Starting April 5, 2010 the Government will be paying homeowners in default, to relocate. The new program will demand lenders to honor short sales whereby the homeowner can sell the property for less than the mortgage payoff. The Obama administration is trying a different approach to assist more than 5 Million households who are behind on their mortgages. In turn, the homeowner will receive $1500 for relocation assistance and the lender $1000 for expediting the short sale process.  

This arrangement could prove very beneficial to the homeowner, as they will not suffer further credit damage and they will get reassurance from the lender that they will not be sued for the balance. And, under this arrangement, the number of potential  foreclosed homes on the market should drastically decrease which in turn, should improve the  overall housing market.

Finally, short sales will have their day! If you are facing a foreclosure, and need assistance, we are specialists in the Wilmington NC real estate short sale and foreclosure market. We are there for you every step of the way. Just give us a call or email kaybaker@ec.rr.com.

And, if you are looking to purchase a short sale or foreclosure, we have you covered there, as well.  We have a Certified Distressed Property broker on our team and will help you with your short sale or  purchase a short sale or foreclosure with complete knowledge of the process.  Read more here

Some of the things you need to keep in mind are:

1. Make a list of things that you would like to have done to the interior and the exterior of the home. 

2.  Do your homework and ask friends for referrals of cleaning companies.  Check out references before you hand over the keys to you home.

3.  Make sure that the cleaning company handles taxes for their employees, has insurance and is bonded.

4. Get an estimate for services and make sure it is detailed.  Your idea of a cleaning might be different than theirs.

5.  Make sure that the company can schedule days to fit your schedule and whether or not they supply the cleaning equipment and supplies.

6.  A professional cleaning job can make your home shine and show well. 

7.  Call us to help you sell your home!

So, start your real estate search today at www.cbbaker.com.  You can find a new home as well as get seller advice.  You can search by price range, map, schools, neighborhoods and more.

Now that you have found your dream home with the assistance of a professional Realtor, you will need to decide exactly what type loan best fits your needs.

Would you be best suited for a fixed rate 30 year mortgage?

A fixed rate mortgage simply offers the same payments for principal and interest throughout the term of the loan.

Adjustable Rate Mortgage

An adjustable mortgage may adjust at different intervals based on the exact terms of the loan. You typically get a teaser rate for the first year or so and then it increases based on the market rate.

Interest Only Mortgage

If you do not plan to live in your home long term, an interest only mortgage may suit your needs just fine. You only need to pay the interest monthly and the principal is due upon payoff.

FHA

First time home buyers reap the benefits of an FHA loan which offers lower down payments and easier credit and qualification guidelines.

$8000 Stimulus

Let’s don’t forget to take advantage of the $8000 tax credit for first time home buyers and some that have owned a home before.

Right now is the perfect time to be looking for your first home, or maybe a larger one and in some cases you might just want to scale down to a smaller one. You can start your search for Wilmington NC real estate at www.cbbaker.com. There you can search by price range, neighborhood, zip code, map and more. And, please give me a call or email kay@cbbaker.com for complete details on the home buying process. I can also put you in contact with a reputable mortgage broker to get you prequalified today.

A short sale is when the bank is willing to accept less than the actual payoff on the loan. Why would a mortgage company do that? A foreclosure is a lose, lose situation for the mortgage company as they lose revenue, the mortgage insurance company loses premiums and pays a claim, the investor is not collecting principal or interest, there is potential damage to the property and lower property values have a negative effect on the real estate market. But, the homeowner has the most to lose with foreclosure on your credit record for up to 7 years which can be viewed negatively by lenders, employers, and insurance companies.

Short Sale is a Win Win

Therefore, a short sale can actually be a win, win for everyone. The mortgage company reduces their losses, the mortgage insurer minimizes claim payment, and additional damage to the property is avoided during a foreclosure. The real estate market does not experience as much negative stigma, therefore property values do not go lower. And, the homeowner can successfully sell their home and not have a foreclosure on record.

How is all this accomplished?

First of all, any homeowner who is experiencing difficulty in making the monthly payments should call a reputable Realtor experienced in negotiating short sales. There is an art to it, to say the least. The Realtor will discuss the current market value and the amount necessary to payoff your mortgage. The most important action should be to actively list the home on the market for sale. If the homeowner owes more than the current market value, the experienced Realtor will contact the lender’s loss mitigation department and assist the homeowner will all the documentation necessary to facilitate a short sale. One of the most important documents being the hardship letter, which can make or break the deal. Other documents would include 2 years tax returns, 2 months pay stubs, 2 months bank statements, and the most current mortgage statement.

One very important factor that most lenders do not tell you, is that the homeowner is liable for any deficiency in the short sale. But, a Realtor experienced in negotiating short sales can often times negotiate with the lender for the deficiency judgment and 1099 to be waived, reduced or ask for an interest free promissory note.

Lastly, to all homeowners it is never too late or too early. The most important asset you have is your home. Please give us a call to get your home on the market for sale and avoid foreclosure. And, you may know of someone in that situation, tell them to contact us immediately at kay@cbbaker.com.

For investors, a short sale can be a wonderful buying opportunity. We can provide you with a list of short sales and or foreclosures in Wilmington, NC. Just email me a kay@cbbaker.com.

Kay Baker, a life long Top Realtor in Wilmington, NC brings local knowledge and experience to her valued clients. With her decades of experience in the Wilmington, NC real estate market, she can greatly benefit her buyer clients in choosing the perfect Wilmington NC neighborhood, in the negotiation process, obtain the best financing, obtain a home inspection and negotiate the repairs, and assist with the final closing preparations. Her sellers can also reap the rewards of a successful and aggressive Realtor that is always eager to sell their home at a record pace and for the most money possible. Kay has a long track record of selling homes quickly and exposes her listings on over 100 websites.

Kay has earned numerous awards for her outstanding production over the years including the prestigious Coldwell Banker President’s Elite Club.

Kay Baker may be contacted at kay@cbbaker.com or www.cbbaker.com.

2)   Sell your present home first – Contingency offers are not at all appealing to most sellers. The seller has to typically wait until your house sells before he gets his money. Therefore, the seller is not willing to negotiate with you. So, either wait for your home to sell or get preapproved for a bridge loan in the event your home does not sell. Chances are pretty good that you may sell your present home before your closing on the new home.
3)    Hire a top notch buyer’s agent – You need a knowledgeable Realtor with local expertise in the market place. You Realtor will work on your behalf and negotiate the best price and terms for you. In addition, your expert Realtor will assist with the home inspection, appraisal, and closing details.
4)    Decide where you want to live – Remember the old saying “location, location, location, well it still remains high on the home buying list. You really need to study the neighborhoods , schools , proximity to work etc before making the final decision on your favorite neighborhood. Again, your buyer’s agent is a valuable asset in gathering information for you.
5)    Search for homes online. There are many websites now that potential home buyers can search all homes on the market by price, neighborhood , schools , zip code, and maps. If you do your own preliminary searching it will save you a lot of time. You can actually ride by the homes that you like and take a look at the neighborhood to see if that is really where you would like to live.
6)    Look at vacant and distressed Properties – Vacant properties often signal a motivated seller. The seller has probably moved out of town and often times is carrying two mortgages. Often properties that are in need of repair are overlooked because most buyers can not appreciate the potential. Maybe all it needs is a little paint and carpet. We call these properties a “diamond in the rough”.
7)   Foreclosures and short sales – Have your buyer’s agent research all the foreclosures and short sales in your price range and location desired. Again, these can sometimes be bargain priced. Typically, they are bank owned and these days banks are pretty motivated to get them off the books.
8)    Do your research -Ask your buyer’s agent for detailed information on the properties that you are interested in. You want to request a history on each property to see how long they have been on the market, price reductions, sold data, tax data, survey, and covenants and restrictions for the neighborhood. And be sure to get sold information for all properties in each neighborhood that you have interest in.
9)    Don’t make your first offer the best one – Leave yourself some negotiating room in the event the seller counters your offer, which is typically what takes place. Determine the maximum amount that you are willing to pay to calculate your first offer. Again, your Realtor can advise you.
10)    Meet the Sellers closing date – Many sellers have various personal reasons for a particular closing date and if you are willing to work with them, you may get a better price.

To search for homes by price, schools, neighborhoods, maps and more, just log on to my comprehensive website at www.cbbaker.com.