Jules Yates

It seems that each and everyday you turn on the news or pick up the news paper you hear bad news. It's no wonder so many people are scared to death. When it comes to news about constructions numbers you hear the same old doom and gloom. In reality I don't know a better time to build a new home.

Lumber prices are low, subcontractors are crying for work, you can choose the floor plan, you can choose the colors and you can choose the flooring. Best of all this new home can be ready to move into in just 90 days.

I work with a local builder who builds a superior home for less money that most existing homes and you can build it the way you want it. For example I can find you a piece of land just about anywhere for around $30,000. Add to that a new custom ranch with the following features:

• 1,513 square feet - Ranch
• 6/12 pitch roof
• 2 x 4 construction
• 3 bedroom (split bedrooms)
• 2 bath
• Cathedral Ceilings in the living area
• Hardwood floors in Kitchen and Dining rooms
• Ceramic tile in mud room and baths
• Mid Grade light fixtures in all bedrooms, dining room and kitchen
• High grade carpeting
• Concrete poured full basement plumbed for a 3^rd bath
• Concrete drive, porch and sidewalk to porch
• 30 year dimensional shingles
• Anderson (Series 200) double hung windows
• 90+ High Efficiency Goodman furnace
• Central Air
• Vinyl siding
• Granite vanity tops in both baths
• Double vanity in Master bath
• Mid grade cabinets (many options)
• Solid Core interior doors
• Elegant Exterior entry door
• 6" Interior trim with corner posts
• Two car attached garage 24' x 24' with outside entry door
• 16' Insulated garage door
• Covered cement front porch
• Treated rear deck
• Oversized utility and laundry room
• Walk in closets in master bedroom
• Well and septic system
• All utility hook ups

This home can be built (including the land) for around $179,900 TURNKEY (meaning sign on the dotted line and you will be handed the keys to a 100% completely finished home).

I can get it built for less if I can find the right property or I can have the builder add a 2^nd story. The options are endless and the choice is yours. As a REALTOR I can't understand why anyone would choose to buy someone else's home for thousands more.

Now you may be asking yourself if I have anything to gain and the answer is yes. Like any other home I sell (new or existing), my broker and I share a commission and this is no different. In the end you get a great home for a great price and you get to benefit from the equity. If you are interested in more information please let me know. Call me anytime at 231-218-5199.

FORECLOSURE LOOMING? Don't wait until it's too late...

I had a gentleman come by my office this morning who wanted to know if I could help him. His home had gone into foreclosure last summer and his parents were trying to purchase the home for him. They had hired a person who happened to have a broker's license to write an offer to purchase the home.

Even though the Sheriff's sale amount was well over $140,000 the broker put in an offer of just $80,000. I asked how that number came up and I was told it was arbitrary in an attempt to get a counter offer.

Right there was the first mistake.

#1 Lenders generally will not give a counter offer unless you are within a few thousand dollars.

#2 Lenders will not sell a note or short a note when there is significant equity in the home above the amount of the Sheriff's sale.

#3 In this case the parents were willing to buy the home for the redemption amount (plus taxes, closing costs, etc.). It was foolish to try to make a low ball offer.

#4 Due to the broker not following up regularly, the redemption period had expired and the chance of saving this man from being evicted is unlikely.

The moral of the story is to be sure you hire someone who has actually successfully negotiate a short sale (or two or three). As for the names of the other people they helped and ask if it's alright to call them. You only have one chance to get this right so don't take someone's word for it... hire someone with a proven track record.

If you are unsure get a second opinion. All too often when you are vulnerable it is easy to take the word of a supposed expert. I know if I had been contacted just 30 days earlier I could have saved this mans home.

The short sale process is quite easy...it's just hard to do one successfully if you don't know what you are doing. Feel free to contact me with any questions.

Short Sales - 4 Reasons Why they are better than Buying Bank Owned Properties (REO's)

1. Short sales are sold by the current owner not the bank - Bank owned properties are often a mystery as they are sold without disclosures. You never quite know what you are getting and have to rely solely on an inspection to determine the condition of a home.
2. Short Sales can be a better value- Often times it may take longer to get an approval from a lender but if you are dealing with an experienced short sale specialist (the listing agent) you can often get a property for less than it would sell for as a REO property. Remember banks don't want to take back a home, they just want to get their money.
3. Short Sales can often be purchased with less competition- Often time buyers will avoid short sales due to misconceptions about the process. For those who understand the process and are willing to wait out the process, a short sale can be a great way to get into a home for less. Once a home is on the market as an REO property the buyer may come out of the woodwork creating a bidding war on well priced homes.
4. Short Sales are better for the Homeowner - If a homeowner is loosing a home to foreclosure one way or another, a short sale is often better for their credit rating than simply walking away. The Sellers I help are grateful for many reasons when we complete a short sale. You are not hurting them...you are actually helping them so don't feel like you are taking advantage.

More and more Northern Michigan families are facing foreclosure and many have no idea what to do or how the system works. First and foremost you need to talk to your lender. Please DO NOT ignore the calls. Be honest and up front with them and if they can help you they will. If you aren't satisfied with the results ask to speak to a supervisor.

If you do finally come to the realization that you are going to have to move or sell, give serious consideration to calling a Realtor who specializes in Short Sales and pre-foreclosure properties. If you need to sell, there are several options available to you even if you owe more then what your home is worth. There are ways around that.

With a short sale the lender (or lenders) may agree to let you sell your home for less than the full balance owing. In most cases they will let whatever your Realtor gets satisfy the balance. This is not always the case but from my personal experience none of my clients have been taken to court.

When can you do a short sale? You can do one prior to the sheriff's sale or up to the last day of redemption (6 months to 1 year after the issuance of a Sheriff's Deed and sale). Each and every case is dealt with individually and every one is different.

Why? First of all the net result of the short sale is that you the homeowner can not walk away with any money. Second, any money or proceeds from the sale will be divided up amongst the lien holder or holders. The first mortgage holder (if you have more than one mortgage) will always get the bulk of the money and any junior lien holders will usually get 10 cents on the dollar at the most.

The procedure is easier with some banks then other. For example Huntington Bank is very difficult to work with as is Chase. Smaller banks can be easier to work with as you can get to the decision maker much easier and faster.

The process of doing a short sale is simple but executing it van be areal nightmare if you don't have experience doing it and since it takes a lot of time to pull one off call a Realtor as soon as you get in trouble. The sooner I know what you are facing the more options you will have.

If you have any questions about doing a short sales in the Traverse City Area please visit my website http://www.ExitShortSales.com, email me at jules@julesYates.com or call me on my cell at 231-218-5199.