Category Archives: Sellers

Tips for selling your home, staging, marketing, and escrow process.

New Rules for Buying after a Short Sale- August 16, 2014 deadline!

Starting August 16 2014, if you short sold you home over 2 years ago and saved for a 20% down payment you would now have to wait 4 years instead of 2!

You can still get it done now if you act fast! If your application date and underwriting is done prior to August 16th 2014, the loan may still close after August 16th, 2014 , as long as 2 years has passed and the loan either receives an Approve/Eligible or the loan qualifies for manual underwriting guidelines.  Not Short Sale Repurchase changes after August 16 2014all lenders can do this. Call us for a lender that can get this done for you now while you still have a chance.

Please note, Fannie Mae does approve extenuating circumstances for a 2 year repurchase. Call now to see if you still qualify for a 2 year purchase after a short sale.

If you are planning on doing a short sale in the near future and have a real hardship, keep records of your hardship, so when you plan to buy again, you can demonstrate your hardship for a 2 year repurchase.

Current Guidelines for Eligibility after a short sale for FHA is 3 years, VA is 2 years, and USDA is 3 years.

Call the Kathy Dyer Monterey Peninsula Short Sale Specialist to help you find your home now.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Life after a Short Sale

Buying after a short saleThere is a life after a short sale.  Even though it is a horrendous decision to default on your home,  there is hope for a brighter tomorrow once the smoke clears.

Being a Realtor who Specializes in Short Sales in the Monterey Peninsula Ca area, I have successfully closed many short sales for my clients within the past years. Excitedly,  I am starting to see many of my former clients  return back into the market as new buyers!   Even though it is rewarding to help someone stay out of foreclosure,  I get a tremendous amount of  satisfaction helping these clients celebrate as they dig their way back and  move into their new homes!

I wanted to share this incredible story about one of our very happy clients.

Our client bought their home at the peak of the 2006 housing boom. They paid $693,000 for their home in a nice neighborhood. Hard times fell upon them after a job change. They found themselves no longer able to afford their loan after the interest rate reset 5 years later. They were forced to short sell it in 2011.  Now 2 years later, they have saved enough money to do a conventional loan with 20% down.

We just closed on their new home!  The good news is that they were able to buy their new home with the same floor plan,  plus it had $30,000 worth of upgrades and a pool.  This home  sold only for $454,000!  Their mortgage payment in 2011 was $4,200 and now it is $2,296. We were happy to help them out of their nightmare.  They were not able to keep paying on their old home, and their savings were dwindling down to nothing and a forclosure was heading their way! So after so much stress, a short sale was the best decision for them. I negotiated with the bank on the short sale and the bank accepted the amount  on the offer as full payment. There were no deficiencies owed to the bank.  The bank forgave them for the difference of what they received and what was owed on the mortgage.  With the new loan, they will only pay $276,047  interest over the 30 years life of the loan as compared to $675,000 in interest  they had with the home that they short sold.

Life after a short saleI was very elated to see a happy ending to their story. I often cry along with my clients when they lose their home and have to short sale. I remind them that this time will pass fast and they should  look forward to re-entering the market in better shape.  And at that time, we all celebrate as they open the door to their new home!

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

$5000 Moving Assistance with Ca. Short Sales

Cash for Short Sales

Up to $5,000 plus more for Transition Assistance for Short Sales

Distressed California Homeowners May Qualify for California’s Keep Your Home California Transition Assistance Program (TAP)

If you know someone who can no longer afford their home and they are pursuing a short sale or a deed in lieu of foreclosure, they may be eligible for financial help with their moving expenses.

The money comes from the Transition Assistance Program (TAP), part of the Keep Your Home California Program.

5,000 in transition assistance is being provided by The state of California to qualified homeowners who can no longer afford to stay in their homes.

  •  Apply for the funds through their state’s website or by calling 1.888.954.5337.
  • Continue to maintain your property until your house has sold or a negotiated deed in lieu of foreclosure.

For qualifie$5000 Moving incentive for Short Sales TAP Programd homeowners, these state funds may be used in addition to any other transition assistance that the homeowner may receive by participating in the Federal Home Affordable Foreclosure Alternatives (HAFA) program or in any other pre-offer short sale program.

To learn more about the Transition Assistance Program’s guidelines, and how you may qualify, visit the program’s website at http://keepyourhomecalifornia.org

You can call: 888-954-5337 for more information.

Once you know that you qualify for TAP, make sure you call a Realtor who is a Short Sale Specialist. They will know if you qualify for any more programs your lender may approve. Don’t waste time and call now or before the TAP money is paid out.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Making Home Afforable Program for Struggling Home Owners

Making Home Affordable Program for Struggling Home Owners

Making home more affordable

Act now to get the help you need through the Making Home Affordable
Program
. This part of the President’s Homeowner Affordability and Stability Plan was created to help millions of homeowners refinance or modify their mortgages to a payment that is affordable, both now and in the future.

If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable.

Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments, may be eligible.

Am I eligible for a Home Affordable Modification?

Answer these questions:

  1. Is your home your primary residence?
  2. Is the amount you owe on your first mortgage equal to or less than $729,750?
  3. Are you having trouble paying your mortgage?

For example, have you had a significant increase in your  mortgage payment or reduction in your income since you got your current loan or have you suffered a hardship that has increased your expenses (like medical bills)?

  1. Did you get your current mortgage before January 1, 2009?
  2. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?

If you have answered yes to all of these questions, you may qualify for a loan modification program.  Only the servicer of your loan can tell you if you qualify. To qualify, you will generally need to show that you have adequate income to make the reduced payments on an ongoing basis and that modification is an appropriate option given the characteristics of your mortgage and the value of your home.

The next step is to gather the information you will need when you speak to a housing counselor or the servicer of your mortgage.  The number should be on your statement.

This includes:

Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.

Checklist:

  1. Your most recent income tax return.
  2. Information about your savings and other assets
  3. Information about your first mortgage, such as your monthly mortgage statement.
  4. Information about any second mortgage or home equity line of credit on the house.
  5.  Account balances and minimum monthly payments due on all of your credit cards.
  6. Account balances and monthly payments on all your other debts such as student loans and car loans.
  7. A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

If you are struggling with making your mortgage payment, seek the advice from your mortgage servicer to see if your qualify for any government loan modification programs. If not, seek out an experienced Realtor who specializes in short sales.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

 

Home Selling Tips During the Holidays

Tips for preparing your home for sale during the Holidays and cold weather:

 Tips for selling during the HolidaysAlthough the traditional home-selling season has come to a close, homeowners still may be able to sell by making some minor adjustments that emphasize the home’s attributes. 

 ·      Homeowners in areas with extremely cold weather should take additional precautions when preparing their home for sale during the winter months.  Cleaning out gutters can help prevent icicles from forming and weather stripping windows will help to diminish drafts.  If the house will be vacant, it’s important that homeowners turn off and drain outside spigots so pipes do not freeze and burst.

 

·      Although holiday lights and decorations can look festive, some home buyers may be discouraged if they do not hold the same beliefs as the seller.  If the home is occupied, lighting a fire in the fireplace may be a better option for providing a comforting feeling.

 

·      Energy efficiency is top of mind with many of today’s home buyers.  Providing a list of energy saving alterations, such as wrapping pipes with foam sleeves and replacing windows and appliances, can help draw more buyers.  Providing a copy of recent utility bills also may be helpful.  It’s recommended that personal information, such as account numbers, be blacked out to guard against identity theft.

 

·      Although the winter months mean spending more time indoors, sellers can showcase a beautiful garden or other outdoor draw by displaying photographs taken during the spring and/or summer.  This can help illustrate to buyers the home’s other valuable attributes.

 

To read the full story, please click here:

 

http://online.wsj.com/article/SB123005162931830375.html

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Short Sale Specialist

 

How to Price a Home to Sell in this Market

 How to price and sell and still make a profit in this Real Estate Market

The asking price you set for your home significantly affects whether how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table.

 

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a list price that will encourage buyer activity.

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

 

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

 

Short Sale Specialist

 

10 Questions to Ask your Realtor

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10 Questions to Ask Your Realtor about Selling a House

  1. Are you a full-time professional real estate agent?  How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have? What are their Real Estate Services?  Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
  2. Do you have a personal assistant, team or staff to handle different parts of the purchase?   What are their names and how will each of them help me in my transaction? How do I communicate with them?It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.
    You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?
  3. Do you have a Website that will list my home?   Can I have your URL address? Who responds to emails and how quickly? What’s your email address?Many buyers prefer to search online for homes because it’s available 24 hours a day and can be done at home. So you want to make sure your home is listed online, either on the agent’s Website or on their company’s site. By searching your agent’s Website you will get a clear picture of how much information is available online.
  4. How will you keep in contact with me during the selling process, and how often?Some agents may email, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent’s systems.
  5. What do you do that other agents don’t that ensures I’m getting top dollar for my home?  What is your average market time versus other agents’ average market time? What are their marketing strategies?Marketing skills are learned, and sometimes a real estate professional’s unique method of research and delivery make the difference between whether or not a home sells quickly.
  6. Will you give me names of past clients?Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
  7. Do you have a performance guarantee?   If I am not satisfied with your performance, can I terminate our listing agreement?In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards. Typically, he or she will verbally outline what you can expect from their performance. Keller Williams® Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.
  8. List price: Do not get fooled by choosing the agent that suggests the highest list price or discounts their services fess. You get what you pay for when hiring an agent, one that will get the job done for you in the fastest amount of time.  Hire an agent that will be honest with you on pricing- you want one that is up front and open with you and will give you the truth about what the pricing model needs to be.
  9. How would you develop pricing strategies for our home?Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential. Ask your agent how they created the market analysis, and whether your agent included, foreclosed homes and bank-owned sales in that list.
  10. What will you do to sell my home?Who determines where and when my home is marketed/ promoted?  Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, open houses).  We are finding that multiple open houses are not a great way for you agent to spend their time. An initial open house is a good way to get the local agents and neighbors into your home once it is listed.  We are finding that in our area- most people tend to attend bank foreclosure open houses more.

    Kathy Dyer Realtor CABRE #01723710

    kdyer@KW.com  831-717-7047

    KW Coastal Estates

    Carmel Ca. 93923

    Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

7.5 million homeowners “underwater” Ask your lender for assistance now

Ask lender for mortage assistance and latest programs to get help

Home Owners are Underwater!

According to some estimates as many as 12 million borrowers may have negative equity in their home, meaning that they owe more on their mortgage loans than their homes are currently worth. However, according to statistics gathered by C.A.R. over the last 40 years, homeowners who purchase a house and keep it for at least five years have an average annual rate of return of nearly 12 percent.

Although California’s inventory of homes with high negative equity is higher compared with other states, lower home prices have increased affordability, making it easier for first-time home buyers to enter the market and others buyers to move up to larger houses or more desirable neighborhoods.

Borrowers who are facing foreclosure should work with their lender and apply for a loan modification program. Many financial institutions are offering homeowners the opportunity to rewrite an adjustable-rate mortgage into one that is fixed for 30 years. Some banks also are offering existing customers zero interest for a short period of time and lowering the principle balance on the loan to make payments more affordable. Call you lender to see if they will work with you. If you can not afford your mortgage anymore, contact your local short sale specialist who may be able to help you avoid foreclosure.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

What to do if you cant Afford your Mortgage Payment

What to do if your can’t afford your mortgage payment?

The majority of the mortgage modification programs from the larger lenders only are available to homeowners who either already are in default or are at risk of defaulting on What are my options if I cant get a loan modification?their primary residences. However, some homeowners, in particular those who may default on a vacation home or an investment property, have some options available.

Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship. To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA or the non-profit organization National Foundation for Credit Counseling at http://www.nfcc.org/.

Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.

If a mortgage modification is not possible, homeowners may want to consider a short sale — sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to avoid foreclosure and often causes less damage to the homeowner’s credit score than a foreclosure, the lender must agree to accept the loss and in most cases the homeowner may not have to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short sales being submitted by homeowners, so it could take longer than usual to receive a short-sale acceptance from the lender. The home owner can stay in their home while the approval takes place. Sometimes home owners may qualify for moving assistance from 3,000 – 5,000.

If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Home owners may qualify for Cash for Keys programs as well. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.

Call an experienced Short Sale Realtor who is not only certified but has good results closing short sales.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Selling your Home? Tips to Compete with Bank Foreclosures

Short Sale Moving Assistance
What! You want to sell your Home Now?  How to Compete with Bank Foreclosures- 
 
Right now, with so much inventory, pricing is your #1 marketing tool. 
Your main competition is:

1.  REO (bank owned, foreclosures): We are seeing bank owned home prices sink lower and lower which is driving the wave of home prices downward.  Good news though- inventory levels are lower now and starting to level out. The inventory absorption rate in this market is improving and hovering at 4.7 months and down from 12 months this time last year. People are attracted to REO listings because they think they are getting a bargain.  The problem is, most times they are not.  When your list price is low and you are in competition with distressed properties, even though yours is not, you will generate more interest. Most buyers will have to go through less red tape to get an accepted offer plus not worry about what is wrong with the property. There are fewer disclosures when you buy a bank foreclosure and you may not know the history of the house when you buy it from the bank.

2.  New Construction:  New construction set the trend with prices. There are lots of new home construction just sitting there on the market, in some cases for good pricing. Some builder‘s are giving away upgrades. Make sure you price your home competitively with the new home market and adjust for age and upgrades.

 

3.  Short salesShort sales are when people are selling for less than what they owe and they (hope) the bank will forgive part of their debt when the home closes.  There is an huge abundance of these listings as competition but fortunately for you, as a seller or potential seller, these deals that a long time to close and get approved. 

Pricing will not be the only factor to entice a quick offer.  Here are some more suggestions:

  • Stage your home to make it stand out from the competition. Why do new home builders send over 100,000 to stage their homes? Because staging sells more homes. People can’t imagine what the home will look like with their furniture in your home, so staging it that appeals to the masses is smart marketing. Hiring a Professional Stager will know what works and what doesn’t.
  • Make your home easy to show. Do you have pets to worry about? Often times, pets can make it hard for you to show your home. Talk to your Realtor about ways to keep you pet safe and still show your home without a lot of notice.
  • Make sure the agent has a good marketing plan to get your home the most exposure:  Multiple offers are not UNHEARD of right now with homes that are priced right.
  • Offer incentives to attract buyers. Offer lender allowed closing costs or other incentives.
  • Keep it clean.  If you are competing with new homes, wouldn’t it make sense to keep it “model perfect” at all times?

Click on Price Your Home To Sell

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Short Sale Specialist