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On 1/15/2010 came the official announcement from the HUD office.As of 2/1/10, FHA buyers can buy properties that have been owned by the seller for less than 90 days. HUD has decided to waive the 90 day seasoning financing contingency for buyers. Effective February 1st 2010, there will no longer be a requirement for a seller of a property to be on title for 90 days or more in order for approval of an FHA backed loan. This is incredible news, since the majority of buyers in today’s market are FHA buyers! This is unbelievable news for those currently, or planning on investing in foreclosures. This will bring the real estate investors back to the market and will greatly reduced the inventory of foreclosed properties, which will begin the turn-around of the housing market! The 90 day seasoning issue has long been an issue for investors and agents. Below is a summary of the rule from HUD:
In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities. (end of summary) This will have such a huge positive impact on the housing market, for investors, agents, buyers, sellers, and everyone else as a whole There are a few important key points, and a few simple stipulations that are part of this rule, 1. it’s only supposed to last for ONE YEAR. Which I anticipate will change, once they realize the positive impact this has on the housing market and economy. Here are a few more rules:The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions: - All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
- In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Please click here for a copy of the signed waived 90 day rule: http://www.reojiminc.com/Investor_Services/page_2193702.html
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Have you ever been interested in buying fixer-upper properties? Well the market is hot in this area, its a buyers market and the market is full with inventory of bank owned foreclosures (REO's), short sale properties, handyman specials, and the time to enter this exciting business is now! First you need to educated yourselves in this buy and flip business before jumping in! We are experts in the Buy-Fix-Flip Real Estate business www.reojiminc.com EXPERTS IN DISTRESSED & UNDER-VALUED PROPERTY: YOUR PARTNER: REOJIM Realty & Management are experts at locating, evaluating, remodeling, managing & selling distressed and under-valued properties. We pride ourselves on being the best in the business, with over 20 years of experience in buying, rehabbing, managing and selling foreclosures, distressed and under-valued properties. We suggest to begin, you put together your team: a Realtor who specializes in under valued properties, a Mortgage Broker who understands the purchasing of investment properties, a insurance agent who has experience in investment properties, an accountant who understand real estate purchases, a lawyer who specializes in real estate investment properties and foreclosures, and a contractor who can remodel your investment properties. This team will become your professional experts and save you TIME and MONEY! Don't go it alone get the experts involved. Your money is always made at the buy, you need to buy your properties at the right price to insure a profit at sale. The evaluation of the property is the most important step. Look for our next article as we Begin to tell you how to locate and evaluate properties for profit. in the mean time view our website for further information: www.reojiminc.om or e-mail jim@reojiminc.com to be added to our e-mail blast each day of new bank owned properties.
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Sensitive Issues: It is difficult for a self-managed property to deal with sensitive issues. (i.e. payment violations, complaints, etc) Board members face a dilemma as the people who are late with payments or in violation are friends and or neighbors. By having a management company act as the liaison, or buffer, between the "Board" and residents/homeowners, the board members who volunteer their time on behalf of the community can still enjoy their home. Collection of Assessment Payments: The association relies on prompt payment of assessments to pay their obligations. When a homeowner defaults, it hurts the assoication, it is extremely difficult for a broad member to approach a neighbor regarding non-payment of dues. REOJIM INC. Realty & Management: Property Managers for Retail - Office - Apartments - Condo, Homeowner and Townhome Associations. www.reojiminc.com Look for part two of Why do we need a property management company we will discuss real estate sales, vendor, repairs, and phone calls. Please if you have any questions regarding the management of your property please post them here and will will provide a solution. You can contact JIM PUSATERI, (REOJIM) by e-mail:jim@reojiminc.com or (815) 483-2411 x 100. be sure to listen to our podcast recordings regarding current issues in real estate: http://www.reojiminc.com/Today_with_JIM_Podcast/page_2202293.html
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Foreclosure pending, divorce, job transfer, distressed property whatever the reason many homeowners find themselves upside down owing more than the home is currently worth when closing costs are factored in. What are your options in this time of trouble? One may be a short sale! What is a short sale?
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, real estate commission. Causes : Flat or falling home prices, home-equity credit lines, 100-percent financing that sucked out equity, and spiking interest rates on adjustable mortgages. Steps: a. Get the lender involved as soon as possible
b. BE sure to contact the bank’s loss mitigation dept, not the collection or customer service department. Finding the decision maker is often one of the biggest initial challenges in a short sale.
c. Submit sellers’ submission package: w-2 form, letter of unemployed, bank statements, two years tax return, other financial documents out ling income and debt obligations. Sales comps or a broker price opinion showing estimate of value,
‘Hardship letter”
d. Sales offer on the home
e. Process can take from two weeks to 60 days to receive an approval of a short sale from the lender Only do a short sale if the lender is willing to release the deficiency!
Get it in writing that the sale is payment in full with no recourse
Short Sale Checklists 1. Call the lender
2. Submit Letter of Authorization
3. Preliminary Net Sheet
4. Hardship letter
5. Proof of income and assets
6. copies of bank statement
7. Comparative Market Analysis
8. Purchase Agreement & Listing Agreement
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5 Tips to selling your home in a buyers market! The condition of the real estate market has rapidly changed from a sellers market, where buyers were fighting over homes and submitting offers above list price, to a buyers market where the right pricing now plays a very important role in getting your home sold. What is a buyers market? A buyers market occurs when there are too many homes on the market for the numbers of buyers. When the demand for property is less than the supply the advantage shifts to the buyer. Homes take longer to sell and prices fall! The key is realistic pricing: Forget the common misconceptions that many homeowners have about pricing their home. A: My neighbor down the street, who has a smaller house just sold for $300,000. The truth is in most cases the prices is being exaggerated. Speak with a qualified Realtor and they can tell you exactly what the home sold for and the difference between their home and yours. (Maybe smaller but they had pool) B: I can always set the price high and reduce it later if it doesn’t sell. Doing this you run the risk of losing buyers, Real Estate studies show that buyer interest is high when a home is fresh on the market. By the time you lower the price the interest may be gone. Or when you lower the price drastically, the buyer now thinks you have become desperate or something is wrong with the house. Be realistic in pricing your home, this market is not the time to be a HOG when it comes to money. Price your home at or below the competitive market price. I guarantee you’ll get a stream people thru the door. REMEMBER THIS WHEN PRICING YOUR HOME: PIGS GET FAT AND HOGS GET SLOTTERED! Looks ARE MORE important than ever: Curb appeal is very important; it takes most buyers about 15 seconds to make a decision about a house as their walking to the front door. 5 tips for sellers in a buyers market 1. Price the home at or below competitive market value, using a realtor to help set the price is now more curial than ever.
2. Curb appeal, the house needs to be in move-in condition. Sellers in this area are also competing with new homes. This means fixing any problems with painting, carpeting, updating appliances, landscaping the yard. Order a home inspection to see what will need to be repaired.
3. Shop the competition, spend some time looking at other homes in your area, you need to get a feel for what your buyers are looking at.
4. Offer incentives: Offer to pay the closing costs, some of the points on the buyer’s loan, a home warranty. Pay for the move.
5. Be Realistic: Don’t let your EGO get in the way of a sale. Be open to buyer requests and concessions, remember you’re here to sell your home and move on! Most of all don’t be discouraged by the fact the market is not in your favor. Remember that homes sell in all markets, and when you take steps to improve your competitive position, you also improve your chances of being rewarded with a quicker sale and a higher offer.
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Court Appointed receivership is a person appointed by a court administrator to take into custody the property or funds of others, pending litigation. Operate the property and protecting the asset while the litigation works it way thru the court. Receivership Jim Pusateri plays an extensive role in acting as a court appointed receiver for real estate properties. We are typically recommended to the courts by various financial institutions, insurance compaines and attorneys. We have been appointed receiver for commercial, office, retail, apartment, and single family residential properties. Our objective is to professionally manage the property in order to achieve optimal value for the asset. KEY BENEFITS TO COURT RECEIVERSHIPS Preserve value of the asset: The appointment of a receiver gives the receiver immediate control over the property. The receiver is usually granted complete control over the property and he can immediately implement a turnaround plan.
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