Archive for the ‘Short Sales and your Home’ Category

Buying or Selling Brooklyn Short Sales Can Be Tricky

Sunday, June 24th, 2012

Call Charles for help with your Brooklyn Short Sale

Whether you own a property in distress or you’re looking to make a good investment. Buying or selling Brooklyn short sales can be tricky ,and a frustrating process. The best-case scenario is that sellers reduce their debt and buyers get a great deal, but that outcome is ultimately up to the bank.

Below are some standard short sale trials that both sellers and buyers should be aware of before getting their hopes up:

Sellers need to prove hardship. As a seller, you should talk with your bank and then gather all of the documents they require to put together a hardship portfolio to apply for a short sale. These usually include tax returns, employment status and other personal and financial information. Be quick about it, because the bank has the final say, and you don’t want to leave them hanging.

  • Everyone needs to get used to the waiting game. This is probably the most frustrating part, so don’t plan your life around a bank’s approval. They could take anywhere from a couple days to a couple years to make a decision.
  • Banks are waiting on banks. Not only are you waiting on the bank that has the mortgage, but there could also be other liens taken out against the short sale. Those third parties also have to sign off on the debt.
  • Buyers should get a thorough home inspection. If you’re considering buying a short sale property, make sure you hire a professional home inspector.
  • The home could go into foreclosure. Sometimes [city] short sales take so long that the owners cannot keep paying their mortgage and the home goes into foreclosure. Then the bank takes it over and starts a new waiting game.

If you’re considering buying or selling short sales, you’ll want to enlist professional help to navigate the tricky waters. As an expert on Brooklyn short sales, I can help. Please call me  Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at charles@brooklynrealestatesales.com. for more information.

 

Tips for Successful Brooklyn Short Sales

Thursday, February 2nd, 2012

Short Sale  And Your Brooklyn Home

The reality of today’s real estate market means that there are many opportunities to purchase Brooklyn short sales.  While the process can still be confusing, it is increasingly common. Here are a few tips on how to make sure you leap through the extra hoops a short sale requires with ease and grace:

  • Avoid short sales with multiple mortgage lenders: Offers on Brooklyn short sales with two different lenders are at a much higher risk of being declined. The first mortgage lender will likely only allow a small percentage to go to the holder of the second mortgage – who will therefore be likely to veto a deal, on the hope that more funds would be generated in a foreclosure.
  • Check the Real Estate Agent’s Short Sale Track Record: Agents with experience in short sales are much more likely to be able to successfully navigate the system than those new to the vagaries of short sales.
  • Make Reasonable Offers: Short sales can be better deals, but they are unlikely to be magically cheap.  No matter what, the bank isn’t going to give the home away just to avoid foreclosure.  You want to put together an offer that makes the buyer and the bank happy.
  • Follow Up on the Details: With the bank involvement, there will be more negotiation and more detail.  Keep your i’s dotted and t’s crossed to make sure the process doesn’t stall.
  • Allow For Extra Time: Short sales are not a short process, so if you are truly in a hurry to close a deal, consider other options.

If you’re looking for a real estate agent with experience in Brooklyn short sales, give me a call.  I can help you navigate the system and close on your new home. You can reach me at call Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at charles@brooklynrealestatesales.com

Top Ten Reasons to Invest in Brooklyn Short Sales

Sunday, November 27th, 2011

Reasonsons to invest in short sales

Now is a fabulous time to take advantage of today’s real estate market and boost your investment portfolio with Brooklyn short sales. Here are the top ten reasons why investing in short sales might be beneficial for you:

Short sales benefit buyers, sellers and investors. You get to help a lender and homeowner out of a tough financial situation.

  1. You can make a nice profit because Brooklyn short sales are priced at or below market.
  2. Banks are closing them faster than ever before and, from start to finish, it’s not as painful as it used to be.
  3. There is a huge inventory of short sales from which to choose.
  4. The competition is low because there aren’t enough investors to gobble them all up.
  5. It doesn’t take a ton of time. You’ll spend even less time when you work with a real estate agent who specializes in short sales.
  6. Short sales are generally in better condition than foreclosures.
  7. You can work with luxury home short sales. Luxury short sales require the same amount of time and work as short sales on less expensive homes, but the profit margins are much higher.
  8. In some cases, the banks will pay closing costs and Home Owner Association transfer fees.

10.  You can work real estate short sales in all markets: urban, suburban and rural areas.

If you’d like more information on investing in Brooklyn short sales, give me a call today at (718) 253-9600 ext 206 or email me at charles@fillmoresbest.com

FHFA Announces Expansion of Program for Underwater Homeowners

Monday, October 24th, 2011
by Jann Swanson
FHFA Announces Expansion of Program for Underwater Homeowners
Oct 24 2011, 11:25AM

In advance of a speech in Nevada later today in which President Obama is expected to expand on the initiative, the Federal Housing Finance Agency (FHFA) has announced major changes to the Home Affordable Refinance Program (HARP).  FHFA unveiled what is essentially a widening of HARP to reach more borrowers in another effort to reverse the continuing flood of delinquent mortgages heading down the pipeline to foreclosure.

HARP is unique among programs designed to assist distressed borrowers in that it is intended to help those who are current on their mortgages but underwater, that is who owe more on their mortgages than the current market value of their homes.  Several studies have identified these borrowers as being likely to strategically default on or walk away from their mortgages.   Although Fannie Mae and Freddie Mac, the two government sponsored enterprises (GSEs) which are under FHFA conservatorship, have assisted about 9 million homeowners to refinance into lower-cost mortgages over the last few years, only about 10 percent of those were aided through HARP.  HARP, like the other major government foreclosure prevention initiative HAMP, the Home Affordable Modification Program, has been impeded by a lack of enthusiasm among lenders and servicers integral to the programs’ success.  In the case of HARP, the lenders objected to the possibility they might have to buy back delinquent loans if they weren’t scrupulously underwritten.  They thus tended to cherry pick the best loans which in turn limited borrowers from refinancing with other than their current lenders.

The current HARP limits the loan-to-value (LTV) ratio for a new loan to 125 percent (the program originally had a limit of 105 percent).  This effectively eliminates the most underwater homeowners and even leaves whole states, such as Nevada where large percentages of homeowners have negative equity above that amount, out of the program.

While regulations and guidance for the plan won’t be finalized for several weeks, relevant changes to HARP that were announced today include:

  • Removing the current 125 percent loan-to-value ceiling on refinanced mortgages;
  • Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others;
  • Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs;
  • Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines.
  • Extending availability of the program through the end of 2013.

FHFA said the changes to HARP were made with input from lenders, mortgage insurers, and other industry participants.  According to The Wall Street Journal, among the concessions made by the industry are agreements from private mortgage insurers to facilitate the transfer of existing mortgage insurance coverage and from most of the major lenders to ease the process of subordinating existing second mortgages to the new loans.

The changes in the program may double the number of borrowers using HARP according to some estimates, but still will serve only those borrowers who are current in their loans and who have loans owned or guaranteed by one of the GSE’s that were delivered to Fannie or Freddie prior to July 2009.  Thus it will impact only a small percentage of distressed borrowers in the country.

“We know that there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach,” said FHFA Acting Director Edward J. DeMarco. “Building on the industry’s experience with HARP over the last two years, we have identified several changes that will make the program accessible to more borrowers with mortgages owned or guaranteed by the Enterprises. Our goal in pursuing these changes is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets.”

Charles E. “Ed” Haldeman, Jr., Chief Executive Officer of Freddie Mac released the following statement on the program.  “This new phase of the Home Affordable Refinance Program (HARP) will help reach more borrowers with negative equity so they can refinance into new Freddie Mac mortgages at today’s historically low-rates. These changes mark another step on the road to recovery for the nation’s housing market and underscore Freddie Mac’s vital role in making affordable mortgage financing available to America’s homeowners and future homebuyers.”

3 Tips to Get Short Sale Offers on Your Brooklyn Home Accepted by Your Lender

Wednesday, October 12th, 2011


When a buyer makes a short sale offer on your Brooklyn home, it’s impossible to know for sure if the offer will be accepted by the lender.  Even when you’ve negotiated the offer with the buyer and come to an agreement that meets both of your needs, there’s still no guarantee that the lender will say yes to the short sale.

Here are three tips to help get short sale offers on your Brooklyn home accepted by the lender:

  1. Convince the lender that you have a legitimate hardship. Submit a hardship letter, pay stubs, bank statements, monthly budget and profit and loss statement to demonstrate that you cannot make your monthly payments and have no disposable income. Here are examples of hardships to mention in your letter:
    1. lost your job
    2. reduced hours/pay at current job
    3. have to move more than 75 miles from home to get a new job
    4. death of a borrower
    5. divorce
    6. onset of a disabling illness
  1. Negotiate with the buyer to exclude terms and contingencies that complicate the sale. Lenders do not like to accept short sales when they include time contingencies or when the short sale is contingent on the sale of another home.

  1. Submit paperwork as a complete package. Ask your lender for a list of all documents needed. Fill out the paperwork and collect all other documents required. Make copies of everything. Put together a complete package, including all the documents your lender requested, and only then send the entire package to your lender. If the lender later tells you they can’t find a particular document, don’t waste your time arguing about it, just resend the information – it’s easy to do because you already have copies prepared!

If you’d like more information on the possibility of selling your Brooklyn home as a short sale, give me a call today Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate at 718/253-9600 ext 206 or email me at charles@brooklynrealestatesales.com,

Brooklyn Real Estate Investing:Buying a Short Sale Steps 6 through 10

Monday, July 11th, 2011
Brooklyn Real Estate and Short Sales

Brooklyn Real Estate and Short Sales

If you haven’t read “Brooklyn Real Estate Investing:  Buying a Short Sale Steps 1 through 5,” start there.  This blog post provides steps 5 through 9 of the short sale process.

  1. 6. Visit the Brooklyn real estate on your short list.  You’ve already searched for short sales, researched them and narrowed your list to a few short sales that meet your criteria and have the best chance of making it to closing.  Now it’s time to personally visit the few on your short list.  Your primary purpose in visiting the property is to get an estimate as to how much it’s going to cost you to repair the home.  As a real estate investor, you want a property that needs some work so that the average home buyer won’t want it, and you can get it at a lower-than-average price.   But, you also want a property that is in good enough condition that the cost of the property plus repairs still gives you a good return on your investment.
  2. 7. Get a home inspection. Since short sales are typically sold “as is,” it’s crucial that you have a licensed home inspector evaluate the condition of the short sale that you’ve decided is the one you want to buy.  An inspection will find problems you might not have been able to see in your initial visit to the home.  It will also give you a more precise idea of how much it’s going to cost you to repair and renovate the property.
  3. 8. Make an offer. Now that you’ve found the short sale you want to buy, you’re ready to prepare an offer.  Have your Brooklyn real estate agent prepare all the documentation and submit the offer to the seller’s agent.  The seller’s agent will submit the documentation to the lender.  Hopefully, you’ve chosen a short sale with only one lender, but if there is more than one lender, remember that all lenders have to agree on the terms of the sale.
  4. 9. Make a counter offer or walk away.  After getting your offer, the lender has his real estate agent evaluate the offer.  More than likely the lender will make a counteroffer.  That’s the time for you to do a final evaluation.  Double check your numbers using the higher purchase price and ask yourself, “Is this property really going to give me the profit I want?”  If the answer to this question is no, or if you’ve already reached the maximum you’re willing to pay for the property, it’s time to walk away.

10. Finalize the deal.  After you, the seller and the lender have all reached an agreement, get everything in writing and officially record it.  Go to closing, and the property is now yours.  Congratulations!

If you’re a Brooklyn real estate investor looking for a well-priced property to invest in, I can help you find the true bargains, whether they’re short sales, foreclosures or just well-priced real estate.   Give me a call Charles D’Alessandro Your Brooklyn Realtor® with Fillmore Real Estate at 718/253-9600 ext 206 or email me at charles@brooklynrealestatesales.com.

Brooklyn Real Estate Deals of The Week

Wednesday, July 6th, 2011

Nestled in Brooklyn's Stuyvesant Heights Neighborhood!

This property boasts a very large backyard, at over 1000 square feet the possibilities are endless, also a rare feature in any brownstone is a full finished basement! Only a few blocks from the A or C train, enjoy all that this bustling area of Brooklyn has to offer. The history, architecture, culture, affordability and convenience is what makes Stuyvesant Heights such a sought after neighborhood. Another of Fillmore Real Estate’s Best Deals call today to compare! Click here for details

Beautiful Brooklyn Brownstone on a tree lined block

Beautiful Brownstone on a tree lined block. 8 bedrooms in two duplex apartments. Great investment opportunity . Priced to sell. short sale eligible, Bank has negotiated with listing agent. Close to transportation, and houses of worship. Check here for details

Spacious Brooklyn Home on Oversized Property

Brick,Detached Brooklyn Home!

Beautiful Brick Multi -Family with  three split level apartments private drive

and super sized property come see and compare! Click here for more

Whether you have questions about the above Brooklyn New York  home for sale, or looking for something else I can help.  Please give Charles D’Alessandro Your Brooklyn Realtor® with Fillmore Real Estate a call today at 718/253-9600 ext 206 or email me at charles@brooklynrealestatesales.com.  I’ll give you a free home price  analysis to determine how much your home is worth in today’s market.

100 Answers to Questions When Buying A Brooklyn Home !

Thursday, June 2nd, 2011

Charles D'Alessandro Your Brooklyn Realtor®

91. HOW CAN I RECEIVE A DISCOUNT ON THE FHA INITIAL MORTGAGE INSURANCE PREMIUM?

Ask your Brooklyn real estate agent or lender for information on the HELP program from the FHA. HELP – Homebuyer Education Learning Program – is structured to help people like you begin the homebuying process. It covers such topics as budgeting, finding a home, getting a loan, and home maintenance. In most cases, completion of this program may entitle you to a reduction in the initial FHA mortgage insurance premium from 2.25% to 1.75% of the purchase price of your new home.

92. WHAT IS PMI?

PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI’s usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit.

FHA PRODUCTS

93. WHAT IS A 203(b) LOAN?

This is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines, limited lender’s fees, and a maximum loan amount.

94. WHAT IS A 203(k) LOAN?

This is a loan that enables the homebuyer to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller’s existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. Basic guidelines for 203(k) loans are as follows:

 - The home must be at least one year old.
 - The cost of rehabilitation must be at least $5,000, but the total property value – including the cost of repairs – must fall within the FHA maximum mortgage limit.
 - The 203(k) loan must follow many of the 203(b) eligibility requirements.
 - Talk to your lender about specific improvement, energy efficiency, and structural guidelines.

95. WHAT IS AN ENERGY EFFICIENT MORTGAGE (EEM)?

The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. This is done by financing the cost of adding energy-efficiency features to a new or existing home as part of an FHA-insured home purchase. The EEM can be used with both 203(b) and 203(k) loans. Basic guidelines for EEMs are as follows:

 - The cost of improvements must be determined by a Home Energy Rating System or by an energy consultant. This cost must be less than the anticipated savings from the improvements.
 - One- and two-unit new or existing homes are eligible; condos are not.
 - The improvements financed may be 5% of property value or $4,000, whichever is greater. The total must fall within the FHA loan limit.

96. DELETED.

97. WHAT IS A TITLE I LOAN?

Given by a Lender and insured by the FHA, a Title I loan is used to make non-luxury renovations and repairs to a home. It offers a manageable interest rate and repayment schedule. Loans are limited to between $5,000 and 20,000. If the loan amount is under 7,500, no lien is required against your home. Ask your lender for details.

98. WHAT OTHER LOAN PRODUCTS OR PROGRAMS DOES THE FHA OFFER?

The FHA also insures loans for the purchase or rehabilitation of manufactured housing, condominiums, and cooperatives. It also has special programs for urban areas, disaster victims, and members of the armed forces. Insurance for ARMS is also available from the FHA.

99. HOW CAN I OBTAIN AN FHA-INSURED LOAN?

Contact an FHA-approved lender such as a participating mortgage company, bank, savings and loan association, or thrift. For more information on the FHA and how you can obtain an FHA loan, visit the HUD web site at http://www.hud.gov or call a HUD-approved counseling agency at 1-800-569-4287 or TDD: 1-800-877-8339.

100. HOW CAN I CONTACT HUD?

Visit the web site at http://www.hud.gov or look in the phone book “blue pages” for a listing of the HUD office near you.

If you would like to follow this series of questions and answers about buying your New Brooklyn Home Check it out here

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at charles@brooklynrealestatesales.com

Brooklyn Real Estate: Answers to Your Short Sale Questions

Friday, May 20th, 2011


There’s a lot of confusion surrounding short sales, so I thought I’d answer some of the questions I’ve received from clients, owners of Brooklyn real estate and blog readers.

Q:  What is a short sale?

A:  A short sale is when a lender agrees to accept less than what is owed on a home.  For example, you owe $300,000 on your home loan, but your lender will allow you to sell your home for $250,000.

Q:  Who makes up the difference between the short sale price and the amount owed?

A:  In the past, the owner of the Brooklyn real estate would receive a 1099 income statement at tax time.  The “forgiven amount” would then be counted as income subject to income tax.  This left homeowners in debt to the federal government for the tax owed on that amount.  Now, with the passing of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation, the short fall on a primary residence is not counted as income.  This eases the financial hardship of those who are already struggling.

Q:  Does a short sale impact your credit the same way as a foreclosure?

A:  No, the impact of a short sale is milder on your credit than a foreclosure.  Short Sales usually reduce your score by about 80 to 250 points and only stay on your record for around 5 years.  Compare that to foreclosures which reduce your score approximately 250 to 400 points and remains on your record for 10 years.

Q: How do I qualify for a short sale on my Brooklyn real estate?

A:  Contact your lender as soon as you know you are in financial trouble.  Government programs, particularly the Home Affordable Foreclosure Alternatives (HAFA), are designed to make short sales more attractive to lenders by giving them incentives for allowing a short sale over a foreclosure.  However, if you allow your loan to become delinquent (more than 60 days), lenders are less likely to grant a short sale.

Q:  Can I sell my home as a FSBO and still qualify for a short sale?

A:  No.  Lenders rely on “broker opinion” as to what the home is worth at this time.  You need to hire a real estate professional that has experience with short sales.  Short sales take longer to close and properly handling the sale can make a difference in getting an offer accepted by your lender.

If you are facing the possibility of foreclosure and  looking for an experienced, energetic, resourceful  Brooklyn real estate agent , let me help you discover the options that are available to you. Give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at charles@brooklynrealestatesales.com