Most of you are now aware of the government’s new Homeowner Affordability and Stability Initiative and the Tax Credit of $8,000.00 for “new home buyers.” For this Tax Credit a “new home buyer” is defined as not having owned a principle residence during the three-year period prior to purchase. Two good links explaining the Tax Credit for new home buyers are:
http://www.newquestcity.com/templates/contentpages/stimulus/firsttimehomebuyer.cfm
http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm
Review this information and use this to your advantage. Please contact me if you have any questions regarding the Tax Credit.
Mar 3, 2009
Tip 6-2009: Interest Rate Lock
SHORT SALES - Interest Rate Lock:
As mentioned in a previous Tucker’s Tip, short sales take a long time to be approved by the short sale lender. In representing a buyer of a short sale property, avoid locking in the interest rate until you are certain of the closing date. Most locks are for 30 to 60 days, which is usually not enough time to obtain an approval of the short sale. Continuously remind the buyer to be patient and find a good lender who can work with you during the inevitable delays caused by the short sale.
As mentioned in a previous Tucker’s Tip, short sales take a long time to be approved by the short sale lender. In representing a buyer of a short sale property, avoid locking in the interest rate until you are certain of the closing date. Most locks are for 30 to 60 days, which is usually not enough time to obtain an approval of the short sale. Continuously remind the buyer to be patient and find a good lender who can work with you during the inevitable delays caused by the short sale.
Tip 5-2009: Appraisals
APPRAISALS: We are experiencing a sharp increase in the number of real estate contracts which are being terminated due to appraisal problems. Several lenders are now requiring urban comps within one mile, sales within 90 days, and sometimes other strict criteria. In a falling market, this can result in much lower appraisals. To make matters worse, on May 1, 2009 new rules are going to be enacted regarding the assignment of appraisers. Be prepared to defend the contract price, with pending sales unknown to the appraiser or in some cases, even changing lenders.
Tip 4-2009: More Short Sales
More SHORT SALES:
Short sale contracts may contain a clause making the transaction contingent upon the Seller’s lender’s approval of the short sale. This approval, however, is taking much longer than anyone estimates. One strategy to shorten the time for the approval is to include a clause in the Real Estate Contract giving the Buyer an option to terminate the contract if the short sale approval is not obtained by a certain drop-dead date. You may also want to include a clause allowing the Buyer to extend the termination date. With this “drop-dead” date, the short sale negotiator may put your contract to the “top of the stack.”
Short sale contracts may contain a clause making the transaction contingent upon the Seller’s lender’s approval of the short sale. This approval, however, is taking much longer than anyone estimates. One strategy to shorten the time for the approval is to include a clause in the Real Estate Contract giving the Buyer an option to terminate the contract if the short sale approval is not obtained by a certain drop-dead date. You may also want to include a clause allowing the Buyer to extend the termination date. With this “drop-dead” date, the short sale negotiator may put your contract to the “top of the stack.”
Tip 3-2009: Time to Refinance
Please tell everyone who owns a house that there currently exists a tremendous opportunity to refinance their residence. I have recently closed several 30-year loans at some very low rates, which we have not seen in many years. There are numerous local experienced lenders with excellent loan products for refinances.
These local lenders do have money to lend. Meet with your local lender now, start the process, and then when the interest rates are right, your lender can lock in the attractive rates. Tell your family, friends, prior clients and future clients not to miss this opportunity!
These local lenders do have money to lend. Meet with your local lender now, start the process, and then when the interest rates are right, your lender can lock in the attractive rates. Tell your family, friends, prior clients and future clients not to miss this opportunity!
Tip 2-2009: Big Ray and the Kool Kats
Watch Charlottesville’s own Ray Caddell from Century 21 Ray Caddell and Associates at one of President Obama’s inauguration parties.
Big Ray and the Kool Kats is performing live from the Corcoran Art Gallery Inaugural Ball at http://www.linklive.org/. After clicking the link, go to Link-live Inaugural Webcast. Festivities begin Tuesday, January 20th at 6:00pm. There will be guest appearances by Hillary Clinton, George Lucas, Steven Spielberg, Sandra Day O’Connor and many others.
We are pleased to forward this information to you. We are excited to have one of our own community leaders involved in this historical event. We hope you will join in and watch!
Big Ray and the Kool Kats is performing live from the Corcoran Art Gallery Inaugural Ball at http://www.linklive.org/. After clicking the link, go to Link-live Inaugural Webcast. Festivities begin Tuesday, January 20th at 6:00pm. There will be guest appearances by Hillary Clinton, George Lucas, Steven Spielberg, Sandra Day O’Connor and many others.
We are pleased to forward this information to you. We are excited to have one of our own community leaders involved in this historical event. We hope you will join in and watch!
Tip 1-2009: Scheduling Closing Appointments
A friendly reminder that the courts are closed Friday, January 16th and Monday, January 19th for Lee Jackson Day and Martin Luther King Day. If you’re planning a closing on January 15th, aim for earlier appointments. The earlier in the day, the better the probability of being able to record. If you should have any questions, please feel free to call me at my direct number 434.951.0858, my cell number 434.981.1946, or email me at Tucker@TGBlaw.com.
Tip 5-2008: Where Will Growth Occur?
As a gift to you, the Real Estate Community, I want to pass along information about a recent article “Where Will Growth Occur? A Glimpse at USA 2020.”
This article was written in November by the chief economist for NAI Global. NAI Global is one of the world’s leading providers of commercial real estate services. NAI manages a network with 5,000 professionals and 325 offices in 55 countries worldwide. NAI Global predicts that the CHARLOTTESVILLE MSA will have the largest percentage population growth rate (a 213% growth rate!) in the entire country from now until 2020! If you would like to know more about this prediction for Charlottesville, the article link is:
http://www.naiglobal.com/docs/NAI_Global_Growth_Whitepaper_11_08.pdf. Hopefully this article will provide some good news to begin the New Year!
Happy Holidays!
This article was written in November by the chief economist for NAI Global. NAI Global is one of the world’s leading providers of commercial real estate services. NAI manages a network with 5,000 professionals and 325 offices in 55 countries worldwide. NAI Global predicts that the CHARLOTTESVILLE MSA will have the largest percentage population growth rate (a 213% growth rate!) in the entire country from now until 2020! If you would like to know more about this prediction for Charlottesville, the article link is:
http://www.naiglobal.com/docs/NAI_Global_Growth_Whitepaper_11_08.pdf. Hopefully this article will provide some good news to begin the New Year!
Happy Holidays!
Tip 4-2008: Closing Schedule for last week of 2008
If you have any closings scheduled during the weeks of Christmas and New Year’s, please note that the Clerk’s Offices will be closed December 25, 26, January 1 and 2. In addition, the offices have limited hours on December 24 and December 31. If you’re planning a closing during the last two weeks of this year, aim for early appointments on the 22nd and 29th. The earlier in the day the better the probability of being able to record.
If you should have any questions, please feel free to call me at my direct number 434.951.0858, my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
If you should have any questions, please feel free to call me at my direct number 434.951.0858, my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
Tip 3-2008: More Short Sales
More Short Sales:
If the Seller has a second mortgage and/or home equity loan, that means another lender needs to approve the short sale. Also, depending on the facts, the holder of the first mortgage may not agree to any discount, which means the second lender may have to take the full discount. This is still possible, because the alternative may mean that the first lender eventually forecloses resulting in the second lender getting zero. Remember to allow plenty of time in the contract for all this to be negotiated.
If you should have any questions, please feel free to call me at my direct number 434.951.0858 or my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
If the Seller has a second mortgage and/or home equity loan, that means another lender needs to approve the short sale. Also, depending on the facts, the holder of the first mortgage may not agree to any discount, which means the second lender may have to take the full discount. This is still possible, because the alternative may mean that the first lender eventually forecloses resulting in the second lender getting zero. Remember to allow plenty of time in the contract for all this to be negotiated.
If you should have any questions, please feel free to call me at my direct number 434.951.0858 or my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
Tip 2-2008: Short Sales
Regarding Short Sales:
Short sales can take a long time to complete. If you have a listing agreement which may require a short sale, have your sellers contact their lender now instead of waiting on a sales contract. Most lenders have the short sale forms online. We have discovered that some lenders can take several months to process a short sale, and the sooner the lender can assign someone to start reviewing the preliminary documents, the less likely there is to be a delayed closing.
If you should have any questions, please feel free to call me at my direct number 434.951.0858 or my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
Short sales can take a long time to complete. If you have a listing agreement which may require a short sale, have your sellers contact their lender now instead of waiting on a sales contract. Most lenders have the short sale forms online. We have discovered that some lenders can take several months to process a short sale, and the sooner the lender can assign someone to start reviewing the preliminary documents, the less likely there is to be a delayed closing.
If you should have any questions, please feel free to call me at my direct number 434.951.0858 or my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
Tip 1-2008: Foreclosure Contracts
Regarding foreclosure contracts where the foreclosure lender is the Seller:
Make sure that the contract states that Purchasers have the option of choosing their own attorney. Recently, our Real Estate Department discovered that many lenders have a clause in their sales contracts requiring Purchasers to use the foreclosure lender-selected attorney for their closings. In a foreclosure situation, I find it best for each party to select his own attorney.
If you should have any questions, please feel free to call me at my direct number 434.951.0858 or my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
Make sure that the contract states that Purchasers have the option of choosing their own attorney. Recently, our Real Estate Department discovered that many lenders have a clause in their sales contracts requiring Purchasers to use the foreclosure lender-selected attorney for their closings. In a foreclosure situation, I find it best for each party to select his own attorney.
If you should have any questions, please feel free to call me at my direct number 434.951.0858 or my cell number 434.981.1946 or email me at Tucker@TGBlaw.com.
Subscribe to:
Posts (Atom)