September 2010

Data.gov – A Cool Site With Lots Of Great Info

http://www.Data.gov I just found this site and wanted to share it.  It has a ton of info and reports.  If you have a project or just an “inquiring mind”, this is sure to be a hit.  Check it out and get the data you need.

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Homepath.com is Fannie’s Foreclosure Portal

Fannie Mae posts their foreclosured properties with a Realtor of their choice and also on http://www.HomePath.com.  What is cool about a Homepath property is that many times they will qualify for Homepath loans (requiring only 3% down) and no appraisal.  They also have a homepath Renovation loan.  There is a program called FirstLook, which allows certain selected developers and non profits to purchase these homes for rehabilitation first, so you might loose a home that is really a good deal. Still, don’t let this deter you.  I recently sold a home in Brooklyn Center that was a HomePath property.  It was pretty nice, just a little dirty. Because it was in very good shape, we were able to use FHA financing.  I’ve found that FHA financing is cheaper than Homepath with a minimum down payment.  We’ll have to see if that changes in the future.

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Short Sale Leads in Surprising Places

By Jeff Kaller

There is certainly no shortage of potential short sale transactions in the current housing market. In fact, according to some estimates, about 1 in every 4 homes for sale is up for short sale. That’s 25% of the market! However, with the advent of government programs designed to help homeowners get short sales done in a smooth and efficient manner by working closely with their banks, the process is, for many investors who relied on creativity to get their deals done and sold off to other buyers, becoming more complicated rather than less so.

Fortunately, not all properties are eligible for these programs, and these properties are far more likely to be distressed than your average primary residence. That’s right; I’m talking about vacation homes. Around the country, second homes are hitting the market in record numbers. In Minnesota, “the Land of 10,000 Lakes,” lakefront properties are succumbing to foreclosure in record numbers as owners struggle to negotiate short sales, while analysts predict a serious foreclosure run on Florida beachfront luxury properties as vacation-home owners in that area try to get out before the oil hits the coast or simply opt to walk away. Second homes are not eligible for federal assistance or short sale programs of any kind in nearly all cases, making them prime candidates for more traditional short sale negotiations. It’s not that the lenders do not want to make a deal; it’s simply that with the huge emphasis on HAMP and HAFA, most people are not aware that they have any other short sale options available.

As an investor, you can help people whose finances and livelihoods are jeopardized by second homes that they can no longer afford and that they are unable to sell in a traditional fashion. These properties are a great source of leads for you, and often they sell at higher values because they may be considered “luxury properties.” Make sure that you do not overlook this great potential source of deals when you are investigating leads.

P.S. If you haven’t signed up for my Free Short Sale Course yet, then you are really missing out, go here:

http://www.freeshortsalecourse.com/

Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.

Article Source: http://EzineArticles.com/?expert=Jeff_Kaller
http://EzineArticles.com/?Short-Sale-Leads-in-Surprising-Places&id=4501549

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How Do Short Sales Work?

By Andy Asbury

A Short Sale in Real Estate is a transaction in which a seller owes more money on a property than a buyer is willing to pay and the seller’s lender mediates to allow for the sale to occur. Technically, “short sales” pertain to conventional mortgage loans. Lenders use the phrase “pre-foreclosure sale” in reference to FHA loans.

I am a real estate agent focused on the downtown loft and condominium market in the Twin Cities of Minnesota. Fortunately, short sales are a fraction of home sale totals and are less common in the downtown market than in most areas across the metropolitan. However with current market conditions no area is immune to short sales.

If you are unable to make monthly payments on your mortgage for any reason, contact your lender to learn specific details about the process. Familiarity with the steps involved will help you think through the option rationally. It can be difficult to consider selling a home you have invested in heavily, both financially and emotionally. If you currently are unemployed, you probably spend more time at home than you ever have before. In a cruel paradox, this increases your emotional attachment to this home!

However, a short sale might become the best option if it allows you to move forward with life once again. As part of its formal process, your lender will collect many documents from you. These might include a hardship letter, a listing contract with a real estate firm, detailed personal budget statements, and copies of recent pay stubs and bank records.

Interestingly, hardship can include job relocation which often pertains to the condominium market. A large segment of condo dwellers are more prone to relocation since they tend to be young professionals looking to advance their career and generally have fewer people in their households which would directly by affected by the life change.

In the best case scenario, once you get an offer, your loan company will accept that amount in lieu of the loan payoff amount. It may even do so after subtracting your selling expenses.

Be forewarned that some lenders have better and more straightforward processes than others. Some realtors specialize in short sales because the transactions can become so complicated. Even after a sale is closed, questions can linger whether the debt was fully released if the seller was not educated thoroughly.

Other minuses: Experts say, a short sale can damage your credit rating between 75 and 100 points. Also in some cases, the amount of money written off may translate into 1099 income, in other words, taxable income. Though unpleasant, it could be preferable to owing the entire loan amount.

The down turn in the housing market can mean it is a good time to investigate the Minneapolis real estate market as a buyer. If you are ready to look for Minneapolis condos for sale, team up with Lofts and Condos Realtor Andy Asbury for expert advice and insight via http://www.minnesotaloftsandcondos.com today.

Article Source: http://EzineArticles.com/?expert=Andy_Asbury
http://EzineArticles.com/?How-Do-Short-Sales-Work?&id=4845078

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