Rosemary Brooks -Mother & Daughter (866)-750-8282

There is a process required for purchasing a property and tips that will help you make it an easy way to buy!

This is Post Four:

Do you Homework / Know the Market / Read any documents you receive / Ask questions before you sign! - If you don't know what is a good deal and what isn't a good deal you will be in trouble.  Do your research so you are confident when you find a good deal.  This is the part that you should have strong knowledge of all during the process - especially when:

• Before You make the offer
• When You find yourself in the countering process
• During the transaction
• Before you sign docs

This works for Short Sales, REOs (Bank Owned), Traditional Sales, Relo, Probate, etc. (ALL)

Check out my next post for additional information on the basic steps of how to find a good REO deal.

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There is a process required for purchasing a property and tips that will help you make it an easy way to buy!

Be Aggressive/make an offer -  You can't get a great deal if you never make an offer.  Don't be afraid to submit an offer on a property.

  * In these market conditions, make sure you have an agent.  Make the offer after you inspect the property.  Make sure that you speak with the listing agent to ensure that you understand the terms of our listing clearly. In most cases, the property will be offered in an "as is" condition, with the list price reflecting its condition. When purchasing a property "as is", ensure you've done your homework to clearly understand the structural and mechanical condition of the building, HVAC, internal plumbing, the well and septic system. Depending upon the condition of these components of the home, the types of financing available may be impacted. However, there are special loan products available that will lend on the "after improved" value of the home thereby making it possible to purchase even the most neglected property and to make it the home of your dreams

After submitting my offer, how long should it take to receive a response?
The bank will provide either an offer acceptance or counter offer to our listing agent within a reasonable time of receiving the offer from our listing agent. The listing agent will inform your buyer's agent of our response if you are working with a separate agent, or you directly. If an offer is submitted during the weekend, it will be reviewed on the next business day.

This works for Short Sales, REOs (Bank Owned), Traditional Sales, Relo, Probate, etc. (ALL)

 Check out my next post for additional information on the basic steps of how to find a good REO deal.

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There is a process required for purchasing a property and tips that will help you make it an easy way to buy! 

This is Post Two:

Find motivated sellers- Motivated sellers could be a Bank Owned Property, Relocation Seller, Estate sale, Divorce situation...there could be others too. Its no guarantee that the above sellers are for sure motivated, but often times they are.

  * for the sake of this post lets say it is a REO (Bank Owned Property).  Listings that have been on the market for over 60 days can be more motivating that those that are just listed. 

Side tip: Banks are not the most "motivated" sellers.  Usually when they post a list price they want that price.  However, never say never!  Don't insult the seller but never give up on trying to get the property to where you want and what you want to pay.  Be smart in a counter offer -- once you turn a bank off ----> forget it!

This works for Short Sales, REOs (Bank Owned), Traditional Sales, Relo, Probate, etc. (ALL)

 Check out my next post for additional information on the basic steps of how to find a good REO deal.

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There is a process required for purchasing a property and tips that will help you make it an easy way to buy!

This is Post One:In a series of posts, I will give some tips in assisting you in how to find a good REO deal and how the process works.  Due to the condition of the market, the majority of available properties is either a Short Sale or Bank Owned properties.  Of course, there are a few other property sale types that are listed on the MLS and For Sale by Owner by not many (some are from Probate, some are owners that have properties that are paid in full, Relocation, etc.) but not many:

First lets define REO - Bank Owned Properties:  REO is an acronym for Real Estate Owned. REO is a financial industry term referring to properties that an institution has foreclosed upon and now owns. 

How is this different from the typical buying process? When considering a REO property - as with all properties - it is important to be well informed so you're well aware of the process from the first handshake through the closing.

Step 1:  Be Pre-Approved for a Mortgage -If a property is a great deal chances are it will sell fast. There is no time to wait until you get approved.  Most of the time a pre-approval is free so get the financing out of the way.  I would put this is the first step. Make sure you know what you are worth - save time and energy. Most agent will not work with you if you are pre-approved for a certain amount -- for the amount of the property you want to purchase. 

* in some case - the property is a fixer and you may qualify for Home Renovation loans (i.e. 203K Streamline from FHA, HomePath.com renovation loan (offered by Fannie Mae).  Ask you loan officer and / or real estate agent.

This works for Short Sales, REOs (Bank Owned), Traditional Sales, Relo, Probate, etc. (ALL)

Check out my next post for additional information on the basic steps of how to find a good REO deal.

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Happy May 1st .... what changes do we know about for this month?

Effective May 1st - Fannie & Freddie will go uniform on the appraisal process for CONVENTIONAL LOANS. This change affects only the conventional loan transactions. It appears to me that this is a way to push borrowers/buyers into using the FHA, VA, Basically here are the changes I have heard about the new HVCC process:

• Big banks will pull appraisers from a pool that could mean that the appraisers are out of area (could be 50 miles or more).
• Appraisers getting the assignments will probably be less qualified (i.e. could be a rookie vs a veteran)
• Appraisers will be making more mistakes in their evaluations due to the lack of experience and not knowing the areas - which may cause the borrowers to have to get another appraisal from another appraiser - which is doubling what the borrower will be paying.
• If a second appraisal enters into the transaction: this will probably cause necessary more negotiations between buyer and seller - which means delay in closing and even high volume of cancellations all together.
• Appraisers will have to learn a little more kissing up to the banks: which can affect the borrowers, which means less closed transactions which will affect the market, the buyers and borrowers, the agents - the US
• The transaction will just take longer and longer and some will not close at all. Borrowers/buyers will get discouraged more and more
• Appraisers cannot communicate with the brokers, loan officers, buyers - no one but the lender/bank contacts
• I believe I heard that the appraisers could be working for 1/2 what they get now... I guess that is not cool - if true!

This process is supposed to help the consumers. However, if it is revised a bit it just may end up hurting the consumers, hurting the market condition, hurting the agents and loan officers - right on down the line. Really it will affect the loan officers and Brokers most. But the impact will catch all - including the buyers and real estate agents.

So effective today - May 1, 2009: new code of conduct, the "Home Valuation Code of Conduct" (HVCC) will go into affect for ALL appraisal on Fannie Mae and Freddie Mac Loans. Anyone with a vested interest in the approval of a mortgage can not have any contact with Appraisers or have any say on who the appraisal will be assigned to.

Who will benefit? The banks of course. They will get appraisals that they like. They will end up only hiring the appraisers that will kiss.... in order to get business. I don't know about you but it seems that every step of the housing purchasing and refinance is being "punished" except the dog gone banks! What's up with that?