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Land Contract in Muskegon Now Available
Posted Under: Home Buying in Muskegon County | November 17, 2009 9:14 AM | 647 views | No commentsSELLER WILL FINANCE!
Like new ranch home in Twin Lake, just around the corner from Twin Lake County Park. This home was built in 1991, but has been completely updated over the last two years. Owner has installed a contemporary new kitchen with granite countertops and snack bar, high end stainless steel appliances, recessed lighting, track lighting, a shelved pantry, and ceramic tile floors. The dining room has ceramic tile and a patio door looking out on the spacious back yard. The living room area is done with exotic bamboo wood flooring. The master bedroom features his and her closets, and a shared master bath. Two more bedrooms complete the first floor. The lower level has also been finished, with a large rec room, a large bath with jacuzzi tub and lots of ceramic tile, and a fourth bedroom. This home sits on four lots, with lots of oak trees, and is at the end of a low traffic street. The back yard is fenced for privacy, has a huge deck with a hot tub built in, and a brick firepit. Motivated seller!
Just $139,900!
For more details visit:
http://www.cbgreatlakes.com/property/MI/49457/Twin_Lake/3110_Junior_Pl
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New Home Buyer Tax Credit on the Horizon
Posted Under: Home Buying in Hart | November 6, 2009 9:34 AM | 719 views | No comments
This is great news if you have been thinking about buying, or selling your home. Here are the highlights of the new legislation:
The Senate voted 98-0 on Wednesday and yesterday the House voted 403-12 on legislation that includes the extension and expansion of the home buyer's tax credit. The President is expected to sign the legislation, perhaps as early as today.
Current Credit:
The current credit is for home buyers who have not owned a home in the last three years. These buyers are eligible for a credit of 10% of the purchase price, up to $8000. Income limits $75,000 - Single, $150,000 - Married.
This credit expires Nov 30, 2009
New Version:
The existing credit for first time home buyers stays the same (up to $8000, haven't owned a home in the last three years.) The credit has been extended to April 30, 2010, and allows for a 60 day closing window if a binding contract is executed prior to April 30th.
The expansion is the biggest news of the legislation. Current homeowners looking to buy their next home are now eligible for a tax credit of up to $6500. To qualify, homeowners must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
Income limits have also been increased. The new limits are $125,000 - single and $225,000 - married.
The legislation limits the purchase price of the home to $800,000.
What does this all mean to you?
This means more people than ever will be eligible for the tax credit. What a great incentive to buy a home! If you're thinking about buying a home, you get money in your pocket. If you're thinking about selling your home, you will now have a flood of buyers out there looking to take advantage of the tax credit.
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The Good, The Bad, & The Ugly in Real Estate News
Posted Under: Market Conditions in Hart | October 23, 2009 11:27 AM | 669 views | No commentsI just took a look at my inbox, and saw my latest Weekly Real Estate News from Realtor (R) Online Magazine, and it prompted the title for this post. If you were expecting Clint Eastwood, sorry to disappoint. You can always make your way to the video store.
THE GOOD
Big Rebound in Existing-Home Sales
"Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®."
YAY! We all love hearing good news! Our office in Hart, MI has seen a dramatic upswing in activity this month.
Source: http://www.realtor.org/RMODaily.nsf/pages/News2009102301?OpenDocument
THE BAD
Some Housing Analysts Predict Declines in 2010
"A new housing price forecast predicts that home values will drop an average of 11.3 percent in 342 out of 381 markets by June 30, 2010."
Source: http://www.realtor.org/RMODaily.nsf/pages/News2009102003?OpenDocument
BOO! Not exactly a shocker, however. The real estate market here in Hart, MI has seen a decline in property values, like the rest of the country.
THE UGLY
IRS Investigates Home Tax Credit Claims
"The IRS has identified 167 of what it calls “criminal schemes” involving the credit. The IRS refused Monday to elaborate about the problem."
Source: http://www.realtor.org/RMODaily.nsf/pages/News2009102002?OpenDocument
EEK! Anything having to do with the IRS is ugly. Keep your nose clean on this one. If you have questions about whether or not you qualify, consult your accountant. Realtors are great sources of knowledge about real estate, but for tax info, hit up your CPA.
There's your summary of real estate news, courtesy of Tim White, your Realtor in Hart, MI. Hope you enjoyed it. Now stop whistling that damn tune, and get back to work.
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Creative Ways to Get Homes Sold
Posted Under: Market Conditions in Hart | October 23, 2009 8:56 AM | 718 views | No commentsIf you're like me, you're sick of hearing the phrase, "Think outside the box." I've been outside the box for so long now, I can't even see the dang box anymore!
I have had some success this year by utilizing some unorthodox means to get my real estate deals in Oceana County closed, however. The most prominent, by far, is not even original, just a resurgence of an old practice from the '80's. That's right, the infamous LAND CONTRACT.
I have two pending sales right now that I wouldn't have had I not been able to educate both buyer and seller as to the benefits of a land contract (or a purchase money mortgage, but that's a whole 'nother blog in and of itself).
In one of these deals, I represented the buyer, and the seller was not offering LC as one of the terms. My buyer had a three year old foreclosure, was working on repairing some credit divots, and financing wasn't looking likely. My home buyer needed a home, though, so I got flexible. I took the time to prepare a package that would excite the seller, and convince him to entertain a land contract. This is the step that I think a lot of people are missing.
The package contained a credit report, a letter of explanation regarding the failings of the credit report, income verification (including length of employment), proof of funds for the down payment, our offer, and our earnest money deposit. Working with the seller's agent, we presented the package, and the seller accepted our offer.
Now, I have had many calls from agents who will call on one of my listings and just ask, "Will the seller take a land contract?" In most cases, the answer would simply be, "No." (Unless, of course, the seller and I had already agreed to that in the original listing contract.)
I have taken to getting in the practice of asking the agent to prepare a package like I described above. I then present the whole package to the seller, and have been pleasantly surprised when a few of them changed their stance and accepted a land contract offer.I'm not suggesting that land contracts are the answer to everything. Obviously there are issues that come into play that must be addressed, such as "due-on-sale" clauses which are in most every mortgage agreement. The seller may also need the funds to move onto their next home. So no, LC's are not for every situation.
I do firmly believe, however, that if you're not educating your buyers and sellers on the possibilities of a land contracts and purchase money mortgages, you're missing out on business, and I don't know anyone in Michigan that can afford to do that these days.
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Scared of Losing Your Home? Five Things You Should Know
Posted Under: Foreclosure in Hart | October 12, 2009 7:04 PM | 782 views | No commentsIf you're in danger of losing your home, there are five things you really need to know. These five things are the five alternatives to foreclosure. I'll touch briefly on what they are, and some of what's required in each step below.
1. Reinstatement - This assumes that you are capable of coming up with the funds to get your loan current. Talk to your lender to find out what the amount is that you need to reinstate your loan to satisfactory status.
2. Loan Modification - If you can prove financial hardship, your lender may be able to alter the terms of your mortgage. This is most applicable to adjustable rate mortgages (pay stubs) that have inflated your monthly payment. It may also apply if the interest rate you are paying is higher than the current market right. Contact your lender, and submit a written hardship letter explaining your circumstances. The lender will likely require income and asset verification as well, in the form of pay stubs, bank statements, and tax returns.
3. Forbearance - In this case, your lender agrees to split up your past due amount into installments in addition to your monthly payments. The past due payments are deferred, and you gradually catch up the past due amount. Lenders will typically only do this over a six month time frame. If you cannot handle the additional payment, this won't help you, so be practical when agreeing to the amount. If you can't make the payments, don't bother trying this route.
4. Deed in Lieu of Foreclosure - This is where you surrender the property instead of waiting to be foreclosed upon. It saves the lender the expense of foreclosing on you. This option is, in my opinion, the least favorable option. The downfall to this option is that you will likely be held responsible for any balance owing on the mortgage after the home is auctioned.
5. Short Sale - A short sale is the sale of a home for less than what is owed on the mortgage. The lender has the option whether or not to accept this option, but most are in favor of it, since it is a better alternative for them than a foreclosure. Sometimes, but not always, you can negotiate with the lender to forgive the remaining balance owed on the mortgage after the short sale. A short sale is a viable alternative for you, and has less long term negative consequences on your credit than a foreclosure. You are allowed, even encouraged, to live in the home while the home is being offered for sale. You must prove hardship, as described in step 2 (Loan Modification). Lenders also require that the home be listed by a Realtor.
This is a brief summary of the five options you have available, and is provided as a general overview. This is also not an attempt to provide legal advice. If you have questions about your full legal rights, please consult an attorney.
If you have questions about any of the above steps, or if you just want to talk about your options, feel free to give me a call. I'm happy to help you in any way I can. Hopefully knowing that you have some options gives you some peace of mind. -
Am I Too Busy to Stay Busy?
Posted Under: Quality of Life in Hart | September 29, 2009 6:41 AM | 732 views | No commentsIf there's one recurrent quote I hear from people on a daily basis, it's, "I'm too busy."
Whether we're discussing writing a blog, keeping up with listing information, or attending meetings or seminars, none of us seem to have enough time in the day to get done what we need to accomplish. This is on the forefront of my mind, because I caught myself doing just that.
I was invited to attend a Rotary Meeting a couple of weeks ago. I've been wanting to get involved in more organizations, and the Rotary in our town has some pretty top notch people in it. Not only is it a great way to give back to the community through volunteer work, but it's a great way to network and develop business relationships. I had a ridiculously busy day that day, but something clicked in my brain and said, "Make it happen."
I was able to shuffle a few appointments around, and attended the meeting. It was informative, and I was so glad I did it. The next day, I made a point to attend a Business Afterhours get together, and met more new people from the area. On the way home, I realized that this is what I was missing in my business plan.
I get so caught up in the day to day stuff, putting out fires, that I sometimes lose sight of the long distance view. Many people, including myself, refer to this business as "Feast or Famine." I'm beginning to come to the conclusion that much of that feast or famine is caused by our own actions. When things are slow, I automatically go back to the basic habits of generating business. I do more mailers, I blog more (like now), and I brainstorm new ways to get business. What would happen if I scheduled my time in a more efficient way, and made a routine habit of doing these things?
Stick with me for a few months, and we'll find out. I'm putting this new plan into action today, and am making it a priority to do at least one thing each day to continue generating business. Actually, I started yesterday, by mailing out several post cards to expired listings. I firmly believe that through proactive actions, I'll be able to mitigate some of the "famine" time, and enjoy more of the feasting. -
Time to Switch Uniforms for a Bit
Posted Under: Quality of Life in Hart | August 5, 2009 12:51 PM | 757 views | No commentsStarting this Friday, Aug 7th, I will be back in my Marine Corps Cammies, leaving the shirt and tie behind for a couple of weeks. I'll be heading out to the sunny desert of California for a couple weeks of training with my Marine Reserve Company.
With homes sales on the rise for the fifth straight month in a row, this is a tough time to break away from the West Michigan market. Sales in our office are up, and we are busier than ever. Fortunately, our office works as a team exceptionally well, and I can go serve my country knowing that my fellow agents will help manage things while I am gone.
I want to take this opportunity to thank those who help me do what I do. Janet, Sue, Brie, and all the other agents have made my first few months at Coldwell Banker Woodland Schmidt enjoyable and successful. I'll be back in a couple weeks, ready, willing and able to jump back in the saddle.
Semper Fidelis