Posts Tagged ‘banked owned’

• And the question is?

  
  Haven’t played Jeopardy in a while or watched it on TV. But I always thought that the premise was a good one. Give someone the answer and see if they can come up with the right question.  It occurred to me that I am usually walking around with what I think are  all the right answers to all kinds of questions. I guess  I might now recognize that I am somewhat pretentious in my conclusion.  I guess I need your help. How about I give you some answers and you give me what you think are the right questions. Hopefully, I can learn something with you and become a better agent.

  You know, years ago when I first got into the Real Estate business, I had a Broker who told me “Sam, you don’t sell real estate, you solve people’s problems”. That’s stuck with me and I think I have done a pretty good job in asking the right questions to solve those problems. But I think its time to get the customer’s take on this and get you to ask some questions. Anyway, lets see where we go with this and work together. I’ll give you the answer. You let me know what the questions should be. I’ll look at your questions and post them later to get some other folks to chime in if they think you are right wron.  Let me give you an example. 3.5% down payment  is the answer. The question might be,” What is an FHA mortgage ? ” Okay, lets give it a try.

  1.  Seller Assist is the answer. What is the question? This is the format which I won’t repeat every time. You’ll get the drift.
  2. No down payment required
  3. 28%/36%
  4. Buyer’s Agent
  5. Seller’s Agent
  6. Multiple Listing Service
  7. Escrow
  8. Radon Gas
  9. Short Sale
  10. Transunion, Experian, Equifax
  11. Title Insurance
  12.Prepaid Items
  13. 2 years worth of tax returns
  14. A real estate agent
  15. Purchase offer

  Okay, that’s enough for now. Give it a shot. Either comment below with your questions or email me if you like. The more I think about it there can be several different questions for the answers. In addition here is  a podcast that will explain how one might go about purchasing a multi family home where you can  live in and collect rent to help pay for your mortgage. If you would like to pursue that let me know. It can be challenging , but it can  be the start of a pretty good investment portfolio.

  Contact me at 610-737-2310 or email me at salvatoreruta13@gmail.com. Appreciate it.

• Spring Market brings confidence, I think.

  

   

  I’m not one who just takes recent economic news as gospel. But having said that, it does look like we are moving forward with a better housing market. Just take a look at this recent post by Don DeZube of the National Association of Realtors.  Spring Market. You have to admit its pretty positive.  The increases are slight but are running ahead of  last year. The office that I manage is up about 6% over last year. That includes all categories: average sale price, less time on the market, list price of homes, total volume sold and total listing volume.

  If there is one problem, it’s that we do not have enough good salable properties on the market. The buyer demand is there and we find ourselves in multiple offer situations. The sellers are happy but the buyers are not. One  cause for the shortage certainly can be attributed in part to  thousands of properties still”underwater”, that is, the owners owe more than the house is worth. Banks are slow in approving possible short sales. Also the Feds have not extended the “debt forgiveness ” provision that allowed sellers to escape the tax consequences of such a sale. There is also some implication  that lenders are holding back millions of stalled foreclosures from the market in the hope that  rising prices will allow the lenders to recoup a larger return of dollars at the “Sheriff Sale”. Who knows…Plus under the new QM rules (Qualified Mortgage), underwriting guidelines are making it  much harder for the average home purchaser to qualify for a mortgage.

  

   

  Lenders are trying to address the above issues by loosing up certain underwriting criteria. Credit scores of 620 and in some cases 550 will get you into a home.  The fact that mortgage applications for all types of  loans are off in some cases 60% from last year might be one reason that lenders are looking for business with less than a truant officer’s mentality. If they don’t lend it, they are not going to make it. Not rocket science.

  Here is an explanation to help you better understand the “QM” rules.

  One last thing that I have mentioned  several times. If you are in financial trouble, wondering about whether you can stay in your home because you are behind in your mortgage, are considering bankruptcy or in a reverse mortgage and you have any questions, please give me a call. Don’t do anything drastic until you have a chance to talk to a  professional. I can recommend several that can help. Call me at 6107372310. No obligation.

   

• So what’s the deal with the Stock Market? Gimme the House instead.

  

   

  I don’t have a clue.  Used to be  able to gauge the housing market by what’s going on in the Stock Market.
  I gave up on that comparison a long time ago. To me it makes absolutely no sense. How can a barometer of the economy change so fast. I mean really, up 200 points one day, down 225 the next. I saw a pundit on a business show the other day that said traders are now using computer programs that make changes in a nano second. How is that possible? They buy, sell  and set the tone for the market before you or I even have a chance to act before our first cup of coffee. Crazy….  There is a thing called “Penny Stocks”. Companies that are looking for money and issue stocks that are worth literally  less than a penny a share. Okay……  I’ll buy a hundred shares for a dollar? Still sounds like a night at the Casinos to me. Kinda like playing the penny slot machines. Maybe I’ll hit it big and get a 1000% return.

  Wall street might be a dead-end for the average family.  But then there is the housing market. The great banking debacle of  2007 seems like a generation ago. Mention to a millennial that their grandparents actually had double-digit interest rates when they bought their first house, they look at you like  you have two heads. But it’s 2014 and there is a zero point 30 year fixed rate at 4.875%.  Pretty good.  The values of homes are rising again and home owners are looking at  increased equity. Buyers are coming out of hibernation but are still a little unsure of how to go about that purchase. One thing that is  a must, is that both buyers and sellers have to be reasonable in negotiating.
  Credit is still a concern but there are programs to address the buyer with as little as 580 credit score. How can that be? I have always said that there are only a few ways that banks can make money. The  main way is to lend it. The refinance boom is over for lenders. That means they have to go after purchasers of homes who need mortgages. Now is a great time to be a buyer and negotiate with a lender for a great rate.  For a really concise explanation of the current market and what you might need for a down payment and minimum credit scores  for  potential buyers, listen to this podcast.

  There is no getting away  from the financial trauma we all experienced over the last several years, but the housing market is coming back and there is no better investment for the average family. The volatility of the stock market is something that a lot of us just don’t want to risk, at least not right now. There’s something about an”Inverted Yield Curve” that leaves me wondering what it all means. Call me for housing info at 6107372310. Or email me at my new email address salvatoreruta13@gmail.com

• Death and Taxes

  

   

  I think you know what I mean. Its inevitable. But I guess I  anticipate the tax portion of this phrase with  utmost dread every year. April 15, or some day real close  when the government comes a calling and tells me to pay up.  God I hate it. and I always pay. Oh I know what  some you are thinking… you  always get money back.  How come I don’t. Well because I basically don’t want to give the government the use of my money interest free all year-long. That what it is. They take it out of my paycheck send it in and then those spend happy bureaucrats use it all year-long without so much as a thank you let alone any interest on it. Where’s the fairness in that?

  No, I’ll take my chances in taking as many exemptions as I can to get as much cash as I can in my paycheck. I’ll pay  up once a year and the penalty. But in the meantime I am using the money for me and my family. But ideally I should zero out, no refund, no penalty. I’m working on that.

  But regardless,you can’t escape. But the good news is, if you are a home  owner and borrowed money to purchase the home ,the mortgage interest is deductible. That, along with any property taxes that you pay. Pray to God that our leaders in Washington stop trying to eliminate these deductions from the average homeowner. That fact that we are almost 18 trillion dollars in debt as a country, leaves little doubt that they will continue to come up with  creative  waves of separating you from your hard-earned money.

  It really is a war. Us fighting to keep it, and them fighting to take it. And even death won’t free you from the tax man. Your  federal estate is taxable over 5.4 million dollars and in some states like Pa. the inheritance tax can be as high as 20%.

  Because of the terrible economic situation that has occurred since the crash of 2007-2008, many folks have found themselves owing money to the Federal government when they thought they were out of the woods and on the way back to stability. Let me give you some examples.

  1. Selling your home short. This is where you received the okay from your lender to sell your home for less than what you owe. Up until the  end of 2013, there was no income tax due on debt forgiveness by a lender for  an owner occupied single family home.  This exclusion  expired at the end of 2013 and Congress has shown no interest in extending this provision. So if you sell underwater in 2014 you may owe a big fat tax bill to Uncle Sam. The only way to escape this is to file Bankruptcy or be declared “Insolvent” by the IRS. There is a difference. Talk to a lawyer and an accountant about these alternatives.

  2. Forgiveness on credit card debt. This is similar to the above scenario except there has never been an exclusion. I have met several folks who have worked long and hard to rearrange credit card debt only to receive a 1099 C from the credit card company indicating that the debt is forgiven but now report it to the IRS as income.

  It really is a shame that folks are trying hard to work out some equitable solution to pay their bills and find out that the hole is some cases is deeper.

  Because of situations I mentioned, it is getting harder and harder  to reestablish oneself for the possible purchase of  a home, let alone pay off debt. But there is hope. Did you know that you can buy a house and get a mortgage after a discharged bankruptcy. Also if you lost a home to foreclosure, yes you can buy another house after a period of time. There are some  new credit caveats for sure, but it is possible. If you are in a Chapter 13 Bankruptcy your time frame is even quicker. Chapter 13 is when you are actually making payments to a creditor under court supervision.

  Look, we all have problems. Some are financial, some are medical, some are emotional. But I am one of those guys that feels if you recognize your limitations and mistakes and are willing to keep on plugging for you and your family, then don’t give up the dream. That’s why I’m here, to discuss the options and give you some advice. Those experts that I can suggest you meet with will help you, not for free, but they won’t break the bank for you again.You owe it to yourself and those you love. But you have to take the initiative. Call me and get started. 6107372310. The first meeting with me is on the house. Click here for some additional 2013 tax tips.

• Touchy, Feely

  

   

  Internet, smart phone,voice mail, email,Facebook. What do they all have in common?  Heck this one is easy.  They all allow so-called communication between two or more people without any overt face to face interaction. No, you can’t count Skype.You know you all have heard or seen the story, or perhaps you actually participated in the event, where two or more people are at some location, function, or event, where  or at least the majority of people are transfixed on their cell phones and everyone  is texting, emailing or Facebooking  to someone else and are not even looking or speaking at the person next to them. By the way is Facebooking really a verb?

  I’ll probably be accused of paranoia or at a minimum some  old senior member of the real estate community who just doesn’t quite get it. They will say this is not the wave of the future but it is the present. It’s reality, and get on board. Well I think, notwithstanding my age,  I get around pretty good in the Digital Age.  I am Linked In, Facebooked, Pinned, Twittered and am blogging away. But I know from my long life in the Real Estate profession, that after searching online for their dream house, buyers want to talk to somebody for advice, they want to go out and look at the house, drive by the neighborhood, go inside, look at the carpeting, paint and room sizes. They want to smell the air inside to see if there were smokers in the house, if it smells like, cat, dog or a beauty salon. A Buyer is not going to get the “feel” for those things  just looking online.  And most importantly, they want to be with a professional who can provide decent council about the house. Here are some additional tips on preparing yourself before you buy. Tips

  If you are a seller , can you really be objective about the house where your kids were born, or where you grew up? Maybe  you really liked all of that Flock wallpaper when you lived there. Or those metal kitchen cabinets that you painted 3 times different colors over the last 20 years. And 1 and half baths were just fine for your family of 5 and you never had any problems with the 20 year stove, refrigerator or the dark walnut paneling in the family room or finished basement. You get the drift. If you are honest with your self, if you are a seller, here are some examples  of  things you can do to get your house ready. Click here.

  I guess what I am saying that if you want to sell or buy a home and you think you can do it by yourself using only digital and social media marketing;  then maybe you might want to rethink  your purchasing and selling strategy. Go with an agent and touch the house, feel it, see it and ask a million questions. If your selling home sweet home, look that agent straight in the eye and make him  give you  no baloney answers on what you need to do to get it sold. You might have to spend a few dollars, but it might save you some eye strain staring at those digital devices.  And you might make a connection with someone who will become a trusted adviser.

• Here’s a little secret in negotiating with either a buyer or seller.

  

   

  Real Estate Agents are always put in a position of representing somebody. Most of us tend to think of an agent as either representing the seller or the buyer. Pennsylvania law requires that once an agent meets a consumer for the first time and there is a “significant discussion of real estate” that we are required to give them a written disclosure regarding the different kinds of representation that we can provide. The client has to acknowledge that disclosure in writing. It doesn’t bind the client to the agent. It’s just that it proves that the agent has done his or her due diligence in complying with the law. There is no contract at this time.

  There is also the tricky position an agent is put in if a consumer calls the real estate office for the first time and begins to engage in a “significant discussion regarding real estate”. There is particular language that an agent must use and disclose to the consumer again regarding representation. To say the least it can get to be a little unusual and uncomfortable for both parties especially if the customer is just calling to find out where the property is or whether it has 3 or 4 bedrooms. We are not lawyers but sometimes you wonder how close we come. It really gets complicated if you have to explain the differences between buyer, seller, transaction brokerage(No representation) or Dual or Designated Agency. Dual Agency is when the client purchases the listing agent’s property and Designated Agency is when the client wants to purchase another home through the agent’s office listed by a fellow agent in that office. Oh yeh, that puts the broker of the company in a dual agency position.

  Did you get all that? I can assure that even some experienced agents don’t get it. Where does the rapport development come in? Where does the  need determination start by the agent? I have to ask you some questions. I don’t want to interrogate you like we are  in some court. There is this “dance” that occurs between the agent and the potential client. I want to comply with the law  but I don’t want to offend the customer.

  Let me get back to that “little secret” that will help you in negotiating with either the buyer or seller in a transaction. When you decide you want to either buy or sell a home and you are checking out agents to assist you. Ask them right up front “Are they going to represent you” In other words are they going to work for you on your behalf. Are the going to keep everything you tell them confidential, are they going to use their negotiating skills to get you the best deal possible. Do this up front and before you give them any information ask them to put that obligation in writing. In the case of the home for sale , a listing contract that will spell out their obligation to work on your behalf to get the highest and best price for your home. In the case of the buyer, a  buyer agency contract that obligates the agent to find you the best home for the best price. In either case, you the consumer make the final decision.  But the point is, if you do this up front in writing then you have something that you can enforce if you feel that the agent isn’t representing you in your best interests.

  The written contract is usually not a problem with a listing,that is, an owner who wants to sell his or her home. No one is going to do anything regarding the marketing of that home until there is contract. Representing a buyer is a usually a different story. A lot of buyers do not want to feel obligated to one agent. Fine shop around, but one more little secret,do not disclose any personal information as far as your financial, bottom line pricing or other personal information, until you have a contract with that agent. As far as a fee you can negotiate that in with the Buyer’s Agency Contract , so that the fee can actually come from the seller at the time of settlement.

  I guess as a final note and it isn’t any secret , before you pick someone, make the contacts, make sure they provide you with Consumer Notice , understand representation, make the agent commit in writing and then discuss confidential information.

  Need some help on this topic and just want to chat about it? Contact me at samruta@yahoo.com or call me at 610-7372310.

• 5 different ways to engage using Social Media and stay connected.

  I am getting more geekitized the older I get. I really have become fascinated with all aspects of Social Media and the profound ramifications that it has on the practice of my business, which is selling houses and helping buyers find their dream homes. I don’t feel like I am a johnny come lately to this era but it has been a learning experience. Here are some ways that I promise I’ll stay connected with you and get results.

  1. Facebook. This blog is linked to my Facebook page and will also provide us with an opportunity for a 2 way communication. I’ll try to keep the blog real estate related but I have to say I can slip out of that on occasion . I love the Military and the men and women who serve and have served. You will pick up my bias.

  2. Linked In. Purported to be more of a business venue, I am glad to participate, and though the professions are diverse , they all need advice on real estate. Be glad to give you mine.

  3. Twitter. 140 characters to get your point across makes a lot of sense in initiating a conversation. I have to get better at this to get my point across quickly. It will be a tease but then I hope you will contact me for an in depth analysis.

  4. Pinterest. I am new to this site but I like the chance to “Pin” and also to provide pictures and video to get a real sense of visual reality of one’s opinion.

  5. Google Plus. The big bad boy of internet everything. How can you not be aware of Google and ignore its power.
  The fact of the matter it really has a way to go to match Facebook as far as popularity, but can’t be ignored.

  There are a plethora of other contact venues but I’ll start with the above to get you to discuss what’s on your mind. I’m pretty easy. And of course I am open and eager to interact with you on any platform that you might think beneficial. In fact, please give me your recommendations. Look forward to hearing from you.

  Sam

• You have got to be kidding! I can still buy or sell????

  There is nothing I like to do in this world than to be with my grandkids and mess around. I  also love my job in helping and advising folks on the purchase or sale of their home. I have been doing it for over 35 years.  There is something about watching the excitement in the eyes of the first time home buyer or the satisfaction from a senior citizen (me by the way) when he or she is able to move on, supplement their nest egg and enjoy a nice retirement.

  Well, I don’t plan on retiring anytime soon. I like working. Besides, I am not a big hobby guy. I am sure my wife Gloria would get tired of me real fast following her around like some puppy dog while she does her thing with her girlfriends. Forget it.

  I gladly prognosticate on the future of the real estate market. What are you waiting for?  If you are a buyer, rates are still low. Under 5%. Prices are still reasonable.  But they are starting to creep up. Mortgage lenders are aggressively going after FHA and 5% down buyers. Foreclosures are down and a lot of folks are pulling out of their underwater status. And they have to sell.

  Now all this doesn’t mean we will have the free for all that we had in  the early 2000’s when you didn’t even need a job to get a loan. Thank goodness those days are over. But don’t let those that have a home and are not in my business given you a bunch of baloney that you need an 800 credit score to get a loan. Did you know that you get a new FHA home loan if you filed for Bankruptcy and have been discharged for at least 2 years, and of course if you have been paying your bills on time since then.

  Did you know that as a Veteran, you don’t even need a down payment and you can have the owner of the home pay for all of your closing costs. There are also 100% loans available through the USDA , that would be the United States Department of Agriculture.  They are loans that are available for single family homes in designated rural areas.

  This is for real. Give me a call at 6107372310 or email me at samruta@yahoo.com to discuss some real possibilities. I’m not kidding.

• Coming out of a coma…

  

   

  I don’t know, I just kind of gave up last fall. When someone told me it was hard to keep a blog up and have a fresh ideas day after day, I knew it was hard but I didn’t think I would go into brain freeze almost permanently. Well I did. I thought to myself I have to become more aggressive  and try to get some reaction from folks who read this stuff. Well that didn’t happen and I thought I might as well get on to bigger and better things.  I really don’t know what that means either.

  In the final analysis I guess I had to ask myself the question; was I doing  a blog for you or for me. For me, because at one time I thought I actually enjoyed writing . For you because I hope I could drum up some business while giving you some helpful information.

  At this point I’ll just try to write about some things I am passionate about, which is cathartic for me. Maybe you will join in and let me know how you feel, but if you don’t that’s okay too. Because now I don’t feel the pressure to perform for anybody else but me.

  So here goes….. Since I last wrote we have had the reelection of the President, the murder of 26 folks, 20 of whom were kids, a Pope resigned, avoided a Fiscal Cliff, did not avoid a Sequester,  watched the rebound of the housing market begin, (which by the way I still don’t trust), QE infinity courtesy of the Fed and saw the Unemployment rate drop to 7.9%

  Maybe its the Jesuit training in me but its smoke and mirrors to me. How the heck can we have an almost $17 trillion dollar deficit and growing each day, printing money like its drug to an addict and 1-2% Interest rates set for the next several years, and listen to all of those folks in Washington saying things are getting better. Who is going to pay for all of this insanity? You and me folks and our kids and grandchildren. That’s because the boys and girls in DC can’t get along. The cost of servicing that debt will eventually eclipse the total GDP of the entire country.

  One thing is for sure. Regardless of your feeling of the housing market, the freaking mortgage rates are at an all time low. A $100,000 mortgage at 3.5% not including taxes and bank fees will cost  $449 a month. Try renting for that kind of monthly payment.

  Foreclosures are down, that’s good. Short sales are up, that stinks. No matter what the banks tell you, they still take months   and I have had more than one buying client walk away. Because foreclosures are down and short sales take a while, we have a decrease in available housing. So Buyers beware, the sellers that are not underwater are going to start raising their prices. It’s already happening. And if Uncle Ben ever stops buying bonds and mortgages,  rates will go through the roof.

  Anyway, I feel better, that was a good start. It’s like when I talk to myself in the shower. It’s probably the most creative time for me.
  I just need someone to  turn up the temperature of the water.

• Where Can I Get Updates About New HUD Homes?

  

   

  Where Can I Get Updates About New HUD Homes?

   

  The BEST place to get information about HUD Homes is HUDHomeStore.com , HUD’s superstore site.

   

  HUDHomeStore.com is a one-stop platform containing everything you need to know about the HUD REO sales program:

   

  • HUD property information;

   

  • Property disclosures and addenda;

   

  • Real estate and consumer registration features;

   

  • Interactive maps on home page, special programs pages, and property detail pages;

   

  • Resources and contact information for real estate agents and brokers, consumers, state and local governments, and nonprofit organizations.

   

  The new website features all HUD Homes in the country.  Real estate agents and consumers have the same view of properties, and access to a myriad of resources and contact information.

  Here is a video on how to register for HUD Homes.

  Any questions? samruta@yahoo.com
  Phone; 610-737-2310