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What is a Short Sale?

Originally posted on Realtor Jta27's Blog:

From Wikipedia, the free encyclopedia

For short selling in the financial markets, see Short (finance)

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan.[1] It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower.

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In a short sale, the bank or mortgage lender agrees to discount a loan balance because…

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4 Home Showing Tips in the Hot Weather.

Jeremy Alexander

Realtor(southeast MI)

jeremy.t.alexander@hotmail.com

(o) 313 324 8635

(d) 313 324 8743

twitter: @jsmooth61

Median List Prices Bounce Back.

Ready to Buy….?

….so you’ve decided to buy.    Congratulations..!!!   This is one of the best times to purchase home with record low prices and lower interest rates….while they last.    So what should you consider when thinking of buying….here’s a few ideas.

1.   School’s – the school district of your next home is probably one of the most important features for those who have children.

2.   Safety

3.  City Services/Block clubs/Community

4.   Size & layout of the home.

5.  Home project’s/Amount of work the home needs.

6.  Features you can live with/without

So you’ve got these questions ironed out what’s next.   Next you need to know if your going to be a cash buyer or financing through a lender.   If you’re buying with cash..the purchasing process moves a lot faster…also with cash deals, most sellers whether its bank-owned, HUD, or private owners…..cash deals are more likely to be accepted than financing offers.

For those who will be financing…there are different types of programs for all.   Conventional loans are basic loans, which normally requires you to put 5-20%  down towards the purchase of your home.   FHA & VA loans are government insured loans.   FHA normally requires 3.5% down and has certain policies and codes that have to be met.   VA loans are 100% financing for veterans.  Other lenders have more options available, but these are the most common.

So you’ve figured the details of you buying a home, decided if you’re going to be a cash buyer or financing, and decided your type of financing(if you’re financing).    Now it’s time for your search.

If using financing its good to talk to your lender and get a pre-approval letter from them, but if you’re using cash …its good to have proof of funds(bank statement, 401k statements) handy.      When writing up your offer to a seller, an offer has to contain a few things.    1) Purchase agreement   2) Proof of funds/pre approval letter from a lender  3) Earnest money deposit(which is normally 1000.00), but check and make sure….they may need something different.   4)  If buying a HUD or bank owned home,or a short sale, most of them have additional addendum’s  that have to be signed and turned in as well.  Check with the seller/seller’s agent to be sure.  If you’re using a real estate agent..he/she will make sure you have these things together, and specifics of the deal.

After you submit your offer there’s usually about  a day or two waiting period to find out if your offer’s been accepted.   If your offers declined…you simply return to your search…and your earnest money deposit should be returned.  If your offers accepted then you are on your way…just a few more things.

Your offers accepted….!!!  Your next steps are time sensitive.   If you asked for inspections..now’s the time to schedule and get those ordered and taken care of right away.  If you’ve used financing…now is the time to make sure appraisals are being ordered and done.  Once these steps are completed and taking care, make sure if you’ve ordered title insurance that you’ve selected who the title company providing your insurance will be(most of the time the seller’s are providing this to you, and selected the title insurance company).   All that’s left is making sure you’re complying with municipalities(whether they require municipal inspections or not)…and the final water reading, to take care of any outstanding water bills.     One last step…show up at your closing…….and purchase your new home..!!!!!!!!

Jeremy A

Keller Williams Realty Detroit

jeremy.t.alexander@hotmail.com

http://www.jta.kwrealty.com

313 324 8635

Rentals

Own A Rental Property?-Are you aware that there is a new law which requires you to issue an IRS 1099 to the handyman and other vendors? If you’re the owner of even a single unit of rental property, starting this year, you must start tracking all vendors doing at least $600 worth of work for you. Federal law now requires you to send them an IRS 1099 form. The requirement to track vendors and issue 1099 forms isn’t new. It’s something that large rental property owners already must do. But last year, when the federal government enacted the Small Business Jobs Act of 2010 (H.R. 5297), it expanded this requirement to all property owners, no matter how small. Even property owners who are just doing rental as a sideline, maybe as part of a family investment fund or as a part of a retirement savings plan, are now considered to be “conducting a trade or business,” so the 1099 reporting requirement now applies to them. If you own a rental, that means you have a legal obligation to obtain certain information from your vendors. Generally, their name, address, social security number or other tax id, and to keep a record of the amount you pay them over the year. Then you must issue a 1099 form to reflect the income you paid them for the year and keep a copy for yourself. Since the requirement took effect for the 2011 tax year, you should have started tracking the payments you’ve made to your vendors beginning in January.

Jeremy Alexander

810-962-9912

jalexander@kw.com

http://www.thejtarealty.com

REALTOR® Magazine-Daily News-B of A and GMAC to Resume Foreclosures.

REALTOR® Magazine-Daily News-FHA Debuts New Plan for Underwater Owners.

REALTOR� Magazine-Daily News-Foreclosure Bargains Getting Harder to Find.

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