The price you can get for your house depends on whether the present market is a buyers market, a sellers market or a neutral market. A buyer’s market exists when there are a lot of homes on the market and very few buyers competing for that inventory. Typically, an inventory of more than six months of homes is considered a buyer’s market. When inventory rises, buyers have more choices and can take more time to choose. In addition, prices typically fall to meet the demands of the buyers. A seller’s market exists when there are a lot of buyers vying for little inventory. Neutral markets are balanced. Typically, interest rates are affordable and the number of buyers and sellers in the marketplace are equalized. The scales don’t tip in either direction, meaning the market is normal without experiencing volatile swings. 

If you are looking to sell your home fast in Virginia Peninsula cities of Hampton, Newport News, Poquoson, York County- Yorktown, Williamsburg, and James City County and the Hampton Roads/Tidewater cities of Suffolk, Norfolk, Virginia Beach, Chesapeake, Portsmouth, Smithfield, Isle of Wight and you want the best price, no matter what the market situation is, contact www.757webuyhouses.com NOW. We buy houses ‘as is’ at a Fair Price on the Date of Your Choice in any type of market

 Seller financing differs from conventional loans. The seller does not give the buyer cash to purchase the home as a lender does. The seller instead extends credit to the buyer against the purchase price of the home and the buyer executed a promissory note and trust deed (or mortgage) in favor of the seller. The buyer will generally be required to give the seller a down payment, make monthly installments on the loan and have to pay interest.

From a seller’s point of view, seller financing will increase the pool of potential buyers. There are many buyers who look only for properties offering seller financing. The deal can be closed quickly as the formalities to be completed are few. If one or more payments are received on the sale of a property after the tax year in which the sale occurred, the IRS will treat such a sale as an installment sale and will tax only the percentage gain reflected by the payments received in that year and not the entire gain. Seller financing spreads the gain over time and helps reduce taxes as taxes are paid as payments are received. Spreading a large gain over time can prevent being bumped into a higher tax bracket.

 There are no liens or judgments to contend with, no homeowners or tenants to evict, no back taxes due, and accessing the home for evaluation or inspections is easy. All liens against the home are removed once it becomes an REO, and taxes are paid. The fact that the home has officially changed hands from the homeowner to the lender means that the lender has done all the work. With all the legal work completed, the complications of buying and the associated risks are removed.

 Most bank owned property are below market value. Lower down payments, better interest rates, reduced closing costs and a discount off the market value of the property, taken all together, make for a better than average home purchase. A properly structured deal will give you a low down payment, low monthly payments, and a low total price. For those looking to save money buying their first home, this is usually the way to go.

 Unlike properties at foreclosure auction, REOs can be inspected prior to contract, and are listed with real estate agents.

 While many foreclosures are often in deplorable condition, REOs are typically restored to at least a readily salable condition by the lending bank. The lender that owns the property will often offer financing with better deals than they would offer on traditional properties and will often provide an allowance for certain repairs.

 You can save money in your title search if you use the same title company that the lender used during foreclosure. REOs will often times include appliances

 Cons

 The biggest disadvantage of a Bank owned property is that you will not know much about the past history of the home. Another big disadvantage is that most Bank owned properties are not in good condition. You may need to call the gas, water & electric companies to get them turned on & also you will have to pay for all repairs.

When a property is sold through a foreclosure auction, its owner usually owes more to the lender than the market value of the property itself. This is often a barrier to selling the property, and sometimes such foreclosure auctions do not draw any bidders. As a result, not many foreclosure auctions end with the sale of the property, rather the title reverts back to the lender holding the lien. The property reverts to the lender’s portfolio and becomes a bank owned or REO property.

 If you are looking to buy a house as your primary residence or for investment purposes, you can get a huge discount by buying a bank owned property. Most lenders sell bank owned properties below market value.

 Before you buy a bank owned property, make sure you conduct a physical inspection of the property. Bank owned properties are generally sold “as is” which means that the discount you just saved on the purchase price can easily be eaten up by unforeseen expenses such as repairs not immediately apparent in an exterior inspection. Most homes go into foreclosure because the homeowner has financial difficulties. When the homeowner has financial difficulties, the homeowner is unlikely to spend money on maintenance which usually means that the house has not received needed repairs or general maintenance for a while. Sometime a frustrated homeowner who looses a home in foreclosure may vent his frustration on the home and damage the property. You must be prepared to do renovations and repairs.

In the past two years, lawmakers in about half of the United States have mandated consumer protections and fines for investors who violate the law. In many instances, these ongoing attempts to restrict real estate investors’ business practices are redefining the distressed property arena.

State Legislatures Tackle Foreclosure Rescues, Equity Stripping

This year, more states have passed laws geared to protect the interests of distressed homeowners and fine real estate investors who fail to comply with the law. These new laws sometimes impose greater regulation on investors than some of the earlier legislation enacted in other states. You will notice that in many states you can still do foreclosure consulting, but as I have always advocated, you must do it the right way!

Summaries of New State Laws

*Florida:
HB 643, now Chapter 79 in Florida law, requires foreclosure
counselors to provide a cancellation provision in written agreement and mandates that a title transfer must be included in a separate contract. This legislation takes effect Oct. 1.

*Hawaii:
HB 2326, now Act 137, also known as the “Mortgage Rescue Fraud
Prevention Act,” requires mortgage foreclosure counselors to provide specific information and disclosures to distressed property owners.
It also regulates “foreclosure rescue” business practices.

*Idaho:
SB 1431, now Chapter 192 in Idaho law, requires that all contracts be in writing when they residential houses in the foreclosure process.
It provides consumers with a five-day right of rescission. It also requires that a warning regarding foreclosure rescue scams is included in foreclosure notification papers and in all written
contracts.

*Iowa:
HF 2653, now law, regulates mortgage foreclosure consultant contracts and mortgage foreclosure reconveyance transactions. This law forbids foreclosure rescue companies from charging up-front fees.

*Maine:
LD 2189, now Chapter 596 in Maine law, has several key-provisions to regulate business practices and transactions aiming to protect
homeowners from equity stripping.

*Maryland:
HB 361, (Chapter 6) and SB 218 (Chapter 5), Provides for the contents of a foreclosure consulting contract; prohibits foreclosure counselors from arranging or participating in a “foreclosure rescue”transaction and specifies acceptable conditions for commissions. 
It also specifies that foreclosure counselors must be licensed real estate brokers who are directed to provide homeowners with research on the value of their homes.

*Nebraska:
Among other things, LB 123, also known as the “Nebraska Foreclosure Protection Act,” regulates foreclosure consulting contracts,generally requiring enhanced disclosure for homeowners and other consumer protections. The law also establishes prohibited actions for foreclosure consultants, contracts and transactions.                                            Meanwhile, LB 851 provides for foreclosure deeds of trust.

*Oregon:
Here, the legislature convened a special session to consider HB 3630, before it was promptly signed by the governor and became Chapter 19 of Oregon state law. This legislation defines duties and restrictions on foreclosure consultants. It establishes requirements regarding foreclosure counseling transactions, contracts and imposes stiff fines and penalties – including jail time, for violators.

*Virginia:
HB 408, now Chapter 485 in Virginia law, provides that entities who participate in or who service foreclosure rescues for profit with the intent to defraud consumers, are in violation of the Virginia Consumer Protection Act and subject to its prescribed penalties.

*Washington: HB 2791, now Chapter 279 in Washington law, requires
foreclosure rescue companies to provide a written contract that gives the original homeowner five days to get out of the deal. The legislation also provides that if the entity that takes possession of the house sells it, 82 percent of the equity must be returned to the original owner.

Two simple words for you, Home staging is the act of preparing a home (and the contents of the home) for sale, with a special emphasis on presentation and appearance.  By decorating and arranging a home’s interior to present an ideal way of life, buyers are assisted in visualizing themselves in your home. 

Basically, there are five steps to home staging.

• Clean it up
• Getting rid of clutter
• Depersonalizing
• Decorating and accessorizing Maintaining

Clean it up

Even though it may be tough to live in a spotless home ALL the time, this is a necessary change when selling your house.  Make sure you maintain the clean you’ve achieved, even if it requires hiring a house cleaning company.

Getting rid of clutter

Remember that how you live in your home and how you sell your house are two entirely different things. You’re going for a “show home” look! Go room by room, closet by closet, and look at every item. Then decide whether or not you will keep it or donate/sell it!

Depersonalizing

Your charming family pictures, children’s artwork on the refrigerator, and shelves full of sports trophies may mean a lot to your family, but it makes buyers feel as if they are intruding in personalized home. Pack away your personal items into storage.  This help buyers picture their things in your home without having to get past your personal belongings.

Decorating and accessorizing Maintaining

You don’t need to spend a fortune. Even fresh flowers in a vase brighten a bathroom counter. A fresh coat of paint doesn’t cost very much but will add a lot of impact.  New window treatments, fresh flowers, green plants and pretty accessories all pack a punch without breaking the wallet.

Virginia Beach, VA – Credit remediation is a subject consumers often face with fear and trepidation, and for good reason. With the exception of recognizing that the best score wins, the average home shopper knows very little about the whole credit scoring process. Sub-prime borrowers who are eager to move into A-Paper territory often find themselves at a loss when trying to find ways to upgrade their credit history. The good news is there are ways to improve less-than-perfect credit scores and obtain a loan for the home you really want.

The first step in the process is making sure that you have a current copy of your credit report. Congress recently amended the Fair Credit Reporting Act so that consumers may now receive one free credit report annually. There are three major credit bureaus: Equifax, Experian, and Transunion. Since entries can vary across bureaus, you’ll want to request a free report from each of the three companies. (Go to www.annualcreditreport.com)

It’s also important to know just what a good credit score is. Most A-Paper scores generally begin around 680, although this number may differ slightly among lenders. Don’t despair if you come up shy, there is always room for improvement. Increasing your score just 5 points can save a significant amount of money. For example, if your score is 698 and you increase it to 703, then you could save yourself thousands of dollars over time as a result of a slight improvement to your loan’s interest rate.

While credit repair is necessary for some, it’s not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps:

·         Evenly distribute your credit card debt to change the ratio of debt to available credit. Let’s say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer, and possibly into, that ideal bracket.

·         Keep your existing accounts open and active. The average consumer is usually anxious to close credit card accounts that have zero balances, but doing this can cause them to lose the benefits of a long-term credit history and increase their ratio of debt-to-available credit. The bottom line is don’t close those old accounts!

·         Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you’re only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame.  

Remember, credit scores don’t change overnight. Improving them requires time and diligent effort on your part, so it’s a good idea to get the ball rolling at least three to six months prior to submitting your application for home financing. 

If credit repair is what you need, you can either begin the process yourself or seek out a repair service. If you decide to make your own improvements, visit as many websites as possible to get information regarding credit laws and consumer rights. Diligently search through them and educate yourself to ensure that you don’t sustain any self-inflicted wounds. A good place to start would be the Federal Trade Commission’s website, which contains a wealth of helpful literature. 

If you’re facing severe or complicated credit issues, then you’ll probably want to enlist the assistance of a professional credit repair company. Before you do, be sure to familiarize yourself with the FTC’s regulations on credit repair. With over 1100 credit repair companies to choose from, it’s important to be certain you are dealing with a reputable firm. Examine the FTC’s information on fraudulent practices to avoid falling prey to credit repair scams.

Addressing credit issues can be uncomfortable to say the least. But by taking these steps now, you’ll be that much closer to obtaining the home of your dreams.

Additional Resources:

To order your free credit report, go to:

www.annualcreditreport.com

To read the Fair Credit Reporting Act, go to:

www.ftc.gov/os/statutes/frca.htm

For the Federal Trade Commission’s information on consumer credit, go to:

www.ftc.gov/bcp/conline/edcams/credit/index.html

Seek a Qualified Mortgage Consultant to Ensure the Best Results

Janette Woodruff – Whitlock is affiliated with United Capital Lending, VA State License # MLB-1145. If you would like to obtain a free Consumer Credit Scoring Booklet, please contact Janette Woodruff – Whitlock at 757-735-HELP (4357) or 735HELP.COM.

United Capital Lending

Norfolk, VA  – There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let’s examine the pros and cons of both strategies.

Leveraging Your Property. In order to understand why you’d want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here’s an example:
 
If Consumer “A” buys a home for $300,000, and puts 20% down, then they have $60,000 in equity. Over the next 5 years, the property appreciates $100,000 in value. Consumer “A” now has $160,000 in equity.
 
Consumer “B” buys a home for $300,000, and puts no money down. At the end of 5 years, that same home is now worth $400,000. Consumer “B” has $100,000 in equity, which is the same appreciation as Consumer “A”, a net $100,000.

 
As you can see, your down payment has nothing to do with your rate of return. What becomes important is how you choose to manage the $60,000 you didn’t use as a down payment. If you use it for frivolous activities, such as buying toys or going to Las Vegas, it would be more prudent for you to use that money as a down payment. Especially since this will enable you to obtain a lower interest rate.

However, if you were to invest the $60,000 in a vehicle that can out-earn the cost of that debt, then this could be a formula for success. This is why some lending professionals suggest putting as little down as you possibly can, maximizing your tax write-off, and investing the rest. This principle has been applied for many years in the life insurance game. The old saying goes, “Buy term and invest the rest.” The key component is taking the money you would have used as a down payment and creating an asset accumulation account. This account should earn a significant enough rate of return to enable you to pay your mortgage off entirely and achieve the ultimate goal of being debt-free.

Paying Your Home Down Rapidly. There are very few times over the course of my career that I have seen a client with zero debt and no financial difficulties. Choosing to pay off all of your debt can reduce stress and help you to gain freedom of cash flow for investment opportunities. A 15-year mortgage or a bi-weekly payment strategy provides structure. It can also put you on track to have your mortgage paid off within a set timeframe. Simply put, it contains built-in discipline.

It’s important, however, to understand that regardless of how rapidly you pay your home off, you’re not getting any greater rate of return on your investment than if you paid it off slowly.

Conclusion. So how does one determine which scenario is best? The choice depends entirely upon the individual. Savvy consumers who are disciplined, and are comfortable taking chances from an investment perspective, would do well with the first scenario. Over the course of time, it’s been proven that your rate of return over the long-haul will be far greater than the rate you’d pay for a mortgage in today’s rate environment. It’s important to seek the advice of a skilled investment advisor to ensure success with this strategy.

The second scenario is best for those who have a difficult time managing their money or who’ll sleep easier at night knowing they have a plan in place to pay their loan off more rapidly. Be sure that your budget can handle accelerated payments. When consumers “bite off more than they can chew” with a 15-year mortgage, they frequently end up having to refinance back into a 30-year schedule.

If you find this subject intriguing and would like to know more, I recommend that you read a book titled, Missed Fortune 101, by Douglas Andrew. It’s an outstanding read that is very simplistic and goes into far greater detail than I can cover in this column. Douglas is a financial planner who advises safe-structured investments such as whole life policies and tax-free fixed income instruments.

Whether you’re meeting new clients or colleagues, on a job interview, or out on a first date, you have the same goal: to make a good first impression. That holds true for selling your home. A buyer’s first impression can make or break whether they even want to go inside for a look.  It is estimated that more than half of all houses are sold before the buyers even get out of their cars. With that in mind, be sure to stand outside of your home and take a realistic “fresh look” and write down a complete inventory of what is wrong with your home’s appearance, and then make a list of ways in which you can fix those problems.

I have seen many homes that would have benefited from even the simplest fix-ups, like mowing the lawn, painting a bit of trim, or removing litter from the front yard. These homes sold for less than their market value because the buyers assumed the home’s outward appearance was an indicator of its true value.

As a homeowner or investor with a house for sale you need to have enthusiastic buyers making offers in order to see maximum gains. Enthusiastic buyers and Realtors will result in a higher selling price in a much shorter period of time. Without question, selling your home and the curb view leaves something to be desired, it is well worth the investment to improve the home’s exterior appearance and improving your home’s curb appeal doesn’t necessarily mean wiping out your savings account.

I recommend this invaluable information and ideas to anyone who is interested in improving the exterior of their home in preparation for a sale, or simply to increase your net worth.

-         Landscaping should be well cared for, with shrubs and trees – especially evergreens – pruned and shaped. 

-         Check if there are patches of dead grass, remove them and get some grass seed.

-         Lawn neatly mowed, trimmed and raked

-         Dispose of any old / broken lawn furniture or toys.

-         Fix anything that is broken on the outside of the home, lights, gutters, shutters, door bells, etc.

-         Replace tarnished door knobs or handles. The door can be spruced up by a coat of paint if needed

-         proper outdoor lighting for evening visitors

-         Re-caulking windows and touching up window frames is easy and inexpensive.

-         Freshly painted home and/or fencing, including clean or freshly power washed siding.

-         Add some flowers to the front walkways and entrances.

With these basic steps your can dramatically improve your home’s curb appeal without breaking the bank.