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In trouble and thinking about a short sale? Help is on the way...

Brian Turner (Keller Williams Preferred Properties) — Tue, 15 Dec 2009 16:37:03 -0600

In trouble and thinking about a short sale? Help is on the way.
By Kenneth R. Harney

If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's newstandardized short-sale plan that's scheduled to roll out during the next several months.

The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has traditionally been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives.

A short sale involves a lender or investor agreeing to collect less than the balance owed on a mortgage debt out of the proceeds of a negotiated sale of the property. Often, a short sale is the last alternative to foreclosure available to distressed homeowners and banks. Say you've lost your job and fallen behind on your mortgage payments. With little or no income, you can't qualify for a modification program.

In this situation -- grim as it is -- your best move may be to see if your lender will accept a short sale. Though the idea sounds straightforward, in practice it is not. First, the bank needs to be convinced that a short sale will yield it more money at the bottom line than a foreclosure.

This usually means you need to bring in a real estate agent who knows the ropes and can pull together the key information needed by the bank: recent comparables on closed sales, local market trends and the likely selling price of your house.

Plus, you'll need to have a buyer -- one who will pay a price acceptable to the bank and who has financing to close the deal. If you happen to have a second mortgage or home-equity credit line, you will also need to negotiate how much that lender will receive from the sale proceeds.

That can be tricky. In depressed real estate markets, the second lien may be worthless in a foreclosure because plummeting property values have wiped out the collateral. Yet that same bank is in a pivotal position: It has the legal power to block the short sale by refusing to sign on to the deal.

Click here to finish reading the entire article and feel free to share your thoughts and comments!

Source: Washington Post

For more questions, you can reach us at the following:

BBT Real Estate Group, LLC
affiliated with Keller Williams Preferred Properties
9701 Apollo Drive, Suite 102
Largo, MD 20774
Phone: 240-737-5024
EFax: 240-296-5024
Email: shortsales@bbtrealestategroup.com

"You can once you know"

COMMON SHORT SALE MYTHS

Brian Turner (Keller Williams Preferred Properties) — Mon, 14 Dec 2009 07:54:12 -0600

7 COMMON SHORT SALE MYTHS

MYTH #1: I must stop making my mortgage payments before the bank will approve a short sale.

TRUTH: You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and/or must sell (loss of job, relocation, divorce, etc.). Due to the current market conditions the banks generally understand why the short payoff is being requested - whether you have missed payments or not.

MYTH #2: If I am doing a short sale I am in foreclosure or pre-foreclosure.

TRUTH: A short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.

MYTH #3: I have a second mortgage or home equity line so I can not do a short sale on my home.

TRUTH: The majority of people we work with have both a 1st and 2nd or home equity line. In this situation the 1stmortgage generally approves an amount for the 2nd and we negotiate between the two. The 2nd mortgage company is accustomed to taking a much lower payoff.

MYTH #4: I will receive some money back at closing.

TRUTH: When you sell your property as a short sale you are not entitled to receive money back at closing because there is no equity in your property.

MYTH #5: The bank will not pay the commission for my real estate agent and/or the costs of listing the property with a real estate agent will be passed on to me.

TRUTH: A real estate agents commission is taken out of the banks proceeds at close of escrow. There should never be an out of pocket expense for a seller who lists their home as a short sale with a real estate agent.

Click here to read myths 6 & 7 and feel free to share your thoughts!

Source: Short Sales Done Easy

For more questions, you can reach us at the following:

BBT Real Estate Group, LLC
affiliated with Keller Williams Preferred Properties
9701 Apollo Drive, Suite 102
Largo, MD 20774
Phone: 240-737-5024
EFax: 240-296-5024
Email: shortsales@bbtrealestategroup.com

OPEN HOUSE this Saturday, 12/12/09 from 12 - 3pm!

Brian Turner (Keller Williams Preferred Properties) — Sat, 12 Dec 2009 08:43:30 -0600

OPEN HOUSE this Saturday, 12/12/09 from 12 - 3pm for 5603 44th Avenue, Hyattsville, MD

3BR/2+1BA Townhouse       offered at $415,000
Year Built   2007
Sq Footage   1,550
Bedrooms   3
Bathrooms   2 full, 1 partial
Floors   3
Parking   2 Car garage
Lot Size   819 sqft
HOA/Maint   $169 per month

DESCRIPTION
OPEN HOUSE TODAY SAT. DEC. 12th 12- 3 PM. Stop By and Ask Me How To Get a Tax Credit!! Amazing 3 bedroom/2.5 bath in a spectacular subdivision. This unit includes gourmet kitchen, wired for internet & cable, double pane windows, and 2-car garage. 3 flat screen TVs are included with property along with washer/dryer, security system, HOME WARRANTY and so much more. Amenities are fitness center, art gallery, & community pool!! Located just two miles (one Metro stop) from DC. Feel free to contact Raymia Henderson at 301-922-5499 for more information about this open house.

For further assistance, please contact us:

BBT Real Estate Group, LLC
affiliated with Keller Williams Preferred Properties
9701 Apollo Drive, Suite 102
Largo, MD 20774
Phone: 240-737-5024
EFax: 240-296-5024
Email: info@bbtrealestategroup.com
Website: BBT Real Estate Group

How Can Renovation Loans Help You?

Brian Turner (Keller Williams Preferred Properties) — Fri, 11 Dec 2009 05:05:04 -0600

FHA 203K LOAN PROGRAM
How Can Renovation Loan Help You?

Much of our present listing inventory consists of bank-owned properties.

Many of those properties are in unacceptable as-is condition for traditional mortgage financing.

Therefore, absent a renovation loan program, they may only be sold for cash, usually at a substantial discount.

The FHA 203k renovation loan program permits buyers to finance those homes in their present as-is condition with low moneydown.

What is a Renovation loan?

A Permanent Mortgage that provides funds for both Acquisition (or Refinance) and Renovation.

Loan includes:

* The cost to purchase the property;
* The cost to fix-up the property; and
* Other costs such as consultant fees, mortgage payments during the construction period, permits, contingencies, etc..
* After settlement the borrower can fix-up the property to modernize, repair, etc.

Loan amount is based upon what the property will be worth after it is improved. You may close As-Is!

FHA 203k Loan

FHA 203k Mortgage Loan

The FHA 203k loan is a permanent mortgage which allows for the acquisition (or refinance) of a residential or mixed-use property and the escrow of funds for repairs, remodeling and/or improvements after closing, eliminating the need for short-term construction financing.

Types of FHA 203k Loans

* 30 or 15 Year Term

* Fixed Rates

FHA 203k Eligible Borrowers

* Owner-Occupants
- Purchase
- Refinance

* Non-Profits Not Allowed

* Investors Not Allowed

203k Eligible Properties

* Single family dwellings
* Limited Condo/Townhouses & Mixed-Use
* 2 - 4 Unit Buildings - you can increase or decrease the number of units with this loan.

Note: Unfinished new construction not permitted.

FHA 203k Down Payment

* 3.50% down, based upon the total cost of acquisition and renovation.

FHA 203k Loan Limits

* The loans that FHA will insure are limited in amount, by county/ by state and by the number of units in the subject property.

Click HERE to share your thoughts and feel free to add comments!

Source: Bank of America Renovation Lending Group

Foreclosure Overview & Foreclosure Process

Brian Turner (Keller Williams Preferred Properties) — Thu, 10 Dec 2009 07:53:57 -0600

Foreclosure Overview & Foreclosure Process

What is Foreclosure?

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways:

1. The borrower/owner reinstates the loan by paying off the default amount during a grace period determined by state law. This grace period is also known as pre-foreclosure.

2. The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.

3. A third party buys the property at a public auction at the end of the pre-foreclosure period.

4. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure, via a short sale foreclosure or by buying back the property at the public auction. Properties repossessed by the lender are also known as bank-owned or REO properties (Real Estate Owned by the lender).

This foreclosure process allows for three opportunities for finding bargains on foreclosure homes.

Pre-Foreclosure (NOD, LIS):
Buying a property in pre-foreclosure involves approaching the borrower/owner and offering to buy the property outright. The borrower/owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history. The buyer has time to research the title and condition of the property and can realize discounts of 20-40 percent below market value.

Wondering what happens after foreclosure? Remember that understanding foreclosures is the first step for homeowners to stop foreclosure. It is also the first step for investors to buy foreclosure properties.

Auction (NTS, NFS):
If the loan is not reinstated by the end of the pre-foreclosure period, potential buyers can bid on the property at a public auction. Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand; however, a public auction often offers some of the best bargains and avoids the unpredictability of dealingdirectly with the borrower/owner.

Bank-owned (REO):
If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. The lender will then typically clearthe title and perform needed maintenance and repair; however, the potential bargain for these REO homes is typically less than a pre-foreclosure or auction property. Bank foreclosures can become government foreclosures if the loan is backed by a government agency such as the Department of Housing and Urban Development (HUD) or the Department of Veterans Affairs (VA). In that case the government agency would be responsible for selling the property.

Before you buy
You'll need to make sure you're armed with the foreclosure data you'll need to find and buy foreclosed homes.

Source: Realtytrac

The Real Truth About Loan Modifications

Brian Turner (Keller Williams Preferred Properties) — Wed, 09 Dec 2009 07:55:08 -0600

The Ugly Truth About Loan Modifications

Ok, so just about everybody has heard about loan modifications, or loan mods for short. They are also called loan workouts, loan restructuring, among others. I'm going to explain what types of loan mods exist, and who can or can't likely get them.

What kind of loan modifications are there?

There are a few different flavors.

Tack it on the back A common one is for people who are behind in their mortgage payments right now, to take the past due and put it on the end of the loan. Let's say somebody has a $200,000 mortgage, and is behind three payments at $1500 each. If there was a temporary reason the homeowner got behind, like a job loss, and now they are making income again, the bank can put the past due at the end of the loan and give the homeowner a fresh start.

Recasting If somebody had an adjustable rate mortgage (ARM) that went up after 2, 3, or 5 years, and the payment jumped up, the lender can "re-cast" the ARM for a longer period to keep the payment the same. Let's say somebody had 5.5% on an ARM, and on the adjustment date it went up to 7.5%. Depending on the loan size, the difference can be hundreds of dollars monthly. This can obviously cause some hardship for the homeowner, especially if they are making less now than before, like much of the country is experiencing. What the bank might do in this case is either "fix" the rate for another 2 or 3 years so the payment stays the same, or just convert it into a fixed rate at the same rate. These types of modifications are almost always contingent on the homeowner having good payment history prior to the adjustment.

Debt forgiveness A third type is debt forgiveness or principal reduction. This is common in short sale scenarios. Let's say somebody owned a house that was once valued at $300,000. They had 90% LTV financing for a loan amount of $270,000. And now they have to sell the house because of job relocation or because their income level has changed and they need to downsize. But the problem is that the house that was once worth $300,000 can now sell for only $240,000 (a 20% drop from peak value is not uncommon these days). The bank knows that if they have to foreclose on the house, it would sell at auction for much less than the $240,000, so they agree to accept a smaller payoff because it is a smaller loss. Short sales are also common for somebody facing foreclosure for the same reason-the bank is taking the lesser of two evils. If a $300,000 house goes into auction, it may sell for $170,000 or $200,000, but if the homeowner sells it, it will go for much higher, and the bank will save thousands in principal and legal fees.

Payment or rate reduction One last type is payment reduction or rate reduction. Again, if somebody is struggling, but the lender believes they could stay current with a lower rate or smaller payment, they might agree to it because it is the lesser of two evils. They are making less on the loan, but it beats foreclosure. If somebody is making less income now, the bank may agree to lower the payments to help the homeowner stay current. Another way to lower the payment is to stretch out the note for 40 or 50 years. Many banks will do this in lieu of lowering the interest rate because then they can lower the payments to help the homeowner and still make the same interest. In a settlement with the State of Illinois, mortgage giant Countrywide had to re-cast all of its stated loans that their retail branches originated to do the new payments on full documentation, and give homeowners payments they could actually afford. There were people who got 2 or 3% over 40 or 50 years because of this.

But why can't I get a loan modification?

Click here to finish reading the entire article and feel free to share your thoughts and comments!

Source: The Chicago 77

Home Affordable Foreclosure Alternatives Program (HAFA)

Brian Turner (Keller Williams Preferred Properties) — Mon, 07 Dec 2009 07:19:17 -0600

Home Affordable Foreclosure Alternatives Program (HAFA)

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.

HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA:

* Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
* Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
* Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
* Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).
* Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
* Uses standard processes, documents, and timeframes/deadlines.
* Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012.

Click here to finish reading the entire article and feel free to share your thoughts on whether the program will work!

Source: Realtor.org

Are Short Sales the Answer to your Financial Freedom?

Brian Turner (Keller Williams Preferred Properties) — Fri, 04 Dec 2009 07:26:10 -0600

6 Reasons Why a Short Sale is Your Answer to Financial Freedom
by DURRELL THOMAS

Six Reasons to Short Sale

Short sale transactions are a common method for buying and selling homes in the United States. For sellers in particular, a short sale could bring you the financial freedom you need to move forward in life. Here are six reasons why the Short Sale Guru believes a short sale can help many home owners.

Many homeowners are underwater by no fault of their own

 A short sale allows you to start fresh without any damage to your credit.A short sale gives you peace of mind.

 Once your existing mortgage lender agrees to a short sale, you no longer have to worry about the fact that your house is undervalued, or priced less than what you paid. In a short sale, the bank takes the proceeds from the sale and writes off the amount remaining on your mortgage.

 If you are facing a financial hardship due to a job loss, illness, or family issues, a short sale allows you to alleviate some of that financial stress.

 Once the lender agrees to a short sale, the buyer negotiates the purchase price directly with the lender's loss mitigation department. The lender handles most all of the paperwork, which means you don't have to hassle with too much of the process, and what is required of you can be managed by a Short Sales expert.

 Save time and your pride. Don't go through a lengthy, and sometimes embarrassing, foreclosure.

If you do not have any 60+ day late fees on your home mortgage, Fannie Mae will still provide you a loan allowing you to purchase a new home sooner rather than later. Next time, you'll be in a better position to make your payments and a knowledgeable Short Sale agent can help you prepare.

Click here for more information on Short Sales!

(The article was taken from the article written by Durrell Thomas. Link to his article is below)

Source: San Diego County Short Sale

Attend Keller Williams 5th Annual Productivity Day

Brian Turner (Keller Williams Preferred Properties) — Thu, 03 Dec 2009 07:34:23 -0600

RSVP for Keller Williams 5th Annual Productivity Day this Saturday, December 5th at 8am. The Event is FREE and is hosted by Keller Williams Preferred Properties of Upper Marlboro, MD. Call 240-737-0568 to Register!

You don't have to be LATE to do a 'Short Sale'

Brian Turner (Keller Williams Preferred Properties) — Wed, 02 Dec 2009 07:25:12 -0600

Should We Stop Making Mortgage Payments to Do a Short Sale?
By Elizabeth Weintraub

Question: Should We Stop Making Mortgage Payments to Do a Short Sale?

A reader asks: "Should we stop making our mortgage payments while our home is on the market as a short sale? We've tried to do a loan modification with our lender, but our application was denied because we were current. The lender said if we were in default, it would help us. But we owe so much more than our home is worth, I've lost my job and really can't afford to keep making payments. Can you help us?"

Answer: First, let me say my heart goes out to you. I talk with many short sale sellers in your position every day and realize the difficulty sellers face. In Sacramento, where I work, more than half of the sales in 2008 were short sales and foreclosures, and this situation is mirrored in many other parts of the country. You are not alone.

Nobody, outside of a lawyer, can tell you whether to stop making your mortgage payments -- especially not real estate agents, because we are not licensed to give legal advice. This is a personal decision that sellers need to make for themselves. There are consequences if you stop making payments. Here are a few things to consider:

Are You Willing to Go Through Foreclosure?

Typically, lenders will not authorize a short sale until the seller finds a buyer, but that status is changing. Realize there is no guarantee that a lender will accept a short sale, and not every lender is required to let you sell on a short sale.

If you begin the short sale process and stop making your payments, should the short sale be denied and you cannot make up the back payments, you may find yourself involuntarily losing your home through foreclosure. Many short sellers enter the process with the thought that if the lender won't approve their short sale, they are prepared to let the property go.

Advantages to Making Your Mortgage Payments During a Short Sale

If you can manage to continue making payments while your home is on the market, it may be advantageous for you to do so for these reasons:

* Qualify to Buy a New Home.

Fannie Mae guidelines, issued in August of 2008, say a borrower may immediately buy another home after a short sale if the borrower was never delinquent, complies with its "excessive prior mortgage delinquency policy," and is not obligated to repay the short sale lender, including a deficiency judgment.

* Protect Credit

Keeping your mortgage current also helps your credit rating because your credit report will not reflect any late payments. Realize that a lender may, however, report your short sale as a Credit Score Factor Code #22, which will still somewhat drop your FICO.

* Peace of Mind

Not falling behind on your payments makes it easier for some sellers to deal with a short sale because the stigma of being delinquent is absent, and they sleep better at night.

* Cancel Without Penalty

If your home does not sell or a lender refuses to accept an offer from your short sale buyer, in California, for example, you are free to cancel the listing and keep your home without liability.

Click here to finish reading the entire article and feel free to share your thoughts!

Source: About.com

5 reasons to buy a home during the holidays

Brian Turner (Keller Williams Preferred Properties) — Tue, 01 Dec 2009 07:19:25 -0600

5 reasons to buy a home during holidays
By Tracey C. Velt

Add 'new home' to your shopping list

While you may think it's crazy to tackle the huge task of homebuying during the schedule-jammed holiday season, the holidays are actually a great time to find real estate deals in today's new economy.

"This year in particular may be different than other years," says Beth Tyler, a broker with Long & Foster Real Estate in Annapolis, Md., who says the economy has boosted many sellers' motivation to sell.

"Interest rates are at an all-time low, prices are greatly depressed and inventory is plentiful," says Nick Burrafato, broker/owner of Florida HomeGallery Real Estate in Orlando, Fla.

"The holiday season is a particularly good time for first-time homebuyers to find a home," says Rich Hayden, senior loan officer for HomeFirst Mortgage Corp. in Alexandria, Va. "But get prequalified with a mortgage broker or lender early. The typical turnaround to close a home is 30 (to) 60 days, so it's best to get started right away."

"The housing market appears to have reached a floor through the June to September period," says Steve Murray, editor of REAL Trends, a real estate industry publication.

"December home sales usually make up about 8.1 percent of total annual home sales," he says. The peak months are May, June, July and August -- each nearly 11 percent of annual home sales. The only months lower than December are November, January and February.

Here are five reasons the 2009 holiday season promises to be filled with better-than-usual home bargains:

1. Low interest rates

Interest rates and home prices are at all-time lows. "If we look historically at interest rates, cyclically we've seen drops every December through January," says Hayden. "While rates are now at all-time lows, we could dip even lower," he says.

Tyler agrees, "Interest rates have to come up sometime but it won't be during the holidays."

2. Serious sellers

With unemployment rates still high and looming holiday expenses, many home sellers are extremely motivated to sell immediately and are more willing to negotiate a lower home price. "Properties that are on the market over the holiday season usually have very serious sellers," says Sherry Chris, president and CEO of Better Homes and Gardens Real Estate in Parsippany, N.J.

Lori Bowers, a broker with The Lori Bowers Group Desert Properties in La Quinta, Calif., agrees.

"Many owners are anxious to get the home sold before the end of the year because it helps on their taxes," she says. Moreover, a serious seller means more negotiating power for the buyer, especially if the home has been on the market for several months.

Click here to finish reading the entire article and feel free to share your thoughts!

Source: Bankrate

10 'Short Sale' Buying Tips

Brian Turner (Keller Williams Preferred Properties) — Mon, 30 Nov 2009 07:33:43 -0600

10 steps to 'short sale' buying
By Bobbi Dempsey

There are very few active buyers in the real estate market these days -- but every one of them seems to be looking to buy a foreclosure or a short sale.

Foreclosure is a fairly well understood process, but as "short sale" signs sprout like weeds, you may wonder what it's all about.

When a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner, it's called a short sale. The lender forgives the remaining balance of the loan.

Everyone loses -- or wins
Short sales are a mixed bag for the buyer, the seller and the lender.

If you're a seller, a short sale is likely to damage your credit -- but not as badly as a foreclosure. You'll also walk away from your home without a penny from the deal, making it difficult for you to find another place to live.

The buyer gets the property at a reduced price, but the property in all likelihood has its share of problems -- think fixer-upper -- and will need to go through considerable red tape in order to make the deal happen.

Two short-sale killers

· No default on loan -- Lenders almost never will accept short sale offers or requests for short sales until the borrower is far behind in payments and a notice of default has been issued.

· Bankruptcy -- If the seller has filed for bankruptcy, forget it. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy because negotiating a short sale is considered a collection activity and collection activities are prohibited in bankruptcies.

The lender takes a financial loss, but perhaps not as large a loss as it might if it forecloses on the property.

Before you even start considering getting involved in a short sale, there are two situations in which an attempt at a short sale is almost certain to fail.

Can it work for you?
Buying a home in a short sale can be a hassle, so why should you consider it? Mainly, it boils down to the bottom line. You will get the property for a substantial discount. Since the lender is eager to continue to get paid back the money it loaned out -- it may also offer favorable financing terms.

Since the seller plays an active role in the short sale process, you will have their cooperation (and most likely won't need to evict them upon taking possession of the home). This is not always the case with a property that has gone through foreclosure.

Whether you've become aware of the distressed situation on a property through an agent, a FSBO ad or word-of-mouth, this is not a do-it-yourself project. A short sale is one real estate deal where you really need to get help from an experienced agent or attorney. Not all real estate agents know how to handle a short sale, so make sure you consult with one who can demonstrate special training or a good track record with short sales.

Why lenders (might) agree
It might seem counterintuitive for a lender to go along with a short sale. After all, a lender is legally entitled to pursue the full balance of the loan. When a homeowner falls behind on payments, the lender can (and often does) hold the borrower responsible for every penny owed.

And yet more and more lenders are willing to consider approving a short sale. In a January survey of senior loan officers conducted by the Federal Reserve Board, more than 65 percent of those surveyed said they anticipate short sales or deed-in-lieu of foreclosures to be significant loss-mitigation steps for 2008.

Lenders are painfully aware of just how bad the current foreclosure crisis is. They know the cold reality is that a large number of struggling borrowers will end up losing their homes and often see the advisability in accepting the inevitable and trying to minimize their losses. Yet, some lenders seem to remain in denial. "Some of them are being tougher right now than they have a right to be," says Richard Geller, of MortgageReliefFormula.com. "I wonder if they expect a big bailout somehow. I expect lenders to get a lot more desperate later in 2008."

Foreclosure is an expensive and time-consuming process for a lender. By agreeing to a short sale, the lender wraps up this little mess quickly, and perhaps with less of a loss than it would have incurred with a foreclosure.

Remember, after foreclosing, the lender owns the home and has to maintain it, insure it and pay taxes on it. So instead of receiving payments each month, the lender is now forking out money every month. Plus, short sales help the lender look good on paper -- the property never gets listed as an actual foreclosure, which helps the lender's numbers. They see it as the lesser of two evils -- if the numbers make sense for them.

1. Identify potential short-sales
Locate preforeclosures in your area. You can use an online database, search courthouse listings, legal ads or by using an experienced real estate agent as a buyer's agent. First, try to determine how much is owed on the house in relation to its approximate value. If it seems high, it's a good candidate because it indicates the seller might have trouble selling it for enough to satisfy the loan. Pass on those in which the owner has a lot of equity in the home -- the lender likely will prefer to foreclose and resell closer to the market price.

2. View the property
Gauge its condition and come up with a rough estimate of how much it's going to take to repair or renovate. If it needs work, many "normal" buyers won't consider it, which is good for you.

3. Do your research
What is the property worth? What's the profit potential? If you're an investor or even a homeowner planning to live in the home a short time, you'll want to profit from the deal.

4. Find all liens and mortgages
Ask the seller or his agent what liens are on the property, and which lender is the primary lien holder.

5. Figure out the financing
This is critical. You have to know how you're going to pay for the property. If you're a good credit risk, the existing lender may be willing to give you a loan. Since they already have a lot of your information in the short-sale paperwork, they may be able to expedite the loan application process. It's important to understand that in a short sale you have to have the ability to move quickly. Once an agreement is worked out, it is common the lender will require closing in as few as 20 days. This is too late to start shopping for a mortgage.

Click here to read steps 6 - 10 and feel free to share your thoughts!

Source: Bankrate

Open House This Saturday 11/28/09 11 am -2 pm.

Brian Turner (Keller Williams Preferred Properties) — Sat, 28 Nov 2009 08:19:54 -0600

Open House This Saturday 11/28/09 11 am -2 pm for 12218 Open View Ln, Upper Marlboro, MD!

SHORT SALE...Multi-Level Condominium for $215,000 with Garage, Fireplace, Hardwood Floors, Stainless Steel Appliances, and more! Feel free to contact Raymia Henderson at 301-922-5499 for more information about this open house.

offered at $215,000

Year Built	2006
Sq Footage	1,300
Bedrooms	2
Bathrooms	2 full, 1 partial
Floors	2
Parking	1 Car garage
Lot Size	Unspecified
HOA/Maint	$160 per month

Fannie Mae helping ordinary Home Buyers compete with Investors

Brian Turner (Keller Williams Preferred Properties) — Fri, 27 Nov 2009 07:29:18 -0600

Fannie Looks to Level Foreclosed-Home Playing Field
By JAMES R. HAGERTY

Fannie Mae announced a program aimed at helping ordinary home buyers compete with investors for foreclosed homes.

Under the program, dubbed First Look, Fannie plans to consider offers only from potential owner-occupants and certain public-housing entities during the first 15 days in which a foreclosed home is on the market.

Fannie and its main rival, Freddie Mac, are government-controlled companies that buy or guarantee home mortgages. They are among the biggest owners of foreclosed homes. As of Sept. 30, Fannie said it had 72,275 single-family foreclosed homes on its books. Freddie had 41,133 as of that date.

Many investors can move faster on home purchases because they are able to pay cash and don't have to wait to qualify for a loan and get an appraisal. Investors often turn the homes into rental units or flip them to other buyers for a quick profit. People seeking to take advantage of the drop in housing prices to buy their first homes have been grousing that they often lose bidding wars to investors.

Fannie said it also would help owner-occupants acquire homes by reducing deposit requirements to as little as $500 and giving them a chance to renegotiate offers after appraisals. Such buyers also are to be allowed as many as 45 days to complete the transaction, up from the usual 30 days.for purchase of homes from Fannie.

A Freddie spokesman said that company has similar pilot programs and is helping owner-occupants pay closing costs.

Fannie's supply of foreclosed homes is likely to keep growing. It also announced Tuesday that 4.72% of the single-family home loans it owns or guarantees were 90 days or more overdue in September, up from 4.45% in August and 1.72% in September 2008.

Source: Wall Street Journal

One in Four Borrowers Is Underwater

Brian Turner (Keller Williams Preferred Properties) — Wed, 25 Nov 2009 07:50:55 -0600

One in Four Borrowers Is Underwater
By RUTH SIMON and JAMES R. HAGERTY

Click here to check out the video.

The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery.

Nearly 10.7 million households had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company based in Santa Ana, Calif.

These so-called underwater mortgages pose a roadblock to a housing recovery because the properties are more likely to fall into bank foreclosure and get dumped into an already saturated market. Economists from J.P. Morgan Chase & Co. said Monday they didn't expect U.S. home prices to hit bottom until early 2011, citing the prospect of oversupply.

Home prices have fallen so far that 5.3 million U.S. households are tied to mortgages that are at least 20% higher than their home's value, the First American report said. More than 520,000 of these borrowers have received a notice of default, according to First American.

Most U.S. homeowners still have some equity, and nearly 24 million owner-occupied homes don't have any mortgage, according to the Census Bureau.

But negative equity "is an outstanding risk hanging over the mortgage market," said Mark Fleming, chief economist of First American Core Logic. "It lowers homeowners' mobility because they can't sell, even if they want to move to get a new job." Borrowers who owe more than 120% of their home's value, he said, were more likely to default.

Mortgage troubles are not limited to the unemployed. About 588,000 borrowers defaulted on mortgages last year even though they could afford to pay -- more than double the number in 2007, according to a study by Experian and consulting firm Oliver Wyman. "The American consumer has had a long-held taboo against walking away from the home, and this crisis seems to be eroding that," the study said.

Just months after showing signs of leveling off, the housing market has thrown off conflicting signals in recent weeks. Jittery home builders and bad weather led to a 10.6% drop in new home starts in October, and applications for home-purchase mortgages have dropped sharply in recent weeks.

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Source: Wall Street Journal

How To Do a Short Sale?

Brian Turner (Keller Williams Preferred Properties) — Mon, 23 Nov 2009 08:01:09 -0600

How To Do a Short Sale
Why Would a Lender Accept a Short Sale?
By Elizabeth Weintraub

A short sale in real estate is not always a pleasant transaction.

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."

More than half of my sales in Sacramento over the past few years are short sales. That's how prominent short sales have become.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers:

· Obtain legal advice from a competent real estate lawyer

· Call an accountant to discuss short sale tax ramifications

As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

Click here to get the steps to doing a Short Sale? Also, understand What is a Short Sale and Is a Short Sale Right for You!

Source: About.com

OPEN HOUSE 11/22 from 12 - 4pm for 13901 King George Way!

Brian Turner (Keller Williams Preferred Properties) — Sun, 22 Nov 2009 10:45:32 -0600

OPEN HOUSE 11/22 from 12pm - 4pm!

13901 King George Way, Upper Marlboro, MD 20772

STATUS IS CORRECT!! Amazing Short Sale Opportunity! Only One Offer Will Be Submitted For Lender Approval. This 2 BR, 1 1/2 baths, 2-level townhouse condo in the highly sought after Kings Council subdivision is a MUST SEE! It features a beautiful fireplace, an automatic car garage, Jacuzzi tub, newer kitchen appliances, full sized washer and dryer. NEGOTIATED BY EXPERTS!! Feel free to contact Raymia Henderson at 301-922-5499 for more information about this open house.

Homes for Sale from BBT Real Estate Group, LLC (11.21.09)

Brian Turner (Keller Williams Preferred Properties) — Sat, 21 Nov 2009 15:02:08 -0600

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For assistance with these properties or any others, please contact us:

BBT Real Estate Group, LLC
affiliated with Keller Williams Preferred Properties
9701 Apollo Drive, Suite 102
Largo, MD 20774
Phone: 240-737-5024
EFax: 240-296-5024
Email: info@bbtrealestategroup.com
Website: BBT Real Estate Group

Click here for some additional listings and information about the company!

7 tips for buying foreclosures

Brian Turner (Keller Williams Preferred Properties) — Fri, 20 Nov 2009 07:39:55 -0600

7 tips for buying foreclosures
There are a lot of great deals on the market, but buyers beware: Purchasing a foreclosure is rife with pitfalls.

By Les Christie

Foreclosures are dominating the housing market. Right now, there are 1.5 million such homes for sale, and more are expected to be available soon. That provides both opportunities and pitfalls for bargain hunters.

Just because prices are low doesn't mean you should make snap decisions or buy something that isn't right. Here are 7 tips for making sure you don't get taken for a ride.

1. Don't get caught up in a feeding frenzy
"Everybody and their grandmas are trying to buy foreclosures," said Glenn Kelman, CEO of Redfin, an online, discount broker. But that doesn't mean you should lose your head.

Banks put repossessed homes back on the market at cut-rate prices because quick sales help avoid the expense of upkeep, such as property taxes, insurance, heat and electricity.

Those lowball prices represent golden opportunities, but they also attract dozens of buyers who may bid until homes are no longer bargains.

Don't get caught up in a bidding war. Instead, carefully calculate what you want to spend and do not exceed that price.

2. Contact lenders directly
Smart buyers establish relations with asset managers at banks. This may reward them with inside information or first crack at new foreclosures hitting the market.

In the case of a short sale, for example, it can give the inside edge. If a buyer is pursuing a short sale -- buying a home for less than what the current owner owes on the mortgage -- she should talk directly to the property's asset manager. That way, if the short sale falls through and the bank repossesses the house, the asset manager knows she is still interested. It could lead to a quick sale without other bidders.

3. Get pre-approved from the lender you want to buy from
If you're trying to buy a property from, say Bank of America, it can help to get a pre-approved mortgage from Bank of America. Doing so may cause lenders to look more favorably on your bid if it's similar to others.

Plus, you're not locked in if other lenders offer you better terms. You can always change your mind and get your mortgage from another source.

4. Consider fix-ups
Most REOs, the industry term for bank owned properties, are sold as is. "The conventional wisdom is that banks will do nothing to the houses before the sale," said Kelman.

That can be problematic today because so many foreclosed homes are in less-than-mint conditions. Often, the former owners were struggling to pay their bills and may have neglected routine maintenance. Or, they may have trashed the properties before leaving

In 25% of cases, homebuyers persuade lenders to fix some of the problems before the sale closes. Most of the time, banks would rather sell the house to the next available bidder -- one who doesn't ask the bank to pay for repairs.

So be willing to consider a home that needs some work -- but budget accordingly.

Click here to read tips 5 - 7 and feel free to share your thoughts!

Source: CNN Money

Life after foreclosure

Brian Turner (Keller Williams Preferred Properties) — Thu, 19 Nov 2009 07:48:50 -0600

Life after foreclosure
By Marilyn Kennedy Melia

These days, record-breaking foreclosure statistics are coming out with numbing frequency. But what happens to the thousands of families after their personal financial disaster is added to the mounting national count?

Unfortunately, once a foreclosure is final, the financial and emotional upheaval is far from over.

While there's considerable pain, most foreclosure victims will eventually become homeowners again, says Jay Zagorsky, a research scientist at Ohio State University.

Still, that won't happen anytime soon, especially since mortgage rule maker Fannie Mae has recently lengthened the time that must lapse between a foreclosure and approval for a new mortgage.

Here's a look at the issues foreclosed families grapple with, and some smart solutions.

Finding a new home

The immediate problem is obvious: where and how to find a new place to live.

Lack of cash for a rental deposit is probably the biggest barrier to foreclosed owners getting re-established on their own. Landlords will sometimes accept tenants who have a credit score of just 580, says Maurice Ortiz, marketing director at The Apartment People in Chicago.

But if landlords look beyond a numerical score to credit records, a foreclosure may spook them, since it indicates the potential tenant hasn't paid his housing bills, adds Ortiz. If the foreclosure can be explained, however, and if the rental candidate has a solid job history, he may be accepted.

Moreover, "if you're on the edge, you may have to double your deposit," says Mark Fogelman, president of Memphis-based Fogelman Management Group.

Scraping together a rental deposit isn't easy for cash-strapped foreclosed owners.

"That's why I recommend that people try to make plans as soon as they think foreclosure (is inevitable)," says Patricia Lynch, a corporate trainer with ClearPoint Financial Solutions in Richmond, Va. Anyone who has a FHA-insured loan who's being foreclosed on should investigate the "cash for keys" program, whereby they get a check for up to $1,000 if they voluntarily vacate and leave their home "broom clean," says Lynch.

Suffering through the credit fallout

Once owners default on their mortgage, other creditors consider it much more likely they won't collect what they're owed either.

"Credit cards have a 'default' rate, and (foreclosed owners) could see their interest rate jump to very high levels -- as much as 30 percent," says John Ulzheimer, president of consumer education for credit.com. "You'll also have a hard time getting a decent car loan," he adds.

If a foreclosure is an isolated event on an otherwise good credit record, consumers may be able to rehabilitate their record and garner better loans and card rates in 24 months, says Ulzheimer.

But since a foreclosure is rarely the former owner's only credit slip-up, and foreclosures are often combined with the fallout of punishing rates, some former homeowners will never climb back up to a good credit score, Ulzheimer says.

Click here to read the entire article and feel free to share your thoughts!

The FHA's nose dive

Brian Turner (Keller Williams Preferred Properties) — Wed, 18 Nov 2009 08:18:04 -0600

The FHA's nose dive

Another housing agency takes taxpayers for a dangerous ride.

THE COST of the housing bailout continues to rise. The government-run mortgage giant Fannie Mae requested another $15 billion from the Treasury this month, to help cover a loss of $19.8 billion in the third quarter. That brings the total tab for rescuing Fannie to $60 billion so far. Fannie's twin, Freddie Mac, has received $51 billion. And now comes news that the capital reserves of the Federal Housing Administration (FHA) have fallen to $3.6 billion, which is just one-half of 1 percent of the $685 billion in loans insured by the agency and well below the statutory minimum of 2 percent.

Does this mean that Congress will soon be shoveling more billions into the FHA? Possibly. But it's important to understand the precise nature of the FHA's predicament. Whereas Fannie and Freddie are in the business of securitizing mortgages, the FHA insures them directly. Borrowers of modest means can get houses with as little as 3.5 percent down; if they default, the FHA pays off the lender from accumulated insurance premiums. During the bubble, subprime firms "served" anyone with a remotely plausible ability to borrow, and the FHA's market share waned. The FHA tried to compete by accepting down payments supplied by sellers to borrowers via nonprofit organizations. These were, in effect, loans of very poor quality that required no down payment, and they have been defaulting in bunches. The FHA says that, without these clunkers in its portfolio, the agency could meet the statutory capital requirements today.

In the past year, as private investors have left the mortgage field, Congress and the White House (under President George W. Bush and President Obama alike) have encouraged the FHA to fill the void. The agency insured $360 billion worth of single-family loans in fiscal 2009 -- five times as much as it insured in fiscal 2005. Today, about half of first-time homebuyers turn to the FHA. Though quite a few of these new loans are of questionable quality, too, the FHA says that the average quality of its booming portfolio has increased, if only because good borrowers have so few alternatives.

Low as its reserves are, the agency estimates that the insurance premiums from a growing, new book of business will enable it to cover, just barely, losses from the rapidly decaying old book, after which it can rebuild reserves. You could compare the FHA to the pilot of an acrobatic biplane: in a nosedive but capable of pulling out of it in the nick of time. If the housing market performs worse than the FHA's current worst-case scenarios, however, the agency will crash and burn.

The problem here is that the government is taking taxpayers on such a death-defying ride in the first place. Like Fannie Mae and Freddie Mac, the FHA represented a huge federal gamble on the politically popular cause of homeownership. Now that Washington has lost that bet, it is doubling down, in a bid to prop up home prices just enough to prevent a wider collapse of the economy. Perhaps this stopgap will work, perhaps not. Certainly it's odd that the FHA is helping people get houses with very little equity even as rental vacancies are running at an all-time high of 11.1 percent. But the broader lesson is that federal subsidies have made the entire economy dangerously dependent on single-family housing. The sooner Congress and the president go to work on a long-term fix for that fundamental problem, the better.

Source: Washington Post

Some negatives about home sweet homeownership

Brian Turner (Keller Williams Preferred Properties) — Tue, 17 Nov 2009 07:46:40 -0600

5 myths about home sweet homeownership
By Joseph Gyourko

Even as we wade through the wreckage of the housing collapse, Americans remain a staunchly house-proud people. And our government is apparently determined to encourage us: This month, President Obama signed into law an extension and expansion of the popular homebuyer tax credit, which had been scheduled to expire at the end of November. But before you rush out to claim your extra cash, take a moment to make sure you're not in the housing market for the wrong reasons. We've found that several of our most cherished beliefs about the value of a home don't hold true:

1. Housing is a great long-term investment.
Historically, the value of owner-occupied homes has risen at a fairly low rate, one that pales in comparison with the performance of stocks and bonds. Between 1975 and 2008, the price for houses of comparable quality and size appreciated an average of about 1 percent per year after inflation. You would have earned well over 2 percent per year after inflation had you invested in Treasury bills over the same period. And you would have earned even more on riskier investments: After inflation, Moody's corporate bond index rose an average of 6 percent per year between 1975 and 2008, while the S&P 500 stock index rose an average of 8 percent per year. Most of the return from owning your home comes not in financial gains but in the benefits you enjoy by living there.

2. The homebuyer tax credit makes buying a house more affordable.
Not necessarily. Just because you got an $8,000 tax credit toward the purchase of a home doesn't mean that you actually saved $8,000. In areas where there is strong demand for housing and the supply of new housing is limited -- including the Washington metro region -- tax credits may result in the bidding up of home prices. In other words, the program has probably led to higher prices in these areas than we would be seeing without it. This means that some of the benefit of the tax credit is being passed on from homebuyers to home sellers.

3. Homeownership is good for society because owners make better citizens.
This is the rationale behind the government's many efforts to subsidize and expand homeownership, and there is an appealing logic to the argument. Since homeowners have a financial stake in their communities, one might expect them to be more responsible and involved citizens. But there's no overwhelming evidence that higher homeownership rates make for better societies. Austria, Germany and Denmark all have ownership rates in the low 40 percent range, meaning that just over two-fifths of all housing units are occupied by their owners. This is well below the 68 percent ownership rate in the United States, but those countries don't appear to be suffering a shortage of civic-mindedness. At the other end of the spectrum, Spain's ownership rate tops 80 percent, but no one seriously claims that this makes Spaniards better citizens than Americans.

Click here to finish reading the entire article and feel free to share your thoughts!

Source: Washington Post

First-time homebuyers leading market back

Brian Turner (Keller Williams Preferred Properties) — Mon, 16 Nov 2009 07:45:51 -0600

First-time homebuyers leading market back
By Les Christie

Propelled by the first-time homebuyers tax credit, nearly half of home sales are now being made by first-time purchasers, according to an industry report released Friday.

In fact, 47% of all Americans who purchased homes this year had not owned one during the previous three years, according to a press release Friday from the National Association of Realtors (NAR). That was up from 41% of sales in 2008 and 36% in 2006.

The tax credit boosted markets by giving first-time buyers a credit of up to $8,000 they could deduct from their income taxes. The credit is fully refundable: Even a buyer who pays less than $8,000 in income tax gets the full amount of the credit back.

The credit was recently extended through the middle of 2010 and expanded to include many existing homeowners. That has the industry buzzing.

"The credit is working better than first projected -- it now looks like we'll have 2.3 to 2.4 million first-time buyers this year," said Lawrence Yun, chief economist for NAR. "With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3% and 5% in 2010."

NAR forecasts that existing-home sales will total slightly over 5 million in 2009, a 2% increase compared with 2008. Next year, they predict a gain of 13.6% to 5.69 million units. That should draw down inventory and prop up home prices, according to Yun, but, he cautioned: "Risks, such as unemployment, remain."

Critics of the tax credit call it a poorly targeted method of boosting sales. The credit added, by nearly the most positive evaluations -- including NAR's -- fewer than 400,000 sales to the total this year, about 20% of all first-time purchases.

Since all first-timers get the credit, whether it persuaded them to buy or not, that would mean about $40,000 was spent by the government for every extra sale, critics say.

Most affordable housing in years

Click here to read the entire article and feel free to share your thoughts!

Source: CNN Money

The New Home Buyer Credit: A Windfall for Downsizers

Brian Turner (Keller Williams Preferred Properties) — Fri, 13 Nov 2009 08:53:14 -0600

You're Retired. Should You Ditch Your Life Insurance Policy?
by Amy Bell

After toiling away in the workplace for decades, you've finally reached those much-awaited, glorious retirement years. That means you can ditch those uncomfortable business suits, bid farewell to boring staff meetings and say good riddance to endless hours pecking away at a computer. And while you're at it, you might as well scrap your life insurance policy, too. Wait, not so fast…

You may want to take stock of your current situation before you make this critical decision. For some people, it simply does not make sense to continue to pay into a life insurance policy after retirement. If you no longer have young children who rely on your income and your spouse is covered by retirement investments, maybe you should chuck that policy.

On the other hand, there are plenty of good reasons to hang onto life insurance for a while longer. For example, if you still have family members who rely on your income, if you own a high-value estate or if you simply want to leave a legacy behind, you may decide to keep paying into life insurance.

To keep or not to keep that life insurance policy? It's the million dollar question for retirees across the nation. If you're trying to determine whether you should throw out your life insurance policy along with your business ties, here are a few things you should keep in mind.

It Isn't About You
It's important to remember that life insurance isn't about you. As a matter of fact, life insurance is not even meant to insure your life. The purpose of life insurance is to protect those who rely on your income from financial hardship if you were to die. If you were to pass away during your working years, an effective life insurance plan would ensure all your family's financial needs will be covered, from the monthly mortgage and utility bills to your child's college education.

But as a retiree, you (hopefully) no longer have children who rely on your income. By the time you reach retirement, your children are most likely grown and earning their own income. If your 35-year-old moocher of a mama's boy is still living your basement rent-free, it's probably time to give him the boot.

So, what about your spouse? At this point in your lives, if you were to bite the dust your spouse would probably be covered by income from your retirement investments. Because you are no longer working, you are not bringing in a stream of work income. There's no need to cover income that isn't there. Plus, if your spouse is also retired, he or she will continue to receive a steady source of income from your retirement funds. Therefore, his or her income would remain the same after your death.

To quickly and easily resolve this dilemma, all you have to do is ask yourself one simple question: will any of my loved ones suffer from a financial loss if I were to croak tomorrow? If your answer is "no," then there's probably no need for you to keep your life insurance policy. Unless, of course, you have other, personal reasons to hang onto your policy.

It's the Gift That Keeps on Giving
Many retirees want to leave behind a legacy after they're six feet under. Maybe you're comforted knowing your family will receive some kind of payout after your death. Even if they don't need this money, you may want them to have it.

If you feel strongly about this, it may be worth it to give up some of your income now to make sure your heirs receive a special gift later. The significant death benefit could be enough to cover your grandson's college tuition or your granddaughter's wedding. Better yet, it could give your moocher of a son enough cash for a down payment on a house of his own.

Let's say your grandkids are spoiled rotten and you don't feel the need to leave any money to them. In that case, you may prefer to make your favorite charity the beneficiary of your life insurance policy. If there's a special charity that's near and dear to your heart, you could leave a big chunk of money behind to the cause.

Click here to finish reading the entire article and feel free to share your thoughts!

Source: Investopedia

How to Sell your Home in this Crowded Market?

Brian Turner (Keller Williams Preferred Properties) — Thu, 12 Nov 2009 07:52:06 -0600

Selling your home in a crowded market
By Margarette Burnette

In today's economy, it's tough enough to sell just one home in a neighborhood. But when there are multiple "for sale" signs on the same street, sellers often fear they're in for an especially long, trying experience.

A crowded market creates visions of price wars among neighbors who've lived on the same block for years. Sellers may also worry that potential buyers will conclude that something must be wrong with the neighborhood if everyone wants to leave.

Surprisingly, neighborhoods with multiple homes for sale may have a few unique marketing advantages, says Rhonda Duffy, owner and broker of Duffy Realty in Atlanta.

"As a buyer, it's easier to visit a street that has several homes for sale than to make a trip to just one property," she says.

When more buyers visit your street, there's a better chance they'll see your home. That may increase your odds of receiving a good offer.

To help the process along, here are seven things you can do to improve your odds of a sale when the neighbors are selling too.

1. Suggest a joint open house
If the family next door and the people down the street have houses on the market, suggest hosting a combined open house on the same day, Duffy says.

"Try to work with the other sellers so that everyone is supporting each other instead of competing against each other," she says. "You might even agree to distribute each other's fliers."

A combined open house can bring in more people while also giving buyers a glimpse of how well residents in the neighborhood get along. If the interactions are positive, it reflects well on the sellers, Duffy says.

Lori McGuire, a real estate agent and president of the McGuire Team, a part of Remax Select One in south Orange County, Calif., knows it can be hard to get competing owners to work together.

However, she says tough market conditions often force sellers, and their Realtors, to give it a try.

For instance, McGuire has talked to Realtors about taking turns putting up "for sale" signs in neighborhoods with many homes on the market. That way, buyers who drive into the neighborhood "don't see 20 [signs] on the same street."

"That number may seem hard to believe, but it's possible for that many houses to be up for sale if the home is in a newer neighborhood and it's competing with other homes that the developer just built," she says.

2. 'Sell' your entire neighborhood
These days, it's not enough to simply sell your home; you also have to go the extra mile to promote your neighborhood.

"Help your buyer get past the fear that something may be wrong with the neighborhood by describing why your community is great," says Duffy.

For example, in your brochures, consider including relevant information about an active community social calendar, friendly neighbors or mature, well-manicured area landscaping.

Chances are the neighbors who are selling their homes are sprucing up their properties to enhance curb appeal. That should make your job easier.

Another way to plug the neighborhood is to write a seller's letter to potential buyers that anticipates and answers likely questions.

"Explain why you are moving, assuming it's for a positive reason, and how you're leaving something great behind," says Duffy. "Give the impression that you're happily moving away, not that you're happy to be moving away."

Make copies of the letter and place them alongside your fliers, brochures and other important sales material.

3. Give easy access to your home
When several of your neighbors are selling, too, it's best to be prepared to show the home quickly.

"If there are multiple listings in your area, you'll probably have a higher number of impulse house showings," says Myra Nourmand, a Beverly Hills, Calif.-based real estate agent.

Shoppers may have overlooked your house while searching for listings online. When they physically visit your neighborhood to see another house on the market, they might spot the "for sale" sign in your yard and ask their agent to show them your property, too.

It's reasonable to expect people to give notice before showing up on your doorstep, but don't make potential buyers jump through hoops before they can see your home, Nourmand says.

Severely restricting the hours your residence is available for showings could cost you a prospect.

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Source: Bankrate.com