Realty As Is » Salt Lake Homes

Deed-In-Lieu of Foreclosure or Short Sale?

Tom Winand — Tue, 26 Oct 2010 17:41:45 +0000

Salt Lake City UT – Many people ask if they should do a deed-in-lieu of foreclosure and give their house back to their lender. A deed-in-lieu does have its benefits. Lenders like them because they speed up the foreclosure.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

A deed-in-lieu is the equivalent to a “No Contest” plea in a criminal trial. You just give up on the foreclosure. If there is a foreclosure court case, the judge will still have to schedule a foreclosure sale.

Contrary to popular opinion, a deed-in-lieu does not automatically release you from the debt. This means that your lender could be pursuing you five years later, after you get back on your feet.

There is an application process. You will have to spend between 5 and 10 hours submitting paperwork to your lender before they will approve the deed-in-lieu. Yes, I think it’s crazy!

Why should you have to submit paperwork to make it easier for your lender to foreclose on your house? Doesn’t make any sense. That is why I recommend a short sale instead of a deed-in-lieu.

You get to avoid the humiliation of a foreclosure. In addition, most short sales allow you to stay in the home rent free for 3-6 months. And you can get up to $3,000 from HAFA.

That will help cover the cost to move and maybe even cover the deposit on a rental property. The other advantage with a short sale is that you will be able to buy another home sooner.

Because a deed-in-lieu acts as a foreclosure, you will not be eligible for a new mortgage for 5-7 years. With a short sale, you can be eligible to buy another house in 2 years.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at tom@spottedhome.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 801-403-9774.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Salt Lake City Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Tom Winand.

Tom is a Real Estate Broker at Spotted Home LLC.

Phone: 801-403-9774. tom@spottedhome.com.

We Believe in HOME

View My homes for sale at www.spottedhome.com.

Tom Winand specializes in loan modification assistance and short sales in Salt Lake City Utah. Salt Lake City Loan Modification Help, Salt Lake City Short Sales, Salt Lake City Short Sale Realtor. Short Sale Realtor. Salt Lake City UT Short Sales. Salt Lake City Realtor.

Best Home for Sale In Salt Lake

Tom Winand — Thu, 14 Oct 2010 02:13:07 +0000

872 S CONCORD ST , Salt Lake City UT 84104

This a new Listing of mine in Salt Lake City. It on a great street that dead ends into a park. The list price is $80,000 and we’ll pay your closing cost. If you use me as your listing agent I’ll pay to put closets in the bedrooms to allow it qualify for a FHA.

Property Tour

Visit spottedhome.com for the complete home tour and thousands of other homes for sale.

We need a Offer ASAP. Use UAR SS addendum and include a per-approval letter that states auto-underwriting approval completed. $500 Ernest Money. Great affordable bungalow in a great neighborhood dead ends into a park. Bedroom do not have closets so for FHA you would have to get 203k streamline financing only we have a expert lender that can close one in 30 days.

View the Complete Home Tour.

View all Property Detail.

Price:	$80,000.00
Beds:	3
Baths:	1
Sqft:	1,401
Lot:	0.15 acres

To see this home in person call..

Tom Winand, Broker

Spotted Home LLC

801-403-9774

For Maps, Street View, Tour, Dozens of Home Facts on thousands of UT homes please visit spottedhome.com

How to avoid the Tax Credit selling Train Wreck in Salt Lake

Tom Winand — Sat, 20 Feb 2010 18:28:03 +0000

From now until the end of April in Salt Lake County, there will be more offers written on homes for sale then there will be in all of 2010. Good news for home seller Right? We’ll maybe if you keep your guard up. I have to say the 2010 Home Bing Tax Credit expiring at the end of April will cause a real train wreck of buyer putting in multiple offers on lots of peppery and not really having intentions or means to buy them all. I talked to one buyer that has 6 offers in on short sales and said they would take the first one. I would bet there will be a lot of buyer doing the same with short sales and also having a non-short sale in the mix. I would bet the contract would go something like this closing on or before June 25 2010. I would bet the loan denial date would be like June 20 so they can back out of the transaction If they get a short sale a great deal and the poor home sell missing selling their home and because they Tax credit won’t be extended this time for a couple of months they will probably sell for a lot less money. The government is pulling out of subsidizing the home buying industry. They are raising the Treasury Bill rate and they will probably end the home buying tax credit. The reality is the real estate market in the country will come to a screeching halt in Aug and Sep so then they will act in November to the crisis. The government will get all in arm’s Barany Frank will get up and tall like he a concerned government superhero that know everything and it will be big news and big grandstanding and a new Tax credit form Nov 2010 to April 2011 will come out pretty much the same as today’s is it will have first time home buyers credit of $8,000 and 2^nd home buyers credit of $6,500 it they have owned for 5 years.

Back to my point how do you as a home owner not miss the best selling time with a bogus offer? We’ll you take a little piece of the short sale addendum allowing the property to stay on the market active because the offer is not binding. You can have multiple offers to buy the seller can accept all in order. The seller accepts an offer in first position and gives them a first offer the right to match the offer. Match what you say Price and ability to close. So there is no binding contract until the buyer shows the ability to close. Make the primary offers earnest money (at least 1% of sales price) non-refundable unless the inspection finds an undisclosed pertinent and substantial fact that affects the value of the home such that it will deter future home buyers, that he seller is unwilling to correct. So not the first offer ready to close force the primary offer to step up and match it or lose their earnest money if they back out. You may want to do 2% that how strongly I believe seller will be take advantage of in this crazy buyer purring in multiple offers. Some buyers will not disclose they have a home to sell. All listing agent should put a Q & A addendum do you own another home. Will you have to sell or rent the home to qualify? Then get a Pre Qualification letter stating the lender knows of this and they buyer qualifies without selling the home.

If you’re an agent or sell take this to heart it will be happening making offer on multiple property. It’s probably unethical if you don’t disclose it to the seller but agent think they can just put in contingency that will allow the buyer to back out. Like financing oh they can’t buy 2 home so they don’t qualify. Right we need to hold this kind of activity accountable but how?

What the heck is going on with buying a short sale in salt Lake?

Tom Winand — Thu, 24 Sep 2009 18:16:05 +0000

I was looking at this post on Trulia.com a question about short sale buying and I couldn’t help buy write this post.

How to buy a short sale.?

What are the steps to take in buying a short sale, from start to finish. How long does the process take? And can the $8000 tax credit be used? The home is located in Plainfield NJ. Thank You.

It was bothered by the agents standard answers of 3 to 6 months to get bank approval and not looking at why a buyer is asking this question in the first place. They are frustrated and want to buy a property at a good price don’t bon truest the listing in there local area because we as MLS and agents have allow a mockery to be made of the MLS. My to the question is.

I have read the answers and know short sale very well form both the seller and the buyer perspectives. Short sales are a big problem in the real estate market right now frustrating buyers and buyer’s agents. Unfortunately some agents are using this problem of selling excess inventory to take advantage of the banks, and steel the properties for investors. With the intention to resell the property simultaneous to the public looking for a retail buyer and make big profits off home owner in or facing foreclosure. This is causing the home buying public to not trust realtors that they can find them the good deals out there. So the public is going to the listing agents to make offer on short sales and they find out after signing an exclusive buyers agreement, that the property had an investor offer or was under contract with another offer and there offer was one on many back up offers. So what’s going on? I see 3 big problems with short sale listing:

Agent’s use them as an advertising source to get buyer interested in a home that is listed way under value. To get buyers to call them and sign an exclusive buyers agency agreement locking them into buying for 6 months. I bet this is even the case in the few states that don’t allow Limited Agency. They probably circumvent that by using a team and Referral Agreement between agents. While this is going on the agent has an investor off in to the bank and is gather these names to buy the home form the investor either as simultaneous close or in 90 days as allowed by FHA.
The investor simultaneous flip. Agent gets an investor to make a very low offer and they work with the bank to get this accepted or countered at their banks drop dead point. Then while they are doing this the agent keep the property active on the MLS liking for buyers willing to pay close to retail price so they can make $20,000 or more on the simultaneous close. Usually the investor is the negotiator so they have no real interest that a short sale gets approved its how much money they need to make. Unfortunately this causes some home to be sold at foreclosure sale. The worst is asking the seller to Quitclaim the property to then buyer and stall the bank for 90 days so the new buyer can simultaneous close with a FHA buyer because FHA requires 90 days of ownership. I wish the banks would get smart and ask for a current title search for the title company with chain of ownership like lenders require. That would stop this fraudulent and dangerous practice the bank would say no sale and turn it over to the federal task force investigation this. Oh yea if your doing this it’s real and I have talked to them and advised them on investor groups doing the quitclaim scam. Any agent that would even consider having his client give his property ownership to some investor need to be expelled from the National Association of Realtor and sued for breach of contract.
Some agent’s don’t know what they are doing on a short sale and should not be attempting it. Like the FHA and VA rules and the HUD form you have to fill out to get a short sale approved prior to listing it. They have specific rules forms and % of net to the bank that you must be within. If you don’t know that please don’t list short sales.

So what can you do as a buyer or buyer’s agent? First off make reasonable offers. Do the work on want a good retail price for a home is. The bank would give the property away. In most cases it 86 to 88% of the current retail price net after closing cost, yep based on the dredged banks BPO(Broker Price Opinion. What do you do with the listing agent you ask if an offer is accepted and presented to the bank? If no make an offer that clearly states when accepted your offer will be exclusively worked on with the bank until the bank reject your offer. If they don’t feel your offer is high enough for that, then have a first right of refusal if any other offers come in you have 48 hours to make your offer match their more desirable criteria or back out of first position. Also have a time line for presentation to the bank 72 business hours after acceptance of the owner.

If there is an offer find out if there are back up offer or if you can be the primary back up offer with the same binding contract if now walk away. Now please as a buyer make a reasonable offer base on the sold comparables. With your agents determine the reasonable retail value of the property per above guidelines. Now if prices are dropping 5% a month ok offer 5% less than last month’s sales. Use your agent and do the home work and the bank will accept your offer. If you offer 50% the bank will put it in a stack of file that won’t be worked on.

It makes me nuts to see agents accepting offer after offer on a property. Buyers have rights! You as an agent need to advise your seller on accepting a good offer on the property based on it selling criteria. Agent and seller have to assume the responsibility to accept good offer and maybe then banks would be able to complete them on 20 to 30 days. I want to see the term low ball offer to get the ball rolling taken out of our language as Realtors. Lets replace it with we have an offer or we do not have and offer the owner accepted or we have an offer with a price contingency? Let’s make the buyers feel valued again.

203 K Streamline Loans are The Best Little Loan No One Knows About!

Tom Winand — Wed, 16 Sep 2009 19:02:11 +0000

203 K loans are the FHA loans that allow you to buy a home that is a fixer upper. The newly developed FHA 203 K Streamlined loan allows you to buy a home that is run down that wouldn’t qualify for FHA financing. As loan as there is no structural repairs needed. The list of allowable repairs is below. Buying with the FHA 203 K Streamlined loan is easy all you need to obtain contractors bids and submit them to your lender. This can be done at the time of inspection or maybe week of the inspection. Sure it more work but the get a home at a great buy and the money to fix it up at only 3.5% down payment, you’ll have to do a little more. It a great loan because it gives the buyer the ability to buy a Short sales, bank owned or just undervalued property that the seller won’t do FHA repair and have the home the way you want after closing with little of your buyers money . They can get up to $35,000 in repair, winterizing, greening up the home, put in new windows and R50 insulation in the attack, upgrade the electrical, making it just the way your client wants, and they just have to pay the 3.5% down on that portion and the rest in put in the loan. You can do allowable repairs up to $35,000 with no minimum; so if you just need $3,000 for carpet you can burrow that above the purchase price. If you need a new furnace and upgrade to the electrical system that’s Ok you just need to get bids form licensed contractor that meet requirement to do the work. Can you do the work yourself? Yes and no; you can do the work if you have the expertise and can prove it or if it is unskilled work like painting.

What improvements are eligible under the new Streamlined (k) program?

The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:

Repair/Replacement of roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Painting, both exterior and interior
Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Accessibility improvements for persons with disabilities
Lead-based paint stabilization or abatement of lead-based paint hazards
Repair/replace/add exterior decks, patios, porches
Basement finishing and remodeling, which does not involve structural repairs
Basement waterproofing
Window and door replacements and exterior wall re-siding
Septic system and/or well repair or replacement

How do you get the extra money?

As the buyer you get contractor bid and with your loan officer calculated the cost into a 203 k Loan Worksheet. Your money will be released form title after the work is completed. Inspections are at the discretion of the lender. There are options to get ½ the cost up front if the contractor needs that for cost of materials but no more than 2 payments the initial and final after completion. This is loan is not for building a home or completing substantial work it a fixer up or and updating a home loan. It a great tool in today market to by Short sales and bank owned homes that need TLA and won’t qualify for the traditional FHA loan.

Selling Your Home For Sale By Owner in Salt Lake County

Tom Winand — Wed, 09 Sep 2009 03:27:15 +0000

I thought I would write a blog to help all the For Sale By Owner selling in Salt Lake. Selling For Sale By Owner or FSBO is something I know a lot about. Ok, I know some of you are rolling your eyes saying this is where the Realtor is going to tell us we have to list to sell because 80% of homes are sold by Realtor’s etc. Maybe and maybe not; it all depends on the market conditions at the current time.

Allow me to give you some credential, I was the nation Real Estate Broker working for ForSaleByOwner.com from May 2005 to May2008. I listed dozens of flat fee listing a month for most of the Watch Front and consulted with national listing agent and customer support problems. Created new programs for ForeSaleByOwner.com to market to seller and buyers and yes sold real estate. For you people keeping score that was during the boom of the real estate flipping era. So I know a little about the For Sale By Owner way of selling. I’ll be honest you can sell your home as a FSBO. In today’s buyers market it harder. It not easy because buyers are looking for the great deals of bank owned and short sales they want a great deal and those two category of homes are being show by Realtor’s only. So buyer tend to become clients of Realtors and end up seeing only listed homes not FSBO homes. I’m sorry that is the nature of the market right now. If it becomes a seller’s market again FSBO will be very effective again. I don’t see that happening anytime soon. Even if they don’t buy a short sale or bank owned home they buy a listed home. So how do you get listed without paying 6%? Now that’s a really great question! That is actually easy it’s a flat fee listing or pay for service listing? You can get your home listed from $99 to $995 full service and chose your buyer agent commission from 0% to 4%. So you could spend $199 and 2.5% buyer’s agent commission and have your home on the MLS thousands of MLS Real Estate company and agenth web sites all for a low fee. If you sell it your self you pay nothing but the one time fee. That is the best way to sell in this market. Selling comes down to marketing exposure and pricing, the more shopper that see your home the more of a chance one will think it’s the best home for the money and they will make an offer. That is it really simple. It’s a beauty pageant and a price war! You have to be priced well, in this price driven buyer market. So you can’t rule out the buyer working with agents, if you want to sell. There may only be only 3 or 4 buyers looking for a home like yours and 3 of them may have agents that are the nature of this market right now. Where do you find a reliable flat fee company? We’ll I’m glad you ask, I have one that I have created it http://www.forsalebyownerhelper.com/ you can place your listing, upload your photo buy a self serve or professionally shot Obeo virtual tour, which is the best tour for tracking the buyers viewing your home. I will post your home on the WFRMLS and syndicating it to most of the major home buyer’s sites. From the $99 limited service listing to the$995 Full services until sold all the bells and whistles listing. If you post a comment on this blog post and enroll in a listing program, I will give you the statistics for your home sold listed and under contract so you can do the # for pricing your home. See the pricing your home posting. Good luck and happy selling!

Embarrassment to the State The New Utah Home Run Grant!

Tom Winand — Sun, 06 Sep 2009 22:51:35 +0000

How about a real alternative Realty As Is Grand Slam Grant!

Utah Legislature has used the last 1/3 of the Utah People TARP funds, allocated to the state of Utah, for New Construction Home Buyers Grant. I guess they had to give the development companies more assistant to sell their overpriced, new construction home!!!! There are a lot of programs that really would have benefited home buyer a lot more if the legislator really wanted to stimulate the real estate recovery in Utah. Like why doesn’t Utah have a, loan of the first time home buyers tax credit, so they can use it for their down payment? HUD has approved this and Utah housing, the administrator of the Home Run Grant, is really the only entity in Utah that could do it and their answer to me when I ask them why it wasn’t being provided as a program? Was they didn’t have any Money to do these loans! So why didn’t the legislator allocate the fund for this up front loan of the $8,000 first time home buyers Tax credit I don’t know? Were creating our own Home Buying Program the Realty As Is Grand Slam Rebate 1/2 of Our the Buyers Agent Commission. An Home Any Price Any Use Just buy with us. Short Sales Bank Owned Tax Credit Utah Housing Loans we Just want you to get a home and a real incentive!!!

The reason why many home buyers don’t buy now FHA requires a 3.5% down payment from their own fund or a gift form a blood relative. HUD did away with 100% purchase gifting down payment plans and raised the down payment requirement form 3 to 3.5% in the last tax credit for first time home buyer legislation. Sure Utah Housing has a 106 % program but the rate is 1% higher on the 97% first mortgage and 2% on the 6% 2^nd mortgage above the going FHA Rate. People what to buy a home with no money down and have a 5% 30 year rate that is it. Is that right or wrong I don’t know but it is real and that is what we’re about on this blog, Reality! We had the opportunity to do that and use that money from the Tarp to fund a real first time home buyers program and we didn’t. So instead what we have done is give the home builder more incentive to build home that we don’t need. We’ll I don’t get! We have thousands of short sale on the MLS in Salt Lake County and only a few hundred existing new construction homes that are complete and ready for home owners to buy. People are trying to sell their home and avoid foreclosure and the public wants to buy these homes and no help from Utah! I see this is a way to line home builder pockets so they can sell there over priced inventory and we pay for it, it’s a real sucker punch to the Utah people. I’m not even sure how well this will go over. Why buy a new home $15,000 to $50,000 overpriced to get a $4,000 Grant. I’m sure Miss Utah and the home builders will be advertising the Heck out of it.

We’ll I have a grant for you home buyers!

I will give you a free grant of ½ of my buyers commission so on a $250,000 shot sale that is $3,750 free money and you can buy a existing home or a new construction no income limit, investment or primary residence. How is that for a grant? I’m calling it the Grand Slam Home Run Grant!

Listing details of the home Lets look at how it works compared to the home Run. You can buy a listing like my short sale in West Jordan. You could offer $275,000 with seller paying $8,000 in closing costs and you would get a rebate of $4,200 on my Grand Slam Home Run program. If your would rather than buy the same home in the same development from Ivory who built this one for $350,000 and get a $4,000 Home Run grant rather then get my Grand Slam grant form me you can! Here is what you would get each way.

Grand Slam Rebate

Get a FHA 5% fixed 30 year going rate and have all your closing costs paid and help out a short seller.
You get the home for $275,000 not $350,000 so you have $75,000 less in loan @ 5% your saving is $402 a month or $4,831 a year in payment!
You’ll have equity in your home from the start as opposed to being upside down.
You home payment will be P % I $1,476 as opposed to $1,878 Wow.
You get a cash rebate of $4,200 after closing. Spends it on whatever you want, probably the back yard on this home!

Who is Eligible for the RealtyAsIs.com Grand Slam Grant!!!

Every one that buys from me as their realtor.

Home Run

You get a home buying grant of $4,000.
You get to be the first to live in your home.
You may get to pick the carper and paint form a few choices the builder gives you.
You get to say you built the home?
You P& I payment is $1,878you have to pay your own closing cost or add them on top and use your grant.

It you really want to see the details on the Utah Home Run Grant hear your go.

The Home Run Grant FAQ Home Run Program PDF Link

Eligible Listed Property Link

Who is eligible to receive a $4,000 Home Run 2 Grant?

Home buyers (any person taking title) must meet the following income restrictions:
- Single person, maximum income, $75,000
  Married couple, maximum income, $150,000
- If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
- Income calculations will be determined by the Adjusted Gross Income as verified by the Approved Lender using the 2008 IRS Federal Income Tax transcript obtained directly from IRS or from an authorized third-party vendor.
- Home buyers must occupy the purchased home as a primary, permanent residence.
If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment and may not be used by Home buyers who received the $6,000 grant under the previous Home Run Grant Program.

Foreclosures in Salt Lake County up 289% what to do if you get a notice?

Tom Winand — Mon, 10 Aug 2009 01:36:30 +0000

First off if you get a notice of defaults for your lender don’t get too upset. Please call a Professional like us at Project Hope for Home Owners 800-604-0281. We specialize in helping people sort out their situation and chose powerfully how they want to deal with this. You have lots of options and time to create a plan. You by no means are alone in this. Salt Lake County Notice of Defaults or NOD’s are up 289% over 2007 levels and 150% over 2008.

I want to look at the trend in # for the last 2 years of foreclosures in Salk Lake County. I will be using the Data form New Reach the best real estate data source available for real estate in Salt Lake County. Below is a chart breaking down the Notice of Defaults for sale Lake County for 2007 -2009? It’s rather sobering to see that for July of 2009 were up 289% over 2007.

Month	% Change from 2007 to 2009	2009	% Change form 2008	2008	% Change form 2007	2007
January	190.56%	646	164.80%	392	115.63%	339
February	240.69%	698	192.29%	363	125.17%	290
March	290.63%	837	208.73%	401	139.24%	288
April	323.14%	824	167.14%	493	193.33%	255
May	289.13%	798	153.76%	519	188.04%	276
June	278.88%	845	170.36%	496	163.70%	303
July	289.67%	869	146.79%	592	197.33%	300
August	21.21%	84	15.88%	529	133.59%	396
September				644	206.41%	312
October				601	139.44%	431
November				566	163.58%	346
December				675	195.65%	345
Totals		5601		6271	161.58%	3881

Projecting the # down it wouldn’t be out of reality to say we’ll see 1,000 NOD in a month by the end of 2009. We could also go over 10,000 NOD’s for 2009 if the # continues to escalate. We have been in a foreclosure moratorium for, May to July. Now NOD’s are not actually people loosing their home they are people that the banks are legally notifying the owner, they are beginning the foreclosure process. After the NOD is filed the mortgagee has 90 days to catch up the mortgage or do one of the following. Work out a loan modification, sell the home, short sell the home or Do nothing the bank to sell the home as a trustee sale on the court house steps. Yep that is where they do them and after the redemption period they schedule the sale date 3 weeks out and advertise it for 3 full weeks and sell the home for what is owned the 1^st mortgage. That in a nut shell is a foreclosure.

Most banks are allowing mortgage holder to get between 3 to 6 months behind before they begin the NOD and wait a month or more after the redemptions period to schedule the sale date. Giving you time to get in communication with them. If you are working on a loan modification or short sale and have a package of documentation in they will postpone that until they have evaluated the options. Not all the people that have NOD lose their home, some will be eligible for loan modification, and some will sell as a short sale. They have looked at the situation and they can’t afford the property or it makes no since to keep it because they are so upside down in the home. The majority do end up losing the home in short sale or foreclosure.

The business Journal Loan modification off to a slow start,

The report, which details the progress of the 38 servicers, finds Saxon Mortgage Services, a subsidiary of Morgan Stanley, leads the way, with 25 percent of its delinquent loans in trial modifications. Ocwen Financial Corp, a West Palm Beach-based servicer of subprime mortgages, has just 5 percent. Some of the major banks have done better than others with modifications, including JPMorgan Chase, with 20 percent, and Citigroup, with 15 percent. On the other hand, Wells Fargo had 6 percent and Bank of America had 5 percent.

If you have a Wells Fargo or bank of America loan I fee for you. I have had the ability to help many of the people facing foreclosure chose there outcome of their notice of default. I have help people modify there loan saying up to $800 on a $200,000 loan. I have closed short sale in les then 60 days form listing. Most have opted for Loan Modification on the President Plan to have their mortgage payment equal 32% of their income. I have coached them to success in getting their loan modified. Some chose a short sale, but the conversation for choosing is always a quality of their life, not emotional attachment to where they live, and conversation.

I have had a few people in the hardest hit area of depreciation like Saratoga Spring ask if my home is worth 50% of what I owe, how loan will it be before it come back. My honest answer is no one knows but maybe 5 to 10 years or more. If they are paying 4% on a 500,000 modified mortgage for 10 years they will pay $2,387 a month. If they can buy the same form for $250,000 right now at 5% they pay $1,342 a month or $62,675 over that 5 years or $125,350 over 10 years. That is a huge decision for their family’s financial future. If they do get 2 jobs and pay the mortgage, what part of their children’s lives, ball games scouts or just being there, will they miss or how much stress on their marriage will that cause. Is it worth it base on a quality of life? The conversation is quality of life and that is how I want everyone facing foreclosure to look at. Most banks will allow a short sale. The down side of a short sale is you will not be eligible for a FHA mortgage for 12 months from your last late payment. The short sale has no impact on qualifying for an FHA Mortgage and is treated as a foreclosure on a conventional loan. Seeing as 95% of all purchase with mortgages are FHA there is really not much impact.

If your mortgage is the purchase money mortgage on your home, you will have no tax repercussion for a short sale but if you took cash out of your home in a refinance and didn’t use it for dollar to dollar home improvement you may be liable for some taxable income, because of forgiveness of debt. See IRS Home Foreclosure and Debt Cancellation.

You may be able to do a lease to own with and investor buying a short sale for you to lease and buy back. We have created this to be an 18 to 24% return for the investor. That is including the tax benefits of costs segregation depreciation and return when the purchase option is excited. If you are an investor you can find out about this by email or calling. We have properties ready to purchase. This is a win win because the investor buyer the property at about 80% of today’s value and the leaser is getting the property purchase option at today value and slightly higher if they need 2 or 3 years before exercising the option. Most short sellers can qualify for a FHA mortgage in 12 to 14 months and move on with a home that may have equity. The investor will get 18 to 24% return on their investment over 14 to 16 months. If you want to help people and get a good return call us this can be done with as a self directed IRA.

I have created a group of industry experts Realtor and Mortgage Professionals called Project Hope for Home Owners that will consult with you for free call us at 800-604-0281 we’ll set up a free phone consultation to assist you in choosing a path.

First time Home Buyers $8000 Tax Credit, it’s time to jump in the game

Tom Winand — Sat, 08 Aug 2009 00:31:45 +0000

It you’re a first time home buyer and your waiting to get a good deal save money or just haven’t had time to get in the home buying game, I have news. The First Time Home Buyers $8000 free, Tax credit expires November 30 2009. With the new disclosure laws it will take 45 days to close a loan. So if you don’t have a property, not a short sale under contract by October 15^th you’ll be in big trouble! If you want to get the best deal a short sale you should have a few under contract now. Don’t’ wait until the last minute. You see this is a people phenomenon. We put off things and rush at the end. We’ll if it goes the way I foresee all the lower priced homes will have a feeding frenzy in September, lender will get back up. Short sale will get backed up and won’t get completed by the deadline. It will be like the days after Thanksgiving accept for home. Let’s avoid the big lines and get you shopping now. We’ll show you how to get and additional $4,500 on a $300,000 home!

Who is a first time home buyer? People that haven’t owned a home in the last 3 years. Married couples I’m sorry if you spouse has owned one but you have not you don’t qualify. Even if you got divorced and gave the spouse the home if your name was on a home as an owner you don’t qualify. If you co-signed for a home you’re on as an owner and you don’t qualify. If you don’t have the income and you need a non-occupying co-borrower that’s Ok you do qualify for the credit because the credit can be split or moved around to any qualifying buyer of a home. You can have a Mom, Dad or Grandparent co-sign on a FHA loan and as long as your not married to them it all good. You don’t even have to have a job to qualify for an FHA loan as long as your co-borrower is well qualified.

Can my down payment come for the Tax credit? No in Utah we don’t have a program to loan you the tax credit so you can use it for your down payment. You can borrow form a 401 K or get a gift form a blood relative and use the Tax credit to pay back the person. No gifts can be required to be paid back but nothing says you can pay them back. So how do you buy a home with no money down; we’ll if you qualify you can do a Utah Housing Loan. How do you qualify you don’t make more than the limit. Salt Lake is $64,000 family income up to 2 people in the family. Sure the rate is 5.7% but that’s not too bad.

How do you get the tax credit? We’ll you fine an amended tax return and have it in a few of weeks. Actually I have seen on line from 4 to 16 weeks. I don’t know way some take so long. It might ne shorter now that was for May and June of 2009.

So let’s get you out and shopping for a new home this month. For the month of august I will give you ½ of my commission back as a rebate if allowed by your lender

How do you get more of a Tax Credit we’ll we at Spotted Home have put our own stimulus Package together to give you a Rebate. We’ll give you 1/2 of our commission or on a 3% buyer agent commission you get 1.5% of the sales price as a gift. We won’t even make you qualify as a first time home buyer. So buy a $200,000 home with the 3% Buyer Agent Commission and you get $3,000 as a thank you. State administrative code 6.2.12 allows me to give you a gift for buying with me. As long as your lender says it is ok. The minimum commission the company can earn is 1.5% of the sale price so if the commission is 2.0% you would receive 1% of our commission as a gift. Wow now that a stimulus package.

6.2.12. Gifts and Inducements. A gift given by a principal broker to a buyer or seller, lessor or lessee, in a real estate transaction as an inducement to use the services of a real estate brokerage, or in appreciation for having used the services of a brokerage, is permissible and is not an illegal sharing of commission. If an inducement is to be offered to a buyer or seller, lessor or lessee, who will not be obligated to pay a real estate commission in a transaction, the principal broker must notify the party who will pay the commission that the inducement will be offered. This rule does not authorize a principal broker to give any type of inducement that would violate the underwriting guidelines that apply to the loan for which a borrower has applied.

First time home buyer don’t wait until the last month get out while the shopping is good and you may be able to get a short sale if you have a great agent like me.

More info on the First time home buyer Tax credit of 2009

Buying a short sale or seeing a unicorn which is easer!

Tom Winand — Thu, 30 Jul 2009 09:37:08 +0000

I’ll start with the real evaluation of the short sale market for sale in Salt Lake City. Wikipedia definition of a Real Estate Short Sale
The numbers on the WFRMLS as of 7-28-2009 is:

Active Short sale listing in salt Lake county 1400.
Active listing not short sale 6333 in Salt Lake City.
Under contracts non-short sales 1500
Under contract Short sales 233
Short sale Sold 60 days 204 or 102 a month
Non–short sale Sold NON-Short sales 1,859 or 929 a month

In evaluating the numbers I want to say that the # of short sale listing to close is very good 14.7% of short sale sell a month. Only 6.8% of non-short sale sell every month. That would be related to price see My pricing article to understand price. 1031 Home For Sale in Salt Lake sell a month and short sale are about 10.10% of the homes that sell. Now if that is correct why is everyone talking about them as if they are the only homes that sell?

My man on the streets view, of how short sale relate to purchasers in Salt Lake, is they are prices way below the average price per square foot (PSQFT) the PSQFT for short sale range $55 to $75. Where the median listed PSQFT in Salt Lake County in June was $97. See why the buyer only sees those homes as the homes for sale. They are the desirable good buy bang for the buck homes. So buyers rule mentally out the $100 + PSQFT and look at the lower priced higher bang for the buck, short sales and they become the Real homes for sale in their mind. Since buyers will only look at 20 or less homes before they make there mind up and make offers, the best homes become the homes for sale. Since these are the short sale and bank owned that become the market. Buyers see the really well priced short sale and they want to buy it because they wnt 20% equity in this market. What happens when they want to buy a short sale? We’ll the reality of a short sale listing become very frustrating to the buyer because of the 1400 short sale on the active market over 70% are not really active! What?The Majority are not really active because they have an offer the listing agent is exclusively working with the bank. What shenanigans are going on? We’ll the WFRMLS has allow the listing agent to keep a listed short sale home that is under contract as active on the MLS. Even if they use the new Binding Contract Short Sale Addendum our Utah Association of Realtors have created. It clearly states the offer will be binding pending bank approval and the seller can only market the home for back up offers. I don’t know why they allow this. I have had hour long conversation with the MLS Director and they say it’s the board of directors that allow it. There is some progress in the last week, an active offer pending bank approval status has been added, that the agents can see but not the public. So on the public side of the MLS still sees these under contract property as active. Misleading! Unethical! you say, I say You’re 100% right. I’m working on that and will have a conversation with the director of the MLS tomorrow after meeting her in person yesterday and having a conversation with the UAR legal counsel on the interpretation of the form. Actually The director is really a great person and wants the MLS to be legitimate and a the finest tool to find home in UTAH. So why the mess? We’ll there are some that want it to be there marketing. They price short sale low put them under contract for 50 to 60% of what they should be with an investor friend and keep them active. Why because they will get sign and Internet calls form buyers wanting to buy that low priced home. I learned that in a continuing education 5 hour Core Law course, approved by the Utah Division of Real Estate of Real Estate. After having a conversation with the director of education for the Utah Division of Real Estate, I was one of the agents that complained and the course was removed shortly after that. My hope is in a couple of weeks it will not show this status of short sale pending approval to the public. If we take away the incentive then we may see this stop. We may see this stop but I wouldn’t count on it. Until the MLS takes on having integrity with the short sales we will have the same frustration and unethical agent abusing the system to profit. Oh yea I said it!

Short Sale Home

Why do agents do this? One reason the allow the public to thinking they can buy the home at ridiculously below market price. They want prospective buyers calling them from their listing on the public site and all the company sites that show the MLS active property. As long as they can keep it active on the MLS buyer will look it up drive by and call the agents yard sign to look at the property. The buyer loves it and wants t make an offer. The agent will hopefully say the seller accepted and offer it is under contract and you can make a back up offer. In the real world the y say thing like it a very low offer and I don’t think the bank will accept it. You can make an offer if the bank likes your offer better you may get it, or the off is low and if they bank doesn’t accept it we will present the next highest offer. Ok the buyer thinks let’s do it and let offer full price because the agent said it low. The agent fills out the paperwork and uses an exclusive buyer brokerage agreement locking them into using them for 6 month if they want to buy a home. It’s the only way he works and if they want to make the offer that is the agreement. He uses an under contract property to get a buyer in an exclusive agreement. The properly is under contract the bank is only going to see the one offer until they reject it.
Well that is the sad frustrating state of buying short sales homes for sale in Salt Lake . Your best bet as a buyer and agent is to do leg works. Mail to the homes that meet you criteria and are not listed on the Notice of Default list saying your a buyer . Many of these homes are working on modification that wont work and denied after month of waiting and will need to sell to avoid foreclosure. Call the agent on all short sale ask if they are under contract with the only approved short sale addendum the UAR form. report ones that aren’t using the contract pending when they have an offer in to the bank. If you look at short sale the first week of a listing and make a reasonable offer. You should be able to get one under contract. I will set up a list of 2 week old short sale listing on my home search page. I currently have short sale homes for sale in Salt Lake as East and West because there are too many for one search. I will put a new short sale less then 2 week old. Remember bank have a rule of 82% so with a 6% commission you will need to offer 88% of the current market value of a short sale. So don’t get frustrated just get good agents that will call the short sale listing before you go out and ask if they are under contract using the new UAR short sale addendum.