Sarah Maus, Realtor, GRI, CDPE, REOS Orlando/Central Florida Homes For Sale

I would like to commend Brownie's Wastewater Solutions (of Orlando) for saving the day this past weekend! All 6 of my toilets had stopped working on Saturday, so I called for service. They informed me they could be out Sunday morning...not a moment too soon since I woke up to sewage lying in the bottom of all showers. In the meantime, I was preparing for a baby shower that I was putting on for my daughter-in-law. 2 trucks showed up Sunday at 10:00 AM, and the 2 men worked feverishly to get me up and running again in time for the guests to arrive. Turns out I was a year behind on having my septic tanks cleaned out, as well as having a burned out pump and alarm! Let this be a lesson to all who rely on septic for plumbing...get it done once every 3 years! ;-)

This comes as no surprise to me, however, the numbers are staggering. The foreclosure crisis is in no way close to coming to an end. The media would have you believe that things are looking brighter, however, $18 BILLION in mortgages are scheduled to reset in 2011. In reality, Real Estate agents are preparing for the next wave of defaults by becoming more educated in the distressed property arena.If you or anyone you know is struggling to make their mortgage payment, I'm here to let you know there ARE options. Please visit my website dedicated to distressed homeowners for more information.

A year ago, the Obama administration launched the Making Home Affordable program, putting $75 billion toward modifying mortgages and helping millions of borrowers through the worst housing crisis in decades.
So far, the results are slim. About 100,000 Florida loans have been modified on a trial basis. A spokeswoman for the Treasury Department says it is difficult to estimate how many borrowers are eligible.
Fewer than 15,000 trial loan modifications in Florida have become permanent. Nationwide, 116,297 modifications have become permanent out of almost 1.3 million trial modifications begun under the Obama program.
Bankers point out that a mortgage modification is only a temporary break that gives borrowers an affordable payment while they stay in the home. Borrowers, they say, should make plans for the day when that period of lowered payments will end and decide whether they can really afford the house.

A cut in the interest rate, for example, could end in a few years, which would mean the monthly payments would increase and the loan potentially becomes unaffordable again.
Under the Making Home Affordable program, interest rates can be lowered for up to five years. Then they start rising again, 1 percentage point per year until the rate reaches the market rate at the time of the modification. Loans modified outside the federal program can have different provisions.
Another emerging issue is balloon payments. Not all loan modifications have them. But some permanent loan modifications defer payment on a portion of the loan until years later.
When the mortgage's term ends - in 30 or 40 years - or when the house is sold or the loan is refinanced, some borrowers will owe a one-time, lump-sum payment that could amount to tens of thousands of dollars. The balloon payment covers the portion of the principal that was deferred. This is a concept that is commonly misunderstood.
Many people think the principle they are not paying is going to be forgiven, when, in reality, it's not.
Homeowners may be unaware of the terms of their new deals - for a good reason. Terms such as balloon payments are not spelled out in their loan papers. It doesn't say you have to make a balloon payment [in the future]. Unless you know how to work a real estate calculator, you don't know what you're signing.
For borrowers trying to hold on to their homes the difficulties continue even after the new loan begins.
About 20 percent of modified loans, through last June, ended up in default only three months later, according to federal statistics.

As usual, it pays to have a Real Estate attorney review and explain any documents before signing.

In today's tough housing market, some sellers are looking to cut costs by selling their property without using a real estate agent. Sellers who skip the listing agent and offer their home as a "for sale by owner" - or FSBO believe they can potentially save themselves thousands of dollars. But, FSBO sellers should be prepared to do a lot of legwork to manage the entire sales process, with no guarantee of a final sale.

Here are five questions homeowners should ask themselves before selling a home on their own.

5 questions to ask:

1. Do I know the value of my home in today's market?

A common mistake FSBO sellers make is to price their home too high. As a result, the property languishes on the market. When a home sits for a long while, buyers start to wonder what is wrong with it.

To market a home competitively, sellers should research the final sales price of similar properties in their community. Updated sales information is available to agents through proprietary reports, but individual owners can also dig up sales data from public sources. Online real estate sites may offer sales trend information for local neighborhoods, sales prices for comparable homes in the community, known as "comps," and the average length of time homes have remained on the market,.

It takes a lot of work to look at this data and figure how to price your home, but it's important in order to come up with the right value. It may even be worthwhile to purchase an appraisal from a certified licensed appraiser, even though buyers eventually have to pay for their own. But homeowners who buy an appraisal before putting their home on the market can eliminate the risk of a pricing surprise when a buyer applies for a home loan.

Even if sellers think they've arrived at fair home values, potential buyers may still try to negotiate prices downward. One strategy to sell quick is to price the home about 5% below the most recent comps in your area.

2. Am I ready to work with a buyer's agent?

In a typical real estate transaction, the listing agent represents the seller. But the buyer may choose an agent to represent his or her interests, too.

When a real estate deal is made, the seller usually pays both agents involved a commission based on the sale price of the house. That commission is negotiable, but it has traditionally been about 6 percent of the purchase price. The buyer's agent and seller's agent generally split the commission in half. As a FSBO seller, you may decide not to use a listing agent, but you can't control whether or not a potential buyer wants to use a buyer's agent.

If the buyer does use an agent, homeowners should consider offering that agent the typical commission, which would be about 3 percent of the sales price. Sellers who decide not to offer to pay the commission will probably shrink their pool of potential purchasers, because buyer's agents would not have an incentive to show their clients the seller's home.

3. Will I take charge of sales and marketing responsibilities?

Some FSBO sellers underestimate the amount of effort it takes to market their home. Sellers should be prepared to keep the home clean, clutter-free and "show ready" at all times (inside and out).

Other steps sellers should take include:

• Take good photos of their property and write effective sales descriptions.
• Buy and install a "for sale" yard sign with promotional fliers that include contact information.
• List the property in multiple classified ads and real estate Web sites.

Placing the home in the Multiple Listing Service, or MLS, is another important way to market the home. The MLS is a database of homes for sale offered by brokers. FSBO sellers can't submit to an MLS, but some companies have brokers who will list the seller's home in the MLS for a flat fee. Sellers may pay a few hundred dollars for this service.

In addition to marketing their own property, FSBO sellers often need to find and hire people to help them complete the sales process. These professionals include real estate attorneys (to review contracts and offer advice), appraisers and contractors (to make any necessary home repairs).

4. Can I bear criticism of my home?

The emotional aspect of selling a home is often overlooked, but it's an important part of the selling process. Owners will probably hear a lot about their home's shortcomings from buyers trying to negotiate a lower sales price. Or worse, they may not receive any interest in their home, especially if the price is too high. You have a better chance of being a successful seller if you don't take negative feedback personally.

5. Am I willing to screen potential buyers?

It may seem pushy, but FSBO sellers must be willing to screen their own buyers. You don't want to take your house off the market to negotiate with someone who was never qualified for the home in the first place.

Before you sign a contract with a buyer, make sure the purchaser will be able to come up with the necessary funds. Before accepting an offer, ask for a current pre-approval letter from a reputable lender. The preapproval letter should show that the buyer spoke to the lender and has been preapproved for the purchase price of the home.

It's harder to get a mortgage these days because the bar is higher. Applicants need better credit, higher salaries and a bigger money reserve than they needed just three years ago.

So there you have it...just a few things to keep in mind if you are considering FSBOing (fizz-boing). Save yourself a few headaches and hire a professional, just as you would for a root canal or a tummy tuck.

Walking Away Is NOT The Answer

You may have heard that a "strategic default" can be an appropriate and even beneficial reaction to an upside-down mortgage or impending foreclosure. While this idea is widespread, the truth is that default is never an easy road to choose, and rarely ever strategic.

Unfortunately, the ramifications of a "strategic default" are rarely explained, leaving many homeowners stranded on an island of misinformation. To assist you, I've prepared a free report outlining the myths and misrepresentations of strategic defaults.

Contact me today to get the facts!

Visit www.SarahMaus.com/SarahHelps for more information.

Monday, November 2^nd

Challenge Night! - Longwood

Where: Aiguille Rock Climbing Center, 999 Charles Street, Longwood

Time: 7pm-Close
Cost: FREE with the purchase of a climbing Day Pass

Challenge yourself! At Aiguille Rock Climbing Center the whole family can have a blast scaling the walls, walking a tight rope, or learning to rappel. Every week we offer a new challenge to test your strength--mentally AND physically! Visit www.ClimbOrlando.com or call (407) 332-1430 for more information.

Wednesday, November 4^th

Community Health Extravaganza! - Lake Mary

Where: Lake Mary Events Center, 260 N. Country Club Rd, Lake Mary

Time: 9am-1pm
Cost: FREE

Free Health Screenings: Bone Density Testing, Memory Testing, Blood Pressure Checks, Glucose Testing, & Balance Testing. $100 Cash Grand Prize, Door Prizes, Food Tasting, and much more!

Wednesday, November 4^th

Storytime at the Zoo - Sanford

Where: Central Florida Zoo & Botanical Gardens, 3755 NW Hwy 17-92, Sanford

Time: 10-10:30am
Cost: FREE

Every Wednesday in October & November. Bring your pre-school age children to the Zoo's Rainforest Pavilion to enjoy animal stories along with a special visit from one of our favorite Zoo animals. For information, call 407.323.4450 ext123 .

Thursday, November 5^th

Girls' Night Out! - Sanford

Where: Seminole Towne Center

Time: 6-9pm
Cost: FREE

Seminole Towne Center will host its first ever, holiday inspired "Girls' Night Out," to benefit Safehouse of Seminole, a domestic violence shelter. This event will engage women in an evening of networking, a preview of holiday fashions and food, and shopping.

Thursday, November 5^th

Altamonte Springs Relay for Life Mardi Gras Kickoff Party - Altamonte

Where: Embassy Suites at Uptown Altamonte, 225 Shorecrest Dr, Altamonte

Time: 6:30pm
Cost: FREE

Come sign up for Relay! Win cool Relay for Life prizes!! Light appetizers and drinks provided....... Please RSVP to Dana Whitekus, Team Development Chair, at dwhitekus@cfl.rr.com or call 321-377-6166 by Monday, November 2^nd.

Courtesy of Sarah Maus, Realtor/ Seminole County, Weichert Realtors-Hallmark Properties