Lucas and Wood Co Property Tax Reductions Due to Foreclosures

ARE YOU PAYING A HIGHER PROPERTY TAX THAN YOU NEED TO?

If you have bought a home or are considering a purchase, don't forget to have your taxes evaluated for todays market! You may be pleasanlty suprised to find out they should be lowered. Many purchasers are so busy managing their move when they close on a home that they forget to take this next step! It is easy to forget since property tax ussually becomes part of our mortgage payment. With property values decreasing at this time, it is impotant to make sure you aren't overpaying. Many of our clients have had great success getting the tax reduced on their homes.

Buyers should be careful if they are considering a foreclosure or short sale purchase. The price on the home may be affordable but if the tax is really high or way beyond your budget then it is always best to "plan for the worst and expect the best". You may be able to have the tax reduced for now but it could eventualy go back up when values return so make sure it will still be affordable if that should happen.

Once you have purchased a home, you may be able to have the taxes reduced by taking your closing statement and a recent appraisal or CMA (ask a Realtor to prepare) to the county auditors office.

Blade article on tax reductions in Lucas County

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20090315/NEWS16/903150329

Foreclosure Home Buyers-You Can and Should Have A home Inspection!

The typical REO or forelosure home can sit vacant for anywhere from 3 months to 2 years. We have many clients that don't realize they can and should have a home inspection on this type of property just like you would with any home. On most foreclosure properties the utilities are turned off and have been off for several months. When you first view this type of home-you may not be able to see some of the defects. The risk involved in buying a foreclosure home can be drastically reduced with a few simple steps. Even though these properties are sold "as is" the pruchaser has a right to a home inspection and can withdraw their agreement if the repairs needed are beyond what they had originally planned for.

1. Be sure to have an inspection period of 7-10 days written into your purchase agreement.
2. Find out if utilities will be turned on for the home inspection.
3. If there is a delay in the utilities being turned on for your inspection-be sure to ask for an extension of   the inspection period.
4. Read your foreclosure contracts carefully or have an attorney review them for you.

There are several other steps you can take to protect yourself with this type of purchase and we are always here to answer any questions you have! Foreclosure homes can be a great opportunity to save thousands and with opportunity there is always some risk. Navigated correctly and with the right guidence, these homes are well worth the effort!

Buying Foreclosures with FHA financing

Stuck wishing for the right home?


If you have an FHA loan, buying a foreclosure home can be difficult. Many foreclosure homes are not in the condition FHA would approve. So how do you get into a foreclosure home with FHA financing? It can be tricky but there are ways to do it! FHA has a program they offer call the FHA 203k rehab loan. Although this product has been around for years, not many purchasers know about it or use it when they are looking at finding the right home.

The word "rehab" probly scares most first time home buyers away to begin with! The good news is, the home doesn't have to be in horrible shape to use this loan! If you find a home you really love but the carpeting and paint need to be done-talk to your mortgage lender because this may be an option for you!

The rehab loan allows purchasers to finance many of the improvements needed on a home. There is always a limit to what can be done, this loan can be time consuming and you should work with someone who is familiar with it's process. It may help you get the home you have been dreaming of as well! Find more information at the HUD website http://www.hud.gov/buying/loans.cfm

RE/MAX WORKS ON STREAMLINING SHORT SALES

Great news to share! Go Dave and CDPE'S

--------------------------------------------------------------------------------

Secretary Donovan Meets With RE/MAX Chairman Liniger


RE/MAX Recommends Procedures to Streamline Shortsales


Denver, CO (Vocus/PRWEB ) September 10, 2009 -- RE/MAX Chairman and Co-Founder Dave Liniger met with Housing and Urban Development Secretary Shaun Donovan on Friday. They had a conversation on a variety of topics related to the current state of the real estate market, but focused primarily on recommendations for streamlining the Short Sale process.

"We feel strongly that if Short Sale transactions can become more like normal real estate transactions, we can make significant headway in reducing the number of vacant and foreclosed homes on the market," Liniger said. "Because most homeowners aren't aware that they have this option and loan servicers haven't made it a priority, we feel that the federal government should facilitate an effective national initiative."

Also present at the meeting, held in Secretary Donovan's office, were FHA Commissioner Dave Stevens and Laurie Maggiano of the Treasury Department's Chief of Homeowner Preservation Office. Accompanying Dave Liniger to Washington was RE/MAX Senior Vice President, Mike Ryan.

A Short Sale can occur when a lender allows a homeowner to sell a home for a price that is less than what is owed on the mortgage, if the homeowner is experiencing a financial difficulty that would make monthly mortgage payments a significant burden. Unfortunately, nearly 70% of homeowners facing foreclosure never list their home for sale, even though a Short Sale has many benefits over a foreclosure.

RE/MAX has made assisting such families a high priority and has undertaken a comprehensive, targeted agent training program. In March, Liniger set a goal of having 7,500 RE/MAX Sales Associates earn the Certified Distressed Property Expert (CDPE) designation by the end of the year. The actual number has already passed 7,000 and represents 62% of all CDPE agents in the United States.

Surveys show that after earning a CDPE designation, agents are twice as likely to be able to keep families in their homes. With the CDPE designation, agents are also able to cut the time in half that it takes to close a Short Sale. The average CDPE agent closes about 10 Short Sale transactions a year.

"Secretary Donovan has a very good understanding of how Short Sales can help this market, and he was certainly open to our specific recommendations, especially in the area of agent training and public awareness. We're expecting an announcement will soon be made about procedures to facilitate a streamlined Short Sale process," Liniger added.

Short Sales could be the best solution for homeowners who are facing a foreclosure, have been turned down for a loan modification, or who have lost their job and can no longer make their mortgage payments. Homeowners who find themselves in one of these difficult positions should contact a real estate professional who is specifically trained to handle Short Sales to find out how the process could result in a positive outcome. A CDPE agent is especially aware of this critical process.

A streamlined Short Sale process could benefit the entire real estate marketplace and offers a much better alternative to foreclosure. Lenders often experience greater losses taking a home to foreclosure, neighborhoods suffer greater losses in home values with foreclosed homes, which are often vacant, and homeowners sustain more severe damage to their credit as the result of foreclosure.

The real estate market will not recover until the number of foreclosures is reduced and home prices start to rebound. An efficient Short Sale process can have a significant impact on foreclosures, which remain at record high levels. RE/MAX hopes that a standardized, national Short Sale process will soon be in place to promote a lasting housing recovery.

About RE/MAX International, Inc.

RE/MAX was founded in 1973 by Dave and Gail Liniger. From a single office in Denver, Colorado, it has grown into a global network of nearly 100,000 Sales Associates in more than 70 countries, an international presence greater than any of its competitors.


RE/MAX has been honored as the leading real estate franchise for 9 of the last 10 years in the oldest and most respected ranking, "The Franchise 500 Survey," published by Entrepreneur Magazine.

Why short sales homes and pre-foreclosures take longer to buy

The question of the day!

There are several reasons short sale homes may take longer to purchase than a REO or Bank Owned property.  The REO and foreclosure property has already been through the all the stages and they are ready to be sold when they enter the market. The Short Sale home on the other hand just starts it's first satges when an offer is recieved.

With a short sale home we have more parties to bring to an agreement. Since the seller still owns the home, they are the first to review any offers that come in. Once an offer is approved by the seller and pucrchaser we then have to put together a very complete package of information to send to the sellers bank for approval.

Many times the package alone can take 24-48 hours to be ready to submit. Once that information is submitted and as long as nothing has been missed, the sellers bank will take another 48 hrs to upload it into their systems and be ready to communicate with the agents. With that said-there goes week one. And we find time and again that we run into loss mitigation departments where we have to fax the information 2-3 times before they acknowledge reciept.

Once the short sale information is recieved by the owners bank, the file is passed through many phases prior to offer approval. Some companies manage to get these files through the stages within weeks and others take over 60 days. One of the stages toward approval is a BPO and Appraisal order on the home. I have found that once we hit this point, we are usually getting closer to an approval on the purchasers offer or a counter offer.

Many weeks and/or months can pass while the banks moves the file toward approval and or a counter offer. Some of the banks we have worked with are improving the time frames while other lag behind.
Great article on this in the Washington Post talking about how some of the banks have also laged behind on their Loan Modifications for home owners

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/04/AR2009080401134.html

Short Sales are well worth the effort to buy and wait for. They are also a benefit to the seller in default who is saved from havng a foreclosure on their credit!  

Short Sales- Are they worth the wait?

HE LOOKS FRUSTRATED DOESN'T HE?


As more short sales enter the market, buyers should prepare ahead of time for a long process! On the bright side, the short sale properties we have closed on recently have been a great buy for our clients and also a relief to the seller!

Home buyers need to plan in advance to be patient if they choose to go through this type of purchase. I have noticed time and again, as we start the process the purchaser is really excited about the great deal they are getting on the home but sometimes we lose that excitement when the offer on this type of property takes a long time to approve and sometimes a long time to close. Very understandable! Just try to remember that anything you invest in, that is truly worth the time and trouble, is not always easy!

Some of the most recent issues we have noticed that you may want to prepare for are.

1. Both seller and bank approve your offer but right before close, the MI or PMI company wants to approve the amount or have the seller sign a promisary note as well. This can cause delays.

2. The bank has approved your sale and liens are attached at the last minute. This can be resolved, expect delays.

3. Too much time has passed and your interest rate lock has expired-prepare for this ahead of time with your lender.

These are only a few of the many problems that can arise in this type of purchase. I highly recomend my clients use an attorney along with a Certified Distressed Property Expert (CDPE) to navigate through this type of sale. Don't plan on a closing date or order your moving truck until you have officialy closed on the short sale home. Be prepared for possible last minute issues.

In the end-are they worth the wait, the time, and the effort? Absolutely, if you are looking to save thousands! Just keep your eye on the final goal and you can achieve great results!