Nick Setting

Quick Reference for Streamline 203k

Examples of eligible improvements (this list is not all-inclusive):

1. Repair/Replacement of roofs, gutters, and downspouts
2. Repair/Replacement/Upgrade of existing heating, ventilation, and air conditioning systems
3. Repair/Replacement of plumbing and electrical systems – Installation of new plumbing fixtures is acceptable
4. Repair/Replacement of flooring – subflooring is not included, finish only
5. Minor remodeling that does not involve structural repairs, such as bathrooms and kitchens including permanently installed appliances, (such as built-in range and/or oven, range hood, microwave, or dishwasher) – New free standing range, refrigerator, washer and dryer, trash compactor and other appurtenances (Used appliances are not eligible)
6. Exterior and interior painting
7. Weatherization, including storm windows and doors, insulation, and weather-stripping Energy conservation improvements (such as new double pane windows, steel insulated exterior doors, insulation, solar domestic hot water systems, or caulking and weather-stripping)
8. Improvements for accessibility for persons with disabilities (such as remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, or installing wider doors or exterior ramps)
9. Lead-base paint stabilization or abatement of lead-based paint hazards
10. Repair/Replacement/Addition of exterior decks, patios, porches
11. Basement finishing and remodeling that does not involve structural repairs.
12. Basement waterproofing
13. Replacement of windows and doors and exterior wall residing
14. Well & septic replacement

Examples of Ineligible improvements (this list is not all-inclusive):

1. Mold abatement or Termite Active Infestation repairs (tenting, etc)
2. Connection to Public Water or Sewer
3. Adding or repairing a driveway or sidewalk
4. Subfloors
5. Replacing posts in crawl spaces or adding vapor barrier
6. Landscaping or similar site amenities
7. Pool repair or construction
8. Repair of structural damage
9. New construction including room additions
10. Major rehabilitation or remodeling such as the relocation of load bearing walls
11. Any repair or improvement that will require more than 6 months to complete or will displace the borrower for more than 30 days
12. Work that will not begin within 30 days of closing
13. Rehab activities that will require more than 2 draws
14. Repairs that require detailed drawings or architectural exhibits

Why?

As an REO agent I never could understand why other agents do ZERO pre-marketing on a listing they know their going to be listing.

Solution...

I advertise future listings as "Coming Soon" through social networking and email campaigns aimed at Buyer Representatives and Investors. I find it hilarious that everytime I meet an agent and ask if they'd like me to e-mail them REO's that I'm doing BPO's on they look astonished, as if I'm giving up confidential information. IT'S FORECLOSED PEOPLE! No Secret. I'm offering a gateway to future market information that any Buyers Agent wanting to be a step ahead of their competitors would love. I've had 1, yes just 1 agent, ask me if I knew of upcoming foreclosure opportunities, and he asked as if I was trying to keep it on the "down low"... lol. So...

ATTENTION BUYERS & INVESTOR REPRESENTATIVES!

WE WANT... NO, WE NEED TO SELL THE FORECLOSURE QUICKLY! WHY WOULD WE NOT WANT TO BRING ATTENTION TO OUR LISTINGS THAT WE MAKE MONEY ON?! Did you know that you can make an offer on a Bank Owned Property before it's even listed if you know the agent its going through? Been there... Done that... Got the property for my client and didn't have to compete with others. It was even on a VA loan and I got my clients 4% in closing costs too lol...

REO Agents...

When you're doing the occupancy check and/or property inspection and you first gain access to a property that was listed within the last 3-6 months what do you do with the business cards left behind? Do you ever call the last listing agent and ask if there was any offers that didn't make it through the Short Sale?

Solution...

I take all the business cards and shoot an e-mail to the agents letting them know the listing is coming back to market as a Foreclosure and at Foreclosure pricing. I take 5 minutes to call the last listing agent and ask if they know of any offers that fell through where they might be interested now (and ask them if they'd like to get e-mails on future upcoming REO's or if they might have an interested buyer).

Other Agents...

Foreclosures aren't going away any time soon! No matter how much we as Real Estate Agents & Brokers view and despise the nastiness of such things that lower values in our listings and make our FHA Buyer's say things like "but what about that house? Its a GREAT deal" which is falling apart at the seems from a poor quality, partial 1/2 a$$ remodel, that you know has no chance in hell of passing an inspection but... *take a breath*... They're still there, and the sooner they get sold and we get the market back on track the sooner you get to quit pulling out your hair explaining to people why they can't buy it because of the condition, lol. Denial is not a river in Egypt. Help us to help you... If you don't know FHA Guidelines then feel free to refer to my other blog on FHA Guidelines.

If you're a Realtor in Kitsap County, WA and you'd like me to email you future REO's with pics of the current conditions please feel free to email me at nicksetting@cbbain.com and I'd be happy to oblige. I can even arrange previews if the properties are unoccupied. Keep in mind all Foreclosures are subject to Banks Bureaucracy and I can only give estimates of time till market and prices. Obviously some Banks listen better than others so... lol

Disclaimer: My views do not represent the views of all REO and Bank Representatives and are mere personal opinions. Some Agents are "too busy" or "not paid enough" to market in such manner and may find your queries tiresome and act uninterested, and I will apologize on behalf of "those" agents and say please don't hold it against all of us.

Now go sell some Real Estate people!

Did you know you may be able to get 100% Financing through Guaranteed Rural Housing Loan Program? Many areas in WA outside of major cities are USDA Rural qualifying. Contact me for USDA qualifying listings or a Professional Mortgage Representative today for more information on a USDA loan.

• Flexible Underwriting – Higher ratios considered with compensating factors, including credit scores over 660, job stability and similar housing expense.
• Properties must be located in eligible rural areas (generally towns of 10,000 or less that are removed from an urban area.)
• Income limits are 115% of area median (for most counties, four person household adjusted limit is $70,750 maximum income.)
• Maximum loan amount up to 102% when the guarantee fee is financed into the loan.
• Loan can include closing costs and repairs if appraisal is higher than sales price.
• No monthly mortgage insurance premium payment is required.
• One time 2% Guarantee Fee.
• No cash reserves are required.
• Borrowers do not have to be first time home buyers.
• One-day compliance review turnaround time from USDA.
• Lender processes loan package using own forms.
• USDA Rural Development requires only two additional forms to be signed by lender and borrower for inclusion in loan submission package.
• No federal recapture.
• No loan limits
• Ample funding available all year.
• No minimum credit score.

For more info you can also go to the USDA Rural Website

USDA Rural Development is an equal opportunity Lender, Provider and Employer. Complaints of discrimination should be sent to USDA Director, Office of Civil Rights, Washington, D.C. 20250

Have Questions? Contact me anytime!

Getting The Most... Means Demanding The Best!