I've been working with foreclosure/short sale properties for 2-3 years now but I continue to go to educational opportunities that are available. I'm currently in a seminar to get updated information on the industry. Short sales are a changing landscape and it's important to keep current with the latest and greatest information.
The difficult part of working with short sales is convincing sellers who are struggling with making their payments, to talk to me as soon as possible, before they miss payments. A lot of time I'm able to get them out of their mortgage before they even miss a payment. They can get out of their home without damaging their credit at all.
Lenders sometimes give sellers inaccurate information, too. I've had sellers contact me who have intentionally missed their mortgage payment because their lender told them they wouldn't work with them unless they missed a payment. THIS IS NOT TRUE. I have completed short sales for sellers who never missed a payment but were originally told by their lender that they had to miss a payment before they would talk to them about a short sale.
If there's one thing I'd like sellers to do is...if they're struggling making their mortgage payments or know they're going to have trouble in the future...talk to your Realtor today about your options. If your Realtor isn't familiar with short sales have them call me. I'm happy to help them understand the options that sellers have so they can better help their clients. Giving sellers better tools to take control of their finances is what I love to do. And I love to help other agents in this process, too. It can be frustrating and confusing. Helping each other is a good thing!
Short Sale Education
0 comments • Chris Farkas • November 28 2008 02:48PMThe Right Time of the Year to Sell
Many people who wish to sell their home have to face the question of when is the right time of the year to do so. The truth is that there is no clear answer to this question because the answer depends on too many factors and all of them are of a subjective nature. People who are looking to buy a home do so based on many factors. Are they being relocated due to a job transfer? Have they been waiting for their home to sell? The only clear trend is that during spring and summer the number of homes sold is higher.
There are, however, other factors to consider. Do you want to sell in a busy market or a slow market? A busy market means there will be a lot more competition. If you feel that you home may not position well to stand heavy competition then it would be better to wait till the market slows down a bit. If, on the other hand, you position your home so that it is competitive in the market then time of year is less of a consideration.
While seasonal trends are important they not the most important thing. The most compelling factor in selling a home are your own needs. There has to be a reason why you are selling your home and there is probably a deadline by which you have to have done so. Focus on those rather than on the time of the year. Also pay attention to current market conditions. You may not be able to wait for early spring for the market to get busy, so do not damage your position by waiting for months.
Apart from current market conditions you should also understand where the market is going. This involves a bit of research to figure out future trends from past ones. Though you cannot accurately predict the future of the market you can get a reasonably close picture. Talk to your real estate agent. They have the expertise you need to help make a well-informed decision. If the market is beginning to slow down and turn into a buyer's market then obviously you are better off the sooner you sell your home. Waiting in a slowing market will only lower the market value of your home. If your home is in an area of rising property values, price your home to reflect the direction of the market. Again, talk to your real estate agent for advice and guidance.
There are many factors to consider when selling your home. The time of year is less important than making sure your home is priced correctly and marketed properly.
Remember that you only need one buyer!
Chris is a Realtor with EXIT Realty Associates
www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com
1 comment • Chris Farkas • November 27 2008 08:54PMFHA Adjusts 2009 Loan Limits: By Region
UPDATE: FHA Loan Limits* will be adjusted again as of January 1, 2009. We are about to lose our temporary 2008 Stimulus Package! Some counties get a raise so this is no doubt what the National News will report.As an example: FHA in Whatcom County where I live, the loan limit was raised in 2008 from $275,000 to $375,000 this year, which was a real help for many borrowers. Prior to the limit raise, we had a hard time funding a modest 3 bedroom home in the country! We are in a pretty stable property value area so this news is baffling.
The new FHA limit for a single family home in our area will be $304,750, down from $375,000 this year. Higher priced counties are getting an increase up to $506,000 (King, Snohomish and Pierce). I expect outrage from consumers once they hear other counties are being increased.
This will create a rush for FHA loans at today's low rates. I will certainly affect the FHA Secure Plan and Rescue Plan limits for borrowers already above these limits, as many are. Please get your loan requests in early. Underwriters are already reporting a backlog.
(and go easy on your Loan Officer...we are just the messengers) Loannetter
*max loan amount = sale price less down payment or total refinance loan
CHART BELOW shows the 2009 FHA lmits for our STATE: (I have highlighted our local area)
Washington State Counties
CBSA Number
State
One-Unit Limit
Two-Unit Limit
Three-Unit Limit
Four-Unit Limit
King County
42660
WA
$506,000
$647,750
$783,000
$973,100
Pierce County
42660
WA
$506,000
$647,750
$783,000
$973,100
Snohomish County
42660
WA
$506,000
$647,750
$783,000
$973,100
San Juan County
99999
WA
$483,000
$618,300
$747,400
$928,850
Clark County
38900
WA
$362,250
$463,750
$560,550
$696,650
Skamania County
38900
WA
$362,250
$463,750
$560,550
$696,650
Chelan County
48300
WA
$342,700
$438,700
$530,300
$659,050
Douglas County
48300
WA
$342,700
$438,700
$530,300
$659,050
Jefferson County
99999
WA
$322,000
$412,200
$498,250
$619,250
Island County
36020
WA
$316,250
$404,850
$489,350
$608,150
Kitsap County
14740
WA
$307,050
$393,050
$475,150
$590,500
Whatcom County
13380
WA
$304,750
$390,100
$471,550
$586,050
Clallam County
38820
WA
$296,700
$379,800
$459,100
$570,550
Skagit County
34580
WA
$295,550
$378,350
$457,350
$568,350
Thurston County
36500
WA
$293,250
$375,400
$453,750
$563,950
0 comments • Chris Farkas • November 27 2008 08:31PMI am Guilty of Fearmongering!
Talk about egg on my face!
Last week, I misread a news release from FHA and the OFHEO which arrived in my in-box the same day. Being the news hound that I am --I contacted several other Brokers and Loan Officers who all agreed this was stunning news. The implications of lowered loan limits in our area was serious. While FHA limits have been lowered in our area, I had confused this with the Conventional Fannie/Freddie limits for 2009.
Surprisingly, not one person corrected me. By my confusing myself first, I further took the incredible stupid initiative to publish this on Active Rain and email my Real Estate partners. YIKES!
According to my listing on the Active Rain Mortgage Blog, some 224 Active Rainers did read that blog, and five commented. I was just so sure of the information. In my defense, which is pretty thin, it seems that I had two charts open at once in my browser. Not to make excuses. Bad information is after all...BAD INFORMATION. To the folks I mislead --that chart I published was actually the FHA Loan limits. NOT Conventional. Naturally the raised limits in counties like King, Snohomish and Pierce (around Seattle) are great news for borrowers in those areas. I have corrected my blog to read "FHA 2009 Limits". I just sent out an apology and retraction to my local Realtor network. I just hope I haven't lost any respect among you.
I am particularly humbled by spreading wrong bad news and contributing to fear and panic! After all, it seems we get bad news in our world every day lately. That said, it is very hard to explain how downgrading our FHA limit is serving consumers. I asked one local retail banker about it (she didn't correct me either) and her reaction was: "Well it is probably a good thing to help force home prices down". I failed to see her point: maybe that idea would be good for consumers but certainly not for sellers and banks holding those higher priced loans. Buyers who don't qualify for FHA limits might be be forced to private investors...and there we go again. Certainly we will all be adjusting our sights with this in mind.
This lesson in humility for me demonstrates the cost of being a little too reactive. I am very relieved that I realized the mistake and have the opportunity to correct myself. Have others had this experience here? Either other mortgage professionals are very polite or no one else was affected by my misreporting.
A thousand apologies are in order. Thanks for your understanding. And here's to GOOD NEWS --wherever we find it!
1 comment • Chris Farkas • November 27 2008 08:31PM7943 E. Golf Course Drive Blaine, WA 98230
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0 comments • Chris Farkas • November 24 2008 04:55PM4755 S. Golf Course Drive Blaine, WA 98230
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0 comments • Chris Farkas • November 24 2008 04:51PMFive First Time Home Buyer Mistakes
Five First Time Home Buyer Mistakes
Buying a home for the first time is an exciting process. At the same time, it is one that is filled with many steps and details. Deciding which home and which mortgage are decisions that have lasting consequences. As you embark upon your home-buying excursion we suggest you keep in mind these common mistakes of first time homebuyers.
#1 Purchasing a home too fast. Perhaps it’s the excitement of buying your first home. Or maybe it’s a fear that the “perfect” home will be purchased by someone else. Whatever the reason, many first time homebuyers make the mistake of rushing through the home purchasing process. They tend to spend too little time searching for the right home. Often first time homebuyers end up dissatisfied with the home they’ve purchased. Keep your options open and continue to search for new homes that come on the market.
#2 Buying too much home. Another mistake made by first time homebuyers is purchasing a home that’s right at, or even a little beyond, their limits. Many times this leaves the new homeowner with little or no disposable income. What good is a large home if you are unable to furnish it? None at all! Purchasing a smaller home and leaving yourself some wiggle room is much better than eating up your monthly income with a large mortgage payment.
#3 Holding out for the dream home. First time homebuyers might pass up several houses they like because they believe that there is a better house out there for them – one that is complete with everything they want and need. In the meantime, houses that have most of the items they are looking for are being taken off the market by other buyers. If a significant period of time passes, market prices could go up and the first time homebuyer ends up paying more for a home than expected. Even worse, the buyer ends up so worn out from house shopping that he, or she, ends up settling.
#4 Not getting pre-approved for a mortgage. A pre-approval will do wonders for the first time homebuyer’s shopping experience. Being pre-approved for a mortgage lets you know what you can afford and what your payments will be. Some first time homebuyers, not realizing the importance of this, forgo pre-approval to get a head start on home shopping. What’s the worst that could happen? You could find a home you absolutely love and fail to obtain financing for it. Also, being pre-qualified is NOT the same as being pre-approved. We have seen many families not get their dream home because they were just pre-qualified.
#5 Not comparing mortgages. Shopping around for a mortgage is just as important as shopping around for the home. Many first time homebuyers do not realize that mortgages from different lenders have different costs and different terms. There are so many factors of that can vary from one lender to the next. It only makes sense to shop around for the best deal.
Be informed of the steps that you must take and the decisions you must make as a first time homebuyer. Information and education are the best tools to equip you during the process of purchasing your first home.
Chris Farkas is a Realtor with EXIT Realty Associates
www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com
0 comments • Chris Farkas • November 24 2008 01:26PM3442 McLeod Road Bellingham, WA 98225
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Best value around for a quality investment property in Bellingham! Large duplex features spacious 3 bed/2 bath and 3 bed/1.5 bath units, attached garages and private fenced low maintenance backyards with patios.
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0 comments • Chris Farkas • November 22 2008 08:44PMOpen House Basics
An open house can be beneficial for both the buyer and the seller. For the buyer, it is an opportunity to view the home casually to determine if it meets their needs and criteria. For sellers, it is an opportunity to reach a larger number of potential buyers in a shorter period of time. The following tips can help you and your real estate agent ensure that the open house is successful.
Take time before the open house to make sure the exterior of the home is appealing. Curb appeal, as it is known, sets the stage for the visit. Mow the grass, trim the bushes and sweep the front porch. You should also consider planting colorful flowers or placing potted plants near the homes entrance.
Inside, the first impression is the last impression, so keeping the house very neat and clean for the open house is extremely important. It may be a difficult task if you are residing in the house, but taking time to run the vacuum and the dishwasher makes a huge difference.
How does your home smell? Is the garlic from last night’s Italian dinner still lingering? Will the bleach you used to clean the bathroom overwhelm the buyer when they enter the room? The fact is, studies have shown that the senses, including smell, can heavily influence one’s opinion. Use scented candles or a small simmering pot of potpourri with cinnamon to create the effect of “home.” Baking cookies is another option. They smell and taste good!
Continue to set the stage. Hopefully, you took the time to stage your home prior to listing. Whether or not you did, be sure to evaluate how your furniture and furnishings are displayed. You want to appeal to the broadest range of buyers as possible. Ask your real estate agent for advice.
Give them space. Whether you or your agent are conducting the open house, give buyers the opportunity to view the home without hovering over them. When they first come in, ask them to sign the open house sheet and give them a flyer with the property details and information. Let them know you are available if they have questions and invite them to go through the home. Before they leave, ask if they have any questions and thank them for stopping by. Following up afterwards by phone will help solicit feedback and offers.
Open houses are one of many tools that you and your real estate agent can use as part of a comprehensive marketing plan. Take the time to prepare for these so that you can maximize the opportunity to showcase your home.
Chris Farkas is a Realtor for EXIT Realty Associates
www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com
0 comments • Chris Farkas • November 22 2008 02:15PM4105 Byron Avenue Bellingham, WA 98229
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0 comments • Chris Farkas • November 21 2008 01:29PMContent © 2009 'Frequent Contributors'. Design © 2009 ActiveRain Corp.
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