The Kasey Group's Blog

So often we call short sales "long sales".  The process, which you would think would be very straight forward, often takes at least 3 months for a bank to respond!  And many times, an already patient buyer has decided to pursue a house that does not have a "third party" or "bank" contingency, setting the seller back to marketing their home for sale. 

So what can you do?  You've heard that the best defense is a good offense, so coming to the table before an offer is even received with the following can ensure that you have done your best in moving the file through the system. 

SHORT SALE REQUIREMENTS

•  Hardship Letter  
• Last 2 months' pay stubs or an explanation of why you are not working  
• Last 2 months' bank statements  
• 2009 Tax Returns  
• A financial breakdown of your income, assets and expenses  
• Hire an attorney experienced in the short sale process and is ready and willing to work on your behalf 

One last piece of advice, whether buying or selling make sure you work with an agent who is educated/experienced with the short sale process.

By Karin Stocknoff on July 8, 2010

The Kasey Group Sells...

So June 30th came and went.  Surprisingly, the earth did not stop spinning with the end of the tax credit.   But what to do now?   It was easy talking to buyers about capturing this once in a lifetime opportunity...it was all the buzz and everyone wanted a part of it.  

So where will the excitement come from now?   The excitement needs to come from you!  Call all those lucky ones, your new past clients...remind them how smart they were to get into their new home and ask them for referrals.    They are excited!   They have been telling everyone about their house, now you need them to tell everyone about you.   You did a great job finding them their home and navigating them to a timely, tax credit worthy closing.  Be sure to specifically ask, do you know anyone looking for a home?   This is a great source of new business. 

You worked hard for your client, let them work hard for you!

By Megan O'Connell Albright on July 7, 2010

The Kasey Group Sells...

FSBO... What does it stand for?

HAFA... potentially the trickiest acronym of all in the Real Estate field, but not if you know the process.

In order to reduce the number of foreclosures in the US, the Treasury Department introduced a new federal program that makes it easier to process a short sale for people unable to keep their homes.

Check out www.makinghomeaffordable.com for more information.

And by the way, Home Afforable Foreclosure Alternative (HAFA).

By Karin Stocknoff on July 6, 2010

The Kasey Group Sells...

I really enjoy my dictionary.com word of the day (can you tell I also like the thesaurus option on that site).  I've really become smitten with not only knowing the word, but from whence it came, or its origin.

I really do have a point here, and that is, that as a Realtor articles come across my desk everyday.  Yesterday, I found an interesting one on FHA loans...

In 1934, the Federal Housing Administration(FHA) was created by the National Housing Act for the primary purpose of insuring residential mortgage loans while promoting home ownership in the US. 

Today, FHA is the largest government insurer of mortgages in the world.  FHA loans have surged in popularity, increasing from about 2.8% in 2005 to 30% today largely because credit standards have become so stringent. 

The following has made FHA financing more attractive:

• Maximum amount limit has increased from $417,000 to as much as $729,750 depending on the county. 
• LTV, or loan to value ratios can be higher with FHA financing, allowing buyer to borrow up to 96.5% of the value of a home.
• Buyers can finance their closing costs into the total amount of the mortgage. 
• Possible higher LTV can also make FHA loans an attractive option for homeowners wanting to refinance. 

Hope you found that as interesting as I did. 

By Karin Stocknoff on July 1, 2010

The Kasey Group sells...

Semper Paratus...   The old boy scout saying is true, be prepared.  

When the time is right to buy you need to be prepared.  Don't wait until you have found your dream home to speak to a mortgage broker and to get your finances in order.   Remember, getting a pre-qualification can take time, time you may not have when you are anxious to make an offer.   Look for important documents, like bank statements, taxes and  W-2's.   Spend time deciding how much money you have to put down on a home and where will your deposit come from.  Be sure what price range you are comfortable with.   

 When you have everything set...get out there and start looking, you will be ready to make that offer!

Not sure what to keep?  Make order out of piles of bills and receipts by knowing what to retain and what to throw out.

 Keep for One Month

• Credit-card receipts.
• Sales receipts for minor purchases.
• Withdrawal and deposit slips.  Toss after you've checked them against your monthly bank statement.

Keep for One Year

• Paycheck stubs.
• Monthly bank, credit card, brokerage, mutual-fund, and retirement account statements.

Keep for Six Years

• W-2s, 1099s, and the other guts of your tax returns.
• Year end credit-card statements, brokerage and mutual-fund summaries.

Keep Indefinitely

• Tax returns.
• Receipts for major purchases.
• Real estate and residence records.
• Wills and trusts.

Keep in a Safe Deposit Box

• Birth and death certificates.
• Marriage licenses.
• Insurance policies.

By Megan O'Connell Albright on June 28, 2010

The Kasey Group sells...

My heart skips a beat when I see a red CLEARANCE sign.  I don't go into a store without my coupons.  It's not like I believe I should get something for nothing (although I do play the lottery), but why pay more when you don't have to?  I never come home and tell my husband what I spent.  I come home and tell him how much I saved.  Yes, yes, yes...the receipt may say $200 on the credit card, but I saved $75! 

I believe that everyone should get a bargain too, so when I hear that you can lower your property taxes...how could I not share?

With the real estate market having faced such a decline, how could a large number of homes not be over-assessed?  According to the National Taxpayers Union, 30-60% of the homes are over-assessed, yet only 2-3% of homeowners ever attempt an appeal, and 20-40% of the appeals are successful.  That's having your coupon and not handing it over!

 The steps are pretty easy:

1. Get your property card.  This is public record and is also known as a field card. 
2. Double-check the accuracy of information.
   1. Any upgrades you've done, even if it does not include adding square footage, should be reflected on the property card.
   2. If the card is not correct, have a new assessment done.
3. Understand that math.
4. Get comps.
   1. Call a Realtor for this.
5. Use the correct assessment date.
6. Consider using a professional report, only if required.
7. Prepare your document.
8. File the appeal on time, typically this is 60 days from the time your annual tax assessment was mailed to you. 
9. Wait for a response.
10. Attend hearings, if that is the way that appeals are handled.

Visit your local town hall for more information.

Don't believe me?  I've already had one client who has successfully completed the process.

By Karin Stocknoff on June 29, 2010

The Kasey Group Sells...

I love the home!  If that's how you feel, tell your agent.  Too often buyers will take the stance that 'if it's meant to be, it will be' or 'it's ok if we don't get it'.  Every agent has had this happen.  A client loses a home, either in a bidding war or by not moving on it fast enough or waiting for 'something' to happen that never does.  Then they compare every home from that point forward to the home they 'lost'.  

Buyers need to tell their agent, 'I really want this home' the agent will take the lead from there, preparing and presenting the offer.  

Agents, for their part, need to be sure to ask 'how will you feel if you lose this home'.  

Working together there hopefully won't be 'the one that got away'.

By Megan O'Connell Albright on June 28, 2010

The Kasey Group sells...

If you watch the news, read the paper, or talk to just about anyone you have probably heard that now is the time to buy, but is it really?

With June being the National Homeownership month it is important to remember that the process of buying and selling a home is different for everyone.  If now is the time to buy for you the following five steps will be helpful in your quest to be a homeowner.

1.  Get Educated. A little mortgage know-how goes a long way toward ensuring you get an affordable mortgage.

Before you hire an agent or find a lender, get educated on the loan process and key factors that make a loan affordable.  You'll  want to know about loan types - fixed-rate mortgages, adjustable-rate mortgages, FHA and VA loans - and the full range of line items that contribute to the total cost of securing the loan, including discount points, appraisals, etc.

2.  Get Your Finances in Order. Given today's stronger lending guidelines, it's more important than ever to get your finances in order.

First, get a copy of your credit report(make sure that is includes all three bureaus) and check your credit score. If your credit score is low (anything below 620), take the time to improve it.  If you find errors on the report, take the time to correct them.  This may put your home buying plans on hold (creditors typically look for a two-year history of consistent, on-time bill payment to establish good credit), but it could result in a better loan and more affordable rates.         

3.  Establish a Budget. Before you start searching for your home, make sure you know what you can afford.

Lenders will evaluate all your debts and take into account your full financial situation when qualifying you for a mortgage.  A key factor is how much income you bring in versus how much you will pay out each month.  Here's a good guideline to check where you are:Your housing expense (the mortgage payments on the house you are buying) should generally not exceed 28 to 33 percent of your total monthly gross income. All revolving debt (including car payments, credit cards payments, and your mortgage payment) should not exceed 36 to 40 percent of your total monthly gross income.

It's always helpful to create a monthly budget, itemizing all your recurring expenses, including estimated maintenance costs, taxes, utility bills, and condo or homeowners' association dues.  Then, test your budget.  If you can pay all these debts and continue to add to savings, you may be ready to buy a home. If not, you may have to revise your plans.      

4.  Start Saving. Having savings in reserve helps ensure you can afford the upfront costs of homeownership.

 Upfront costs of homeownership include: 

• Down Payment- Five to twenty percent of the purchase price. Keep in mind, a lower down payment means you'll have to qualify for a higher loan amount and pay for mortgage insurance(PMI) - adding to your monthly mortgage payment.
• Deposit - Typically One percent of the purchase price followed by an additional four percent when the offer is accepted.  If your offer is accepted, the deposit or earnest money will be applied towards the down payment. If your offer is rejected, the down payment will be returned to you.
• Closing Costs - These costs include all fees required to execute the sale, including attorney fees, title insurance, appraisals, and points.

5.  Get Pre-Approved. In today's competitive market, home buyers should get pre-approved for a mortgage before they begin their house hunt

To be pre-approved for a loan, your lender will gather information about your job, assets, income, and debts and then determine how much financing you're qualified to receive. If you are pre-approved, you will receive a pre-approval letter from the lender.  When you're ready to make an offer on a home, this pre-approval letter will tell the seller you're a serious and qualified buyer.  Keep in mind, pre-qualification doesn't mean you have an approved loan.   You'll still need to apply for a loan if your offer is accepted. 

Buying a home is a major life decision and only you can determine if you are financially prepared to do so.  If you missed the take credit you can still take advantage of the low housing prices and interest rates,  Freddie Mac quotes rates at 4.69 for 30 year fixed rate and 4.13 for 15 year fixed rate.

Still have questions?  Contact The Kasey Group for more information.

The Kasey Group Sells...

Just when you thought you had an understainding of the current mortgage regulations FNMA has come out with new guidelines regarding the level of documentation required to close a loan.

These changes are effective June 1, 2010 and have been adopted by Secondary Market Investors.

Here are the key ones that buyers and agents should be aware of :

• Credit reports

  will be run again right before the closing to assure that new debt was not added since the original credit report was completed. Mortgage brokers will also be required to check on any recent credit inquiries on the credit report that might indicate that new credit had been applied for but not yet put in place.

• Social Security numbers will be required of all borrowers including non-resident aliens. These numbers will now be double checked for accuracy and legitimacy. Any questions that arise will require certification from the Social Security Administration.

• Loan to value calculations will now be rounded up unless it is not significant to the third decimal place. As an example if the loan amount divided by the lower of the sales price or appraised value equals 80.01% it will be rounded up to an 81% loan to value. However if the calculation equals 80.001 then it will be rounded down to 80% loan to value.

• Mortgage Electronic Registration System (MERS) reports will be run on all loans just prior to the closing in order to assure that the borrowers are not closing at the same time on another property. MERS is a national registry system that electronically records closings, think of it as a national registry of deeds.

• The agencies are requiring all lenders to run all names involved with a transaction through the HUD and GSA list of excluded parties. If the name shows up on the list the loan will be ineligible for sale. This requirement places a greater emphasis on dealing only with lenders who you know very well.

Now more than ever it continues to be important for buyers and agents to do business with credible and established lenders. The Kasey Group has comprised a list of lenders we work with on a daily basis that we have deemed reliable and trustworthy. 

 This information was obtained from an email sent to us by William Raveis Mortgage.