Joyce Albert

Slidell - A Boater's Paradise

If you are tired of the same ol' same ol', you must take a closer look at Slidell. This small city is indeed a boater's paradise! No other community in Louisiana has as many beautiful homes built directly on navigable water as Slidell.

For example, starting on the far eastern side as you come in on Hwy 90 and across 433 into Slidell, there is Rigolets Estates and Treasure Isle... no longer just a collection of the camps of 50 years ago. Today they are first rate homes built on pilings with the very finest amenities and super easy access to the Gulf via the Rigolets and Lake Borgne. Some of these homes are valued over $1 million. But further up 433 at Pirates Harbor, there are more modestly priced homes and even camps for the weekender.

Coming across the lakefront, but just before you reach I-10, you come to Lakeshore Estates - a gated community of truly luxury homes in the higher price ranges. Again, some well over $1 million. There are also lots still available on Lakeshore Drive for about $250k looking out across the lake itself. Magnificent views!!

If you aren't in the market for million dollar real estate, just cross the interstate. There you will find everything from waterfront condos at the Anchorage, to townhouses and mid-priced homes in Eden Isles... each with its own dock and direct access to the lake. A little higher priced, but in the same general vicinity is Clipper Estates, a gated community just off Eden Isles Blvd.

But the real surprise are the waterfront homes along Oak Harbor Blvd. While driving past rolling golf greens and fairways on both sides of the boulevard, you come upon such waterfront developments as Mariners Cove, Oak Harbor Inlets, and The Moorings - all on navigable deep water canals with access to Lake Pontchartrain. These neighborhoods offer beautiful homes from the 400's on up.

For all these subdivisions, Pontchartrain (Hwy 11) is the main boundary on the west side. As in earlier days, there are still camps for the weekend boating and fishing enthuiast along the lower end of Pontchartrain on the marsh side. But today's visitors will also be surprised to see many waterfront condo developments on Moonraker Canal from Oak Harbor Blvd all the way down to the lake itself.

And do you remember ‘Rats Nest' Road with its camps and long piers reaching out into the lake? Actually Lakeshore Dr. on the edge of the lake just to the east of Hwy 11? You wouldn't recognize it today. The camps washed away, and in their place are beautiful new homes - much nicer and much stronger. On the other side of Hwy 11, known as Northshore, the homes along Carr Drive and beyond have also made a terrific recovery. Many have been raised above the 14' that Katrina pushed ashore, and new construction is progressing well. Values range from the 200's up - and way up.

However, for all the convenience of these neighbohoods, there is the purist whose heart yearns for the romance and beauty of the Louisiana bayou. Slidell does not disappoint. As soon as you cross the railroad tracks on Hwy 433 you will see Palm Lake to the left, the gorgeous homes of Bayou Bonfouca, and a little further down the bayou, Coin d'Lestin. Instead of man-made canals, you will enjoy the tranquil beauty of the bayou winding its way to the lake with hundreds of back waterways for a quiet day of fishing.

But the best kept secret of all has to be a charming little neighborhood called Chamale. Even its name is romantic. This is a neighborhood of gracious homes on slow winding roads, a small grouping of condos, a small secluded harbor, and the most picturesque sleepy bayou reminiscent of Evangeline country - and it's tucked away just off West Hall right in the middle os Slidell. So out of sight, many newcomers to the city don't even know it is there.

So whether your preference is sailing, fishing, jet skiing, or just a lazy ride in a pirogue, you will find the perfect home to fit both your pocketbook and your lifestyle right here in the City of Slidell - where coming home is like being on vacation.

Call 504-451-8343 to schedule your appointment to view some of these beautiful homes, or check out my website at www.JoyceAlbert.com

What is a Bond for Deed?

A Bond for Deed is actually a Deed in Trust and is used as a type of owner financing. It is in fact, an interim finance program whereby the deed is held in trust by a bonded attorney. Once all terms of the purchase contract have been fulfilled - the buyer has obtained his own mortgage, the seller's mortgage has been cancelled, and the seller has been paid off in full - then the deed will pass to the buyer.

Why Sell Using a Bond for Deed?

With banks tightening their credit, and more and more consumers with impaired credit due to employment layoffs, etc., it is getting increasingly difficult to find qualified buyers. Under the circumstances, sellers who do not necessarily need to ‘cash out' their equity, may find their home to be a terrific income/investment vehicle.

Recently, a seller we'll call Mary, said she wanted to downsize. She was a widow, her home was paid for, and she was tired of trying to maintain a large yard. She wanted to simplify her life with a condo and do a little traveling.

Another seller, the Browns, found a waterfront home at a great price. They were able to handle the purchase without selling their current home first, so they jumped on it.

In both these scenarios, these sellers now had an opportunity to turn their homes into a money making machine.

Rent, Sell, or Owner Finance?

The decision to rent carries with it the risk of annual tenant turnover, damages to the property, and the on-going responsibility of the landlord for upkeep and repairs. Neither of these sellers wanted to be a landlord.

The most logical solution would be to sell outright, but the absorption rate of homes in their market was so slow, it meant their homes might be on the market for a very long time. Then their agent suggested that these sellers consider owner financing using a ‘Bond for Deed'.

In Mary's case it meant taking out a small mortgage on her home and using those funds to buy her new condo. She could move on immediately, and her new condo payment would be covered by the money coming in from her buyer.

The Browns, on the other hand, had an empty house with a small mortgage remaining. Since it had been purchased many years prior, the current house note calculated for their buyer more than covered their small monthly note.

For both sellers a ‘Bond for Deed' resulted in a much faster sale so they could move on.

What's in It for the Buyer?

With tightened credit requirements, more and more home buyers are having difficulty qualifying for the typical mortgage loan. In many cases, it is not that they have terrible credit, but their score may be just 20 points too low. Or they have super credit, but they haven't been in their new job long enough - or any number of other reasons that can be cured given the right amount of time.

For some people, renting just isn't a satisfactory option. These are the type of people who take pride in home ownership. For them, the Bond for Deed is the perfect vehicle by which they can buy the home of their dreams now, and finalize the lending transaction in a year or so when their credit issues have been resolved. In the meantime, they will gladly re-landscape, repair, and otherwise maintain their new home.

How Does the Process Actually Work?

There is a formal ‘act of sale' that takes place whereby all the necessary papers are signed for the buyer to take title, and the seller to pay out their lender. . . Except. That portion of the transaction will be postponed (and the papers held in trust by the attorney) until the buyer obtains his own loan from a mortgage lender.

There is also a contract drawn up between the buyer, the seller, and a middle party called the ‘escrow company'. This contract is like a three legged stool. The buyer sends his payment to the escrow company, and they in turn pay the sellers mortgage each month. Any ‘overage' or remaining funds, are then deposited to the seller's personal bank account.

This process protects the buyer by insuring that the sellers mortgage will be paid on time and there will be no chance of default on the original loan. It also relieves the seller of tedious paperwork since it is the escrow company who prepares the buyers interest calculations (for IRS purposes) at the end of the year, and the seller's interest income for reporting purposes.

What are the Advantages to the Seller?

Besides the obvious advantage of being able to sell their house and move on with their lives, sellers will often make back the amount of their closing costs within the first twelve months. Here's how. . .

From a purely cash flow standpoint, the sellers should ask the buyer for at least 7% down to cover their Realtor commissions plus miscellaneous closing costs - although, technically, this down payment is being applied to principle. This also gives the buyer enough ‘skin in the game' that he isn't likely to walk away from his obligations.

Now here's the good news. If the seller charges the buyer 6.5% interest on the financed portion of the purchase (the remaining 93%), in 12 months he will completely recover his 6% Realtor commissions. What other buyer sells his home, then makes enough interest off the sale to pay himself back those costs in just 12 months!

What if the Buyer Doesn't Pay?

This is not a casual lease/purchase type transaction. Unlike a lease, the seller does not need to go through tedious maneuvers to comply with ‘tenant rights' because the buyer is not a tenant. Just as with any mortgage, If the buyer misses a payment, he is automatically in default of the contract. He can therefore be evicted according to the terms of the contract, and the seller can take back control of the property. Any equity the buyer has in the property could be lost.

Can the Buyer Make Permanent Improvements or Modifications?

This is just one of many items that should be discussed when drawing up the Contract. In the case of a property in need of a lot of repairs, the seller might give the buyer cart-blanc to make any improvements or modifications deemed necessary. Other sellers might prefer to include a clause that, except for repairs, major modifications (such as room additions or kitchen remodeling) are to be presented to the sellers in writing for formal approval. This is why only an attorney experienced in doing these type contracts should be used to draw up a Bond for Deed.

Can the Buyer Re-Sell the Home Prior to the Ending Contract Date?

In a word, Yes. In a rising market, or when buying a distressed property, a buyer may purchase a property for a low price using a Bond for Deed, make repairs and improvements, and then contract to re-sell the property to a third party. When this happens, the closing attorney will simply need to coordinate the finalization of the Bond for Deed and the second sale that all contracts and obligations are satisfied at one closing.

Bond for Deed- A Win-Win for All

For more information or help structuring a sale/purchase of this type, call me at 504-451-8343

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Disclaimer: This article is intended for general information only. The author is not an attorney, and this article is not intended to convey legal advice. Anyone wishing to explore the use of a Bond for Deed should consult an attorney in their own jurisdiction to assure compliance with all local and state laws governing such transactions and contracts.

Have you recently suffered some type of financial loss and can no longer afford your house note?

Have you already missed one or more payments and the mortgage company is stressing you out with harassing phone calls?

Do you need to sell your home, but you owe more than your home is worth?

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There may be relief for you. Below are some of the options available.

Option number one is catch up any past due payments, including penalties, in one lump sum (no partial payments will be accepted). All will be forgiven by your lender and your loan will be reinstated.

Option two is to ask for a payment modification. Your past due payments, plus interest and penalties, will usually be added to the principal on the back side of the loan, and you can start making payments again. This process will require that you provide the lender all your current financial information, including other accounts or assets. If they then deny you a loan modification (because you have no job or your income has dropped), they will at least have all your current financial information in the event they decide to foreclose.

Option number three is to do nothing. Throw the past due notices in the trash and hang up the phone when the lender calls. You can now be guaranteed that your lender will start foreclosure proceedings on your home. You will eventually be evicted, and after the bank has resold the property at a fire-sale price, you could be hit with a deficiency judgment for the difference between your current mortgage balance (plus foreclosure costs) and the fire-sale price.

Option four is to immediately call a Realtor who is experienced doing Short Sales, and try to get the home sold as quickly as possible. This often involves selling the home for less than the mortgage payout. In this case, the Realtor will step in to negotiate a settlement between you and the lender. And while it may be stressful at times, a Short Sale can be successful in stopping the foreclosure process and a subsequent deficient judgment.

Option five is a ‘Deed in Lieu' of foreclosure. The homeowner simply signs over his deed giving his home back to the bank. Only one problem: The bank doesn't want your home! They do not want to be in the home selling business! The only way banks will even consider doing a ‘Deed in Lieu' is if the homeowner can demonstrate that he has already made every possible effort to sell the home -including a Short Sale. Then whatever settlement terms were agreed to between the lender and the homeowner for the Short Sale, will carry over to the ‘Deed in Lieu' without the devastating risk of a deficiency judgment.

In short, there are no hard and fast rules guaranteeing everything will go exactly as planned. And there are no happy endings when you face losing your home. But if you are already one house note behind and see no way to catch up by the end of the month, get help. Call a Realtor immediately. If you let your lender know you are working with a Realtor and doing the best you can to resolve the problem, they will be patient - up to a point.

In summary, ending up with your property via foreclosure is absolutely the last thing any bank wants. But you must demonstrate you are taking action and not just ignoring their notices and phone calls. The clock is ticking. You do not have time to waste.

For a private consultation, call me at 504-451-8343.

Or visit my website at www.SlidellShortSales.com for additional information.

Would you like to buy a home, but you have a less than stellar credit report? Do you have medical bills that were written off? Or even a bankruptcy in your past? Are you back on your feet job-wise and financially, but still suffering the "sins of the past" every time you apply for new credit?

Although every person who is turned down for credit has different issues, some things remain the same. And in general, the following plan can apply to just about everyone.

First, every grown-up should have a checking or savings account and NEVER let it get overdrawn. Keep a manual check register up to date and every week, go on-line to your bank to make sure you haven't missed recording a check or debit card purchase. In fact, keep the debit card in your check book so you can record purchases as they are made. Trust your own bank balance, not the bank's balance - their numbers will not include checks or recent purchases that may still be in ‘float'.

Second, get existing bills paid up to current and keep them current. This takes living within your means - and that takes a lot of discipline. This is critical. A mortgage lender doesn't want to hear excuses for why payments were behind. Current bills must be kept current!

Third, if you do not have a credit card, get one. If you have just come out of a bankruptcy, you may even need to get a ‘Secured' Credit Card. There are a number of banks that issue them - Capital One, and Orchard Bank to name two. Because they issue cards to folks with less than perfect credit, they usually have higher interest rates.

A ‘secured' card means that you will have to put up your own money against which you will make purchases. So why would you want to do that? Because every month you will now have a report going to the credit bureaus showing your 'new-improved' payment history - and that is what is going to help build up your credit score.

PLASTIC CARDS ARE NOT FREE MONEY!! This bears repeating.... PLASTIC CARDS ARE NOT FREE MONEY!! Use your credit cards minimally (maybe just for gas purchases) and pay them out IN FULL every month so you avoid those outrageous high interest charges (as high as 30%). Each month pay on-line by bank transfer, or mail early if using checks. See to it your payment arrives at least a day or two before the due date... you don't want to chance incurring a late fee.

Just a note: A $39 late fee is tantamount to pulling two $20 bills out of your wallet and lighting a match to them. And for what? For being a day or two late with your payment? But those are the rules you agree to when you get a credit card. So pay attention to the dates, and be careful!!

In short, repairing your credit is possible and can be done in a relatively short time... maybe up to a year. But it takes total dedication and 'tunnel vision' when it comes to managing your finances. It will definitely mean changing your buying habits from "I want..." to "I need..." BIG, big difference. HUGE difference!!

And while this may be a somewhat painful process, especially at first, it may help to know that you are not alone. For example, some people work strictly on commission. They know ahead of time that during certain months, sales slow down and money gets tight. In times like that, these folks need to cut back on non-essentials. Tough times should not be an excuse to run up the credit cards!

And finally, months prior to buying a home, do not take on any new debts or make a major purchase (like a car)... every credit inquiry shows up on your credit report and will push your score down. And any major purchase affects your debt to income ratio. (That's another topic.) Remember - you're on a quest to repair your credit so you can buy a home.

So make a plan for yourself. Stick to it. And hopefully by this time next year, you and your family will be celebrating the holidays in your very own home!!

If I can be of help, call me at 504-451-8343

What is a Short Sale?

A short sale occurs anytime the net proceeds from a sale are less than the amount needed to pay out the mortgage plus any other liens against a property.

What are the causes of a Short Sale?

There are any number of reasons a seller may find themselves facing a short sale situation. For example, many people in St. Tammany bought their homes during a post-Katrina market where prices became highly inflated due to an unprecedented loss of homes, and the resulting high demand for housing on the Northshore during the months following Hurricane Katrina.

Five years later, the economy in general is at a low point. In addition, housing prices that had returned to pre-Katrina levels by 2009, have dropped another 5%-10% in 2010. Under these circumstances, it is not at all surprising that people may owe more on a mortgage than the current market value.

How does one go about doing a short sale?

If the sale of a home will not satisfy the existing mortgage, it stands to reason that the transaction will require the cooperation and approval of the lender. However, before a lender gives their approval, they will want to see that the homeowner has made a genuine attempt to sell the home. The best way to do this is to list the home with a professional who will market the home aggressively to attract the most number of potential buyers.

Once a buyer is found and a contract negotiated, the listing agent will proceed to put together a short sale package for the lender. Among other things, it will contain personal financial information from the seller, a ‘hardship' letter explaining why they can no longer afford their mortgage payments, and various Realtor reports showing listing history, recent ‘sold comps', and current market information.

How long does a short sale take?

Once a homeowner has missed his first mortgage payment, he is headed down a slippery slope into foreclosure. A short sale is the one thing that, done in time, can forestall foreclosure. It is therefore imperative that sellers not procrastinate in contacting a Realtor and getting the process started at the first sign of trouble. Considering it might take a couple of months to find a buyer, and two to three months to actually get through the short sale process, it becomes obvious that time is of the essence!

Does a short sale hurt my credit?

Yes. But the impact is not as damaging to your credit as a foreclosure would be. A short sale will be reported as a ‘debt settled' much the same as any other negotiated payout that was less than the full amount. That may cost 80-100 points against your credit score.

On the other hand, a foreclosure can impact your credit score up to 300 points... and prevent your buying another home for five to seven years!

So. If you are able to keep your other bills under control and paid timely, your credit score will no doubt recover from a short sale much faster than if your home goes into foreclosure.

Do I really need a Realtor to do a short sale?

In a word, Yes. No one should attempt this process without the help of a Realtor with prior training and experience in handling short sales. Besides asking for all your financial information, the lender will also ask for documentation of comparable home prices and recent sales in the area and a record of efforts made to sell your property.

In short, your Realtor will act as an advisor to help you prepare a ‘package' that includes a hardship letter and all the necessary financial documents a lender will ask for. He will also negotiate on your behalf to get the lender to agree to your short sale. And of course, the Realtor's costs do not need to be paid by you since they will be absorbed into the final settlement of the property.

In summation, the short sale process is time-consuming, and once the first mortgage payment is missed, the clock is ticking. In spite of all efforts, a short sale may take so long that foreclosure proceedings are started anyway. With so much at stake, why would anyone not want the help of a professional at the outset?

For a private, confidential consultation, call me at 504-451-8343.

Or visit my website at www.SlidellShortSales.com for additional information.