say is "well, that's the 'sand states' and not my area". Here's the chart for all 50 states showing the same breakdown of delinquencies and foreclosures. Guess what - most states have a significant problem, especially compared to historical figures.

Now the next thing someone may say is "aren't those loans going to get 'fixed' by a loan modification?" I know several people right now who are applying for a Lancaster County loan modification but are waiting and waiting. I hope it works out for them...

In reality, loan modifications are hardly making a dent. To me, that's a burning question. Why arent banks being more aggressive in giving customers the option to extend their loan and/or reset to a lower rate? Why are they being SO difficult? The people I know don't want to be foreclosed. They CAN make payments. They just need the terms redrawn to allow them to catch & keep up. Loan modifications are not helping us get this crisis under control.

What are the causes of all these delinquencies? Here's a chart that is enlightening:

We hear a lot about adjustable rate mortgages being the culprit, but the reality is that it's the loss of jobs and the tanking real estate market that's the perfect storm. See my previous post on unemployment in the nation, the state and Lancaster County.

Keep in mind, this post is not intended to give us "good news". You may be experiencing good things in your market and that's great. My intent is to get us thinking about the challenges that aren't going away and how we're going to address them as homeowners, agents and professionals. I'd love to hear your ideas!

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Seller wants to stay in house for 3 months after closing, rent free...

Rhode Island Real Estate -- Focus Professionals, Inc. — Wed, 16 Sep 2009 14:49:13 -0500

I thought I had heard it all, but it seems I have not: we are trying to show a house to a buyer, and in the comments the MLS listing indicates that unless the buyer agrees to allow the seller to live in the house for 3 months after closing, they wont be allowed to see the house. Now you all may correct me if I am wrong, but this means that the buyer would have to go with investment property lending, as they would not be able to call the house "owner Occupied" when applying for the loan. Most likely the lender would not grant the buyer this concession. Also, because of this, the buyer would forgo the $8K tax credit, if they are first time buyers. After all, it would not be an owner occupied house.

Note that this house is listed at market value, without a discount for the rent!

Of course, we have seen deals go through that allowed the seller to stay, at a low rent, until such time as they found a place to move to, say, a month after closing. But again, all of the above applies, and at least in those cases the seller was willing to pay rent.

This seller wants to live rent free for three months AFTER Closing... not 3 months from today, but so much after the closing, rent free.

Other than a very generous investor, who is paying cash for the house, the house becomes essentially unsellable with these conditions.

Question: Have you seen such conditions on a sale? Should this house be permitted into MLS, since the conditions are prohibitive? What would you say to such a condition? Would you list such a house? Would you advise a buyer to take the deal?

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Economists: Expand the Housing Tax Credit

Rhode Island Real Estate -- Focus Professionals, Inc. — Wed, 16 Sep 2009 12:50:12 -0500

Economists: Expand the Housing Tax Credit

Now we are seeing the banking industry, and academic economists, supporting an extension and expansion of the home buyer tax credit: I got this from the NY Times, and I have to say I agree whole heartedly... John Maynard Keynes used to call it priming the pump, but we have seen this called "socailism" by those obviously unfamiliar with what Socialism actually is...

I quote:

More than 40 percent of all home buyers in 2009 will qualify for the federal tax credit, costing the government about $15 billion, twice the original estimate, but most housing experts applaud the policy and favor expanding it.

Now the decision is up to Congress.

Mark Zandi, chief economist for Moody’s Economy.com, believes that the credit should be expanded to all homebuyers, even investors, through summer of 2010. “The risks of not doing something like this are too great,” he said. “I don’t think the coast is clear.”

James Glassman of JPMorgan Chase also favors expanding the credit but continuing to limit it to first-time buyers.

Industry members who are lobbying for the extension are optimistic and say they believe an extension will be approved in some form. “There will be a lot of water under the bridge, a lot of compromise, between now” and a final bill, said Richard A. Smith, chairman of the Business Roundtable’s Housing Working Group.

End Quote
Source: The New York Times, David Streitfeld (09/15/2009)

Given this, and the fact that the economy is still losing jobs at alarming rates, we should stimulate in many ways, and this is a good one, impacting many industries.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

NAR makes call to action to extend the $8000 home buyer tax credit - good or bad?

Rhode Island Real Estate -- Focus Professionals, Inc. — Wed, 16 Sep 2009 09:44:51 -0500

While I have heard some say that the real estate market in their area (esp. the Detroit area) was recovering without help from the tax credit, I find myself hard pressed to believe it... the credit, which may not have had as big an impact as hoped, never the less did have a large impact... we need to extend it.

Via Rob Arnold, metro Orlando full service, investor friendly & foreclosure Realtor (Sand Dollar Realty Group, Inc.):

The National Association of Realtors issued a call to action today to contact your Senators and Congressmen about extending the deadline on the $8,000 home buyer tax credit. Click the link above and you can see NAR's video on this subject.

While I am glad that the tax credit has probably helped stimulate the real estate market and the economy some, I also wonder about the longer-term effects of this so-called "stimulus" money on this nation's deficit and national debt.

I would rather see the money in the hands of the people as opposed to Wall Street fat cats or failing banks though. However I also hear stories on the news and elsewhere of people using the $8,000 to pay for frivolous items. Kind of a windfall shopping spree. I also don't like mortgaging the future of this country by giving free money to people while increasing massive debt that may end up crushing our nation one day (if it hasn't already). Kind of "socialized" real estate buying if you can call it that. Take from my pocket and put it in yours.

I did some quick research in our Mid-Florida Regional MLS system which covers portions of some 14 counties surrounding Orlando and Tampa. Of 55,500 sales since 12/1/2008, some 23,594 (42.5%) sold for all cash. Which means some 31,906 (57.5%) sold for some type of financing terms. I am assuming that most of the cash buyers are investors who won't be getting the tax credit, while most of the financed buyers are owner occupants many of which will be getting the tax credit. I'm not sure exactly what these numbers mean though. However it does show that many people are buying regardless of whether they are getting the $8,000 tax credit. Personally I bought an investment property earlier this year and didn't get a government check out of it.

So what's your take on extending the tax credit? Is that a good thing? Or should the government simply butt out and stop meddling with the economy? I haven't made up my mind, but overall I tend to be against most government programs that involve spending my tax dollars on items that aren't prescribed specifically in the Constitution.
---------------------------------------------------------------------------------------------------------------------

(Copyright © Sand Dollar Realty Group, Inc. All rights reserved.)

Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com   www.WeBuyHousesFlorida.com

We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida, metro Orlando, and the Space Coast. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available.  Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Apopka, Kissimmee, Sanford, Lake Mary, and Deltona.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

It Takes More Than Just Saying You're an EXPERT to be ONE

Rhode Island Real Estate -- Focus Professionals, Inc. — Sun, 13 Sep 2009 09:59:23 -0500

Thought this was useful for consumers to see as well... Buyers: remember, just because a person tells you they are an expert, does not make it so... here is a great post from a reputable agent that explains in part what an expert would really be...

Via JL Boney, III Columbia, SC Real Estate (Russell and Jeffcoat):

There's no doubt in my mind that one of the most overused words in the world today in EXPERT. It seems that everywhere you turn there are tons of people in every field imaginable that are experts. But the truth is that it takes more than saying you are an expert to actually be one. Unless you are an expert at making claims and running your mouth, just making the statement won't really do you any good. But, if you want to be one, the answer is simple, work and learn.

Know your contracts and paperwork - What ever brokerage you work for, or where you are a lender, or appraiser, or anything else related to this business, you have paper work. Never ever have someone fill out paperwork that have not read from top to bottom. As far as a your contract is concerned, the one you use needs to be a reaction more than formality. You need to know it that well. The difference between an expert and someone who just claims to be one, is an expert has done what they need to do and learned what they need to know to succeed. So know your paperwork and your contracts, that way you don't look incompetent in the process on trying to convince someone that you're a big deal.

Know your area- There's nothing worse than someone trusting you to take them around and show them an area, and you don't know it that well yourself. You need to know off the top of your head as much as you possibly can about the area or areas that you service. Clients may want to know where the closest grocery stores, shopping malls, hospitals, or even Pizza Hut is from what may be there future home. If they want to be close to the interstate, then you need to know the communities that will put them within a close proximity to the interstate in question. It's your job to provide answers and take care of your client's needs, so you need to know your area in order to do that.

Know your market- The best way to know your market is to become an active part of it. Even if you have no clients to show around at this current moment, you still need to be ready for them when you do get one. That means staying on top of the current market trends. Study your MLS and check on communities for various price ranges. You need to know what's moving and what isn't. This helps you with both buyers and sellers. If a buyer comes to you and wants a home in a community that's flying off the shelf, then you need to make them aware of it. They may not believe you, but once that house sells out from under than, they will know you were serious. If a seller comes to you to list their house, then you need to be sure you can speak knowledgeably about what price range is moving well, that way you can immediately tell them what to expect.

Know what buyers want- This again will help you with buyers and sellers. If you list a house and you know that it's outdated because buyers are no longer into the bright, orange shag carpet, then you can explain to the seller that they need to be willing to make some upgrades in order to compete with the current market. If you are working with a buyer and you know what's popular in today's market for your area, then you can usually put them closer to a home that suits their needs sooner than if you are taking a shot in the dark. It just makes things run a little more smooth.

Know that you can't fake it- This is a hard one for people to except, but the days of fake till you make it are pretty much over. You may be able to fool a few, but eventually you will end up with a savvy buyer or seller and then the gig is up. If you don't know an answer, don't be afraid to admit it, just say you don't know but you will find out. They have Google too, so if you make up a lot of crap in an effort to make yourself look better, you going to look like a real idiot when they make it back to the laptop and they find out you lied. So just don't play that game. With the wealth of information available at the world's fingertips, you better be honest and upfront. Just do the right thing and work hard to learn the things you need to know. That way when you claim you're an expert, you can actually put your money where your mouth is when the time comes.

www.jlboney.com

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Mortgage Loan Modification Program Picking Up Speed.

Rhode Island Real Estate -- Focus Professionals, Inc. — Fri, 11 Sep 2009 09:26:11 -0500

WASHINGTON – Sept. 10, 2009 – The Obama administration’s $50 billion mortgage relief program is finally picking up speed after a sluggish and disappointing start: Nearly early one in five eligible homeowners have been offered help so far.

The “Making Home Affordable” plan was launched with great fanfare in March. As of last month, lenders had sent out more than 571,000 offers to reduce borrowers’ monthly payments, the Treasury Department said Wednesday.

That’s 19 percent of the nearly 3 million U.S. homeowners eligible for a loan modification under the plan, up from 15 percent at the end of July.

“There are signs the plan is working,” said Michael Barr, assistant Treasury Secretary for financial institutions. “But we can do better.”

Of the modifications offered, about 360,000 borrowers, or 12 percent, have signed up for three-month trial modifications, which are supposed to be extended for five years if the homeowners make their payments on time.

To increase pressure on the industry, Waters and other lawmakers threatened to revive a failed proposal, opposed by banking lobbyists, to let bankruptcy judges rewrite the terms of a mortgage.

That change is necessary, consumer groups say, because getting a lender to do so voluntarily is still a time-consuming, bureaucratic nightmare. Many lenders are still scheduling foreclosure sales, and charging borrowers fees for participating in the Obama plan.

“The administration has got to put some teeth in this and really get some consequences for the lenders and servicers who are not cooperating,” said Bonnie Mathias, a board member of the Association of Community Organizations for Reform Now, or ACORN.

But mortgage executives say they are racing to implement the program, hiring thousands of workers to handle an unprecedented flood of calls.

“We fully understand the urgency,” Jack Shackett, Bank of America’s head of credit loss prevention, told lawmakers. “We understand that we have a long way to go under very challenging circumstances.”

Bank of America has doubled its number of trial modifications in two months to nearly 60,000. But it still lags its competitors, having enrolled about 7 percent of its 836,000 eligible loans, compared with 25 percent for JPMorgan Chase & Co.

The Treasury Department’s decision to publish those numbers has clearly provided a powerful inventive for many in the industry.

Lenders are “concerned about the report card showing them in a worse light than their peers,” said David Stevens, an assistant secretary at the Department of Housing and Urban Development. “Nobody wants to be a low performer on that score card.”

Industry executives also say they are planning to work with Obama administration officials on a possible extension of the program to unemployed homeowners. Also under consideration is finding a way to help borrowers with “pick-a-payment” or option ARM loans, which gave borrowers the ability to defer some of their interest payments and add them to the principal.

Treasury says 48 mortgage companies are now involved in the program, up from 38 in July. The companies have requested financial information from almost two-thirds of eligible borrowers and say they are on track to have 500,000 loan modifications in place by Nov. 1.

The program is voluntary, relying on subsidies to encourage mortgage companies to participate. Lenders must agree to reduce the loan payments to 38 percent of a borrower’s monthly pretax income. After that, the government and lender split the cost of bringing the payment down to 31 percent.

Borrowers can receive rates as low as 2 percent for five years.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

The Surprising Cost Of The First Time Buyer Tax Credit

Rhode Island Real Estate -- Focus Professionals, Inc. — Fri, 04 Sep 2009 10:22:15 -0500

An interesting perspective... I am not sure how the numbers were deveoped, as it seems pretty high to me... over head costs for the admin of the tax credit are spread over the same staff that handles other tax credits, I assume, so if tiese numbers are trying to attribute overhead to the credit, it would seem high...

It would be intersting to see the data on this, and the associated analysis...

Via John Mulkey, Housing Guru (TheHousingGuru.com):

Many see the $8,000 first time buyer tax credit as an excellent stimulus for an ailing housing market; and some are seeking an expansion that would extend the credit to all home buyers. Others have proposed increasing the amount to $15,000. After all, spending such small amounts is insignificant when measured against the stimulus and bailout packages that have cost trillions.

The first time buyer tax credit was intended to stimulate housing, to bring in more buyers; and it has succeeded. Just like the Cash for Clunkers program stimulated new car sales, the housing stimulus has brought in more home buyers. But what if we discovered that the $8,000 number didn’t really cover the cost? What if we discovered the actual cost of bringing in each additional buyer wasn’t $8,000, but was more than 5 times that amount? Would it still seem like a good deal—like a fair deal?

Well that’s the cost, more than $40,000 per each additional buyer. And the estimate is probably on the conservative side. Based on numbers from the NAR, the program is expected to cost just over $15 billion; and when you divide that number by the projected number of additional homes sold, you discover the “real” cost to the American taxpayer.

Is it worth it? Will it help restore stability to the housing market? Probably not. But it did at least keep a few billion away from Wall Street and put it directly in the hands of consumers.

Source: Calculated Risk Blog

The Housing Guru: The one source for all your housing questions

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Why Use a Full Time Real Estate Agent?

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 24 Aug 2009 13:24:18 -0500

The only issue I have here is that you should not claim that your buyer agency services are "FREE" -- unless they are... do you make a commission while acting as the buyer agent? If you do, it is not a free service. Claiming it is a free service is not only misleading, but also diminshes in importance the aspect of agency that deals with representing buyers. Buyer are in fact paying for the service, whether through cash or through an added amount to the purchase price, which they pay. So unless the price is reduced by the amount of the coop (buyer agent) fee, they pay.

And well they should... the services of a buyer agent are at least as worthy as those of a listing agent... time, professionalism, picking up after incompetent listing agents, or unmotivated listing agents, or just, as we have had to deal with recently, a listing agent that thinks they are a gift to humanity, but cant be bothered to actually deal with there responsibilities... if only the banks knew how little service they get from most listing agents in REO property...

So I am often flabbergasted when I hear of people who are buyers agents claiming to offer the service for free... the proper phrase would be "at no additional cost" -- if that is true... these days, we often charge above the coop fee for buyer agent services, and we are aware of many who charge an hourly rate, cash, whether the buyer buys or not... the service is very important, and should not be degraded within the profession by inaccurate representations like these...

Via Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes):

I get calls from buyers whose real estate agent told them to call me to see one of my listings. Their agent can't make the appointment or show the property because they are at work (their real job).

If that buyer finds a property they like, their agent is not qualified to write the offer. They did not examine the property for potential issues and needed addendums. Many times they can't even be reached to get the offer written in a timely manner. You can almost guarantee they do not know the market or are even proficient in contract writing.

If they work a regular job elsewhere, they may not be available to attend the home inspection or the escrow signing. In my experience they will not be attentive to the escrow process, will blow the time-line and will be impossible to communicate with. Yet somehow they feel they will have earned a commission.

When working with me, buyers and sellers get an agent who does not cut corners. answers the phone, knows the market and truly cares about my clients and will always put your needs first.

Here are a few of the things I consider standard service. Very few agents in my area are offering these services to their clients.

For my sellers:

Quality pictures including wide angle.

Your home posted in the MLS and many websites (too many to list).

Color flyers and brochure box in front of listing (where allowed).

A pledge of services.

A website with a domain name and sign with the web address.

Virtual tour.

Regular Sunday open houses.

Broker's open houses on the monthly date for the area.

An electronic lockbox that tracks everyone who enters the home.

Regular communication with sellers including comparable market reports.

Print ads.

The property promoted at regional REALTOR® meetings.

E-mails to top producers in the area.

Benefit of the market knowledge of one of the top, full time licensed brokers in the area and his support team.

For My Buyers:

Free buyer's representation.

I will schedule and accompany you when you preview homes and point out potential red flags.

Market analysis and public records check of any property considered for an offer.

Prepare all documents and explain them in detail. You sign nothing you do not understand.

Negotiations by an experienced licensed broker.

Manage the entire escrow process.

Help with referrals of other professions such as inspectors, loan officers, etc.

Accompany you to the escrow and mortgage signing.

I continue to work with you after the transaction if any issues or questions pop.

Many agents have not done well in the market and have cut back on expenses. That is the reality. The problem is clients are buying and selling the most expensive thing own or will own. Why should they entrust it with an agent who does not have enough money to properly market their home or have the time to properly represent them?

I will finish this with a statement I have made many time in the past. Real estate is a full time profession. You cannot sell real estate part time and do it well. Theoretically it is possible, I am just not seeing in real life.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Congratulations To Mandie Sullivan: Top Producing Buyer Agent

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 27 Jul 2009 10:13:49 -0500

Mandie Sullivan, lead agent and partner of Focus PRofessionals, Inc., has had a great year to date, and especially a great last couple of months, working exclusively with home buyers. She is one of the top producing buyer agents in Rhode Island, and we at the company want to offer up our congratulations, and our compliments for expert professionalism working with buyers this season. From First time buyers to investors, Mandie is closing deal after deal, with great benefit to her buyers.

Mandie also handles a number of listings, and a largish group of investors, but her focus is on buyer representation, and it is clear she is doing a bang up job of it.

We wouls also like to show our appreciation for Charlie Demty, who has made great inroads in his new region of Bristol County MA.

Thanks to both of you for doing what you do best, and doing even better than before.

Focus Professionals, Inc., a full service real estate solutions company, serves all of Rhode Island and Southeast Massachusetts, emphasis on buyers.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Understanding Seller Concessions | Seller Paid Closing Costs | Seller Contributions | Seller Assist

Rhode Island Real Estate -- Focus Professionals, Inc. — Tue, 07 Jul 2009 14:22:11 -0500

Steve Kappre wrote an excellent blog on seller concessions, and alopng with the comments, I regard it as a very useful post of information... hope it helps all you buyers out there, as well as sellers... both are often uninformed about this aspect of a transaction.

Via Steve Kappre, Gloucester County, NJ Loan Officer/Mortgage Planner - 856.419.3561 (Treasury Mortgage):

Having the seller pay some or all of your closing costs is common. Some buyers and their real estate agents have a hard time structuring these type of transactions. Below are FAQ's to help you understand the structuring needed for a purchase with seller concessions.

Clarifying Terms

When talking about this topic there will be many phrases thrown around that basically mean the same thing; seller concessions, seller paid closing costs, seller assistance, seller contributions, and more. For our purposes we will use the term seller concessions.

How much can I ask for in seller concessions?

Typically on conventional loans the most a buyer receives in seller concessions is 3% (On a $100,000 purchase, $3,000). Making a larger down payment can raise the amount of concessions allowed from 3% to 6% or even 9%. However you rarely see these high concession amounts because if a buyer is putting, for instance, 25% down on a home, they don't have the seller pay concessions for them. Not only that, but if you need 9% in concessions, something is usually wrong with your financing.

On FHA loans, you can receive up to 6% in concessions. (On $100,000 purchase price, $6,000) Typically the lower the purchase price the higher percentage of seller concessions you will need. It is not typical to have a $300,000 purchase price and need $18,000 in seller concessions. It is much more typical to see, for instance, a $60,000 purchase price and have $3,600 in concessions.

On USDA loans, there is no limit to the allowable seller concessions, other then it has to make sense. A buyer would not typically need a percentage of seller contributions over about 4-5%. There are some examples below of reasons why a high percentage of concessions would be needed.

How do I calculate the seller concessions?

Simply take the purchase price, and multiply it by the percent allowed for the type of loan. For example, a $100,000 purchase price with 3% concessions is $3,000, and 6% concessions is $6,000, etc. On a calculator, you would multiply 100,000 x .03 or .06 respectively.

What can seller concessions cover?

Seller concessions can cover your closing costs which may include mortgage related fees, title company fees, the set-up of an escrow account, your home owner's insurance costs, state taxes or stamps, and more. Many, but not all, home owner's insurance companies will allow you to pay the policy premium at settlement. If that is important to you find out upfront. Seller concessions CAN NOT be used for a down payment.

What is NOT Seller Concessions?

Grants are not seller concessions. Down-payment assistance programs are not seller concessions either.

For first time home buyers, a lender and real estate agent that work together closely can structure an offer to purchase a home where you can utilize both a grant to pay for all of your required downpayment, and seller concessions to cover all of your closing costs. It is not rocket science. You simply have to work with people that know what they are doing.

It is important for your lender and your real estate agent to convey approval terms BEFORE making an offer on a home. Any real estate agent worth your time would have a buyer pre-approved before submitting offers on a home. This being said, it is important that your real estate agent not only knows how much you can afford, but also the terms and conditions of your approval. Some pre-approvals are contingent on seller concessions and/or grants. This needs to be communicated to all parties up-front.

Am I paying more for a home if I use seller concessions?

Some people may look at their purchase of a home in this way; (Using round figures) I can pay $190,000 for a home and pay my own settlement costs of $10,000 I can pay $200,000 for a home and have the seller pay $10,000 of my settlement costs. Viewed this way you are actually financing the costs. You pay interest on $10,000 more, BUT you get to keep $10,000 in your pocket, which more importantly you can keep for a safety net (and earn interest from yourself).

SIDE NOTE: This aspect can not be over-emphasized. If your lender thinks it is "OK" to put you in a home where you have literally a few hundreds dollars in the bank after settlement, you both are setting up for a VERY RISKY situation and one which could go into default very quickly. It is unwise to purchase a home and immediately be poor. It would do all home buyers well to consider this before purchasing a home. Hopefully you will have a lender or real estate agent who would care more about you in this sense then than just getting another paycheck, but don't assume that.

Ways to utilize seller concessions for your benefit

Have some or all of your closing costs paid by the seller.

As a first time home buyer utilize both a grant and seller concessions to cover your closing costs and down payment requirements.

Create a financially safe environment by keeping more money in your pocket after settlement. This aspect is overlooked too often yet is very important to you as a home owner.

Have the seller pay points for you. This will make your monthly mortgage payment lower by giving you a lower interest rate. In some cases this can be the deciding factor on if you qualify to buy a home. This will also lower your debt-to-income ratio, which is one of the major factors a lender looks at when approving a loan.

Avoid private mortgage insurance (PMI). If you are a buyer that has the assets available to make a 20% down payment, but not enough assets to pay closing costs, then have the seller pay your closing costs. This will bring you to the 80% loan-to-value level and allow you to eliminate PMI. (NOTE: This is all negotiated when you make your offer on a home and agree to terms).

Conclusion

Seller concessions are an important part of home financing. Used correctly, seller concessions can save a buyer money, allow more financing options, and create a financially safe environment. Consider these important aspects prior to making an offer on a home and you will be much better off, both at settlement and in the long term.

If you have any questions about seller concessions or any other mortgage/real estate topic(s), feel free to contact Steve Kappre directly.

Steve Kappre is a Mortgage Planner with Treasury Mortgage. Steve specializes in;

• All areas concerning First-Time Home Buyer Mortgages, grants, down payment assistance, police and fire loans, rehab loans, and more.

• Reverse Mortgages

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

FHA Lenders Now Allow $8K Tax Credit to be used for Down Payment

Rhode Island Real Estate -- Focus Professionals, Inc. — Tue, 07 Jul 2009 12:00:54 -0500

FHA Lenders to Allow $8000.00 to be used for Down Payment

Important news for all first time homebuyers

Reblogged from Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate, the Realtor with the latest information!

Via Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate (Keller Williams-Ann Arbor):

HUD Secretary, Shaun Donovan announced yesterday that FHA Lenders are going to allowed to let First Time Homebuyers use the up to $8000.00 tax credit as a down-payment.

To quote Mr. Donovan, speaking at the Mid-year conference of NAR in Washington:

Secretary Donovan said that important changes, which the National Association of Realtors^® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

It will be interesting to see what the rate is on the bridge loans, but regardless this is a great step in the right direction. I appreciate NAR spear-heading the effort for home-buyers.

Read more information on the Realtor.org site

Ann Arbor, Saline, Dexter, Chelsea, Ypsilanti, Milan buyers this is exciting news for you. This has been one of the most consumer asked question on my Ann Arbor Real Estate Blog.

Begin your homes for sale in Washtenaw County here.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Strategic Default on Mortgage: Moral and Financial Considerations

Rhode Island Real Estate -- Focus Professionals, Inc. — Tue, 07 Jul 2009 11:20:48 -0500

Broker Bryant wrote a blog, commenting on another blog, by Richanrd Zaretzky, both regarding intentional defaults on mortgages. Bryant argues that when your home is worth less than 50% of the price paid, or mortgage balance, that in fact it might be financially sound to default.

I would like to point to some of the raminfications of this, and to discuss the moral and fiancial issues involved, however briefly.

First, let's consider that the buyer, at the time of purchase, made a good faith committment to paying for the house they purchased. A contract was signed, and a mortgage lender funded the purchase, in good faith, while the buyer agreed to pay. Later, when the market collapsed, these homes lost value.

Today, lenders have been bailed out, and are still writing down bad mortgages. Shareholders in these lenders, or in companies that invested in mortgage backed securities, took and continue to take a beating on their investments, investments without which, these buyers would not have gained funding. Stock values plumeted, just as housing prices did. This caused the market for mortgage backed securities to evaporate, which in turn led to tight lending, or nonexistent lending, for certain key market demopgraphics.

From a financial persepctive, further defaults on mortgage committments will further tighten home lending, and will further deteriorate housing prices. Intentionally defaulting then results in a further decline in the housing market, and tighter lending which then further pressures the housing market, leading to further defaults, etc. An endless loop that has no upside.

Of course, from the perspective of the buyer/owner, it may make sense to default, as Bryant says, since the values will not likely come back for many years. But in terms of financial issues, this exacerbates the problems already extant in the housing markets.

Morally speaking, would you say that Bernie Madoff made a sound financial decision when he decided to defraud his investors? For Bernie, it may have appeared so, at least until his scheme unravelled. But what he did was to steal from others to increase his own wealth and financial well being. Same as these intentional mortgage defaulters?

How about the fact that this is stealing from investors who originally put up money so that these folks could buy their homes, and doing so to benefit themselves... Sound like a Bernie Madoff routine? Where is Bernie now?

Morally, and ethically, it is a bankrupt affair. Nothing less than theft.

I see no way to rationalize this so as to get to a point where I can discount the moral issues in favor of the personal financial well being of the borrower, who as I said, entered into the mortgage with the understanding that the house was worth what they were paying, and that they would then have an obligation to pay that cost. The lenders made available loans that were at best shaky, to borrowers who perhaps lied about their ability to pay. But it is not all the lenders fault, as no one forced the buyers to buy homes. They agreed to the terms of the loan and purchased the house. Now to decide it was a bad idea, and to decide that they will simply default, intentionally, and live in the house for free as long as poosible, i sa bad financial discision over the long haul, and in the big piture, and is morally bankrupt, period. We cannot discount the moral and ethical issues in favor of our small minded financial considerations.

If you can pay, pay. If not, default, declare bankruptcy, pay the piper, and make a better decision next time. But let's not remove moral issues from the question, as these would be paramount in most other decisions we make.

We are adults who buy houses, and we have learned to take responsibility for our actions, and we teach our children to do the same. How then do we see fit to evade responsibilty here?

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Thieving Plumber Recommended by Listing Agent! Not the agents fault.

Rhode Island Real Estate -- Focus Professionals, Inc. — Thu, 11 Jun 2009 13:50:45 -0500

Well, I thought I had seen everything... but not really... check this out: an agent in my firm had a buyer whose offer had been accepted on a bank owned property. The inspection was scheduled for the next week. Because of the lender requirements, the buyer had purchased and installed two lighting fixtures over open wire junction boxes... Nice fixtures that they expected to keep using once the purchase had closed.

There were issues with leaking pipes as well, so the listing agent called in his plumber to repair the pipes. When the buyers and our agent showed up for the inspection, the light fixtures had been removed. The inspector would have to return again once this issue was taken care of. This of course would cost the buyers additional money.

The buyer agent called the listing agent to let them know what had happened. He said that the only person who had been in the house other than our agent and buyer to install the fixtures was his plumber. He called the plumber, who at first denied anything about it.

Then, the plumber finally acknowledged that when he repaired the pipes, his wife was with him, and she liked the fixtures, and thinking it was not an issue at all, he removed them for installation at his own house. @*$%!?#

What?

I say, WHAT?

You thought it would not be an issue that you stole the seller (he thought) property? You thought it would be okay? What on this precious earth where you thinking?

My agent managed to get the fixtures returned, but I have never heard a contractor say that he actually thought it was not a problem to remove fixtures from a house for sale. Never in my born days... I had seen the results of such actions, what with copper removed, furnaces removed, etc., but I had never actually had a contractor SAY that he thought it was okay to do this...

My imagination goes nuts for a few hours, but in the end, for our buyers, it worked out okay... but I think this plumber should be jailed...

What do you think, we would like to know.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Confusion: Multiple Contracts on single properties being asked for

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 18 May 2009 15:09:46 -0500

Not sure what this means: A listing agent is asking for Purchase Contracts from multiple buyers, to submit to the bank that owns the property. These need to be signed by the buyers, of course. Then, in one instance, where we accomodated this, it turns out that the sale goes to a contract for some $30,000 less than our buyer's offer, which was in fact submitted 5 days BEFORE the listing went into Pending Status. Then we are told we did not get the deal. And we see that the purchase if for this much less than our buyers offer. We asked the broker, who said it was simply because the other offer was accepted PRIOR to ours being submitted.

It turns out that the agent with the accepted buyer works for the same firm as the listing agent.

I suppose I look like an idiot, but I dont believe I am actually one... but it seems my looks ,ust have swayed this broker that he could make statements that dont fit the racts, and that I would somehow just agree.

Either it is time to change my looks, or time to step on this sort of practice.

What is your opinion, we would like to know.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Buyer Agent Out Performing The Market

Rhode Island Real Estate -- Focus Professionals, Inc. — Mon, 11 May 2009 15:44:50 -0500

These days, we hear many complain that the market is sluggish, that it is impossible to get a loan, that offers are not being accepted. While this may be true in many markets, I just wanted to take a moment to congratulate our top performing buyer agent: Mandie Sullivan. In the last month, she has successfully, and smoothly, closed 5 transactions for buyers. Mandie pays close attention to details for every client, and all walk away with a beautiful home, a reasonable financing structure, and payments they can afford.

Some of the properties closing have needed 203K loans for rehab, and others have been straight FHA loans, most have been first time buyers, excepting investors. All of us here at Focus Professsionals send our warmest regards to Mandie, and to her clients. It has been a great month, and we expect things to only improve as the buying season advances this Summer.

For those interested in working with a buyer representative, who will look out for your interests throughout the purchase cycle, visit the Focus Profesionals, Inc. Rhode Island Real Estate website, and contact Mandie. She can offer great service, experience, professionalism, and an eye for your interests in the transaction.

Paul Silver, Owner

Focus Professionals, Inc.

Rhode Island Real Estate Services

Buying Rhode Island & Southeastern Massachusetts Real Estate

"UP TO" $8000 - it is *not* an across the board $8000 first time home buyers tax credit.

Featured Listings: Rhode Island Real Estate

Home Buyer Tax Credits Expanded and Extended

Jury Duty Scam Verified By The FBI - Identity Thieves

Open House: 1618 Fish Road Tiverton RI Sunday Oct 25th 1pm to 3pm

Welcome aboard: New Agent: Nancy Rosedale. New Broker: Glenn Russell

Property flipping guidelines extended by FHA until May 2010! What does this mean?

Banks Making Short Sales Tougher: Will we see an increase in Strategic Defaults?

looking for a demolition crew to take down a 2 family house in East Providence, RI

Recruiting Agents: Southern RI and Kent County RI, Southeastern MA (Bristol County and the Cape

Mortgage Delinquencies - The Coming Storm

Seller wants to stay in house for 3 months after closing, rent free...

Economists: Expand the Housing Tax Credit

Economists: Expand the Housing Tax Credit

NAR makes call to action to extend the $8000 home buyer tax credit - good or bad?

It Takes More Than Just Saying You're an EXPERT to be ONE

Mortgage Loan Modification Program Picking Up Speed.

The Surprising Cost Of The First Time Buyer Tax Credit

Why Use a Full Time Real Estate Agent?

Congratulations To Mandie Sullivan: Top Producing Buyer Agent

Understanding Seller Concessions | Seller Paid Closing Costs | Seller Contributions | Seller Assist

Clarifying Terms

How much can I ask for in seller concessions?

How do I calculate the seller concessions?

What can seller concessions cover?

What is NOT Seller Concessions?

Am I paying more for a home if I use seller concessions?

Ways to utilize seller concessions for your benefit

Conclusion

Steve Kappre is a Mortgage Planner with Treasury Mortgage. Steve specializes in;

• All areas concerning First-Time Home Buyer Mortgages, grants, down payment assistance, police and fire loans, rehab loans, and more.

• Reverse Mortgages

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

FHA Lenders Now Allow $8K Tax Credit to be used for Down Payment

FHA Lenders to Allow $8000.00 to be used for Down Payment

Strategic Default on Mortgage: Moral and Financial Considerations

Thieving Plumber Recommended by Listing Agent! Not the agents fault.

Confusion: Multiple Contracts on single properties being asked for

Buyer Agent Out Performing The Market

"UP TO" $8000 - it is not an across the board $8000 first time home buyers tax credit.