Lisa Spalding, REALTOR, CDPE

If you or a friend are facing Foreclosure, what do you do?

Do you know the difference between a FORECLOSURE and a SHORT SALE?

For a Free Report, Click link below:

http://hosted.cdpe.com/21063

Good Information for Buyers & Sellers Located at:

http://www.winterparkhomefinder.com/

Search for Homes Myself on My Computer in the Privacy of My Home at: http://lisaspalding.mfr.mlxchange.com/

Best wishes in your Home Sale or Home Search!

--Lisa Spalding

Watson Realty Corp.

You may have been wondering why I haven't made a blog post in a while. Well, I enjoyed a long, holiday weekend AND have been bucking up on learning about real estate and Short Sales in Central Florida, in general.

In looking back at Short Sales/Pre-Foreclosures and my business, I discovered that I was doing Short Sales BEFORE they were cool. :) What I mean is this: I began helping Homeowners in Distress in 2005, when I first helped a couple sell their single family home that was basically demolished by a tree through the roof which affected EVERYTHING in the house and allowed moisture intrusion. I was introduced to this couple via an investor that was trying to buy the place but didn't think there was enough return on his investment. Well, this couple had a definite hardship b/c the house was unlivable. My broker at the time encouraged me to help this couple but cautioned that it would be a difficult transaction and would probably wind up not going anywhere. And--he was right--it WAS a pain in the neck! It was probably the most difficult transaction I had ever had and I really had no clue what I was doing. I just knew I needed to help this couple get out of a terrible situation and called the attorney that was associated with the pre-foreclosure process and also found out that there was another lien on the property from the county. Well, the transaction finally closed after a roller-coaster ride for the Sellers but they were finally put back on the road to recovery from their headache of a house.

So, about 2 years ago, I was approached by a REALTOR to help him sell HIS property as a Short Sale. Actually, his property listing had Expired (not sold while listed) with another agent that also had no clue about the Short Sale process and how to sell a property for LESS than what is owed to the bank. I listed the condo, got a cash contract for the house that was $30K OVER what the bank wanted, everything was good and almost made it through the entire process BUT the bank sent a nice letter saying the SELLER did not qualify for a Short Sale. I couldn't believe it. I had worked very hard to do the right thing and help the Seller with selling a condo, of all things, then BAM!--the Bank says "No." And, yes, there was a hardship for this Seller but the bank could have cared less.

Flash forward to January of this year. I had been hearing about a LOT of Short Sale Seminars, designations, etc. and, after having completed a few recent Short Sales, wanted to see if I could further my education about them but all the seminars I went to were pithy at best and I already knew everything that they were saying--but I wanted something more. So, I looked into the Certified Distressed Property Expert designation. While it is not yet recognized by our National Association of REALTORs at the moment, I have a feeling that it soon will be. (But, that's just my opinion.) I think that having a designation that has Expert in it is a little presumptuous of the powers that be b/c I don't think that anyone can ever figure out EVERY bank or investor but they don't need my okay to name the designation what they did. :)

As of todayI'm happy to say that I've completed all the coursework involved and am now a fully-fledged CDPE (Certified Distressed Property Expert)!

If You're Curious What Your Orange County or Seminole County Home is Worth, Click Below:

www.24HrHousePrices.com/OrlandoArea

As a REALTOR(r) in the Central Florida area, I am able to SHOW and SELL ANY LISTING FROM ANY COMPANY. Plus, YOU pay me no commission; the SELLER typically pays my commission and you get superlative representation.

Good Information for Buyers & Sellers Located at:

http://www.winterparkhomefinder.com/

Search for Homes Myself on My Computer in the Privacy of My Home at:

http://lisaspalding.mfr.mlxchange.com/

Best wishes in your home search!

--Lisa Spalding, REALTOR, Certified Distressed Property Expert (CDPE)

Watson Realty Corp., REALTORs

"How To" Buy a Home Report--FREE for Buyers

Click here:

http://www.orlandoareapropertysource.com/

If you are a First-Time Buyer in Orange County, Florida, and were planning to get a large chunk of money from the County, that "large chunk" just dwindled appreciably yesterday. What this means to you First-Time Buyers is that you will continue to be able to access funds from Orange County Down Payment Assistance/State Housing Initiative Partnership (SHIP) if you qualify--but there will be less funds available per Buyer/Family.

Well, here it is: The Powers-That-Be have made and enacted the dreaded changes to Orange County's Down Payment Assistance Program for First-Time HomeBuyers...And It Just Happened Yesterday.

I just received an email letter regarding the new program changes. The changes to the Program have come about because our State Legislature used about $6 million that was to go toward funding the Program to balance the State budget. There ARE current funds available (I know this because we have been successfully getting funds from Orange County DPA this year to help families buy their first home!) but, in an effort to stretch those funds, the County has decided to reduce the funds available to Buyers. Those changes are outlined below.

Orange County Down Payment Assistance/State Housing Initiative Partnership (SHIP) New Rules

June 23, 2009

Notice of Program Change

To Whom It May Concern:

"State budget action requires that we make changes to the current funding levels that will allow us to continue assisting households with DPA through 2010. DPA program changes to be implemented are:

Very Low Income $25,000

Low Income $17,500

Moderate Income $5,000

These changes were reviewed and approved by Orange County's Affordable Housing Advisory Board and the Board of County Commissioners approved these changes to the Down Payment Assistance Program on June 23, 2009. These changes are effective immediately."

This is only an excerpt from the email letter I received & if you would like a copy of the actual email, just email me with your request and I'll forward a copy.

If you're interested in BUYING a Central Florida home and you're a FIRST-TIME BUYER, click:

www.OrlandoAreaPropertySource.com

Find out if you qualify for a Government-Sponsored Down Payment Assistance Program.

If you Buy a Home that is in an FHA or VA-approved community, there is the possibility of Buying for NO- or LOW-DOWN PAYMENT. Also, there is the possibility of FREE MONEY from the City of Orlando (please see their website link: www.CityofOrlando.net ) or from Orange County/SHIP. Up to $25,000 of FREE MONEY available. ** Of course, there are income guidelines and major hoops that you have to jump through to qualify--but go ahead and find out if you can possibly qualify or not.

As a REALTOR(r) in the Central Florida area, I am able to SHOW and SELL ANY LISTING FROM ANY COMPANY. Plus, YOU pay me no commission; the SELLER typically pays my commission and you get superlative representation.

Good Information for Buyers & Sellers Located at:

http://www.winterparkhomefinder.com/

Search for Homes Myself on My Computer in the Privacy of My Home at:

http://lisaspalding.mfr.mlxchange.com/

Best wishes in your home search!

--Lisa Spalding

Watson Realty Corp., REALTORs

"How To" Buy a Home Report--FREE for Buyers

Click here:

http://www.orlandoareapropertysource.com/

Wouldn't it be nice if, as a First-Time Buyer, you could BUY a house, then get reimbursed some MONEY right into your SAVINGS ACCOUNT just for having bought a home?! And get discounts at home improvement stores... And get FREE education about buying a home... And get mortgage payment protection... Ahhhhh... Wouldn't THAT be nice?

Well, LOOKY what we learned about from our Broker at our office meeting this week:

The Association for Homesowners Across America (A.H.A.A.) (they're partnering with AmeriDream to offer Buyers some nifty programs) is in the process of doing just that! Giving out CASH rewards to First-Time HomeBuyers (up to 3%) of the total purchase price. A gift card to LOWES. There is a mortgage payment protection plan that they are hoping to include. Of course, there is education about homeownership AND counseling for those that are in troubled situations with their mortgages. And, the fees are anywhere from $215 to $495. Sound too good to be true? ** And, No, I don't work for AHAA but it wouldn't hurt if you could double-check all this information for yourself with them or with your REALTOR(r). (There, now I'm done with the waiver!)

Check them out:

https://www.ahaanow.org/Rewards/

Okay--so AmeriDream and Nehemiah are still out in terms of helping people buy homes due to Seller-Funded Down Payment Assistance programs like those and others being outlawed since October 1st of 2008. But, looks like in addition to the Tax Credit of $8,000 for First-Time homebuyers, there are other programs afoot that will help Buyers in other ways.

Good Information for Buyers & Sellers Located at:

http://www.winterparkhomefinder.com/

Search for Homes Myself on My Computer in the Privacy of My Home at:

http://lisaspalding.mfr.mlxchange.com/

Best wishes in your home search!

--Lisa Spalding

"How To" Buy a Home Report--FREE for Buyers

Click here:

http://www.orlandoareapropertysource.com/

Okay. This will NOT be a rant but, if you don't read the whole thing, you might just think it is! Many times, I work with Sellers and that's great but, as an agent, it's a good idea to work with a few Buyers so you don't get rusty at it--& I DO work with Select Buyers.

What I'd like to discuss today is Making a Good Offer With--or As--a Buyer. Be Careful When Buying and Choose "A" Players for Your Real Estate Agent and Your Mortgage Lender

So, I'm working with a good handful of Buyers at the moment, which means that either me or my business partner, Jim, will work with Buyers to show and write offers on homes. And, that's the EASY part--finding a property. It's the fun part, too. And, for the most part-- it's EASY to get a property under contract, too, and the real work begins after that.--But Today, I'm writing about Making a Good Offer and What A Buyer Can Do to Increase Their Chances of the Seller Accepting Their Offer, or at least, for the Seller to make Minimal Changes to The Offer and that Begins with Choosing the Right Real Estate Agent and Mortgage Lender.

So, I have worked with Buyers that contacted me previously & agreed to work with me to help with Buying a House after we met for the initial consultation. Then, I don't hear from them until later. What this typically means is that they either took a break from looking, got busy doing other things, or wound up working with another agent. No problem--I just get confirmation from them again that they will work with me and only me (and maybe Jim) to buy a home. None of the preceeding is out of the ordinary for many Buyers--they're sometimes scared of commitment to any one Agent. But, I won't work with them again until they say they'll be loyal to me. When that happens, we look at homes again. :)

Okay--here's the Kicker: When we find a place that a Buyer likes and wants to make an offer on that's Great, right? Wrong. Typically, those Buyers will have a Pre-Approval letter and have met with a mortgage lender and have made an application for a loan and we are just finding them the right house. But, with some Buyers, I have to encourage, counsel, and do everything I can think of to ensure that the Buyer has gotten financing lined up. Some do and some don't. Some Buyers have great credit and get pre-qualified with a mortgage person over the Internet or make a phone call to a lender and get a Pre-Qualification for a mortgage based on a phone consultation. To some Buyers, that means they're Pre-Approved. To the rest of the world--it means NOTHING. So, I educate Buyers that they really need to meet with a local lender in Person and make APPLICATION for a loan, especially because mortgage criteria keeps changing. Like a great Buyer, they will comply. They will call the lender and get a phone pre-qualification--again. Most (good) lenders will NOT generate an approval letter merely based on a phone pre-qualification--they need a Buyer's financials (bank statements, tax returns, etc.). SOME mortgage people WILL send a pre-approval (really, a pre-qualification) letter from a phone pre-qual; some will not. To my way of thinking, if a Buyer isn't serious enough to APPLY for a mortgage to buy a house (unless they're a CASH Buyer, he he), I'm not serious enough to drive them around and show them any homes and I would really prefer to focus on the other Buyers I'm working with who ARE serious enough to do so.

Think about it in terms of "A" Players, "B" Players, and "C" Players in an Organization. An "A" Player is anyone that is professional and has a certain way of doing things so that their business/profession is systematized. They do what they say, they counsel their customers/clients, and they GET RESULTS by playing fair, playing ethically, and always doing the right thing. So, for real estate Agents and for Mortgage people, the "A Players" are those that will do everything in a certain way to get a certain result--the Buyer/Borrower under contract and eventually Owning a Home. All other Players in Real Estate (B and C Players) just "wing it" and tell the Buyer/Borrower "yes" to everything or just hope that things go well and the Buyer/Borrower can somehow get into a property. Sometimes things go well and there are no issues, but more than likely, a number of situations arise in which what you were told initially will change, especially to the detriment of the Buyer.

So, if a Buyer says they have made offers in the past with other agents w/ just the pre-qualification letter, then I believe them. They probably HAVE made a few offers with a non-A Player. That's right--you CAN make an offer with just a pre-qualification--it happens all the time. But SHOULD an offer be made with just a pre-qualification? Sometimes, it's fine--sometimes, it's not. And, in this market, WHY would a Seller take their home off the market for a "maybe" Buyer?

If the Buyer and I are NOT on the same page with what they need to do to get pre-Approved, then we have a problem. This year I recommend Buyers at least make application w/ a lender prior to making an offer, especially if it's a bank-owned home or a short sale. The lender doesn't want to put all their eggs in one basket, especially if the basket might only hold rotten eggs. Plus, we can get an automated approval to see if we're all on the same page and the Buyer haa a chance of getting a loan. That way, we can include not just the Pre-Approval letter from the lender, but also the Desktop Underwriting findings with the offer. Doing this shows a very SERIOUS and QUALIFIED Buyer to the Seller and Listing Agent.

If the Buyer questions this fact and says they have read that they could make an offer with just the letter and not meeting in person with anyone, then that Buyer may just need more education about the buying process or they may be mistrustful of the process or agent/lender or they may not be serious about buying. (Most of the time, though, is the underlying issue of: WHY would I personally be so difficult and can't we just look at homes and write an offer and worry about the financing stuff later?)

That's true-there are agents out there that WOULD let a Buyer make an offer w/ just a letter (NON-A Players or Agents in a different price range or market area) and that Buyer would get very poor results with that way of trying to do business this year. I personally have even worked with Buyers that made offers on properties with just their pre-qualification letter (and a good down payment and excellent credit) but the Times Have Changed. If a Buyer is uncomfortable making application with a lender (I know it's scary--I was a first-time Buyer once, too!) I would still say that getting financing straightened out from the beginning is still the best route to really get what Buyers want--a House. If a Buyer wants assurances from me that everything will go okay with an offer on the house when they aren't willing to take the necessary steps themselves to do everything necessary to take a step in the right direction, then, again--we have a problem because I will NOT make those assurances. An offer with only a pre-qualification letter and without the back-up of a pre-approval letter is not a very strong offer at all.

If a Buyer speaks with a lender and is not happy with what they say over the phone (or in person) in regard to mortgage payment, etc. for the price range that they want, then it's SIMPLE.--The Buyer just has to come down on the price range in which they're looking OR if they really want a certain price range, then they have to be okay with paying more. I remind Buyers that they don't have to speak with just one lender but are free to speak with any lender regarding a mortgage and to please be careful of Non-A Players. Many times, the offerings of lenders/mortgage loan officers will be very similar but, just like in other business ventures, estimates will vary and, while some people will do a great job--not all will. But, in general, if the house a Buyer wants is in price range "X," then the mortgage will be "Y," depending on taxes. And, again-- the mortgage will be what the mortgage will be in that particular price range.

Making an Offer on a Property in Today's New World is very Simple--Simple but Not Easy.

Get Pre-Approved for a Mortgage. Take the time to sit down with an educated and experienced Lender that will help you to understand the Application, the Loan Terms, etc. Keep it Simple; Discuss with the Lender your comfortable/target Mortgage Payment and determine what price range in which you should be looking.

Work with an Experienced Agent. Take the time to get to know your real estate agent and see if you both are a good fit for each other. From an Agent's Point of View--We interview with you just as much as You interview us. You are either working with us and help us to help you--Or you're working against us and need to find someone else to work with. If you would like to work with me, then please know that I will ask you to do specific things, whether you want to or not--because That's what it takes to buy or sell a home. If you don't want to jump through the necessary hoops, then fine--but I may choose to not work with you; just as you may choose to not work with me. :)

Make a Good Offer with Reasonable Terms. Work with your Agent to come up with a reasonable offer that will be THE winning offer. Hey, in this market, there are many deals to be had. Keep in mind that, for every term of your contract that is unappealing to the Seller, you may have to make some concessions yourself. For example, if you want $5,000 off of the list price, then you may have to concede to paying your own closing costs for the transaction. On the other hand, if you're asking the Seller to pay all of your closing costs, then consider offering fairly close to or even over the list price, depending on what other homes in the area are selling for.

Be Patient. Just like it didn't take you an evening to make the decision to Buy a House, it will take a while for the entire process of getting a house--and it IS a process. Remember, Rome wasn't built in a day. You may need to make several offers on several different houses before you come to a "meeting of the minds" with the Seller(s).

It's Simple to Buy a Home-Simple, But Not Easy! :)

Best of Luck in Your Home Search!

--Lisa Spalding

Watson Realty Corp.

www.WinterParkHomeFinder.com

"How To" Buy a Home Report--FREE for Buyers

Click here:

http://www.orlandoareapropertysource.com/

* This is Not Going to be a Members-Only post but rather is a Public Post b/c I have not named anyone; not Buyer, Seller, nor Lender.