Low-ball offers are not working anymore

What a great article I read today… It is 100% the truth!

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When the number of home sellers grossly outpaces the number of buyers, no offer can be ignored, even if it’s 25 percent or more off the asking price. But in today’s rebounding market, those low-ball offers are not working! Many times, the potential buyer finds that they don’t even get a counter-offer. And, in many cases, another more realistic buyer gets the home.

A low-ball offer – generally 25% or more off the asking price – allows buyers to see if they can land a great deal, even if they’re willing to pay more. In a survey last year conducted by the National Association of Realtors® (NAR), one in 10 respondents cited low-ball offers as a concern. According to real estate columnist Kenneth Harney, a NAR survey conducted in March and not yet released found that almost no one complained about low offers.

When the number of listings outpaced the number of buyers, many potential homeowners submitted a shockingly low offer on the theory that they had nothing to lose. If the seller balked, most would still counter with something below their asking price. Today, however, offers close to the asking price – or even beating it – will probably come in fairly quickly from someone else if a home is priced correctly in the first place.

Even buyers who still want to low-ball an offer on a home many times switch tactics after they lose a property or two to a more aggressive buyer. We are seeing this happen over and over.

A local Florida Realtor said that she told Harney that fewer buyers want to low-ball an offer in her area, but they still come in – mainly from out-of-state or out-of-the-country people who have read about the state’s foreclosures and short sales. That news, however, is old – it has not kept up with reality in many areas.  She continued to say that some people still insist on making a low-ball offer, but that she doesn’t mind. “You can’t blame a buyer for trying to get a good deal,” she says.

In some cases, a seller isn’t offended by a low-ball offer, but their counter-offer shaves only a little bit off their original asking price. An Olympia, Wash., real estate agent had a $150,000 offer for a $250,000 listing, according to Harney. But after the dust settled and the seller shook off his irritation, he and the buyer agreed to $230,000.

Harney closed his column with this advice: “Rolling low-balls at sellers may have been an effective approach between 2008 and early 2011. But in 2012’s environment – at least in rebounding markets – it could be counterproductive if you truly want to buy.”

Source: Ken Harney. Distributed by Washington Post Writers Group.

© 2012 Florida Realtors®

Tony Galarza, Realtor®

Real Estate Professional/Listing Specialist/CEO

KG Realtor® Group of Keller Williams Advantage II Realty

12301 Lake Underhill Road, Suite 111, Orlando, FL 32828

Direct: 407.429.2040

Email: Tony@KGRHomes.com

eFax: 1.877.655.3123

 

Team Executive Assistant – Cristel Anderson

Direct: 407.429.2040

Email: Assistant@KGRHomes.com

 

Immediate Info

Direct: 407.850.8542

Email: Info@KGRHomes.com

Check out this article I read today regarding a potential mortgage scam. People… beware!

Mortgage settlement could lead to more scams

WASHINGTON – March 20, 2012 – The recent announcement of the $25 million mortgage settlement between five major banks and state and federal government officials was probably welcome news to many people in the real estate business. But it has at least one downside: It will probably cause a rise in scams targeting borrowers seeking assistance.

Currently, between $4 billion and $6 billion is lost each year due to borrower-assistance swindles, says Joanne Kerstetter, vice president of education and community relations for Money Management International, a credit counseling service based in Sugar Land, Texas. Those numbers could go up over the next few years as scammers take advantage of the mortgage deal in their schemes.

“They’ll use government terms,” Kerstetter says. “They’re going to sound very official, as if they’re part of the settlement.”

Some of these scammers will guarantee access to borrower assistance funds, and that’s a major red flag, according to Kerstetter. “Generally speaking, the advertisements that say, ‘Call us to get money,’ are not representing organizations officially involved with the settlement,” she says.

In general, consumers should be wary of any company that reaches out to them with unsolicited offers of assistance. If they need help, they should contact their lenders or a financial counseling agency certified by HUD.

“The important thing is not to release any contact information to anyone who approaches you,” Kerstetter explains. “Don’t sign anything unless you’re clear about what you’re signing and that your mortgage lender is involved in the process. If you’re making payments, make sure they’re going to the loan servicer or mortgage provider.”

Source: Brian Summerfield, Realtor® Magazine

Call me if you have any questions about this. 

Tony Galarza, Realtor®

Real Estate Professional/CEO

KG Realtor® Group of Keller Williams Advantage II Realty

12301 Lake Underhill Road, Suite 111, Orlando, FL 32828

Direct: 407.497.7688

Email: Tony@KGRHomes.com

eFax: 1.877.655.3123

The Home Affordable Refinance Program 2.0 is now ready to go! Call me to take advantage of it!!

YOU HAVE TO READ THIS IF YOU OWE MORE ON YOUR MORTGAGE THAN WHAT YOUR PROPERTY IS WORTH!

There are two million homeowners in Florida that owe more on their mortgage than their property is worth. If you aren’t in this group you know someone who is. The purpose of this post is to give you information that can either help you or you can forward to someone you know that it will help.

Up until this point someone who was upside down on their mortgage only had two options; they could keep making payments on their current mortgage or they could let the home go (either through short sale or foreclosure). Many homeowners have been very frustrated that they have not been able to refinance to historic low interest rates because they are upside down on their mortgage. Even with great credit, income, and a history of on time payments if you were upside down you could not refinance.

This has just changed. The Home Affordable Refinance Program (HARP) has been updated from its current version to allow the most underwater homeowners to refinance and take advantage of the lowest interest rates in history.

One of my friends in the mortgage industry has created a website (www.wmcharp.com) that allows you to check and see if you are eligible for the program.

Even though refinancing is now an option for some, many others simply are too far upside down or their payment too high to be able to afford the home. For these homeowners, a short sale might be their best alternative.

No matter what your situation is, know that I am here to help you and those that you care about. If you need any Real Estate assistance or a referral to a HARP mortgage lender give me a call.

Your Realtor® for life,

Tony Galarza, Realtor®

CEO/Real Estate Professional

KG Realtor® Group of Keller Williams Advantage II Realty

12301 Lake Underhill Road, Suite 111, Orlando, FL 32828

Direct: 407.497.7688

Email: Tony@KGRHomes.com

Refinancing with HARP 2.0

Here’s a recap of the HARP 2.0 eligibility requirements (Home Affordable Refinance Program)…

 

What is the Home Affordable Refinance Program (HARP)?

Announced in March 2009, HARP is a federal government program designed to help 5 million underwater or near-underwater homeowners refinance into a fixed loan with a lower monthly payment. However, as of Aug. 31, only 894,000 borrowers have refinanced through HARP. On Oct. 24, 2011, President Obama announced an overhaul to the HARP program with the intent of reaching more underwater homeowners. The expanded HARP program – also referred to as HARP 2.0 – will take effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than 125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent.

 

Why didn’t the original version of the HARP program work?

The original version of HARP had many roadblocks that made it difficult for homeowners to refinance. For example, the program only assisted those with mortgages with a loan-to-value ratio between 80 percent and 125 percent, but in many hard-hit housing markets across the country, homes have lost more than 50 percent in value making those homeowners ineligible for the program.

 

How will the HARP program change?

Some of the major changes to the HARP program include:

 

• No underwater limits
       Borrowers will now be able to refinance regardless of how far      their homes have fallen in value. Previous loan-to-value limits were set      at 125 percent.
• Eliminating appraisals and underwriting
       Most homeowners will not have to get an appraisal or have their loan      underwritten, making their refinance process smoother and faster.
• Modified fees
       Certain risk-based fees for borrowers who refi into shorter-term loans      will either be eliminated or modified.
• Extended deadline
       The end date to get a HARP refinance has been extended to Dec. 31, 2013.
• Conforming and FHA Loan Limits

Your loan must fall under the current Conforming & FHA loan limits, which can differ by county. For example, Orange County’s loan limits for 2011-2012 for 1 Unit (your primary residence) are $417,000 for Conforming and $353,750 for FHA.

 

How do I find out who holds my mortgage?

To be eligible for the HARP program, your mortgage must be held by either Fannie Mae or Freddie Mac. To “look up” your mortgage, check Fannie Mae. If you can’t find your mortgage there, check Freddie Mac.

 

How do I know if I am eligible for HARP?

You can find out if you are eligible for HARP by contacting us directly at 407-429-2040. We have a HARP Calculator that will allow you to know if this option is for you!

 

 

10 Common Short Sale Mistakes Made By Agents!

1. 1. Not Qualifying the Seller.

• Their financial situation (current assets)
• Hardship (will give clues to how you will get approval)
• Type of Mortgage ( If it’s FHA loan and other types, can try to get pre-approved, Is it Fannie or Freddie?

2. Not preparing the seller for cash contributions and/or promissory note ( part of #1 but so important!)

3. Not doing preliminary title search.

4. Not controlling the list price and subsequent price reductions.

5. Advising your seller to accept an offer that is too low.

6. Not controlling the terms of contract- buyer end, short sale approval time frame, deposit upon seller acceptance (not short sale approval).

7. Submitting an offer or multiple offers to the lender. Instead of one fully accepted and signed contract.

8.Not working multiple liens simultaneously.

9. Not reviewing seller’s documents before sending to lender.

Common Financial Worksheet Mistakes

1. Figures do not add up

• Seller leaves out expenses
• Seller forgets about mortgage payment he is not making

2. Leaving out documents, not labeling blank pages

• Not having exactly the smae on all documents and as they are on loan
• Common hardship letter mistakes
• Not providing supplemental hardship information

10. Not getting your emotions out of the transaction. Hurting your relationships with lien holders.

We don’t make these mistakes…we actually get our Short Sales CLOSED!! Call today 407-850-8542 with any questions you have we would love to help you out!