Evesham Township, NJ

I recently closed on a listing I had in Evesham Township, NJ and luckily had escaped what I call The Domino Effect. This is a phenom in real estate (okay, not quite a phenomenon but that adds to the effect) when one closing relies (or is contingent on) one or more other closings occurring. In my case, our closing depended on another house to close so the buyer had the funds from that property to purchase our listing. That buyer's house also needed another property to close, thus a domino effect is created. Of course, if either of the other properties failed to close, we could not close (a contingency in the agreement protects the buyer from default).

So why did we take this offer if it was so risky? My client had an attorney (whom I recommended) who also asked question us accepting the offer. 1st, offers are not easy to come by (particularly those sellers will actually accept in price). We had other offers, but the prices were not acceptable. 2nd, we evaluated the motivation of the buyer and, all things considering, the property seemed like a perfect fit for this particular buyer. 3rd, financial and qualifying standards (outside of needing his current property to close) were excellent. 4th, the other properties in the chain were already under contract with buyers. 5th, there was a 45 day closing period (not too long, yet enough time to get things done and determine any issues).

Another major factor in our decision-making was the fact that I knew the other agents handling the other closings. This was the most important factor for a successful close. Imagine, friday starting off Memorial Day weekend and you need 2 other properties to close for your sale to go through. As an agent (and seller), you better be prepared and on top of EVERYTHING! We were.

Throughout the entire process I had open communication with the other agents and followed the other transactions as if they were my own (mortgage commitment - check; inspections - check; appraisal - check; financials - check). The 1st property in the chain even needed to remove an underground oil tank and have soil samples! That agent was on top of it and everything went according to plan (though some sweating was involved). Our closing was the final closing of the day (2pm) and I was out by 3pm.

As a seller, be cautious of the Domino Effect, but putting your transaction in the hands of the right professionals (agents and attorneys) should yield a success story!

Marlton, NJ Homes for Sale

In a continuing series of blogs allowing you to view the most recent active short sales in a particular township, here are current property offerings for Marlton, NJ Short Sales. If you need information on Short Sale transactions, what they entail and how to succeed, be sure to go back and visit my previous short sale blog.

It will explain what a short sale is, the intracacies of the transactions and how to approach one in the most diligent manner possible.

If Short Sales are not what you are looking for in a Real Estate transaction (they are not for everyone), you may wish to search additional Marlton property offerings. Set your search criteria and hone in on that perfect dream home. Whether single family homes, or Condominiums, its all there to search, easy as 1,2,3.

Looking for a really great opportunity, why not search Marlton, NJ Foreclosures.

You can also view community information and local school reports for Marlton, NJ as well.

Have a home to sell in Marlton, before you can take advantage of that Short Sale or Foreclosure, and want the latest market analysis, just contact me at Your Marlton, NJ Real Estate Tools. Its early in the year but soon the spring market will have sprung and now is the time to position yourself as best possibel to take advantage of what many experts believe will be a great real estate buying opportunity as prices have dropped and interest rates are still remaining at almost near historic lows.

Regards,

Alan-

When it comes to mortgages, there are so many frequently asked questions. One mortgage topic that gets many misleading answers is mortgage insurance, specifically FHA mortgage insurance.

Why do I need FHA monthly mortgage insurance if I put 20 percent down?

Aren't FHA loans more expensive? (many refer to this because of the upfront mortgage insurance)

FHA monthly mortgage insurance will be there regardless if you put 20 percent down. If you put less than 20 percent down, you will have the FHA monthly mortgage insurance until you reach the 78 percent LTV level. (LTV = Loan-to-Value) If you put 20 percent or more down, you will still have the monthly insurance for 5 years, guaranteed. Even if you put 19 percent down and you reach the 78 percent LTV in 3 years. This is a FHA guideline which is constant no matter what mortgage lender you use.

Comparing FHA loans with other mortgage programs, there are rumors that FHA loans are more expensive. Why do people say this? In many cases it's because they are talking about the upfront mortgage insurance, which was reduced in October. Another reason would be because FHA raised the monthly mortgage insurance requirement back then also. If you break all of this down properly, depending on the borrowers credit scores and down payment amount, FHA loans are still cheaper in many scenarios.

Check out this scenario with 10 percent down and a credit score of 699. FHA loans vs Conventional loans with 10 percent down - What is not talked about much regarding conventional loans is it's very tough and or very expensive to get mortgage insurance on conventional loans with credit scores below 700 and or with less than 10 percent down. Besides, Conventional loans will become more expensive come April 1st, 2011. Fannie Mae increases their pricing hits

Summary : One last thing that needs to be talked about is that you need a solid/strong loan officer who will not only be able to compare certain mortgage programs properly, but ask the right questions. An important question that gets over-looked are the borrower's goals, present and future. I bring this up because I had a borrower who was buying a home that was worth $40,000 more than the purchase price. And by asking him the right questions, I was able to determine that he wanted a 5 year arm not only for the lower mortgage payment, but because he was planning on getting rid of the monthly mortgage insurance in less than 5 years with more equity in his property. I asked him, "what mortgage program will you be using when you refinance." He had stated a FHA loan. Rut row... but as I mentioned above, you will still have mortgage insurance for 5 more years again, even if you refinance with 20 percent or more equity. The previous loan officer that he was shopping with and comparing me to never brought this up. Just because one loan officer might be cheaper in rate and or costs, it could still cost you thousands of dollars more when it's all said and done. Just food for thought when shopping for mortgages.

Are you a consumer with some questions, but not sure who to ask?

Are you a realtor who has questions or scenarios, and possibly work with a good loan officer, but could use some extra feedback?

You have some outside sites such as Trulia, Zillow, or even Active Rain, to where you can ask such questions? But what happens if you get like 7 answers and 3 of them are varying or different. And who is to say that you can trust such answers. I see many questions on Trulia that are answered incorrectly, and even the mortgage questions answered by realtors. Sorry, but if I were a consumer reading this, not knowing any differently and took those answers as gold, as correct... I could be in some serious trouble down the road. Example :

I have seen where one realtor told a borrower that FHA loans were better than USDA loans. Say what? First off, that shouldn't come from a realtor. Secondly, in most cases, the USDA loan will be better. Reminder : Each borrower is different.

I read an answer by a realtor that said you should put 20% down. Sorry, but I disagree with that comment for several reasons. One main point is that cash is king in today's economy, even if you have it. I gave many reasons why in this post. - Don't be cash poor - Cash is King Part 2 of 3 -

Overall, the problem with the internet and such sites as Trulia, is that anyone can answer questions. And I have seen my share of incorrect or misleading posts on mortgage information on the internet. Not saying that I am God or that I know it all, but if I am not sure, I verify it through reliable sources. So with that said, I put together a group of 9 loan officers from abroad, all representing different mortgage companies, and that we have over 150 years combined in the mortgage industry. The Mortgage Myth Busters -

CLICK ME

Mortgage Myth Busters group description :

The Mortgage Myth Busters is a group of experts from different companies all over the country that share the commitment to provide consumers with the right answers to their real estate finance questions. Our unique approach of collaborating and combining forces enables us to provide factual mortgage information and invaluable insights especially during these trying times.

Our purpose is to educate and assist the consumer in navigating the often confusing process of obtaining financing. It is our goal to dispel the confusion, myths, and lies that surround the real estate and mortgage industry. We do this in hopes of earning your trust and eventually your business.

If you have any mortgage related questions as a consumer or as a realtor or even as a loan officer, they can be asked in our questions forum @ Mortgage Myth Busters Questions Forum -

You can also ask questions here :

Our Facebook Fan Page : Mortgage Myth Busters on Facebook

Mortgage Questions Group on LinkedIn : Mortgage Myth Busters Questions Group on LinkedIn

Conclusion : Thoughts? Opinions? Feedback?

On a side note, some time in the future, we will have selected realtors from different states that will be answering real estate related questions on our site also. thanks