Posted in the Wall Street Journal today, June Fletcher, made reference to options in how a Seller can assist a Buyer in purchasing a home in today's market. One option was to assist the Buyer with financing. Years ago, Sellers would hold the note on a home for a potential buyer only to be left with the liability of the debt later when the buyer would vacate the property or choose not to make payments. While this is a very good option to assist a Buyer, it is wise to obtain an attorney to assist you in the legal process of writing the note., determing the financing terms and to make sure there is an arbitration clause and liability clause to protect the Seller. As Fletcher also states in her article, it is wise for the Seller to also investigate the buyer's finances just as a bank would to determine if allowing this option to sell the home would be in the Seller's best interest.
As stated in Fletcher's article, the below five steps should be taken:
1. Investigate the buyer by asking him to fill out a Uniform Residential Loan Application.
2. Get bankruptcy details by checking out the case through Public Access to Court Electronic Records (PACER), a service of the U.S. Judiciary. ( This program requires registration and will only charge you for the viewing of the pages you print, so it does require a credit card to use,
3. Pull the buyer’s credit report and eviction and criminal history via the American Apartment Owners Association Web site.
4. Insist on 20 percent down or offer a contract for deed, which only confers full ownership rights after the home is paid off.
5. Consider offering a lease-option with part of the payment going toward the purchase price, which gives the buyer time to repair his credit before seeking conventional financing.
6. And one other area of research that should be done that is not included in the article is to verify past and present residential creditors in addition to pulling the Clerk of the Court Civil and Criminal Records ( which are public record) through the Court's online website to verify there are no lawsuits, liens or criminal activity against the Buyer that would otherwise pose a problem for you as the Seller.
If you are an agent, unless you have authority to do this from the Seller in writing, have the seller do this. The fees for pulling records on one potential buyer, can add up and unless you have a written agreement with your seller to reimburse for the background check or otherwise, the Seller should take this responsbility.
Althought there is alittle more legwork for this option, it is still a great option to assist a buyer in our current market.
Source: The Wall Street Journal, June Fletcher (08/28/2009)© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
Additional information provided via Dawnmarie Hatfield, TRC, AHWD Realtor/Keller Williams Realty.
Tuesday, September 08, 2009
Tuesday, August 18, 2009
What Floridians Need to Know About Insurance
DO YOU HAVE ENOUGH INSURANCE?
Living in Florida we all know we are at risk of a hurricane between June 1st through November 30th. The biggest mistake I have seen is the assumption that because you have Homeowner’s insurance you are covered in the case of a Hurricane. But there are other mitigating circumstances that result from a hurricane like water and wind damage, which may not be made a part of your homeowner’s insurance policy.
There are two critical must know facts regarding insurance. Homeowners insurance is not hurricane insurance and there is a 30 day waiting period. "Prepare for Hurricane Season: Buy Flood Insurance Now" is the title on the FEMA website posted May 29, 2009. According to FEMA, floods are the most common hazard in the US, and most homeowners insurance doesn't cover flood damage.
Everyone is at risk of flooding and Flood coverage is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers. The fees for insurance are mandated by NFIP so even if you try and shop around, the only difference you may see in rate would determine on the fee the insurance agent is charging you to manage that policy.
NFIP was created in 1968 by Congress for those communities that agreed to adopt and enforce flood plans to reduce flood damage would have federally backed flood insurance. And in 1994 Congress passed the National Flood Insurance Reform Act (SFHA) lengthening the waiting period required before an NFIRA policy can go into effect. The waiting period is 30 days for a new or modified policy. During a Hurricane it is less likely any insurance company will insure you so it is important that you obtain insurance before hurricane season.
A 2008 poll by the Insurance Information Institute found that only 17 percent of Americans have a flood insurance policy, ranging from 15 percent in the West to 17 percent in North Central States and the South to 20 percent in the Northeast. Coverage is provided for up to $250,000 for the home and $100,000 for personal belongings and policy premiums can range anywhere between $300 to $2,000 depending on the coverage amount, type of home and amount of personal property coverage you need. The higher deductible you select, the possibility for a lower premium.
On the FEMA website there is information about the National Flood Insurance Program, flood maps and a calculator to estimate premiums. They also link to FloodSmart.gov, the official site of the National Flood Insurance Program and the Insurance Information Institute website has down-loadable information regarding the National Flood Insurance Program.
In addition to Flood, hurricanes cause wind damage. Typically homeowners insurance covers wind damage; but during a hurricane there can be wind related damage to a window or door that results in flooding. According to the fine print, this type of flood damage might not be covered in the policy. Additional wind and hail coverage might be necessary.
When researching Homeowner’s insurance , typically enough insurance will be required to rebuild the home ( replacement value) and to replace all personal belongings. Speak to an insurance agent or company and have discussions regarding requirements as well as deductibles. Most coastal residents have percentage deductibles for storm damage rather than the traditional dollar deductibles that are used for other types of losses such as fire or burglary.
If you are buying a home during hurricane season, some insurance companies may freeze the underwriting of new policies until the storm is to pass. Don’t be discouraged, if you can not get your quotes or a binder for closing. Remember you can always ask for an extension of closing to allow for the storm to pass and the proper binder to be obtained.
Get informed this Hurricane Season and know your options so you can be properly protected.
Information gathered from FEMA.gov, floodsmart.gov, Florida Department of Insurance 2009
Living in Florida we all know we are at risk of a hurricane between June 1st through November 30th. The biggest mistake I have seen is the assumption that because you have Homeowner’s insurance you are covered in the case of a Hurricane. But there are other mitigating circumstances that result from a hurricane like water and wind damage, which may not be made a part of your homeowner’s insurance policy.
There are two critical must know facts regarding insurance. Homeowners insurance is not hurricane insurance and there is a 30 day waiting period. "Prepare for Hurricane Season: Buy Flood Insurance Now" is the title on the FEMA website posted May 29, 2009. According to FEMA, floods are the most common hazard in the US, and most homeowners insurance doesn't cover flood damage.
Everyone is at risk of flooding and Flood coverage is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers. The fees for insurance are mandated by NFIP so even if you try and shop around, the only difference you may see in rate would determine on the fee the insurance agent is charging you to manage that policy.
NFIP was created in 1968 by Congress for those communities that agreed to adopt and enforce flood plans to reduce flood damage would have federally backed flood insurance. And in 1994 Congress passed the National Flood Insurance Reform Act (SFHA) lengthening the waiting period required before an NFIRA policy can go into effect. The waiting period is 30 days for a new or modified policy. During a Hurricane it is less likely any insurance company will insure you so it is important that you obtain insurance before hurricane season.
A 2008 poll by the Insurance Information Institute found that only 17 percent of Americans have a flood insurance policy, ranging from 15 percent in the West to 17 percent in North Central States and the South to 20 percent in the Northeast. Coverage is provided for up to $250,000 for the home and $100,000 for personal belongings and policy premiums can range anywhere between $300 to $2,000 depending on the coverage amount, type of home and amount of personal property coverage you need. The higher deductible you select, the possibility for a lower premium.
On the FEMA website there is information about the National Flood Insurance Program, flood maps and a calculator to estimate premiums. They also link to FloodSmart.gov, the official site of the National Flood Insurance Program and the Insurance Information Institute website has down-loadable information regarding the National Flood Insurance Program.
In addition to Flood, hurricanes cause wind damage. Typically homeowners insurance covers wind damage; but during a hurricane there can be wind related damage to a window or door that results in flooding. According to the fine print, this type of flood damage might not be covered in the policy. Additional wind and hail coverage might be necessary.
When researching Homeowner’s insurance , typically enough insurance will be required to rebuild the home ( replacement value) and to replace all personal belongings. Speak to an insurance agent or company and have discussions regarding requirements as well as deductibles. Most coastal residents have percentage deductibles for storm damage rather than the traditional dollar deductibles that are used for other types of losses such as fire or burglary.
If you are buying a home during hurricane season, some insurance companies may freeze the underwriting of new policies until the storm is to pass. Don’t be discouraged, if you can not get your quotes or a binder for closing. Remember you can always ask for an extension of closing to allow for the storm to pass and the proper binder to be obtained.
Get informed this Hurricane Season and know your options so you can be properly protected.
Information gathered from FEMA.gov, floodsmart.gov, Florida Department of Insurance 2009
SHORT SALES - WHAT YOU SHOULD KNOW
STILL HUNTING FOR THOSE BARGAIN HOME SALES?
WHAT YOU SHOULD KNOW IF YOU ARE INTERESTED IN BUYING A SHORT SALE
Short Sales can take between 60 and 120 days or longer for lender approval and your offer is placed in a stack of other offers which may or may not be presented to the bank. Note that in most cases, the bank will accept the highest and best offer, so make sure you understand the particular nature in which your offer will be handled, have the appropriate contingency placed in the contract so you can back out if you feel it is taking too long, and discuss with your real estate professional, what the right course of action would be in your best interest depending on the type of financing you are achieving. This will make it a win-win for everyone. For a more information on short sales, send me an email at Dawnmarie@kw.com.
WHAT YOU SHOULD KNOW IF YOU ARE INTERESTED IN BUYING A SHORT SALE
Short Sales can take between 60 and 120 days or longer for lender approval and your offer is placed in a stack of other offers which may or may not be presented to the bank. Note that in most cases, the bank will accept the highest and best offer, so make sure you understand the particular nature in which your offer will be handled, have the appropriate contingency placed in the contract so you can back out if you feel it is taking too long, and discuss with your real estate professional, what the right course of action would be in your best interest depending on the type of financing you are achieving. This will make it a win-win for everyone. For a more information on short sales, send me an email at Dawnmarie@kw.com.
Friday, July 24, 2009
Forclosures and Pets
Its sad that many homeowners are falling into forclosure, losing maybe the only asset they have ever owned. But it becomes a sadder situation when the homeowner not only loses his home, but had to give up his beloved pets. I just read an article about a man in Tonawanda, New York who packed up a U-Haul truck of all his furniture, belongings and pets after his home foreclosed. He took the Uhaul to the SPCA and told them he lost his home to forclosure and needed to find a safe place for his pets as he searched for a place to go.
In Connecticutt a local shelter received two 12 year old cats that were brought in by someone who was forced to live in her car after losing her home. And in California the Humane Society received a 20% increase in the number of owners surrendering their dogs and cats because they lost their homes.
People are losing their jobs, their homes, having to relocate out of state and are surrendering their pets who have been part of their families for five years or more.
I don;t think anyone ever expected the scope of this mortgage problem to be so widespread, but given the strength the immense financial strain, many don't feel they can care for their pets.
I don't know how anyone else feels. Many people feel pets are just family companions, while others like myself feel they are a part of the family. Would you surrender your children to an orphanage if you lost your job - No., you'd do whatever possible to make ends meet. An animal provides the companionship, unconditional love and strength to a person in the worst of times and they don't require very much except your love and attention.
I'm interested to know anyone elses take on this... it sure makes you think.
In Connecticutt a local shelter received two 12 year old cats that were brought in by someone who was forced to live in her car after losing her home. And in California the Humane Society received a 20% increase in the number of owners surrendering their dogs and cats because they lost their homes.
People are losing their jobs, their homes, having to relocate out of state and are surrendering their pets who have been part of their families for five years or more.
I don;t think anyone ever expected the scope of this mortgage problem to be so widespread, but given the strength the immense financial strain, many don't feel they can care for their pets.
I don't know how anyone else feels. Many people feel pets are just family companions, while others like myself feel they are a part of the family. Would you surrender your children to an orphanage if you lost your job - No., you'd do whatever possible to make ends meet. An animal provides the companionship, unconditional love and strength to a person in the worst of times and they don't require very much except your love and attention.
I'm interested to know anyone elses take on this... it sure makes you think.
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