How does the Short Sale Process Goes in MD

     Many people have asked me about how the process goes as far as how long the short sale takes, what needs to be done, etc. So, I decided to do post on that exactly.

The length of the short sale depends on several factors: When the seller sends back the short sale paperwork in, the time it takes for an offer to come, how long the bank takes to process paperwork, when the bpo is done, the time it takes for approval of buyer loan (if it applies), etc. The timeframe can take anywhere from 90-120 days normally. Here are the actual steps of the short sale:

1. Seller decides to do short sale by signing listing agreement and sending back short sale paperwork to agent/negotiator with proper docs i.e. paystubs, bank statements, tax returns, w2's, hardship letter.

2. Once we receive an offer. The offer is sent to the bank with the short sale paperwork (Bank usually does not start a short sale without an offer first.)

3. Bank assigns short sale case to a representative and the schedule the BPO (Broker Price Opinion). They will access what they believe the value is and send the report back to the bank.

4. Bank decides whether they will accept, counter, or decline the buyers offer. If they counter, then the buyer and bank goes back and forth to agree on a price.

5. Once a price is agreed upon, the bank will send an approval letter based on the terms that was negotiated i.e. price, if rest of balance would be released, relocation assistance, commission, date property has to close by, etc.

6. You go to closing

*It is important that you choose an agent that is familiar with short sales and has a great negotiator on their team. Communication is KEY with everyone involved so it's important to make sure that your agent and negotiator keeps contact with the bank to prevent anything from falling through.


I hope this helps anyone that is looking into this option. Feel free to contact me to get started!!

Til next time,
JC
443-869-1364

Dont Let Them Take Your Home Into Foreclosure

    There are over 21,000 people in the state of Maryland that are going through foreclosure (data from Realty Trac). I often wondered why so many people are allowing the bank to take their home without even putting up a fight and one of my clients told me the answer........ "People just don't know they have other options."

She was one of them.......

She went through one of the trials life tend to throw at us which is being laid off her job. She thought it was only going to be temporary and that she would catch up on her mortgage payment next month once she got another job. But, that didn't happen. She got another job 3 months later and by that time it was a snowball effect and she end up owning over $5,400 in mortgage payments, fees, and other costs. Now, she was able to make payments on her mortgage but not the whole amount. Since she figured she would never catch up with the payments she tried to do loan modification. It got so frustrating because she had to send the paperwork multiple times (the bank kept losing the docs) and after over 6 months of trying; she got denied for loan modification and the foreclosure had started.

Her foreclosure date was 47 days away when she was referred to me. She was frantic about having to move out so soon and I told her about the option to do a short sale; she didnt think she had enough time. I was able to get the foreclosure stopped on her home and 5 months later, we closed on the short sale. Someone else bought her home and she got $10,000 in relocation assistance.

With that money, she was able to move into a new apartment and put some in her savings account.

Just imagine what could have happened if the bank foreclosed on her home. Her home was already underwater and was not worth what she paid for it.

Don't Let Them Take Your Home

For more information, contact me today 443-869-1364

Til next time,
JC

Buy A Newly Built Home and get $10,000

Yes, your eyes were not deceiving you.

     A lot of times people don't even think about purchasing a newly built home because of the costs. You always hear that you have to put money down that isn't refundable, they throw the home together, or it takes too long to build.

Well, you have another option. Not only can you get a newly build home (move in ready), but you will get $10,000 towards closing costs. It's rare that you can get that much money for closing costs from a resale home.

Plus, here is the bonus; if you buy a new home, you will get 15% of my commission paid to you as a thank you. YES MY COMMISSION.

Beazer Homes has move in ready homes in Elkridge, MD, (starting at $399,000) and Owings mills (Starting at $319,000). Just think about how beautiful it would be to be in a new home and say you are the 1st owner.

New more information, Contact me NOW-443-869-1364

Here is just a some pictures of the home for your pleasure

FYI, I have a home in Rosedale on sale right now for $269,900 (wont last long)


Til next time,

JC

She Lost Her Home Because Of Procrastination

Yes, I would like to say it was more that money and hardship, but it was procrastination. This potential client had fell on hard times and fell behind on her mortgage. The last time she paid her mortgage was over a year and a half ago a she needed to sell her home. I advised this client that instead of going into foreclosure and having the bank come after her for the additional amount owed (since her home was underwater), she could short sale her home.

This would give her the opportunity to see if she can sell her home without having to pay the full balance off (even if it is bought for less than her balance). I wanted to also see if she could get money to move from her home (by way of relocation assistance).

After the process was explained to her she was relieved that there was another option for her (that she could understand) and I sent over a checklist of what was needed to get started. I advised that foreclosure was near and that we needed to get started.

Three months went by and she never returned the information. I sent her reminders and she kept saying she was so busy and she would get to it. I advised that once a foreclosure is scheduled it gets harder to try to combat that with the timeline.

 Well, after about 7 months, she got a foreclosure letter that gave her 30 days to move. Not only that, but, she didn't open the letter (because of fear) until June 4th and the letter was dated May 9th; which means she had to be out of the home by June 9th.

When she called me and said she got all the docs together (in a matter of  24 hours),wanted to proceed, and the foreclosure notice she got, I had to inform her that it was too late. It hurt her and myself because I never want people to be in that position because I know life happens and sometimes things are out of our control.

However, procrastination is not life happening, it is YOU. We have to stop letting fear and procrastination keep us doing what we need to do to move forward or solving a situation which will add more stress.

She will bounce back from this because she has too. This too shall pass


Til next time,
JC

Why Some People Cannot Get Home Loans

     Because it is all in the mindset. I have had so many people tell me that they are not ready to purchase a home because they need to get their credit straight. When I ask them what their credit score is and what they need to do, guess what they say...."I dont know"

See, there is no way you can truly know if you can or cannot buy right now if you don't have a professional look at your credit and tell you what you need to do. Surely you don't enjoy paying $1300 or more for rent when you can get a mortgage in the same are for about $1000 a month. In this day and time we have to work smart not hard.

I used to be the same way, the way I got into my home was joking around with a friend of mine about getting a home and seeing who could get in a home first. We were just joking and competing to see who could buy their home first. I'm a sucker for competition and we both got a home (of course I won lol). The point is he thought his credit was bad and I thought my credit wasn't good either. That was in Nov of 2009 and by March 10, 2010; I was a homeowner.

Don't hold yourself back because of fear (false evidence appearing real). You have down payment programs, closing cost help, and credit repair options to help you get into a home.

Won't it be nice to pay a mortgage and know its going to you owning a home instead of financing someone else's dream?

Rent is overrated, its time to own some land and home a own.

If you need help finding a lender I have some options. As a realtor I'll be there to help you all the way.


Til next time,
JC

How To Purchase Your First Home Mortgage Free

I'm sure that got your attention. That's the same way my audience felt when I went over the details at my first Power up event in Baltimore. I showed them how to make their first home purchase and have the mortgage pay for itself.

Even though it seems like its a hard process, its really not if you just apply yourself and get the knowledge you need to make it a reality.

Their are certain steps you have to take which include the following:
1. Get a pre-approval letter from a lender (I recommend using the bank you have your money in now).
2. Choosing a property that has a lot of equity (usually properties that need repair). Also, I recommend a multi-unit.
3. Find out the value of the property after it has been renovated. (Im a realtor that can help with that)
4. Have a contractor that can help you fix up the property (or I can assist with that).
5. Repair the property after closing and live in one unit and rent out a space for a tenant. (check out the average rents in the area you choose)

So, here is an actual example:

Property on 123 Maine st -Purchase Price- $10,000
Renovation costs                                          $85,000

Total Investment                                         $95,000

Here is how the mortgage will be free- Mortgage for this loan would be about $850 a month. If you rent out a unit in your home for $1000 (ex; a 2bd/1 bath). You can pay the mortgage and save the additional $150.

Also, you can save the money that you would usually use to pay mortgage to put in future investments.

Dont let your fear of not thinking your ready stop you. If you are paying over $900 a month for a mortgage, you are ready. Stop building someone else's residual income and build your own. Stay tuned for the next event.

Til next time,
JC

Power Up Baltimore

It's that time Baltimore. With so much going on (with the election, redevelopments, crime), we have to be apart of the paradigm shift that's happening in Baltimore right now. What am I talking about? I'm talking about the real estate opportunities in Baltimore. There are MAJOR redevelopments happenings i.e. Park Heights, Port Covington, East and West Baltimore.

We need to be apart of this change. I mean, why not invest in Baltimore and make some of the money that the developers are going to make anyway?!?!

The way to do that is education, networking and action. I am having a Power Up Baltimore event this evening that is free. We will talk about real estate opportunities in Baltimore, create an action plan, and get to work. There are properties available at a minimum cost that we can purchase, repair and either sell to increase capital or rent out for residual income.

If you are worried about collateral, this is the place to be. We will talk about financing, opportunities, grant programs, vacant lots, etc.

Please feel free to come tonight:
Orleans Pratt Library (1303 Orleans st)
5:45-8pm
Bring pen and paper