Real estate 2009

8 Tips For A Better Mortgage

Many people make mistakes when it comes to mortgages.

When you are applying for a mortgage and even after you have successful received the mortgage use this list of do’s and don’ts to help guide you.

It could save you a lot of money in the long run.

Do’s

Check your credit report at least six months prior to applying for a mortgage. The last thing you want when you apply for a mortgage are surprises about your credit. Once you are certain you are going to apply for a mortgage you should check your credit report even if you are sure that everything is ok. You need to know what the loan officer is going to see when he checks your credit report.

When you check your credit report makes sure that there is no inaccurate information such as accounts that do not belong to you payments reported as being late that were really on time incorrect balance etc. Dispute any inaccurate information. Also have any negative accounts that are older than seven years removed from your credit report.

Shop around among various loan providers. You should never accept the first quote you are given by a loan provider. There is a very good chance that you can receive a lower rate elsewhere. The way to make sure you are receiving the best interest rate and loan terms is to shop around among other loan providers. This includes different banks savings and loans associations and mortgage brokers.

Negotiate to reduce or eliminate some of the fees. Do not sign the loan papers until you have at least attempted to negotiate one or more terms of the loan. What you are quoted by the loan offer isn’t written in stone until you agree to pay it sign your name on the loan documents. Many of the fees “required” by loan providers aren’t required after all. Try negotiating a reduction in the interest rate or the points charged by the loan. Ask the lender to detail the fees included in the closing costs. This is another opportunity to negotiate a lower fee.

When you are negotiating with the loan officer make sure that he or she is not reducing one cost while increasing other.

Don’ts

Make any assumptions. Making assumptions when it comes to a mortgage can cost you thousands of dollars. Nothing is a given when it comes to mortgages unless you have it in writing. Avoid making assumptions about anything in the mortgage process. If you have questions ask them. If you happen to make assumptions make sure they are correct before making any decisions based on those assumptions.

Sign any contracts you don’t understand or don’t agree with. It is vital that you fully understand the documents you are signing. Do not sign anything that you have not read. Do not sign anything that you do not understand. Do not sign anything that you do not agree with. After you sign the loan documents ignorance is longer an excuse; your signature means that you comply. If there is information you do not understand have the loan officer go over it with you. Alternatively you can go over the documents with an attorney.

Wait until you start receiving delinquency notices to alert your lender of financial trouble. People run into financial trouble all the time. Hoping things will get better will not save your home when you are served with an eviction notice. When you start receiving delinquency or foreclosure notices it is usually too late. If you hit a financial pothole the best thing you can do is let your lender know as soon as it happens. Most lenders have programs such as special forbearance designed to assist homeowners in times of financial distress.

About the writer:  Martin Lukac http://www.MartinLukac.com represents http://www.RateEmpire.com an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance investing taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal 1 American Financial found at http://www.1AmericanFinancial.com

How A Bank Short Sale Save Your Home From Foreclosure

A bank short sale is an option offered by some mortgage lenders when a homeowner is facing foreclosure. Although the process requires considerable time and patience this alternative gives borrowers the opportunity to be released from their mortgage loan and walk away from their property.

Lenders can enter into bank short sale agreements on all types of real estate. The most common include single family residences commercial real estate and vacant land. Short sales are usually reserved for borrowers who do not qualify for refinancing or obtaining a loan modification.

Short selling is exactly what it sounds like. Real estate is sold ‘short’ of what is owed on the mortgage note. Banks will agree to accept less as long as the borrower is able to locate a qualified buyer within a short period of time.

Short sales are usually managed by the lender’s loss mitigation department. Once borrowers become 31 days delinquent on their payments their account is turned over to a loss mitigator. This individual is responsible for mediating between the borrower and lender. The goal is to arrive at a mutuallybeneficial agreement.

Not all mortgage lenders participate in short sale transactions. Those that do require borrowers to adhere to strict guidelines and deadlines. One missed deadline or improperly filed document can result with the lender commencing in foreclosure action.

Bank short sale properties are usually listed through licensed realtors. Under certain circumstances lenders may allow a home to be placed on the market as “For Sale by Owner”. When listing real estate through a realtor it is a good idea to work with an agent with experience in short sales.

If you are like most people you probably wonder why a bank would agree to accept less than is owed. The primary reason is that foreclosures are costly and timeconsuming. Foreclosing on a single property can cost the bank between 60000 and 80000. The process can take up to 18 months to complete.

With short sales the process takes four to six months and there are no costly legal expenses. The lender agrees to accept a lesser amount in order to expedite the sale and recover the majority of their investment.

A bank short sale can be a saving grace for individuals facing foreclosure. Although the borrower is unable to continue living in their home a short sale is less detrimental to their credit than foreclosure.

One extremely important issue to address is to determine the type of short sale your lender offers. Two types exist Deficiency Judgment and Payment in Full without Pursuit of Deficiency Judgment. The first can ruin your life for decades while the latter can remove an enormous financial burden.

Lenders who issue deficiency judgments persue the borrower for the difference between the short sale price and loan balance. If you owe 180000 on your mortgage and the property sells for 140000 the bank issues a judgment in the amount of 40000.

Most people facing foreclosure don’t have 40000 lying around. Having a judgment attached to your credit can have widespread effects. If you are fortunate enough to obtain any type of credit chances are you will pay a high interest rate. Insurance carriers can increase premiums. The judgment can even affect employment opportunities.

Payment in full without pursuit of deficiency judgment will affect your credit score. However it takes considerably less time to recover from the financial fallout. Borrowers able to get back on track financially can apply for another mortgage loan within two years.

It is wise to become educated about bank short sales and understand the pros and cons. Talk with your lender to see what options are available. When properly constructed short sales can be beneficial to all parties involved.

About the writer:  Real estate investor and author Simon Volkov specializes in buying and selling bank short sale real estate. If you need to sell your home quickly or an investor looking for exceptional deals visit www.SimonVolkov.com today.

Property Managers: Making The Transition From Home Office To Commercial Office

As a small business owner it can be very challenging to grow your business remain profitable and maintain a balance in life with your family. Some property managers can manage 50100 properties without the need of a full time employee or commercial office.nbsp; However once the portfolio exceeds 100 units an owner needs to consider hiring an employee and opening a commercial office.

One of the best decisions I ever made was to purchase an office condo. As a property manager and landlord I dont mind having mortgage debt as long as someone else pays the mortgage. Why not apply the same concept with a commercial office.

I own two separate commercial office condos that are about 1000 sqft. each. We sublease 50 of the space to our mortgage broker attorney and real estate sales agents. nbsp;Our office condo has a dedicated conference room and a shared reception area bathroom and kitchen. Our tenants use the conference room by appointment and we offer free usage of our fax machine printer and digital scanner/sender. Hispeed internet is included and our tenants setup a separate phone line or VOIP system through our internet connection. Our phone system also supports multiple companies with separate business lines offering full voice mail and voice attendant.

The monthly cost of renting an office will vary in cost depending on location and your local market. Renting an equivalent office in our market would cost 15002000 per month after paying rent internet phone lines and utilities. If the lease is a triple net lease requiring you to pay property taxes it can be even more costly.

There is a huge demand for small business owners needing to lease a small commercial suite to conduct business or meet customers. Many small businesses cant afford the overhead cost of leasing a larger office. Many businesses compliment a property management firm. Consider subleasing to a real estate attorney sales agent who works with an investment group insurance agent mortgage broker or contractor. nbsp;

Renting office suites to small business owners is extremely profitable. We rent each suite for 400500 per month. Both office condos cash flow several hundred dollars each. Not only does this give me a free office but I plan to use the yearly cash flow to payoff the mortgages within 10 years.

If you partner and sublease with a small business owner consider sharing employee costs. nbsp;You may be able to cross train a receptionist or assistant to help you and your tenant partner. This can reduce your overhead cost until your business grows enough to support the cost of a full time employee.

My business has grown and I now have several employees. Leveraging my office condo helped me manage my overhead and make the transition from a home office to commercial space much easier. I still work at home but my staff members answer calls draft leases and handle all maintenance and accounting etc. This has provided the best balance for my business. Now I can actually take a vacation. Before I had an office and a team of resources it was impossible to take a vacation.

Owning your commercial can make your business more profitable if you sell your business in the future. You could package the business and office together for sale or sell the business only and keep the office and lease to new owner. Both scenarios are attractive offerings to a future buyer.

I encourage property managers to consider making the investment to purchase an owner occupied office and sublease to business professionals. Not only can you have a free office you may generate business leads from your business tenant relationships.nbsp;nbsp;nbsp;

About the writer:nbsp;nbsp;Kris Colquette’s real estate website kcaustin.com is a fantastic resource for Austin Condos amp; Austin Foreclosures.nbsp; There is also a fantastic Flat Fee MLS Listing service available there! Enjoy the abundant Austin home information available and please don’t hesitate to contact me with Austin real estate questions.

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