Jay Badru-Certified REO -Specialialisto

The "Atlanta Affordable Homeownership Program (AAHOP" was recently rolled out to assist homebuyer's with up to $10,000 down payment assistance in the form of 0% interest rates. The down payment assistance is in the form of a soft second with few restrictions. It also can cover up to 50% of the cost associated with home purchasing. In addition, the (AAHOP) and (ODAP) Opportunity Down payment Assistance Programs can be combined to up to $35,000.00 or more for down payment assistance.

Furthermore, the mortgage provided by the Atlanta Development Authority (ADA) participating lenders must be an FHA, VA, or a Conventional 30-year fixed loan. In today's market, most of these loan rates range between 3.75% to 4.25% an example will be a house below 3 bedroom 2 bath home, newly renovated priced at $124,900.00 with 20% ($24,900.00 Down Payment Assistance), with a mortgage loan of $100,000.00, rate at 4.25%, 30 year fixed. Principal, Interest, and Taxes will be $642.89 per month. The monthly payment indicated above is less than what most renters are paying in this area of Atlanta, Georgia.

Few restrictions are as follows:

•· The property must be located in the city limit of Atlanta

•· Maximum purchase price limit on new and existing is $252,890.00

•· Must be Single family detached homes, townhomes, and condominiums

•· Property must be owner occupied

What are the income limits?

Household Size Income Limits
(1 person Household) $40,250
(2 person Household) $46,600
(3 person Household) $51,750
(4 person Household) $57,450
(5 person Household) $62,050

To find out more about homes that qualify for the ADA programs visit: www.jaybsellshomes.com

The Smyrna, Mableton, Austell, and Powder Springs Suburb of metro Atlanta GA, has had its share of foreclosed properties latetly. However, I often been asked by would be buyer's that "Its a Foreclosure or Short Sale We can start with low offer right?

My resposnce are just becasue the property is a foreclosure or short sale does not means you should start your offer as low as possible becasue of the following reasons:

A. If its foreclosure, the bank are not in the market to give away the house

B. Before the banks put the house on the market, they have done their due deligence by having the house appraised by a third party entity to determined appraised value of the property. Taking into consideration of the repairs and most recent sold properties (COMPS) in the area in similar conditions.

C. Just becasue its a foreclosure (I will address short sale later), todays buyers are looking for a deal. therefore you are in competition with other buyer's,

D. When banks received more that one offer on a house. Which they do 90% of the time, they will ask all buyer's to submit their highest and best offer. Without disclosing the $amount of other offers.

E. If its a short sale, the bank have a final say of the offered price. Keep in mind that the seller is asking the bank to accept a lesser payoff of the balance owned.

F. The bank again have to do their due deligence, by having a third party appraied the house actual value. Therefore, if a buyer offered a low price, the bank has the right to refused the offer based upon their appraised value or counter back with higher price.

G. The bank can aslo ask the seller to sign a deficiency letter. Whereby the bank can go after the seller to pay back the difference of amount owed.

H. If you have to move in 30-45 days, short sale may not be for you regardless of how attractive the price. Becasue, short sale can take anywhere between 40-60 days to get approved or never get approved at all.

In conclusion, just because the property is a foreclosure or short sale does not warrant a low ball offer. Your agent should do his or her home work by advising you to offer a reasonable price based upon comparable sales in the 1 to 2 miles radius of the property.

Have a question about foreclosure? contact The Jay Team

Have a question about short sale or need to sell your home? contact The Jay team

www.jaybsellshomes,com

After six months of trial's thru BOA with three different buyer's, we finally obtained short sale approval thru equator portal in 45 days. The short sale package was initiated on 02/25/2010, immediately we were ask to upload 3rd Party Authorization which we did and the process went ok, except when we reached the commission part, of course BOA cut our commission to 5%, but after six months of trying, and not wanting my seller to go into foreclosure, Iand the Selling Agent have a meeting of the mind and we both accept the commission as approved. At any rate, we got our approval letter on 04/14/2010

What make this so great was we already had a BPO done by BOA prior to the file been initiated on Equator portal, and the BPO was still good at the time of initiation, so the negotiator was able to use the same BPO. If BOA had to request a new BPO, We may not be able to obtained approval in 45 days. That said, I think the system is getting better and I will continued (I almost dropped marketing Short Sale's properties) to embrace short sale now. Simple to help more homeowners

At any rate my seller is so delighted, The swwetest part is BOA not requiring a promissory note from my seller. We will be closing on 4/24/2010

AS many Agents might know by now is that Equator Short Sale initiator started few months ago does work. After trying twice to put a short sale through BOA short sale support since June 2009, I finally can say that I was impressed with the way my short sale was handled by Equator Rep. the last 2 weeks.

On February 26, 10, I initiated a short sale on www.equator.com and withing two days I received a response requesting 3rd party authorization, I sent it right a way, next day I received another request for other documents. The documents request was kind of upsetting at first because I have already sent the same documents to BOA twice.

However, I sent the same documents anyways for third time. Two weeks later, I received a call from an Agent needing access to do BPO for the short sale. As of today all the necessary processed has been fulfied, now we are waiting for investor approval for our payoff offer on HUD1 Statement.

So fellow Real Estate Professionals, if you have any Short Sale that you are working or anticipate any BOA short sale soon, run to equator web site and initiate your short sale right away. It is less hassle and no less frustration.

Keep in mind that Equator currently have BOA account for Short Sale. I hope more Lenders will come on board with Equator soon.

Finally, anyone have similar experience with Equator or other companies?

" The MBAG office has received the following update on the Home Buyers Tax Credit...

The House and Senate yesterday approved a continuing resolution that includes a provision that would extend current loan limits for FHA and the government-sponsored enterprises through next year.

Additionally, Senate leaders announced they have agreed to an extension of the $8,000 first-time home buyer tax credit through April 30. The popular credit, which has strong support from the Mortgage Bankers Association, is set to expire Nov. 30.
The CR, which keeps the federal government running through Dec. 18, passed the House on a 247-178. The Senate vote was 72-28" Source: MORTGAGE BANKERS ASSOCIATION OF GEORGIA, http://www.mbag.org

Now that congress has passed the extension of $8,000.00 tax credit for first time homebuyer's iincluding another $6,500 tax credit to existing homeowners who have lived in their current home for a consecutive five-year period withing the past eight year's, what next for all buyers?

The answer is all buyer's must be ready to take advantage of these tax credit's now and should not wait untill the last minutes. In early September, we saw a lot of home buyer's scrambling to be on under contract by October ending so they can close before the previous December 1st tax credit expiration. The new tax credits would required home buyers under contract by April 30 and close before July 1 2010.

Therefore, now is the time to act. Agents should broadcast these news to all buyer's in their market area so we can get housing market moving again.