I recently read an article in the RE/MAX Times (a publication for RE/MAX Agents) regarding The U.S. Treasury Department, who recently unveiled a plan designed to streamline and encourage short sales. Under provisions of the newly created "Foreclosure Alternatives Program," the process will soon include standardized documentation, cash incentives to lenders and moving allowances for homeowners.
Here's a Treasury Department fact sheet about the plan, as well as a release from the National Association of Realtors. You may also want to read The New York Times story, headlined "Lenders More Open to Short Sales".
Many real estate agents avoid short sale listing and buyer transactions, because of the long, frustrating and often unsuccessful process. But, with distressed properties currently accounting for a large segment of US real estate transactions, I think it's time that all agents become more knowledgeable about short sale and foreclosure property transactions.
I've represented buyers and sellers of short sale properties for many years, and l'm very excited about this initiative to streamline the short sale process! If this program succeeds, it will save short sale listing agents a lot of time and help distressed homeowners get out of a bad situation in a more timely manner.
Well, it was bound to happen. Given today's state of the economy, many people are travelling less and spending less on entertainment. An article in The Independent Tribune says that business at The Lowe's Motor Speedway in Concord has been "slower than usual". One vendor says that his business is off by 60%.
If you've been avoiding going to the races because tickets were sold out or you'd prefer not to fight the huge crowds, this may be just your opportunity. The Coca-Cola 600 will be in Concord this Sunday, May 24, 2009 and there are plenty of good seats still available. According to local media, there are also hotel vacancies near the track this race week.
There's been a lot of buzz in the real estate and mortgage industries about FHA allowing home buyers to use the $8000 tax credit as a down-payment. However, in this case the government giveth and the government taketh away!
Tuesday May 12, 2009, in an address to several thousand REALTORS® gathered at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, DC, HUD Secretary Shaun Donovan said that FHA was going to enable home buyers to access the $8,000 tax credit at closing, so the funds can be used as a down payment. This was to be accomplished by allowing FHA's approved lenders to "monetize" the tax credit through short-term bridge loans, which would have allowed eligible home buyers to access the funds immediately at the closing table. FHA/HUD had also posted mortgagee letter 2009-15 (ML 09-15) on their website, which explained the program. CLICK HERE to read NAR's article about the announcement
However, according to several lender sources and information found on-line, later the same day Secretary Donovan's remarks were retracted and FHA/HUD removed the ML 09-15 from their website.
HUD doesn't mention the embarrassing misinformation anywhere on their website, so at least for now it seems that the reason for the program being withdrawn (or at least delayed) will remain unclear!
Here are some links to on-line articles that I found regarding HUD's change of heart...
www.thetruthaboutmortgage.com/fha-may-scrap-homebuyer-tax-credit-for-down-payment/
www.mortgagenewsdaily.com/05182009_first_time_buyer_tax_credit.asp
www.azcentral.com/arizonarepublic/business/articles/2009/05/18/20090518biz-downpayment0519.html
Recently I became aware of a real estate transaction where the Buyer decided to change from Conventional Financing to VA Financing, after the effective date of the contract. This Buyer didn't ask the Seller to contribute toward their closing costs. The Buyer decided that they wanted to get a VA loan, so their agent sent the FHA/VA Addendum to the Seller's agent requesting the Seller's signatures.
Here's the problem... VA loans prohibit Buyers from paying certain types of fees that are often charged by lenders, escrow companies, settlement agents, and title companies. They are called "non-allowable" fees. They still get charged anyway, but Buyers are "not allowed" to pay them. The result is that the Seller ends up paying them instead and their net proceeds from the sale are reduced. Non-allowable fees can vary by location... in this case the Buyer's non-allowable fees that the Seller is being asked to pay are over $1500!
So, with less than 2 weeks until closing, this deal may be dead. All because the correct financing type and required addendums weren't included with the Offer to Purchase and Contract.
In the State of North Carolina, if the Seller had already agreed to contribute at least $1500 toward the Buyer's Closing Costs, there would be no problem. Because, the NC Offer to Purchase & Contract states "Seller shall pay at closing $______ toward any of Buyer's expenses associated with the purchase of the property, including any FHA/VA lender and inspection costs, that Buyer is not permitted to pay, but excluding any portion disapproved by Buyer's lender.
I ALWAYS explain the additional Seller fees that may be incurred when a potenitial Buyer utilizes an FHA or VA loan, to my Seller Clients, when reviewing the Seller Net Sheet during the listing appointment. In this case the Seller was unaware of the additional fees involved if the Buyer utilized a VA loan!
Obviously, the Buyer in this deal should have determined the type of financing they intended to use BEFORE submitting an Offer to Purchase. But, it is our responsibility as Realtors to educate our Buyer and Seller Clients on such matters during each real estate transaction.
Have you encountered a similar situation? What do you think?
My beautiful niece Tiffany Dawn Young-Diven gave birth to her first child today! His name is Connor Brian Diven, he weighs 6 pounds 14 ounces, is 19 inches long, and has strawberry blonde hair!
Tiffany is a very special young lady with a kind and loving personality. I know that she is going to be an AWESOME mommy!
Connor is the BEST Mothers Day present ever for his Mommy Tiffany, his Grandmas Robin and Sharon, all of his great grandmas, his aunts and everyone else who loves him!
Congratulations Tiffany and Chris on the birth of your adorable baby boy...
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Experienced Realtor serving buyers & sellers in Concord-Kannapolis-Harrisburg-Mooresville-Charlotte & surrounding areas.Resale & New Homes-Relocation-1st Time Buyers-Investors-Foreclosures-Short Sales
I started my real estate career in 2000 as a New Home Sales Representative and Office Manager for a local custom/semi-custom builder. During that time, I had the opportunity to work closely with several construction and finishing sub-contractors who were tremendously helpful in my home construction education. After that I accepted a position as Community Sales Manager with a National homebuilder. My new construction experience has proven to be extremely valuable in my real estate career and the knowledge I gained benefits my clients every day.
I had a strong desire to work with buyers and sellers as a general brokerage Real Estate Agent, so in 2002 I joined Allen Tate Realtors®, a successful regional real estate firm. I took advantage of the many educational opportunities afforded me and in 2005 I decided it was time to make a move and join RE/MAX, the world's largest and most successful real estate company! I look forward to long and rewarding real estate career, providing unparalleled service to my clients.
For more information about me or The Powell Team, please visit www.ThePowellTeam.net or www.CherylPowell.net, your one-stop sources for real estate information covering Concord, Harrisburg, Kannapolis, Mooresville, Salisbury and the entire Charlotte NC area. Contact Cheryl Powell
Education and Related Experience
Designations
ABR, the Accredited Buyer's Representative designation is the benchmark of excellence in buyer representation, awarded to REALTORS who meet specified educational and professional experience criteria.Professional Affiliations
A RE/MAX REALTOR®
The Code establishes time-honored and baseline principles that come from the collective experiences of REALTORS® since the Code of Ethics was first established in 1913. Those principles can be loosely defined as:
I provide professional real estate services for Charlotte NC & the surrounding areas, including: Cabarrus County (Concord, Harrisburg, Kannapolis, Midland, Mt. Pleasant), Iredell County (Mooresville, Statesville, Troutman), Mecklenburg (Charlotte, Cornelius, Davidson, Huntersville, Matthews, Mint Hill), Rowan (China Grove, Kannapolis, Landis, Rockwell, Salisbury), and Union counties as well as the Lake Norman Area.
My specialties include:
Whether you are selling your home or searching for that special place to call your own, my local expertise & real estate experience will benefit you.
I pride myself on providing unparalleled service & look forward to developing a long-term relationship with you. Contact Cheryl anytime, to discuss your real estate needs.
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"Cheryl was great through the entire process. From our first phone conversation to the closing on the house, Cheryl was extremely knowledgeable and professional. She has a great enthusiasm for her business! I appreciate her help and guidance through all the steps of buying my first home! Cheryl made it a great experience!"~ C. Pyatt
"Cheryl is easy to work with and has wonderful ideas for selling a home. I loved the visual tour she made. She is friendly and enthusiastic."~ I. Posey
"This was my first home buying experience and Cheryl was there for me all the way. We worked together for 7 months to find my house. She was extremely patient and willing to go anywhere I wanted to look. I would and already have recommended her!" ~ K. Ralston
"If a new house came on the market we knew about it ASAP! She told us everything you could possibly think of about the house/neighborhood. We were very pleased with Cheryl and as long as she's doing real estate, she is who we will use!" ~ T. and K. Clardy
"Throughout my years of involvement in real estate, I have never met a more professional agent than Cheryl Powell. She treated me in the way that she would want to be treated, with quality service, undivided attention and respect. I would recommend Cheryl to anyone who is looking for a quality oriented professional who is head and shoulders above the crowd. ~ J. Aguiar
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