About Peoria County, IL

Top Tips to Buying a Real Estate Short Sale

Many real estate bargain hunters are searching for the "secret to short sales" so that they can cash in on the deal of the century. I'm often asked how to buy a short sale. I'm going to lay it out for everyone in this blog post.

Top Tips to Successful Real Estate Short Sales

Short Sale Tip Number 1 : Most Short Sale Properties are sold "as is"

Let me explain why someone would sell a property as a "short sale"...THEY CAN'T MAKE THEIR MORTGAGE PAYMENT!!!!! This would imply they can't replace the old faucet with a new one...they can't afford the cost to mitigate the radon...if you don't like the carpet; we are sorry but we won't be giving you a carpet allowance. However, chances are you will purchasing this property under market value. Therefore, a little expense and repairs are most likely worth the "trade off".

Short Sale Tip Number 2: Be Realistic with your offer

Yes, it is true. You are, most likely, going to get a great deal. However, please don't expect to purchase a home on the golf course right next to the country club....which sold for 1.2 million 3 years ago for $50,000. I am pretty sure you wouldn't even get a counter-offer-ha! Seriously, the bank has certain variables to consider and has to answer to their investor. Please be realistic with your offer and your expectations.

Short Sale Tip Number 3: Be prepared to wait!

Short sales take a looooong time to close compared to a traditional transaction. Don't expect to write an offer and get an answer quickly from the seller with bank approval attached. It is a unique process. Be patient with your Realtor...they want it to close too! Don't threaten to walk away from the sale thinking this will move things along...it actually will do the opposite. The bank is not going to pay additional funds to get a property ready to close if they feel they have skittish buyer.

A short sale is a great opportunity for the buyer and seller involved....be patient, patient, patient...and realistic....keep your eyes focused on the prize!

I love a company that never stops learning. That is one of the reasons I made the switch to Jim Maloof. Yesterday I sat in on a technology meeting to help determine our strenths and weaknesses in todays market as far as technology goes. I see many big things on the horizon for this company. They are not afraid to spend money to help their clients sell homes faster! I am very glad I made the switch. It's no wonder we are #1 in the area.

www.TonyBrust.com

www.WeSellPekin.com

With the US Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 US Census is under way as workers have begun verifying the addresses of households across the country.

Eventually more than 140,000 US Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data. The big question is - how do you tell the different between a US Census worker and a con artist? BBB offers the following advice:

A. If a US Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home. You don't have to invite the Census take into your house either.

B. Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the US Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail or in person at home. However, they will not contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the US Census Bureau.

For more advice on avoiding identity theft and fraud, visit www.bbb.org

Posted by Katie Arnholt Kim
The Kim Group
www.thekimgroup.com

You know, I have about 18 listings now and have been getting a lot of showings on them lately, which is a good thing, I guess. The problem I have is that on top of taking care of them, managing open houses, marketing, making phone calls to my buyers and everything else, I have to track down agents for showing feedback even though we have an automated feedback system that our company uses.

One thing that I have heard from some agents (thank goodness, not many!) is that they refuse to give feedback as it is only for agents who don't know how to price a property. I disagree. I need feedback so I can give it to my sellers, who demand it. I am constantly getting called back from my sellers when I don't receive feedback, even after my several attempts to get it through phoning the showing agent, emails, etc. This not only wastes my time, but aggravates my seller as well. The problem is that the seller thinks I am not doing my job when a showing agent refuses to give feedback. There should be some way of making sure that agents who show other agent's properties are required to give feedback. This would also eliminate agents showing vacant properties without setting appointments, which I have seen a lot of.

What do you think?

David Castle, Realtor, Coldwell Banker Devonshire Realty

97 Eastgate Dr, Washington, IL 61571

309-645-0537

www.DavidCastle.biz

More and more people are becoming aware of their credit score and realizing some repair maybe needed in order to qualify for the loans they need to buy a house. So what is a good credit score? Well, according to Damon Remy of Cornerstone Restorations LLC, your credit score is graded as follows:

• 740+ A+ Lower Rates
• 700-740 A
• 620-699 B
• 580-619 C Higher Rates
• 450-579 D Virtually No Financing Available

In order to understand how your credit score is what it is, you first need to understand how your credit score is determined.

5 Factors of Credit Scoring

1. 35% Payment History - Late Pays, Collections, Foreclosures, tax liens, judgements, etc.
2. 30% Amounts Owed - Credit cards, mortgage loans, auto loans, HELOC's, etc.
3. 15% Length of History
4. 10% New Credit - soft inquiries, hard inquiries
5. 10% Types of Credit Used - mortgage loan, auto loan, 2-3 major credit cards

Before you run out and hire someone to fix your credit score, please take a look at some of the things that you should know about your credit score and what you can do about it.

1. Payment History - 35%
   1. a recent 30-day late can cost 50+ points
   2. paying a collection that is more than 2 years old can hurt your score
   3. Being past due on accounts can cost 50+ points
   4. Dispute derogatory accounts - they do NOT automatically fall off your report after 7 years
   5. Divorce decree does NOT take precedence over a creditor agreement
2. Amounts Owed - 30%
   1. New debt temporarily decreases the score - it takes 6 months before new credit cards start working possitively for you on your credit score
   2. Keep credit card balances below 50% at all times to maintain your score
   3. Keep credit card balances below 30% of the limit 3-6 months prior to applying for a home loan
   4. Do NOT consolidate debt - share outstanding debt evenly among your cards
   5. If you go over the limit on your credit card even by $1, it will cause a serious penalty
   6. HELOC's can be considered revolving debt, not mortgage
   7. Do NOT close credit cards except in certain circumstances
   8. USE YOUR CREDIT CARDS or they will become unrated in 3 months
3. Length of History - 15% & Mix of Credit - 10%
   1. Hold onto old credit cards, even if the rate is not great
   2. New credit users can add themselves to another person's credit card as an authorized user to generate a score
      1. This use to be the case, but not so much any more.
   3. Mixture is best
   4. The type of credit card DOES matter - DEPARTMENT STORE CARDS ARE A NO - NO!!!
   5. 3 to 5 revolving credit cards is optimal with established credit history
4. Types of Credit Used - Inquiries - 10%
   1. Soft vs. Hard Inquiries
   2. 14 day window for pulling your reports
   3. Inquiries affect the score for one year and can cost between 2 and 30 points on the score depending on your current score
   4. Mailings that state Pre-Approved means you are NOT pre-approved - you just fit a high level of criteria for them to send you a mailing. They haven't pulled your credit yet.

How to start improving your credit score!

1. Order Your Credit Report & Score - order your credit report and score from all three national credit bureaus, TransUnion, Experian, and Equifax. You can go to www.freecreditreport.com or several other sites.
2. Verify the Data Reported - you need to verify your data in order to ensure it is accurate.
3. Dispute Inaccurate Data Immediately - Contact your creditors and send letters of dispute to the credit bureaus to have errors on your credit report corrected. Send them CERTIFIED!
4. If you don't see your credit score increase after you have done all the above items and it's been a couple of months, then you might want to talk with a professional about helping you out. You can check out www.LeaseOptionCreditRepair.com or contact Damon Remy at Cornerstone Restorations at (314) 787-3139. Agents - you should contact Damon and discuss his program for agents with clients that need this service.

Katie Arnholt Kim
The Kim Group
www.TheKimGroup.com