The buyer of a property being sold in a short sale need to be aware of several key issues. The contract is usually contingent upon the agreement of the seller's mortgage lender to accept the net proceeds of the sale as full payment for the debt. This can, and is often, a long process. So, this could very well delay an anticipated settlement date. You will often know which homes are listed as short sales in the multiple listing services, either directly stated in the remarks, or have wording such as "requires third party approval".
I always like to recommend that if you are considering to purchase real estate, seek competent legal and financial professional help, or deal with a real estate professional with experience with short sale transactions.
Monday, September 29, 2008
Sunday, September 28, 2008
WHAT IS A SHORT SALE?
Hoemowners and homebuyers in today's real estate market face unique challenges. Of special concern are issues such as foreclosures and short sales.
Many homeowners facing rising interest rates on their sub prime rate mortgages and flat or falling home prices, are being advised to use a short sale to help them out of the difficult situation of mortgage delinquency or foreclosure. However, in my contact with the public, I'm finding many who really have no idea what a short sale is.
So, what is a short sale?
A short sale is an "arrangement" between the current owner of a home and the current mortgage lender holding the mortgage to accept an offer for less than the total amount owed to pay off the home loan which also includes other obligations such as closing costs, property taxes, transfer tax, and/or commission.
This "arrangement" may even help you if you find yourself in life changes, such as a divorce or job transfer which may force a sale of property. Perhaps you find yourself in an "upside down" situation, meaning that you owe more than you can potentially realize from the sale of your home.
As always, if you are considering a short sale, or any real estate transaction, it is important to seek competent legal and financial professional advice. Be sure you deal with a real estate professional with experience with short sale transactions.
The Maryland Association of REALTORS has created a Resource Guide to assist you in meeting the challenges of potential foreclosure. It includes general information about foreclosure and "short sales", as well as articles, publications and useful links. Go to www.mdrealtor.org and link to "Legal Affairs" Consumer Short sale and foreclosure Overview.
Now, if you are a buyer of a property being sold in a short sale, there are several key issues you need to be aware of. I will discuss this on my next blog. So stay tuned.
Many homeowners facing rising interest rates on their sub prime rate mortgages and flat or falling home prices, are being advised to use a short sale to help them out of the difficult situation of mortgage delinquency or foreclosure. However, in my contact with the public, I'm finding many who really have no idea what a short sale is.
So, what is a short sale?
A short sale is an "arrangement" between the current owner of a home and the current mortgage lender holding the mortgage to accept an offer for less than the total amount owed to pay off the home loan which also includes other obligations such as closing costs, property taxes, transfer tax, and/or commission.
This "arrangement" may even help you if you find yourself in life changes, such as a divorce or job transfer which may force a sale of property. Perhaps you find yourself in an "upside down" situation, meaning that you owe more than you can potentially realize from the sale of your home.
As always, if you are considering a short sale, or any real estate transaction, it is important to seek competent legal and financial professional advice. Be sure you deal with a real estate professional with experience with short sale transactions.
The Maryland Association of REALTORS has created a Resource Guide to assist you in meeting the challenges of potential foreclosure. It includes general information about foreclosure and "short sales", as well as articles, publications and useful links. Go to www.mdrealtor.org and link to "Legal Affairs" Consumer Short sale and foreclosure Overview.
Now, if you are a buyer of a property being sold in a short sale, there are several key issues you need to be aware of. I will discuss this on my next blog. So stay tuned.
Wednesday, September 24, 2008
Queen Anne County Recordation Tax Update
There may be those in Queen Anne County who were unaware of this fact:
On August 5, 2008 the Queen Anne's Commissioners approved County Ordinance No. 08-17; the ordinance that raises the recordation tax rate for Queen Anne's County to $4.95 per $500. ($9.90 per $1000) This Act shall take effect on the forty-sixth (46th) day following its passage, or September 20, 2008.
This is a 50% increase!
This may have a negative impact on potential buyers who were looking to purchase here in QAC, which may be complicating the real estate market just at a critical time when homeowners and potential buyers are trying to struggle out of the impact of the sub-prime loan crisis???
On August 5, 2008 the Queen Anne's Commissioners approved County Ordinance No. 08-17; the ordinance that raises the recordation tax rate for Queen Anne's County to $4.95 per $500. ($9.90 per $1000) This Act shall take effect on the forty-sixth (46th) day following its passage, or September 20, 2008.
This is a 50% increase!
This may have a negative impact on potential buyers who were looking to purchase here in QAC, which may be complicating the real estate market just at a critical time when homeowners and potential buyers are trying to struggle out of the impact of the sub-prime loan crisis???
Tuesday, September 23, 2008
Professional Etiquette
Being a listing practitioner and a selling practitioner, I handle many aspects of a real estate transaction on a regular basis. When the market slowed down, I kept hearing what a good thing the slowdown would be because it would weed out all the less skilled real estate "pros", leaving only the "good ones" behind. However, there is still a need for us to remind each other about some basic business rules and common courtesies we should be extending to each other and to our clients.
So consider the courtesy of when you schedule an appointment: Please, always show up for those appointments. If something occurs that keeps you from making your appointment or if you are going to be more than 15 minutes late, call to let the listing agent know.
Another practice to remember is to give feedback on a property that you show. The sellers are anxiously waiting to receive information regarding the showing; what the buyers thought and what their agent thought. It helps me as the listing agent to know how my listing compares to others shown and why the buyers didn't like the home so that I can make adjustments to the property appropriately.
This is actually a class offered to real estate agents. I hope you will consider taking it the next time it is offered in your general area.
So consider the courtesy of when you schedule an appointment: Please, always show up for those appointments. If something occurs that keeps you from making your appointment or if you are going to be more than 15 minutes late, call to let the listing agent know.
Another practice to remember is to give feedback on a property that you show. The sellers are anxiously waiting to receive information regarding the showing; what the buyers thought and what their agent thought. It helps me as the listing agent to know how my listing compares to others shown and why the buyers didn't like the home so that I can make adjustments to the property appropriately.
This is actually a class offered to real estate agents. I hope you will consider taking it the next time it is offered in your general area.
Monday, September 22, 2008
Look! First Time Homebuyers!
In times of turmoil, it's easy to overlook the obvious. Like the fact that NOW is the perfect time for first time homebuyers.
To start with, the higher amount of inventory gives first time buyers more choices than they have seen in years. Next, a lower price of entry is making better neighborhoods avavilable to first-timers--areas that never used to be considered for starter homes. Finally, there are also higher conforming loan limits in many markets.
Now, if you are considering buying a home for the first time, let me know. I specialize in helping first time homebuyers. I'll be waiting to hear from you!
To start with, the higher amount of inventory gives first time buyers more choices than they have seen in years. Next, a lower price of entry is making better neighborhoods avavilable to first-timers--areas that never used to be considered for starter homes. Finally, there are also higher conforming loan limits in many markets.
Now, if you are considering buying a home for the first time, let me know. I specialize in helping first time homebuyers. I'll be waiting to hear from you!
Kent Island, Maryland Is The Place To Live
Kent Island is located just on the eastern side of the Chesapeake Bay Bridge. In spite of its small size, 4.2 miles wide and 15 miles long, it offers up large helpings of wonderful shore habitat that can be explored on foot,by boat, car, or bike. There are currently 199 active listings on Kent Island, of which 52 are waterfront. We also have New Communities coming to Kent Island that fit EVERY family's price range.
I have lived here since the 80's. I have seen it grow, and I still wouldn't want to live anywhere else. We are centrally located to mountains and ocean. Two hours in either direction, and you will have either mountains or ocean. We are close to Washington DC and Baltimore.
So, if you're thinking about moving and haven't thought about beautiful Kent Island, give me call or email me to set up a time to take a tour of Kent Island and/or look at homes in the area.
I have lived here since the 80's. I have seen it grow, and I still wouldn't want to live anywhere else. We are centrally located to mountains and ocean. Two hours in either direction, and you will have either mountains or ocean. We are close to Washington DC and Baltimore.
So, if you're thinking about moving and haven't thought about beautiful Kent Island, give me call or email me to set up a time to take a tour of Kent Island and/or look at homes in the area.
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