Real Estate Informer

Wicomico County Housing Report December 2011

2012-01-26T15:52:00.000-08:00

Inventory down 22%!!!

The market report for December showed some very positive signs and strides for the market. Traditionally, December is a slow month for real estate sales, but this December showed some positive activity. See below for the market report broken down by section:

Active Inventory
Versus last year, the total number of homes available this month is lower by 182 units or 22%. The total number of active inventory this December was 641 compared to 823 in December 2010. This month's total of 641 is lower than the previous month's total supply of available inventory of 719, a decrease of 11%. Seeing as real estate is a Supply and Demand business this is a very positive sign!!

Units Sold
There was an increase in total units sold in December, with 67 sold this month in Wicomico County Real Estate. This month's total units sold was lower than at this time last year, another positive sign, especially to be in the month of December.

Months of Supply
In December, there was 9.6 months of supply available in Wicomico County, compared to 11.8 in December 2010. That is a decrease of 19% versus a year ago.

New Listings & Current Contracts
This month there were 51 homes newly listed for sale in Wicomico County compared to 65 in December 2010, a decrease of 22%. There were 66 current contracts pending sale this December compared to 43 a year ago. The number of current contracts is 53% higher than last December, 53% higher is a BIG deal, that is a HUGE increase in market activity!!

Lets hope this positive market improvement continues through the new year!!

Acceptable Types of Hardship in the eyes of a bank when it comes to a short sale:

2012-01-02T08:15:00.000-08:00

There is a lot of confusion and misconception it seems when it comes to someone understanding what a bank qualifies as an acceptable hardship for a short sale. Although there are exceptions to the rule, for the most part, banks take the approach of verifying that you have a hardship that prevents you from paying your mortgage, and that the hardship occurred after you took the loan out. Remember banks verify this through your short sale package, so they will look at all of your finance’s to determine eligibility. Basic principle is that you have more expenses going out then income coming in. As mentioned before, there are exceptions but below are the 16 most common hardships that would qualify a seller for a short sale:

1. Loss of Employment
2. Business Failure
3. Damage to Property
4. Death of Spouse or Wage Earner
5. Death of Non‐wage Earner
6. Severe Illness
7. Inheritance
8. Relocation
9. Divorce
10. Military Service
11. Payment Increase or Mortgage Adjustment
12. Insurance or Tax Increase
13. Legal Separation
14. Too Much Debt
15. Incarceration
16. Combination of Above

Commonly asked Foreclosure Questions part 3

2011-12-11T14:00:00.000-08:00

If I have started to miss payments, should I continue to live in my home?

Yes you should continue to live in the home. You are in a far better position to save your home from foreclosure by continuing to live in and maintain it. If you vacate the property, you can run the risk of not qualifying for assistance. Although this is not always the case, it certainly can add more scrutiny on your situation if you vacate the property. If your circumstances require you to move out, you should continue to maintain the property. This means that all utilities should remain on, and during the warmer months the grass should be cut, during the colder months the heat should remain on.

What should I do if I get a foreclosure notice?
If you have received a legal foreclosure notice, please reach out to a professional right away. The longer you wait, the closer you get to foreclosure, and the fewer options you have. If you have received a notice to foreclose this means the bank is filing paper work and starting the process to take legal action to repossess the house. You still have time at this point to prevent foreclosure but do not hesitate!! The closer you get to the foreclosure date the harder it becomes to negotiate with the bank for whatever options you chose

This is just a few of the commonly asked questions I get. As always, if you need any more information feel free to contact me anytime.

Commonly asked Foreclosure questions part 2

2011-12-02T08:58:00.000-08:00

What is a Loan modification?A loan modification is where the bank modifies your loan to a lower payment to try to help you continue to stay in the home. Please note to get a loan modification in most circumstances, you have to be employed.\

What exactly is a short sale?A short sale is when a bank is willing to let you sell the property for less money than you owe on the mortgage in exchange for the property not going to foreclosure. The pay off on the mortgage is "short" hence the name "short sale". This means that market value on your home is less than what you owe in today's market, causing a negative equity position.

What should I do if I receive a letter saying my home is going to be sent to foreclose?Do not ignore letters or phone calls from your bank! Ignoring is the worst thing you can do! If you are having problems making your payments, take action immediately, reach out to a professional to help you in your situation. Do not hesitate!! The quicker you can be proactive on this, the better. Waiting and ignoring the situation at hand could push you in a direction where your options will be reduced, and may limit your control of the situation and put the control in the banks hands.

Part three to follow soon, stay tuned!!

New Blog Series: Frequently asked Foreclosure Questions Part one

2011-11-29T16:38:00.001-08:00

Since I get so many emails asking generally the same questions I have decided to do a blog series where I will post two questions every few days. See below the first two questions to start the series:

Commonly asked Foreclosure Questions

What takes place if I miss my mortgage payments or I am behind on my mortgage payments?
Foreclosure can occur, but it does not have to. You can take action to stop foreclosure You now have more options than ever to prevent your home from going to foreclosure. The consequences of foreclosure can have lasting effects on your credit, and you may still owe the bank and the IRS money afterwards. In the State of Maryland once you have missed three mortgage payments the bank can file foreclosure on you. This does not mean if they have filed that you do not still have time for other options.

What should I do if I am in danger of or miss my mortgage payments?

By reaching out for help from a professional early, when you start missing payments, there is a greater chance of success in avoiding foreclosure. As soon as you anticipate problems paying your mortgage payment, contact a qualified professional to help you assess the situation. Many banks are willing to work with you if you reach out to them immediately, because they understand that individuals and families can face temporary job loss, serious illness, or other major life events that can impact their ability to pay their mortgage. However, it is in your best interest to have somebody represent you that does not work for the bank. If you are interested in a loan modification you need to reach out to a HUD approved counselor in your area so they can help decide if you will qualify for a loan mod. If a Short Sale is the option you seek, you need a qualified Realtor, who has experience with handling short sales. It takes a realtor with a significant amount of experience to handle these complex transactions, make sure you have one that has that experience.

The Four Qualifications for a Short Sale

2011-11-22T14:52:00.000-08:00

See below here are the basic qualifications for a short sale. Although there are a few exceptions this covers the broad base of what all the banks agree on.

1. Need to sell Meaning that this not just a want to sell, because of certain circumstances the homeowner needs to sell. In this situation no other work out options will work, causing the homeowner to have to sell the property. The homeowner may have lost equity and wants to sell, that does not mean they qualify for a short sale.

2. Hardship Here is something that a lot of people over look or have confusion on. As mentioned before different banks have different views as to how much they scrutinize the hardship, but overall here is how they view it: a. The homeowner had a material change that has taken place since they took out the loan b. Prevents them from paying. The bank is going to ask for all the homeowners financials to determine if they have a financial hardship, and if they do not see a legitimate hardship the may deny the request.

3. Don’t have the assets to pay off the mortgage. If a homeowner has significant assets from other sources this can also affect the short sale request. The bank may move forward with the short sale but may request the homeowner relinquish some of their assets to cover the short fall.

4. Must have or will soon have a financial short fall. This one pretty simple, more expenses going out than income going in, and again the bank will look at bank statements and paystubs to verify the information.
In the next post we will go over what banks consider expectable hardships.

FHA/HUD short sale information and Guidelines/HUD short sale process

2011-11-14T15:49:00.000-08:00

When it comes to a short sale there is a significant amount of confusion on how exactly each process is structured and in many cases there is an assumption that all processes are the same. The reality is that this is not true and depending on the bank and loan type, the processes can differ greatly. I have been getting a lot of questions lately about FHA short sales and how the process works, and how to qualify. Below is just a basic overview of the qualifications and guidelines and we will look at the process of the short sale in the next post. See below for all our consumers out there who need this information, but agents feel free to use this as well. Keep in mind this only applies if you have FHA backed mortgage which means you got an FHA loan. You can determine this by looking on your deed which will have your FHA case number on it, or usually your mortgage statement will say if you have an FHA loan. You can also call the number on your statement or go to the servicer’s website( for those who pay online) to obtain that information from your Servicer.

Here is a summary of the requirements to perform an FHA-insured HUD Short Sale or "Pre-Foreclosure" Sale:

1. You must be delinquent 31 days or more at the time of application for the short sale.

2. You must list the property with a Licensed Real Estate Broker who you are not related to.

For the first 30 days of marketing, the short sale lender (mortgagee) may only approve offers that will result in a minimum net sale proceeds of 88% of the "as-is" appraised Fair Market Value (FMV). During the next 30 days of marketing, the lender may only approve offers that will result in minimum net sale proceeds of 86% of the "as-is" appraised FMV. For the rest of the marketing time (60 days), the lender may only approve offers that will result in minimum net sale proceeds of 84% of the "as-is" appraised FMV.

4. The property must be owner-occupied, except for cases of job transfer, death, divorce, job loss. This means you need to be living in the property to perform a short sale under FHA guidelines.

5. There should be written proof of your decrease in income showing an inability to pay the mortgage.

6. HUD will pay up to 1% of buyer's mortgage as part of closing costs if the new mortgage is also FHA, plus reasonable "seller" costs. I have been able to get up to 3% on FHA short sales, but you have to get a special approval from HUD.
7. HUD allows 6% Realtor commission

8. HUD will not pay for Home Warranties, points or lender's title insurance.

9. You must get approval to participate in the HUD Pre-Foreclosure Sale Program in advance

10. Upon acceptance into the program, you will be given an Approval to Participate Form which will outline program restrictions

11. You have to have a viable financial hardship to participate in the PFS FHA program.

12. All settlement costs and commissions are paid by the bank not by the seller of the property.

These are just a few basics, and I hope this helps. We will go through the process on an FHA short sale in the next post. Please note that these apply regardless of who the bank or servicer is on the mortgage as HUD/FHA is the end investor. As always if you need more information contact me anytime.

Are you a Buyer looking to purchase a Short Sale?

2011-11-10T14:52:00.000-08:00

It seems that there is a significant amount of confusion when it comes to purchasing a short sale. There is a lot of confusion and misconception when it comes to these types of transactions, so below I have provided some information to potential buyers of short sales. If you are looking to purchase a short sale, understand that it is not the same as a normal sale and the approach is very different. There could be several parties involved and issues that are unknown to the buyer and buyer’s agent that can affect the transaction. If you are looking to purchase a short sale here is some helpful information.

1. On average to get a short sale approval it can take 60-90 days. There could be mortgage insurance and an end investor on the loan as well as the servicer, which means it has to go through three different processes. Bank of America could be the servicer on the loan but they do not actually own the loan, so, the short sale has to pass their guidelines, then go to the mortgage insurer if there is one, then to the end investor like Fannie Mae and Freddie Mac. If you are a buyer and can’t wait at least 45-90 days for an approval and then another 30 days to go to closing, then you need to look at other houses. The worst thing you can do is tie up a house that is in a short sale with no intention of being patient while waiting for a short sale approval.

2. There is a general assumption that you can purchase a short sale for 40-50% under market value. To that point you may be able to get a reasonable deal on a short sale, it will not be, in most cases, as much of a deal as you may be able to get on an REO (foreclosed property). The bank comes out and does a valuation of the property and will expect under market value, but will not except a huge amount under market.

3. Short sales are a very difficult process and it takes a qualified person to handle these types of transactions. With these types of transaction it takes a very experienced agent on the listing side as well as the buying side. Make sure before you move forward on the transaction that the listing agent has ample experience dealing with these types of transactions, or you could be tied up into a transaction for months that never goes to settlement. There are several different types of short sale processes and each bank’s process is different, it takes a professional who has had experience with all of these different types of short sales to help facilitate a successful transaction.

4. In most short sale transactions the properties are sold “as-is” and no repairs will be made. Although there are some exceptions to this rule, speaking in general, short sales are sold “as-is” and no repairs will be made even if they are found during a home inspection. In most short sale transactions the bank will require both the buyer and the seller to sign an addendum that states the property is being sold “As-is” and no repairs will be made.

These are just a few short pointers for buyers looking to purchase a short sale, if you need any more information contact me anytime.

Salisbury Tops Maryland’s Top Foreclosure rate:

2011-10-20T15:00:00.000-07:00

As foreclosures continue to plague the real estate market nationwide, Salisbury was recently mentioned as one of the top areas in Maryland with loans in default. Recent numbers show that over 9% of mortgages in the city of Salisbury are at least 90 days delinquent. In a normal market the average is 1-3% of mortgages in default. Salisbury was the top municipality per capita with loans in default, while Prince George’s county was the top county in Maryland with over 15% of all loans at least 90days behind. Prince George’s county actually landed on the top ten lists for foreclosures in the nation.

One of the reasons we have been deeply affected here in the Salisbury area, is simply the fact most people do not know what options they have if they are facing foreclosure. There are several options, some which will pay a consumer to participate in a program that saves their home from a foreclosure. Banks are now paying up to $30,000 for relocation on short sales. Organizations like Fannie Mae have implemented procedures such as the Help Desk to move short sale and loan modification along at a smoother pace.

The most important step any consumer can take if they are facing foreclosure is to reach out to a qualified professional to assess their situation. Preventing foreclosure is a very complex process and needs to be handled by someone who has significant experience. Beware of any company that guarantees they can save a house from foreclosure, or guarantees they can get a loan modification. In the state of Maryland it is totally illegal for someone in a pre-foreclosure situation to be charged money up front, as well. If you or someone you know is facing foreclosure and you need more information feel free to contact me, anytime. We are the ground troops in this war and without working together to help prevent ongoing foreclosures our market will continue in the downward spiral that it is in.

Foreclosure price, but Equity Sale in Delmar Maryland!!

2011-10-10T13:05:00.001-07:00

Wow hard to find a property this nice, at this price!!Well maintained 3/2 full bath home in Delmar school district. Hardwood floors, spacious fenced backyard, tiled bathrooms and so much more. Listed at a price where it won't last long!! Take a look today before it's gone. Compared to others on the market, hard to find this condition and location for this price.

STEAL OF A HOUSE FOR SALE DELMAR SCHOOL DISTRICT!!!

2011-10-07T14:56:00.000-07:00

Not a better home on the market for price and amenities!! An absolute must see! House is like brand new with 4 bedrooms/3 full baths in immaculate condition with a heated sunroom. Hardwood flooring with an open floor plan with close to 4000 sq ft!/formal dinning and living room/eat in kitchen with island and tile floor. Home also features an office /2 story grand foyer/ a huge master suite featuring a 11x12 sitting area/tiled soaking tube/ with a walk in closet the size of a bedroom. Compare others in price range one of the best values for sq feet, condition and amenities. All this nestled on 1.15 acre lot

New Short Sale programs offer up to $30,000 in relocation money!!!

2011-09-27T12:32:00.000-07:00

No, that is not a typo! Banks are now, more than ever offering more incentive for homeowners to participate in a Short Sale. Recently, I have seen Seller’s get up to $30,000 in relocation incentives to participate in a short sale. With all the issues with Robo-signing and the economy still not in a state of full recovery, most national lenders have now decided that maybe short sale is the best option for a homeowner who is in danger of going to foreclosure. With the possibility of almost 12 million people with a probability of going to foreclosure, major servicers are now looking at options to help homeowners avoid foreclosure and offer incentives that were never offered before.

Up until recently most banks only paid relocation on HAFA and FHA short sales. In certain circumstances you could get relocation assistance but it was not the norm. Now it is becoming more and more typical for lending institutions to pay for relocations on other types of loans. My suggestion to agents and consumers that are participating in short sales is to start high and you can always come down from that number. As stated before, I have recently seen sellers getting up to $30,000 in relocation assistance. I have also seen sellers getting $10-15K on a regular basis to participate in a short sale ; in many cases a short sale may be the best option for a struggling homeowner. If you are a homeowner that is curious about a short sale, it is something that you have to qualify for.

A short sale is not based on if you are under water on the value of your home that you will automatically qualify to participate in the program. With a short sale, especially to get a sizeable relocation you have to have a verifiable financial hardship. If you are uncertain with whether or not you qualify for a short sale ask yourself these few questions:

1. Has your financial picture changed from when your loan was originated? Has a
hardship occurred (job loss, curtailment in income, divorce, health issues etc…) that prevents you from paying your mortgage?

2. Do you owe more on your house than it is worth in today’s market?

3. Are you behind, or in danger of missing your mortgage payments?

4. Are you in a situation where you really need to sell your home?

If you answered yes to any of these questions, a short sale is certainly an option you should look at to improve your situation. A short sale can help preserve your credit and protect you from serious financial ramifications that a foreclosure could entail.

One more thing that is very important…be sure to work with a real estate agent that is experienced in the short sale process. These are very complex and difficult transactions, you need to have a qualified professional handling the short sale.

This is just a brief description of the short sale process. If you would like more detailed information in reference to a short sale please contact me any time. I can be reached by cell phone 443-783-3928. Or, you may send an e-mail to: moorebrittingham@gmail.com.

Wicomico County Housing Market Data

2011-08-30T16:42:00.000-07:00

Wicomico County Housing Report July 2011

We just got the numbers for the Wicomico County Housing report for July, see below and we will take a few minutes to go through them.

UNIT’S SOLD:
There was a decrease in total units sold in July, with 60 sold this month in Wicomico County Real Estate versus 63 last month, a decrease of 5%. This month's total units sold were higher than at this time last year, an increase of 3% versus July 2010. So fewer units than in June, but more units sold than last July, which is certainly a good thing!

INVENTORY:
Versus last year, the total number of homes available this month is lower by 163 units or 17%. The total number of active inventory this July was 811 compared to 974 in July 2010. This month's total of 811 is lower than the previous month's total supply of available inventory of 817, a decrease of 1%, so total number of inventory on the market is less than last year which is also a good thing.

Last July, the median sale price for Wicomico County Homes was $146,885. This July, the median sale price was $151,500, an increase of 3% or $4,615 compared to last year. The current median sold price is 8% higher than in June. INCREASE IN SALES PRICES!!!

These market reports we provide is so that local buyers and sellers can get a good indication of the market. The media gives you national numbers which has nothing to do with properties in your area. Real estate is local, that’s why we give you local numbers. Every month we will update this for your own information. If you would like more information, contact us at any time!!

CLICK LINK BELOW FOR CHARTS AND GRAPHS OF DATA

Wicomico County Housing Market Data

STEAL of a property $99,900 in Salisbury Maryland, Kaywood subdivision!!

2011-08-30T16:08:00.000-07:00

IT DOESNT GET MUCH BETTER THAN THIS!!! 503 South Kaywood Avenue, one of the nicest neighborhoods in the Wicomico County/Salisbury area. This is going back to 1990's prices!!! Granite countertops, spacious floor plan, cheap enough for and investor to make the numbers work!! This will not last long at all. Priced already approved by Bank, make your offer before someone else does!!

Brandon Brittingham talks about the new government foreclosure program on WBOC TV 16

2011-08-11T15:16:00.000-07:00

Was just interviwed on TV 16 WBOC about the proposed government foreclosure program check the video below:

WHAT A STEAL $139,900 Salisbury Maryland, Hunters Mill!!

2011-08-01T16:14:00.000-07:00

3 bedroom 2 full baths, just remodeled for only $139,900!! Huge private backyard, brand new paint, carpet, appliances you name it!! Spacious bedrooms, great location, what more could you ask for at a price this low!! This surely will not last at this price, at now!! Contact me today for further details.

WHAT A STEAL!! $149,900 Like New Home In Delmar Maryland!!!

2011-07-11T06:37:00.000-07:00

All I can say is WOW!!!! Brand new paint, carpet, upgrades, landscaping etc...!! You have to see to believe, this is going back to 2001 prices. Over 1400 sq ft, spacious bedrooms, HUGE yard, paved drive way, two car garage, the list goes on!! Cheapest in area and on the market for location and ammenities. Highly sought after Delmar school district, this won't be around long, contact me today!

Recent interview on WMDT about Helping homeowners Prevent Foreclosures.

2011-07-08T12:20:00.000-07:00

Recent Tv video on WMDT about preventing homeowners from going to foreclosure. We held a seminar from distressed homeowenr's in Salisbury, Wicomico County and the Surronding areas. See the video below

WHAT A STEAL ONLY $119,900!!! In Salisbury Maryland!!

2011-06-30T07:16:00.000-07:00

WOW, what a deal!! Completely remodeled, all new carpet, paint, counter tops, appliances you name it!! Located on Kenilworth drive, Huge fenced in back yard, brand new septic, spacious bedrooms....truly a must see. Compared with what's on the market, this is the best deal out there!! Great location and price, hurry this will not last.Contact 443-783-3928 for more detail, or email at brandon.brittingham@longandfoster.com

Prevent Foreclosure Seminar Next Week Free For all who attend!

2011-06-08T14:28:00.000-07:00

Event Details:

Free Public Seminar for Homeowners Facing Foreclosure
Hosted by Long and Foster Real Estate
Thursday, June 16th, at 5:30pm
Long and Foster Office
1315 Mt. Hermon Rd.
Salisbury, MD 21804
Registration Phone Number: 410-546-3211

Over 11 million people nationwide are currently facing foreclosure. Millions of families have lost their homes in the last several years and over 70% of them did not know they had options to avoid foreclosure. Here, in Salisbury, we’re experiencing foreclosures at a rate higher than the national average. Now more than ever in the history of our nation there are options for homeowners to avoid foreclosure.

Wicomico County has been hit with hundreds of foreclosures and has several hundred possible foreclosures pending. The good news is there is government programs out there that can help these people avoid foreclosure. Most homeowners are unaware of the substantial affects that follow them after foreclosure which can be avoided with all the programs that are available. There are government programs that actually pay struggling homeowners up to $3000 to participate.

There will be an event Hosted by Long and Foster that will discuss Loan modifications, short sales, deed in lieu and other options homeowners have to avoid foreclosure. Seating is limited please call 410-546-3211 to register. All State Delegates and Senators that represent Wicomico County, as well as the members of the Wicomico County Council, the County Executive, the Mayor of Salisbury, and the Salisbury City Council have been invited to attend

Wicomico County Housing Market Data

2011-05-31T04:43:00.000-07:00

Click the link below to see Long and Foster's Market minute report on Wicomico County data. Inventory went down, and there was a 17% increase in sales! A very good snapshot of the market, check it out!

Wicomico County Housing Market Data

Updated Maryland Foreclosure Timeline

2011-05-17T10:39:00.000-07:00

Just for everyone's reference here is the updated Maryland foreclosure timeline breakdown straight from the state.

A. The process leading up to foreclosure begins when you receive a “Notice of Intent to Foreclose” in the mail. You are not yet in foreclosure at this point but you should act immediately! Complete the packet you receive in the mail and return it in the envelope that was included.

45 days after you get the Notice of Intent to Foreclose in the mail, a foreclosure may be filed in Court. When a foreclosure is filed against you, you will be served with a packet of papers called an “Order to Docket”. Maryland law requires that your mortgage company reviews your circumstances to see if you are eligible to avoid foreclosure before they can sell your house at foreclosure. This review is called loss mitigation analysis. If this analysis is completed before your foreclosure is filed and you have a document called a “Final Loss Mitigation Affidavit” in the packet of paper that you receive, you should refer to column 1 below. If the analysis was not completed, you will have a “Preliminary Loss Mitigation Affidavit” in your packet of paper and you should look at column 2 below to understand the foreclosure process.

Timeline # 1

Where the Order to Docket or Complaint to Foreclose includes the “Final Loss Mitigation Affidavit.” (Times in this chart are for general information. The timing of specific events in an actual foreclosure action may vary as permitted by law.)

Day 1 Missed mortgage payment.
Day 45 Notice of Intent to Foreclose must be mailed by regular & certified mail.
Day 90 Order to Docket or Complaint to Foreclose filed in circuit court.
Day 105 Last day for homeowner to request foreclosure mediation.*
* If foreclosure mediation is not requested by day 105, or if a motion to stay the sale has not been filed, the property may be sold on day 135 and the remainder of this timeline is inapplicable.

Day 110 If foreclosure mediation is requested, circuit court sends the request to the Maryland Office of Administrative Hearings by this day.
Day 170 If requested, foreclosure mediation must take place by this day unless postponement is requested.
Day 185 Foreclosure sale can be held unless a motion to stay the sale is filed.
Timeline #2

Where the Order to Docket or Complaint to Foreclose includes the “Preliminary Loss Mitigation Affidavit.” (Times in this chart are for general information. The timing of specific events in an actual foreclosure action may vary as permitted by law.)

Day 1 Missed mortgage payment.
Day 45 Notice of Intent to Foreclose mailed regular & certified mail.
Day 90 Order to Docket or Complaint to Foreclose filed in circuit court.
Day 118 "Final Loss Mitigation Affidavit" and form to request foreclosure mediation sent by regular & certified mail.
Day 133 Last day for homeowner to request foreclosure mediation.*
* If foreclosure mediation is not requested by day 133, or if a motion to stay the sale has not been filed, the property may be sold on day 148 and the remainder of this time line is inapplicable.

Day 138 If foreclosure mediation is requested, the circuit court sends the request to the Maryland Office of Administrative Hearings by this day.
Day 198 If requested, foreclosure mediation must take place by this day unless postponement is requested.
Day 213 Foreclosure sale can be held unless a motion to stay the sale is filed.

Banks sending pre-approved short sales!

2011-05-03T12:23:00.000-07:00

Banks sending pre-approved short sales!

Did you know that banks are now sending out PRE-APPROVED short sales to real estate agents now! Bank of America, Chase, and Wells Fargo all are now starting to actually refer short sale business to agents. No negotiating or waiting !! These programs are just starting and banks are looking for qualified agents!! Would you like to know how to get involved in this? We will be discussing how you can get into these programs at the upcoming class that we are doing in conjunction with CAR.

You will get 3 hours’ worth of CE with a certificate for another 3 hours, and a 85 page short sale field manual for you to take home. You can sign up directly from their site. May 18th 8:30-4:30 with an hour break for lunch.
The last class we got great feedback! See what others are saying about it:

Loudell Insley - http://youtu.be/SM4zx7dQkE0

Karen Gustafson - http://youtu.be/4Z_JXbxPmbs

Jane Green - http://youtu.be/CE3MNoy-AbI

Janice Cornman and Charlie Jones - http://youtu.be/3YQmjwsGR6k

Stop Getting Your Commission Cut on Short sales!!

2011-04-25T15:25:00.000-07:00

With all the implementation of HAFA, FHA, Fannie and Freddie rules on short sales, there is no reason that as a real estate agent you should ever get less than a 6% commission!!

For some reason I see agents always put in the remarks section of a short sale listing verbiage of this affect: “Commission subject to bank approval, any reduction of commission will be split 50/50” Now if this is a requirement of your board this is something I understand, but you may want to talk with your board and get that changed. Why would you ever put that in your listing remarks? You are setting yourself up for a reduction in commission!

Let me tell you how: Since we are in the process of releasing the first national short sale designation based solely on negotiating short sales in conjunction with a few major lenders, we have been able to get interviews and some very good inside information from a few of our lender contacts. Most banks will be all switching to the Equator system to process short sales, which with equator you have to upload a copy of the listing with most banks. One of the professionals we are working with told us that some negotiators will look at the listing and if the listing has that language referencing a reduction in commission they will cut the commission. In some cases, because of loan type, they are not even allowed to do it. If you are not aware of the guidelines and do not catch on, I have seen banks cut commissions on agents who were not aware of the circumstances. If you don’t have that language in the remarks you do not have that to worry about. Putting that to the side for a minute you should never have your commission cut regardless if it falls in one of the programs that requires a 6% comission if you are alert to the guidelines.

As mentioned above a bulk of all the mortgages in the country follows a short sale guideline system. These systems require the agent get paid a 6% commission. Prior to starting the transaction find out what type of loan it is and go into the transaction fully aware that it is a mandated guideline to receive a 6% commission. FHA, Fannie backed, Freddie backed, HAFA, Lender portfolio, and co-op programs all pay a 6% commission. That covers just about every kind of mortgage that is out there! We all know the amount of work each short sale requires and it is only fair as an agent that you get paid what you deserve. Not only that, the bank is saving way more that 1% of commission by not foreclosing. Pay attention to the details and earn 6% every time!

If you found this information helpful sign up for our upcoming “Master the Art Of the Short sale” approved for 3/possibly 6 hours of CE. Email Brandon.Brittingham@longandfoster.com and I will send you a registration form as well as details of the class.

WMDT Interview with Brandon - How to avoid Foreclosure

2011-04-21T13:26:00.000-07:00

Only $89 a Square Foot For This Barely Lived In Home Delmar School District!

2011-04-06T10:16:00.000-07:00

Almost 4000 square feet, 4 bedroom 3 full baths on this immaculate home. This hands down is one of the best deals on the market! Heated sunroom, hardwood flooring with an open floor plan /formal dinning and living room/eat in kitchen with island and tile floor. Home also features an office /2 story grand foyer/ a huge master suite featuring a 11x12 sitting area/tiled soaking tube/ with a walk in closet the size of a bedroom. Compare others in price range one of the best values for sq feet, condition and amenities. All this nestled on 1.15 acre lot. Delmar school district. View all pictures at www.dpol.com MLS Number 471812.

Brandon Makes National Association Of Realtors "30 Under 30" Finals!!!

2011-03-26T06:46:00.000-07:00

I was just named a Finalist for the National Assocation Of Realtors "30 under 30" which is a very prestigous award, but I need your vote to win! I would be the first person to bring this award to the Eastern Shore. This is a nationally recognized award and is truly and honor just to have made it this far out of thousand of applicants. Vote for me at http://www.realtor.org/rmonews_and_commentary/30Under30/2011/3030_2011_brittingham_brandon

Just Featured on the Morning News For the Upcoming Foreclosure and Short Sale Seminar

2011-03-19T09:14:00.001-07:00

The Good Neighbor Next Door Program comes to Salisbury/Wicomico County Area!,

2011-03-16T18:20:00.000-07:00

If you have never heard of the Good Neighboorh Next Program HUD offers I am here to provide you the information. HUD offers a 5 day special program on homes that are placed in "lottery program" and certain birders have the ability to bid and purchase the home for a 50% discount of appraised value. This means that you could potentially purchase a $200,000 home for $100,000!!!

So who qualifies for this program
-Teachers grades K-12
-Firefighters
-Law enforcement officers
-EMT's

This program also allows for also for potentials buyers to purchase the home for as little as $100 down through FHA financing. I am the listing agent in this area for a majority of these HUD homes that go into the lottery and know about them in advance. All real estate agents can participate as long as they are a HUD registered agent and thier broker has a valid NAID number.

This is a great program and offers a huge discount for certain homeowners. Please be advised that there are many third party companies that are fradulently representing affliation with this program locally. At this time Long and Foster is one of the only brokerages that is a HUD approved listing broker in the Wicomico county/Salisbury area. We do the inspections pre-lottery and have intimate knowledge of the program. If you are a home buyer or agent and would like more information on this program, contact me today for more details!

WSCL radio interview: How to avoid foreclosure

2011-03-16T06:46:00.000-07:00

Listen to the WSCL radio interview, with Brandon Brittingham, Hebron Savings Bank VP Dick Van Gelder, and Attorney Sharon Donohue, talk about how to avoid foreclosure

BrandonRadio by brandonbrittingham

Fannie Property Remodeled!! What a Deal

2011-03-03T08:43:00.000-08:00

WOW! What a deal 4 bedroom 2 full baths recently remodeled!! Don't Miss this one!! Almost 2000 sq ft, one of the best deals on the market. Don't wait on this one, Call 443-783-3928 for more information.

Short Sale Approval in hand! This home will move fast!

2011-02-22T11:03:00.000-08:00

Sign up for my Short Sale CE class today!

2011-02-15T12:55:00.000-08:00

If you're a member of the Coastal Associaton of Realtors, then you should take this class...

I am teaching a upcoming Short sale CE course at the board on March 10th from 9:00-12:00. This qualifies for three hours of CE. I will be covering a lot of good information both new and old on short sales. I will be answering a lot of questions and giving handouts of some really great information. If you need CE, this is a very good course, filled with great information. It is also great for education on short sales as well, as things are constantly changing. New guidelines were just released February 1st. I will have a ton of new information for everyone who attends. Hope to see you there!

www.coastalrealtors.org

Sign in to your account, and check the events page for the class, in order to sign up!

FHA Wells Fargo Short Sale Changes: Tips to speed up the process

2011-02-02T09:20:00.000-08:00

I have been getting a lot of emails and questions that agents are noticing some changes with Wells Fargo short sales, especially FHA/HUD backed properties. They have made some changes and have gotten stricter on some of their policies. First of all, if you are going to be in a Wells Fargo short sale, please be advised that it is going to be a 90 day process at a minimum , due to their increased volume. You will have to work extremely hard to get an approval less than 90 days. In the past, I have commended Wells Fargo, because I have gotten short sale approvals in a much shorter time than other banks. Recent volume spikes and some signs of organization in relation to FHA backed mortgages have left me to questions their ability to get things done in a timely fashion. Couple these with a few new changes that they have made on their end (or have always had and are now enforcing) and you have mix for a difficult ride.

Here is the good news: I am going to give some updates/timelines and things you can do to try to speed up the process, as well as navigate through it. Please note that due to Wells Fargo’s spike in short sale request, a negotiator is generally looking at every file only once every five days. If something is missing or they need something they may not look at it again for five days. Having everything in the package to Wells Fargo and FHA’s guidelines will help speed up the turnaround process. As always, if you stay on top of the short sale you can push it through much quicker. Below are five quick tips to help you speed up the process.

1. From the very beginning get all required Wells Fargo and HUD documentation from them and get all parties to sign and send them in. Prior to having an offer get all required documentation from Wells to save you from waiting for them to supply them to you down the road. Once a short sale has been opened as active in their system, you can request the documentation from them directly, and they will send it to. This will save you time so that you do not have ask for it later in the process. This can save you a week at the very least later down the road.

2. As soon as you know you are going to list a Wells Fargo short sale that is FHA backed, start the process RIGHT AWAY. This should be done prior to you even having an offer, that way, all the financials are already in and you can get an appraisal right away. This will also get you ahead in the process so you will know what the bank is willing to accept, as FHA discloses what the appraised value is.

3. Make sure the listing agreement, all required docs, are legible, readable, and you have not left anything blank. Wells Fargo has an interior audit department, and if an initial is missed, something is not legible, there is a typo, or anything of that nature, they will kick it back and this can cause a delay as long as a week to two weeks. Make sure whatever copies of docs you send in, via fax or email, are clearly legible. If they cannot make out one sentence in an entire package they will kick that document back. Also make sure you have sent in a complete package and nothing is missing.

4. Send in updated documentation every month. The process can take 90-120 days in some cases so when you first turn in the package, 60 days from then you will be required to send in updated pay stubs and bank statements. Every month that goes by, it is better to just send in the updated docs to save you the time of it being requested from you, and then you waiting another 5 days for the negotiator to verify that you sent it in. As always make sure everything you send in is verified, and you make them notate it on the active file.

5. On all offers put settlement to occur “30 days from short sale approval”. They will require you to do this, so you might as well do it up front and save yourself 5-10 days turnaround.

These are five quick helpful tips to help you cut the turnaround time down. I will have five more for you next week! If you are interested in taking our short sale certification course that we’ve developed ,in conjunction with all major lenders and hundreds of closed short sales, then please sign up for our newsletter, and we will email you the upcoming courses.

NEW HAFA SHORT SALE CHANGES!!!!

2011-01-06T08:59:00.000-08:00

If you are unfamiliar with HAFA (Home Affordable Foreclosure Alternatives), it's a program through the Federal Government to help homeowners avoid foreclosure. Read more about it here

With close to 11 million homeowner’s underwater homeowners and continued complaints to the treasury department about issues with the HAFA program the treasury department has finally listened and made some changes to the HAFA program. The changes made reflect making the process easier and hopefully will help benefit us all. I think one of the best changes is that a decision has to be made in 30 days. I will keep you updated to the progression of this program as it is fairly new. In the meantime below are the changes that have been made:

-HAFA no longer requires that servicers verify the borrowers finances

-HAFA no longer requires servicers to determine if the borrowers monthly payment is higher than a 31 percent debt-to-income ratio.

-HAFA no longer requires second-lien holders to agree to accept 6 percent of the unpaid principal balance owed them, up to $6,000. Servicers now decide who gets paid how much, with a cap still at $6000.

-HAFA now requires borrowers seeking a short sale get an answer/agreement within 30 days.
I will keep you updated as to the changes, for more info on short sales and REO’s please feel free to search through the blog, and as always if you need help negotiating any short sale contact me and I will help you!

10 Untrue Myths about Short sales

2010-12-22T08:33:00.000-08:00

Over the past couple of months through presenting at agents and consumer seminars I have been consistently asked some of the same questions as they pertain to short sales. Most of these are "myths" or misconceptions. For the greater good, I have put together the ten most untrue myths I have been asked about in the last couple of months, through emails and at seminars. Most information is questions asked by consumers, but is great information for agents as well.

Some of this information has changed as a result of the changing landscape of the distressed market. As always if you need any more information contact me anytime.

1. If you let your home go to foreclosure you are done with the situation and you can walk away with a clean slate.

The reality is that this couldn’t be any farther from the truth. You could end up with an IRS tax liability and still owing the bank money. Let me explain. Please keep in mind that if your property does go into foreclosure you are liable for the difference of what is owed on the property versus what it sells for in almost every situation. (For example if you owe $200,000 on the property and it sells at auction for $150,000, you are liable for the $50,000 difference.

Not only are you liable for the difference to the bank, but in most situations you will also be liable to the IRS! Hard to believe? Well, believe it or not, the IRS counts the difference on the sale as a "gain" on your taxes. That's right-you lost money and it's counted as a gain! (I didn't make that rule, that's just the way it is). Banks and the IRS can go as far as attaching your wages.

Guess What? A short sale in almost every situation can alleviate any IRS liability and any bank liability. Under the new programs and through bank negotiations, these debts can be relieved and the IRS tax liability gets canceled out. Almost every program is for primary residences only.

2. A short sale and foreclosure really damage your credit.(True for a Foreclosure/False for a short sale)

A foreclosure can stay on your credit for 5-7 years, and can really deter your chances of owning a home in the future. A foreclosure can severely damage your credit. If you go through a foreclosure it is not to say that you cannot get a loan ever again, but it will be much more difficult. On the other hand a short sale can have limiting effects on your credit. A short sale can damage your credit, but is much less harmful than a foreclosure and can go on your credit report as charged off in full. I have had clients buy a house in as little as a year and a half after they went through a short sale. It is not looked at with the same scrutiny that a foreclosure is.

3. There are no options to avoid foreclosure.(False)

Now more than ever there are options to avoid foreclosure. Besides a short sale, loan modifications, along with deed in lieu are also options. In most cases (but not all) a short sale is the best option. Either way, there are more options today than there have ever been to avoid foreclosure.

4. Banks do not want to participate in a short sale, or it is to hard qualify to be accepted for a short sale.(False)

Banks would rather perform a short sale rather than a foreclosure any day. A foreclosure takes a long time and creates a huge expense for the banks; a short sale saves both time and money. Banks have more foreclosure inventory than ever before, and certainly do not want any more. Banks more than ever welcome short sales. Qualifying for a short sale is easier than you think, you need to have a true financial hardship, or a change in your finances and your house has to be worth less than what you owe on it. Not only do consumers, but banks also now have government incentive to participate in short sales as well.

5. Short sales are not that common.(false)

At this present time, over 33% of national sales are short sales. Due to the economy, and rising unemployment this is something that is affecting millions of Americans. Some of the sharpest and smartest minds in the country are short selling their properties; this is something that is not just limited to any particular income class. This has affected everyone from all facets of life. A short sale should be looked at as a helpful tool, not a negative stigma. That is why the government is offering programs that actually pay consumers to participate in short sales. It is not just affecting our community it is affect communities and consumers across the nation.

6. The short sale process is too difficult and they often get denied.(False)

Though the short sale process is time consuming; it is not as difficult as the media would have you believe. The problem is that most short sale’s that get denied is because of inexperienced agents or people involved the process. It is true that if the short sale process is not followed correctly is has a good chance of getting denied. An experienced agent knows how to avoid this. Short sales require a lot of experience, and with an experienced agent the process is simple on average closes about 95% of the time.

7. Short sales cost money. (False)

A short sale is completely free to the seller of a property. In fact as mentioned before you could get up to $6000.00 to participate in a short sale. In many ways, a short sale may put you in a better financial position than prior to the short sale. Almost every short sale program now has some type of financial incentive for the home owner, as long as it is a principle residence.

8. If I am behind on my payments, I can perform a short sale any time.(False)

The farther you get behind on your payments, the harder it is to get a short sale approved. The closer a property gets to a foreclosure the harder it is to convince the bank to perform a short sale. The closer to a foreclosure the more money they spend, thus deterring them from doing a short sale. If you think you need to perform a short sale, time is of the essence; the sooner you start the process the better. Waiting to long can trigger the ramifications of having the short sale denied.

9. I can perform a short sale by myself without a Realtor.(True, But good luck!)( this is sometimes what a bank will tell you)

A short sale is a very complex process and each individual short sale is unique. In a short sale situation, as a consumer you need your interest protected. Dealing directly with the bank, this eliminates a third party involved looking out for your best interest. It takes many short sale transactions and years of experience to know the ends and outs of short sales. An experienced Realtor knows how to navigate through the complexities of the short sale to get you in the best position possible.

10. I was denied for a loan modification, so I know I will get denied for a short sale (False).

A short sale and loan modification are two separate departments at the bank. These processes are totally different in approval and denial. If you got denied for a modification you still can perform a short sale, in some cases you can get a short sale approved faster than a loan modification.

Hope this help if you need further info contact me through my site at http://www.moorebrittingham.com/

Just featured in the Bayside Gazette!: Short-selling may be Best Alternative to Foreclosure

2010-12-10T08:35:00.000-08:00

Here's an insightful article from the Bayside Gazette about short sales and foreclosures featuring Brandon:

While it’s not quite time to start popping Champagne corks over the real estate market, it is good to know that cooler heads are starting to prevail, especially as the foreclosure market is apparently beginning to heat up again.

While the record spate of foreclosures, and horror stories about accidental foreclosures are beginning to fade another group of borrowers is becoming prominent because of their increasing numbers of defaults – people who took out those now-infamous mortgages with balloon rate increases.

“A lot of those rates are about to increase,” said Brandon Brittingham a Realtor with Long and Foster. “And for a lot of different reasons these people aren’t ready to make the increased payments.”

Toward the precipitous end of the housing boom, people took out mortgages with the intention of turning over the house, refinancing or extricating themselves from the payments well before the payments ballooned into amounts they couldn’t hope to afford.

With the housing market crash, this is no longer possible for many. Worse, a significant number of these and other homes are “upside down” meaning that the mortgages are for an amount in excess of what the house will fetch on the open market.

Although banks were, for a period, given incentive to renegotiate high rates and even in some cases principal amounts the disappearance of the incentives coupled with the continuing sluggish economy have made refinancing impossible in some cases and impractical in others.

Brittingham said that the banks were primarily concerned in protecting their own interests and that, as the recovery continues, that didn’t always extend to helping people out from under their debts.

“For some reason some banks are still willing to take possession of a property even though it might not make the best financial sense,” he said.

Vacant bank-owned properties can deteriorate quickly, driving down surrounding property values. But what’s worse for the former owners is that in some cases not only will they have to pay the bank the difference if the house is sold at auction, they may also have to pay tax on whatever their “profit” on the house was.

As an example, Brittingham said, if a $200,000 house was sold at auction for $100,000 the mortgagees would still owe the bank the remainder of the debt and might get a IRS bill for the $100,000 the bank did sell it for.

One of the newest real estate alternatives to bankruptcy or foreclosure is something called short-selling. Shore selling involves a qualified real estate agent negotiation a sale price with the mortgage holder that is often somewhat less that the outstanding bill. If the bank agrees to a short sale not only is the homeowner off the hook for the difference but they are in some cases eligible to remain in the home until the sale is completed.

Brittingham said that he’s seen this work to the benefit of many families who are able to save and rebuild both their credit and their bank accounts rather than lose both in addition to their home.

Unlike foreclosures – which are part of your financial history even if they’re not always, strictly speaking, part of your credit history – and bankruptcies, short sales don’t by definition have a negative affect on a person’s credit.

Britingham said he’d seen a lot of cases of people who began dipping into their 401k and other savings in an effort to stave off foreclosure and end up losing their homes anyway.

Even when people do that and don’t lose their homes it’s not uncommon for people to spend their entire savings to stay in a home that isn’t worth what they’ve spent to keep it. Sometimes the smartest solution is just to get out with as little damage done as possible and start again fresh.

WMDT interview part II - Short Sale Seminar

2010-12-08T13:36:00.000-08:00

Brandon talks to WMDT about his seminar provided to the public, in order to educated people on how to avoid foreclosure and save their credit.

On the Radio: WICO 1320's Bill Reddish interviews Brandon

2010-12-03T09:27:00.000-08:00

Last week, Brandon was interviewed by Bill Reddish, on-air host morning host for Salisbury's biggest talk radio station, WICO 1320 AM. The interview focused on the foreclosure crisis hitting the Eastern Shore, and ways that homeowners can avoid it. Brandon explains the short sale process, loan modifications, and other ways to save the borrower's credit from a foreclosure.

http://www.fileden.com/files/2010/12/3/3029962//Bill Reddish.mp3

Title search is necessary on all short sales

2010-11-30T10:59:00.000-08:00

Have you ever gotten and approval on a short sale to only find out a week before settlement there is a cloud in title? This is happening more and more every day, and can be avoided if a simple title search is done at the beginning of the short sale process. More times than not, homeowners who have trouble paying their mortgage have had trouble paying other bills, and before you negotiate for 30-60 days in a short sale, this is information you need to know. In some cases the liens may prevent the house form settling period. Depending on what state you are in, the homeowner may have to get a lawyer involved to handle active liens. One good thing about the HAFA program is in cases I have handled, lien holders were paid based on HAFA guidelines, which made things simpler (not referring to second mortgages) I personally have run into many homes that have HOA liens that have to be taken care before the property can settle. Some banks actually require you to provide a copy of title before moving forward with the short sale now. Others like Wells Fargo, are starting to pull title their self. On cases where the banks will pull title, I still pull title myself because will the volume of short sales there are doing vs. the staff they have to handle it, they can make mistakes (Robo-signers ring a bell?!). Case in point, I just had a short sale with Wells Fargo where they pulled the wrong title!! Pulling title early can eliminate problems later on for you in a short sale and make you aware in case in the process to handle.

So, who pays for a title search? I personally have a lot of attorneys that I work with that will pull title for me, in exchange for business I send them. So in my case it is a service I provide to the transaction for free. This, I know may be unique to my situation so I would advise to get the Buyers settling attorney to do what is called a “Bring to date” from the last chain of title to the current owner. This is not a full title search so if the property doesn’t settle there isn’t a huge cost involved, but can determine if there has been a lien put on in conjunction with the latest owner. If the buyer doesn’t want to foot the bill this may be something you as a selling agent look into to strike a deal with a local attorney or title company. They give you a reduce fee, in exchange for sending them settlements. Agents in my market that I have trained and work with said they have gotten agreements to get bring to dates for $40. That is well worth it, as it can alleviate serious potential issues down the road. This is one step I would not look over as it can save you time, money and headache when dealing with short sales. Good Luck!!

Testimonial from a recent Customer!

2010-11-22T06:56:00.000-08:00

After listing our house with another realtor for 6 months with no showings or offers, we saw Brandon Brittingham’s ad in the Metropolitan magazine and signed with him. Before the sign even went up in the yard he already had showings and not long after we had an accepted offer! Brandon’s communication skills are unmatched. Each time we called, emailed or texted him, he responded right away. He is extremely knowledgeable, enthusiastic, and a real go getter and we recommend him very highly to anyone looking to buy or sell a home!
The Bruno's

HUD owned property can purchased for as little as $100.00 down!

2010-11-17T12:53:00.000-08:00

HUD owned home in great shape, in a great location with a huge backyard. Listed for only $103,500, this is a great deal with special financing available!! Contact for more details. MLS number 469570

Cost vs. Price What Agents and Sellers need to know about interest rates

2010-11-10T13:59:00.000-08:00

Cost vs. Price What Agents and Sellers need to know about interest rates.

So we all are aware of the fact that interest rates are low right? So why aren’t more people buying?? I think this is in part to the simple fact that your average consumer does not look at or understand the difference of savings these lower interest rates provide. Most people are terrified that prices are going to continue to drop. I know it is hard to compare the two, but when people go purchase a new car you never hear them saying “I’m scared to buy this car because it is going to lose value”. Cars are one of the worst depreciating assets you can buy, and hardly ever appreciate in value. Most consumers look at the cost, or monthly payment for the car as one of the biggest deciding factors when purchasing. This logic should be applied for housing, especially now. Housing is a necessity, just like a car and most people right now are cautious to buy. Buying and car vs a home purchase is way different do not get me wrong, but the point I am trying to make is the cost associated with the house should be looked just as much as the price of the home. Seeing as we all have to have a place to live why not purchase at a time when the cost and price are down significantly. Let us not forget that real estate is a long term investment and was never meant to be a quick turnaround like other investments. Let’s not look at any other factors that involve why you should but right now besides costs.

First off, interest rates are historically low, the last time interest rates where as low as they are now, Eisenhower was president. Take a moment to think about that…. Okay now that you have digested that, do you think rates will stay that low forever?? That was 55 years ago! Simply put, they cannot. So what exactly is the biggest benefit to lower rates?? The cost you have to pay to own the home, and when you break down the numbers it may surprise you.

In 2004 when the market was booming the average interest rate was 6.29%, right now you average is 4.50%. Doesn’t that make you want to jump out of your chair and buy a house? Maybe not, but let’s break down the difference and this may change your mind a bit:
On a $250,000 mortgage at 6.29% your payment would be $1545.80
That same mortgage today at 4.50% your payment would be $1266.71.
The average person lives in a house for 7 years that is a savings of $23,443.56.
Back in 2004 6.29% was considered low rate, and made housing more affordable to more Americans. Now, not only do you have lower prices, you have lower costs!! Go take a look at the chart above (30 year fixed in red click on chart for enhanced view) this will give you an indication of history of interest rates. This won’t last forever so taking advantage now can pay dividends for years to come. In fact the National Association of Realtors and the Mortgage Bankers Association both predict interest rates to go up the next seven quarters to 5.8%(NAR), and MBA to 5.4%. If are a consumer looking to buy or an agent looking to help consumers buy, please understand the cost benefit of buying now in a historical time. Waiting can have a substantial detrimental effect to your monthly mortgage, and long term mortgage cost.

New Listing on Patriot drive In Salisbury Maryland for only $189,900!!

2010-11-09T09:03:00.000-08:00

Home sold for $255,000 only a year ago. Home has granite countertops, 4 bedrooms and a spacious backyard. This is one of the best deals on the market! MLS number 469268. One of most desirable areas in Wicomico county/Salisbury area.

Part one TV interview about short sales, part two to follow.

2010-11-04T05:38:00.000-07:00

After saving several hundred families from foreclosure, the media noticed. Part one of the interview below.

Is now a good time to buy real estate? Surprising facts!! Some information our Buyers should know!

2010-11-03T12:53:00.000-07:00

I have been asked this question a lot recently over and over. Most consumers tell me that they are unsure if now is a good time to buy real estate of not. I think there hasn’t been a better time in history to buy real estate, but what do I know?? With that in regard I have some factual information for both consumers and agents to support why I think there has never been a better time to buy, if you can find something affordable to you. Buying a house to simply be “house poor” is not a good financial decision.

First off, more wealthy people become wealthy buying assets in a downturn. Stocks, real estate you name it. It was Warren Buffet who said “Be fearful when others are greedy, be greedy when others are fearful” but this seems to be the opposite for the housing market. People where buying at highs a few years back, and so many people are underwater that new buyers are scared to come back into the market. The best time to buy is when prices are down, with any asset. Let’s look at what the wealthy in this country are doing:

People with a household income above $250,000 are the highest growing segment of the buyers in the country and purchases of 1 million and up are year to date about 11%.

In a recent Fannie Mae survey of consumers with this amount of income, 76% said they thought it was a great time to buy. 22% of these consumers said they were buying a new primary residence in the next 12 months and 11% said they were buying a second home in the next 12 months.

There is more cash on the sidelines than ever before in history and to see high price homes and wealthy people investing back into the market, that is a good sign.

Ever saw a good invention, or product and said “ I wish I invested in that” or “ I wish I thought of that”. Guess what ? If you could have gotten in on that investment early, or been one of the first investors you could have made a lot of money right? When it becomes household knowledge, or the herd mentality sets in, it is already too late, you have missed the opportunity to invest. That is where real estate is right now. Will we get double digit appreciation? I doubt it, but I think once things turn around, we will get back to the normal steady appreciation we were used to seeing. Investing now will pay dividends later. Think about it from this standpoint: In some parts of the country some houses are being bought for 50% of their replacement cost. If you could buy a car, computer, or anything of value for 50% of its value for only a limited time, wouldn’t you? If that is not is a indication of now being a good time to buy then I don’t know what is. The wall street Journal for the first time in a long time recently had an article about why buying a home now was a good idea.

Okay, enough with the investment talk for a minute. Most people do not buy a house mainly for the investment aspect of it any way. In fact looking at a home as an investment surprisingly is not even high on the list. In a recent survey of over several million consumers who recently bought 79% said they bought because they wanted a place to raise their kids and be safe. The top responses were very closely related to this. The reality is most consumers do not necessarily look at as an investment, just as their home. Well, if we all have to have a place to live, why not have your own and not live in someone elses?

Well wait what about interest rates? Isnt that a good reason to buy now? Sure is, but not just because there low, but because of the end cost to the consumer. That is what will well talk about in the next post, cost vs. price, it is a really good piece to share with consumers. Stay tuned it will be up soon.

This is just a snap shot and more articles are to follow. We will also look at the last ten years of real estate vs the stock market in the next few posts as well. Hope this information helps. Go out there and buy something!! check out my website at www.moorebrittingham.com or my blog at www.easternshorehomesolutions.blogspot.com

This will get you thinking, just one of many reasons why nobody is trying to give homeowner's a loan modification

2010-10-26T17:14:00.000-07:00

Emergency Foreclosure Measure Passed In MD

2010-10-20T08:12:00.001-07:00

Emergency Foreclosure Measure Passed In MD - Latest News
by - The Associated Press
10/19/2010

ANNAPOLIS, Md. (AP) - Maryland's highest court has approved an emergency measure to enable state courts to stop foreclosures, if documentation is found to be invalid.

The Court of Appeals approved the measure on Tuesday. It gives lenders 30 days to demonstrate that documents related to the foreclosure are legally sufficient. Unfair foreclosure practices are being investigated nationwide relating to affidavits that have been filed without sufficient knowledge of their accuracy. Preliminary audits have found that hundreds of bogus affidavits have been filed in Maryland courts.

We will keep everyone updated on this measures. Headed to legal meeting today to get the real scoop!

Short sale seminar picked up by local paper and local news!

2010-10-19T07:25:00.000-07:00

Our short sale seminar and foreclosure prevention had a great turnout! Was picked up by the local newspaper who did an article about it, as well as the local TV station. Article below from the Dailey Times, will post the TV clips later.

SALISBURY -- With the number of housing foreclosures still climbing and home sales slow, now is the time for homeowners in mortgage trouble and their lenders to turn to short sales and a relatively new financial tool that could ease their dilemma.

Home Affordable Foreclosure Alternatives, of HAFA, streamlines short sales, or deeds-in-lieu of foreclosure, offering the seller relocation funds that could ease their transition into more affordable living space.
The relocation incentive could slow the number of homes going into foreclosure and help a homeowner faced with losing their home a financially attractive opportunity to resettle and start anew.
Through government-legislated HAFA, a homeowner approved for a short sale of their home also could qualify for $3,000 in moving expenses. Starting Nov. 1, Long & Foster Realtors Inc. in Salisbury will be serving homeowners of a major mortgage lender that is offering a type of HAFA for relocation, said Brandon Brittingham, a firm real estate agent and regional short sale expert.
"HAFA helps the seller because it is designed to give the seller money to relocate," Brittingham said. "It makes the process simpler, makes the timeline easier regarding the length of time to do a short sale. And in most short sales, the debt is wiped out."
One of the nation's leading mortgage lenders has selected Long & Foster to be its exclusive executor of short sale transactions in the Lower Shore housing market, Brittingham said.
Long & Foster has scheduled a public awareness forum on today to educate the public on short sale options and the HAFA incentive.
The forum starts at 6 p.m. at the Long & Foster office on Mount Hermon Road in Salisbury, where Brittingham and his staff will answer questions and provide details about the options to foreclosures.
Brittingham is not ready to announce the lender that selected Long & Foster for the program. But he underscores that the Realtor also will continue to assist homeowners whose mortgages are tied to other lending institutions.
"We are the only company picked in this area to lead the program; one of the nation's biggest lenders with a presence here has selected us," he said. "This is groundbreaking and new. Banks are saying they need to be active in initiating short sales as an option. The big thing is, the program prevents the house from going to foreclosure."
dgates@dmg.gannett.com

Short sales and Bankrupcty

2010-10-11T12:28:00.000-07:00

As a lot of you may know as agents, short sales can have a lot of red flags or road blocks. With my experience in short sales and through my teaching and training I try to alleviate agents from my experiences to not have to hit these road blocks. Recently I have been getting a lot of phone calls and emails about bankruptcy and how it relates to short sales. Now I am not a financial advisor or attorney, I don’t play one on TV, and I didn’t stay at a holiday inn express last night! I work with a team of attorneys to try to stay versed on short sale law for my own education, but I never try to interpret law in any way shape of form, With that being said: If you have a potential client who wants to perform a short sale and is planning on filing bankruptcy, or has recently filed bankruptcy, this may dismantle the whole process. Most sellers in a short sale situation usually are in a situation where there is some sort of financial strain or burden in their life, so bankruptcy is usually one of the options (not always) a potential seller may be considering. If a potential seller is thinking about bankruptcy or has recently filed you have to know right away, as this affects whether or not you can even perform a short sale. If you are going to be active in short sales, it would be wise to consult with local attorneys to get a feel for bankruptcy and how it affects real estate in your particular region. I would like you to all remember that I am giving you this information for educational purposes and not for you to go out and give legal advice. I would ask that in cases where bankruptcy is involved consult with an attorney, and never give legal or financial advice to a client. I am just giving you information based on my experiences to save you time, trouble and to more efficiently help your clients. I have gotten many questions on this subject and for the sake of time, and to not get overcomplicated here are the three most asked questions,
I have gotten recently:
What do I do if a client is in bankruptcy and wants to perform a short sale?

You have to consult with the attorney to see if a short sale is even viable in this situation. Bankruptcy puts everything on hold and depending on the type of bankruptcy the property may be included or excluded from the bankruptcy. In almost every case I have dealt with, nothing can be done until the bankruptcy has been fully discharged, or the court grants the motion for the property to be sold at short sale. Either way, you have to know, that is why it is imperative to talk to the seller’s attorney. The bank will also require you provide the paperwork showing the discharge, or the motion granting the sale.

What if a client has recently gone through a bankruptcy and wants to perform a short sale? Similar to the answer above you will have to get evidence that the property can be sold and that the bankruptcy has been discharged. In this case, even if the seller tells you the bankruptcy is finished, you need to contact the attorney to get the correct information. Bankruptcy can be extremely complex, so it is very important that you get the correct information and have a clear understanding moving forward.

What if a client is planning to file bankruptcy while we are in the short sale process or files bankruptcy while in the short sale process? If this happens this can potential derail you efforts. Once bankruptcy starts, everything stops. Before you start the process this is something you need to know. Short sales are not easy tasks and you do not want to be midstream in a short sale, and then have to stop because the sellers files bankruptcy. It is not our job to give advice as far our opinion if a seller should file or not, but it’s something that you should discuss before you start the process so that all parties have a clear understanding moving forward.

In either case you have to if it has been discharged and the property is available for sale, or if you’re going into the bankruptcy, you have to get a motion from the court to sell the property. In cases that I have dealt with where a motion has to be granted because it is an active bankruptcy, generally this is not hard but adds a lot more time to the situation. For the purpose of ease, unless you are really experienced in this field it may be better off only dealing with properties that have been fully discharged, or have granted the motion to sell the property before you even start the process.

Hope this information helps. Happy Selling!!

ABSOLUTE STEAL in Salisbury MD!!!!

2010-10-07T09:12:00.001-07:00

Just reduced $15,000 to $184,900!! New roof, carpet, paint throughout!! Over 2400 sq ft. Only 77 dollars per sqaure foot. Bank says bring an offer today. In a great location and neigborhood. This is the best priced property in it's price range. You cannot find a cheaper property on the market that even comes close to comparing to this one. Don't hesistate on this one.

Wicomico County housing report August 2009/2010

2010-10-05T10:38:00.000-07:00

It seems as though every time you turn on the news or open the paper there is some big news story as to how bad the housing market is doing. Granted there are some regions in the United States that have been hit extremely hard, locally in the Salisbury/Wicomico County area, the numbers tell a different story. The Salisbury area as a whole did have some major appreciation, but not as much as some other comparable markets, so the downside has not been as much as comparable markets. Although we are still out of what is considered a normal market, our numbers have actually improved in the last year while a vast majority of the nation’s numbers have declined!
Looking at the numbers year to date will probably be quite surprising to most, as it doesn’t support the “doom and gloom” you hear on TV every day. From last year the amount of contracts we have received in the market is up 9.7% and the amount of settlements is up 14.3%. Those are some very encouraging numbers. Another very good statistic is that our days on market have gone done significantly. The average DOM has been cut to 103 as compared to 180, and the median is 66 compared to 120. That is a huge difference compared to last year. These are true signs that the consumers is realizing at this historically low interest rates, and home prices, now is the time to buy. Perception is not always reality and that is the case in our particular area, where our market in the last year has actually improved!! Just wanted to give everyone the update.

Bank Owned Steal In Salisbury Maryland only $46,500!!

2010-09-30T10:44:00.000-07:00

WOW!! What a deal!! 31339 old ocean city rd This property has replacement windows, and a new septic. Over 1300 sq feet, needs some minor clean up, but is in great shape. Seperate one bedroom apartment attached, with a detached 2 car garage/workshop. Total of 3bd/2ba, with a half acre lot. The numbers work on this one. Bank owned, take advantage of this great deal before it's gone!!

The short sale: a viable option to avoid foreclosure.

2010-09-21T07:27:00.001-07:00

The short sale: a viable option to avoid foreclosure.

It's likely you've heard the term "short sale" thrown around quite a bit. But what, exactly, is a short sale?

A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property. This is not a new practice; banks have been doing short sales for years. Only recently, due to the current state of the housing market, has this process become a part of the public consciousness. The short sale, in almost every situation where a homeowner is having trouble making their payments, is the best option. Recent government legislation has greatly increased the incentive for banks and homeowner’s to participate in short sales. Under the new HAFA government short sale program homeowners actually get $3000 to participate in a short sale!!

There has been a lot of attention in the media and the internet that it may be smarter to just walk away from your home. This can have serious and dire circumstances in the future, that can be avoided by performing a short sale, . Most consumers believe that when you let your home go to foreclosure you are completely done with the situation. This couldn’t be farther from the truth. Please keep in mind that if your property does go into foreclosure you are liable for the difference of what is owed on the property versus what is sells for. (For example if you owe $200,000 on the property and it sells at auction for $150,000, you are liable for the $50,000 difference.)

Not only are you liable for the difference to the bank, but in most situations you will also be liable to the IRS! Hard to believe? Well, believe it or not, the IRS counts the difference on the sale as a “gain” on your taxes. That’s right—you lost money and it’s counted as a gain! (I didn’t make that rule, that’s just the way it is…) Guess what? In almost all situations a short sale relieves you of the IRS debt and the deficiency judgement!

Most consumers are not aware that banks, especially now, are encouraging short sales! Why would they do this? Well, a foreclosure is very, very long expensive process, and most banks are already overwhelmed with the amount of foreclosures they are handling.

There is a lot of misconception and misinformation as to what qualifies a homeowner to participate in a short sale. It’s fairly simple: Your house has to be worth less than what you owe on it, and you have to have had some type of financial hardship. A financial hardship can be a health issue, reduction in pay, or many , many other factors that qualify. Most national banks, at this point, have become much more lenient on what they consider a financial hardship; as they really would rather perform a short sale over foreclosure. There is also a huge misconception about how long and how difficult short sales are. Short sales, every day are becoming easier and easier, and with the new government program, the turnaround time has been cut in almost half. I can tell you from being involved in several hundred short sales; they do work, and have gotten a lot easier in the last twelve months. Banks are staffing more and more employee’s everyday and changing policies to get short sales approved quicker. The biggest issue with short sales, is having a qualified professional to handle it, this can alleviate many possible problems. Short sales require experience.

The short sale is a true option to avoid foreclosure. It should be viewed as an extremely useful tool, and can relieve a huge financial and emotional burden. Only until recently have the changes be made to not only help the banks, but also the homeowner. Every day short sale rules and regulations are changing to benefit the consumer, and more are to come. Keep this in mind as this is huge benefit for not only consumers involved, but also for our economy as this keeps foreclosures out of our neighborhoods. This is only basic information, if you would like more information please check out my website at www.moorebrittingham.com

Changes in Short sales Consumers and Agents may not be Aware of.

2010-08-31T11:55:00.000-07:00

I have recently run into several sellers recently all over the eastern shore of Maryland, Delaware and Virginia that have told me they didn’t know that a short sale was an option for them. They thought they wouldn’t qualify, or they would be denied for whatever reason. I found this to be quite astounding as now lenders are sending “short sale” letters out, and short sales are in media tv, newspaper etc.. I was starting to think that the short sale was becoming a house hold name for the consumer. The reality is that it really isn’t. Most sellers if they are behind on their payments do not open the mail from the bank or take the calls. The information that is out there on a lot of websites is not 100% accurate and there is a lot of misinformation and lack of knowledge out there on short sales. When a consumer tries to research on their own, there is so much misinformation, that most consumers become overwhelmed and it makes them shy away from the short sale. This is where we as agents come in. Short sales are a viable option, and recent changes have been taking place that have made the short sale process easier than it used to be. The rumors you have been hearing about the major overhaul to short sales in the coming months by major servicers is very true(details in the next post). Hopefully the recent changes are the precursor as to what is to come.

A short sale, more than ever, is a true viable option for a homeowner to stop there house from going to foreclosure. Now more than ever, banks are leaning to the short sale as an option over foreclosure. Being an REO agent myself, I can attest to how banks are more than overwhelmed with REO’s. They can’t even sell the entire inventory they have. The problem is a majority of consumers have no clue that the short sale in a lot of situations (not all) may be the best solution. I have done several hundred short sales and I have found in the last several months some real changes to make short sales close quicker and smoother. This information we need to convey to the consumer, as there are a lot of consumers who are looking for answers, with nowhere to turn. If short sales are not part of your business at this time, I would seriously take a hard look at getting involved in this section of real estate. In some markets it accounts for 30% of sales. It truly does take a great amount of education and experience, but it’s not the Mt. Everest many people make you believe that is impossible to conquer. With short sales, the key for agents and consumer is the right information and education. Here are a few changes that I have noticed with banks that have made the process easier recently, that many agents and consumers may be unaware of:

1. The timelines for a majority of Banks has gotten shorter. I know this sounds crazy, but I can’t just be getting lucky on everyone. The last 15-20 or so I have done almost everyone I have had closed in 30 days or less. I know, I know, it sounds impossible but this is reality. I just had one with HSBC that was approved in two weeks. Part of this is due to the HAFA program, part of it is I think all the fighting and gripe they are getting from realtors and consumers. The obvious is the more short sales in the least amount of time saves money. With everyone eyes on the economy/fannie/Freddie, and bank stock, they have finally realized what we have always known: short sales cost less than foreclosures. Now this also comes down to us being on top of everything to streamline the process. If the property does qualify for the HAFA program, the BPO can be ordered prior to having an offer, which helps the turnaround time.(note BOFA has still been taking 90 days).

2. Banks are offering relocation costs even on properties that are not in the HAFA program. Here is another positive step. On HAFA short sales banks are giving $3000 relocation assistance. On non-HAFA I have gotten as much as $6000 for relocation. This is a far cry from the days when I had to fight over every expense on the HUD including my commission.

3. Banks on a more frequent basis are releasing sellers from deficiencies. Even on second liens, and properties not qualifying for the HAFA program, I have seen a huge change in the ease of getting my sellers released from deficiencies. This again, is not something that is a given, you have to ask for it, but I have seen a change for the better.(In some states you may have to get a lawyer to get involved with deficiency releases, so check you state law.)

4. Banks are being more lenient on what they qualify as a hardship. Homeowners who have missed a payment or “are in danger of missing a payment”, the reason for the hardship is not being looked at with a magnifying glass as much as they used to be. With job stability and the economy being constantly in limbo, a lot of people are living day to day. Banks are starting to realize this, as some are getting over 10,000 short sale request a day, and they realize they can’t end up with all these properties. I have had several short sales approved recently that the sellers had not missed a payment.

I would agree that the banks still have a long way to go to fix the short sale process, but recently I have seen some positive steps. There are HUGE changes coming to the short sale process nationwide, so learning and educating yourself now will be a great help to your agent IQ, and I big bonus to help sellers in your community. Stay tuned in the next post I will inform you about the Beta test program coming out that you have heard the rumors on.

Waterfront Property in Salisbury Maryland is a Steal!!

2010-08-16T12:44:00.000-07:00

Looking for waterfront living at an affordable price?? Look no further!!! Directly located on the Wicomico River with a deeded boat slip!! Only $239,900 3 bedroom 3 bath with a finished loft, and over 2280 sq feet!! Where can you find a waterfront home, with a boat slip at this price?? Check out more information at www.moorebrittingham.com or at www.dpol.com MLS number 467986.

New Survey shows all Banks Short sale timeline

2010-08-11T11:22:00.000-07:00

Deutsche Bank ranked the top mortgage servicers in the US based on short sale timelines, and of all prime mortgage servicers, GMAC grabbed the top spot by completing the transactions in six months.

With short sales growing in demand from both distressed borrowers and banks, Deutsche Bank published a “recovery score” today, examining the speed at which the servicers conducted a short sale and the percentage these transactions take of overall property dispositions over the last year.

Servicers received a higher recovery score the more they increased the amount of principal recovered from the disposition of the property while decreasing the amount of time it took to do so. According to Deutsche Bank, a short sale generated a higher recovery score than an REO sale.
The servicers are broken down into four categories based on loan type.
Prime

For prime mortgage servicers, GMAC conducted short sales the fastest, averaging roughly six months per transaction. Also, 53% of their dispositions were short sales. It had a recovery score of 59.3.
The next fastest servicer was Citigroup’s servicing arm CitiMortgage, which did a short sale in about seven and a half months, and 56% of dispositions were short sales for a recovery score of 54.4.
Third, was Wells Fargo, conducting short sales in roughly eight months for 34% of its total dispositions. It had a higher recovery score than Citi, however, at 55.6.
Countrywide, acquired by Bank of America, had the slowest short sale timeline. It took more than 13 months on average to conduct a short sale there. BofA took more than 11 months, but 59% of its dispositions were short sales. BofA had the lowest recovery score at 45.5.

Subprime
For subprime mortgage servicers, Wells Fargo had the shortest short sale timeline at more than 15 months. It conducted short sales, though, on 14% of these loans for a 29.2 recovery score.
HomEq Servicing followed Wells, conducting short sales in 16 months for 22% of its dispositions and a score of 27.4.
Saxon Mortgage Services, the servicing arm of Morgan Stanley, had the third shortest timeline at a little more than 17 months. Saxon conducted short sales 18% of its properties for a recovery score of 23.8.
The slowest was Equicredit, which took an average of more than 29 months to complete a short sale on 41% of its dispositions for a 19.4 recovery score. Ocwen was close behind, also average more than 29 months per short sale. But Ocwen had the highest recovery score of the top subprime servicers at 31.

Option-ARM
Of the top option-adjustable rate mortgage (ARM) servicers, EMC Mortgage, owned by JPMorgan Chase, had the lowest short sale time line at just over eight months on 43% of its dispositions. However, it did not recovery as much of the principal and had the lowest recovery score at 32.1.
The next fastest short sale timeline was Aurora Loan Services, at 10 months on 30% of its dispositions for a 35.1 recovery score.
GMAC was third, taking a bit more than 10 months for short sales on 33% of its dispositions of Option-ARM loans. Its recovery score was 34.9.
Countrywide, again, had the longest short sale timeline at almost 14 months on 22% of its dispositions. But it recovered more principal and held a higher recovery score at 38.7.
Alt-A
For companies servicing Alternative-A mortgage loans, First Horizon had the quickest short sale time line at just over nine months on 35% of its dispositions. They also had the highest recovery score of the top Alt-A servicers at 43.1.
Both Wells Fargo and Aurora took around 11 months on short sales for Alt-A loans. Wells did them on 17% of its disposition with a recovery score of 42. Aurora did short sales on 16% of its dispositions for a 37.2 recovery score.
Countrywide, again, took the longest at more than 13 months per short sale on 24% of its dispositions. Its recovery score, however, ranked fifth of the top Alt-A servicers at 39.7.
Write to Jon Prior.

Why investing in Salisbury Real Estate is A Good Idea.

2010-08-06T08:20:00.000-07:00

Why investing in Salisbury Real Estate is A Good Idea.
I get asked this question a lot every day “Should I buy a home in Salisbury right now”, my answer: Absolutely!!! The Salisbury area like all markets has been hit with the downturn in real estate. We have not been hit as hard as a lot of markets, but we did see a significant decline in prices. When prices go down, this is the best time to buy!! For a First time buyer this is a perfect time, or for the investor as well. Prices are down and interest rates are at an all time low. Besides this, the Salisbury area is somewhat unique, which offers some opportunity that some other areas do not offer, for potential future upside in growth for the Salisbury real estate . Many people are fearful to invest or purchase a home at this time. It was Warren Buffet who said “Be fearful when others are greedy, be greedy when others are fearful” you don’t follow the train of investing; you try to get in front of it. Now more than ever is a great time to buy a home in Salisbury, or anywhere for that matter. Below are a couple of factors that will contribute to real estate growth, and why the Salisbury area is a great place to buy or invest in a home, especially now.
The Salisbury area has a nationally recognized, rapidly growing university. Salisbury University is growing at an expediential pace. The University is investing hundreds of millions of dollars in new buildings, real estate and infrastructure to improve and handle growth. The student population has nearly doubled in size in the last ten years, to a population of over 8200 students. Salisbury University is recognized for its various educational accolades, while being affordable. Why is this good? This brings in people from all over the country, the students need a place to live, and parents have started buying houses for kids to live in while in college. Staff and professors also need homes to live in. This in turn also provides a very strong rental market. For and investor there will always be demand for rentals, and if a homeowner needs to rent for whatever reason there is a demand for rent as well. As the university continues to grow, staff, students, professors all need housing!!
The Salisbury area is also the corporate headquarters for Perdue Chicken. This in one of the largest poultry companies in the world. Perdue every year brings in professionals from out of the area to live in the area to work at headquarters. These professionals are usually paid a good income, and they need places to live as well. Some Perdue employees are only hired for a short time, so this helps add to the already strong rental market, and some are hired to work for a while. For the long term employees, they need housing, and generally purchase houses to live in. Even in the downturn Perdue has continued to strive and grow. When the economy turns around this will add more jobs, and these employees will need housing.
The Salisbury area is also home to a nationally recognized hospital PRMC. The hospital attracts and recruits professionals from all over the country. PRMC has also recently had over $100 million dollars in rehabilitation and expansion. PRMC had been ranked in the top 5% in the nation for clinical excellence. PRMC has continued to grow and expand. As the hospital grows, it needs more employees; these employees will also all need housing causing needs for both rentals and housing purchases.
If you couple of these factors with the proximity of Salisbury to Ocean city a east coast vacation staple as well as its proximity to Baltimore, Washington, Philadelphia, this makes it a very attract place for people to chose as an area to live in. Salisbury offers the eastern shore life style with access to bays, rivers, and the ocean, as well as affordable living in an accredited All American City. All of these factors have poised Salisbury for continued growth, which is why it is great time to invest!!

I get asked this question a lot every day “Should I buy a home in Salisbury right now”, my answer: Absolutely!!! The Salisbury area like all markets has been hit with the downturn in real estate. We have not been hit as hard as a lot of markets, but we did see a significant decline in prices. When prices go down, this is the best time to buy!! For a First time buyer this is a perfect time, or for the investor as well. Prices are down and interest rates are at an all time low. Besides this, the Salisbury area is somewhat unique, which offers some opportunity that some other areas do not offer, for potential future upside in growth for the Salisbury real estate . Many people are fearful to invest or purchase a home at this time. It was Warren Buffet who said “Be fearful when others are greedy, be greedy when others are fearful” you don’t follow the train of investing; you try to get in front of it. Now more than ever is a great time to buy a home in Salisbury, or anywhere for that matter. Below are a couple of factors that will contribute to real estate growth, and why the Salisbury area is a great place to buy or invest in a home, especially now.

The Salisbury area has a nationally recognized, rapidly growing university. Salisbury University is growing at an expediential pace. The University is investing hundreds of millions of dollars in new buildings, real estate and infrastructure to improve and handle growth. The student population has nearly doubled in size in the last ten years, to a population of over 8200 students. Salisbury University is recognized for its various educational accolades, while being affordable. Why is this good? This brings in people from all over the country, the students need a place to live, and parents have started buying houses for kids to live in while in college. Staff and professors also need homes to live in. This in turn also provides a very strong rental market. For and investor there will always be demand for rentals, and if a homeowner needs to rent for whatever reason there is a demand for rent as well. As the university continues to grow, staff, students, professors all need housing!!
The Salisbury area is also the corporate headquarters for Perdue Chicken. This in one of the largest poultry companies in the world. Perdue every year brings in professionals from out of the area to live in the area to work at headquarters. These professionals are usually paid a good income, and they need places to live as well. Some Perdue employees are only hired for a short time, so this helps add to the already strong rental market, and some are hired to work for a while. For the long term employees, they need housing, and generally purchase houses to live in. Even in the downturn Perdue has continued to strive and grow. When the economy turns around this will add more jobs, and these employees will need housing.

The Salisbury area is also home to a nationally recognized hospital PRMC. The hospital attracts and recruits professionals from all over the country. PRMC has also recently had over $100 million dollars in rehabilitation and expansion. PRMC had been ranked in the top 5% in the nation for clinical excellence. PRMC has continued to grow and expand. As the hospital grows, it needs more employees; these employees will also all need housing causing needs for both rentals and housing purchases.
If you couple of these factors with the proximity of Salisbury to Ocean city a east coast vacation staple as well as its proximity to Baltimore, Washington, Philadelphia, this makes it a very attract place for people to chose as an area to live in. Salisbury offers the eastern shore life style with access to bays, rivers, and the ocean, as well as affordable living in an accredited All American City. All of these factors have poised Salisbury for continued growth, which is why it is great time to invest!!

Tax Consequences of Selling Real Estate in a Short Sale

2010-07-27T12:02:00.000-07:00

At my seminars in through emails, and daily conversations, I am being frequently asked on how taxes relate to short sales. Seeing as I am not a tax accountant, I don't give tax advice; I always send my potential short sale candidates to a versed short sale accountant, as you should also. To help everyone out there I had my accountant just right a very brief explanation of how taxes relate to short sales. Granted it goes deeper than this, this is just the basics, as we will go into more complex situations in the next article post.

Tax Consequences of Selling Real Estate in a Short Sale

Tax Consequences of Selling Real Estate in a Short Sale
By: Christopher S. Robins, CPA Twilley, Rommel & Stephens, P.A., Salisbury, MD
Whenever real estate is sold there are potential tax consequences for the seller. In a short sale, real estate that is subject to mortgage debt in excess of its fair market value ("underwater") is sold to a third party with the consent of the lender to accept the sales proceeds in satisfaction of the debt. The property could be a principal residence, a second home, or investment property. Dealing with the tax issues related to a second home, rental or investment property can be challenging. The tax implications of these transactions will be addressed in another article.

The amount realized on a sale of property depends on the type of financing: •

Nonrecourse Debt. The borrower is not personally liable to repay the debt even if the value of the property is less than the outstanding debt. •

Recourse Debt. The borrower is personally liable to pay any amount of the debt not satisfied by the value of the property.
It is rare for a residential mortgage to be nonrecourse. If a principle residence is sold in a short sale with nonrecourse debt, the amount realized is the full amount of the debt, even if greater than the property's fair market value. Because the discharged debt is treated as part of the amount realized, there's no discharge of indebtedness income.

If the cancelled debt in a short sale was recourse, the transaction may be taxable income to the seller/debtor in two ways: •

The discharged debt is taxable if it does not meet one of the exclusions discussed below •

The sale results in a taxable gain and does not qualify for the federal tax exclusion from the sale of a principle residence

The major exclusion is the Mortgage Debt Relief Act of 2007 which provides for taxpayers to exclude from their income up to $2 million of qualified principal residence indebtedness. This is debt incurred to acquire, construct or substantially improve the taxpayer's principal residence. A refinancing of such debt also qualifies. The exclusion applies where a taxpayer restructures the acquisition debt on a principal residence, loses a principal residence in a foreclosure, or sells a principal residence in a short sale. "Principal residence" is defined as the home where the taxpayer ordinarily lives most of the time. A taxpayer can have only one principal residence at a time.

When cancellation of debt income cannot be excluded under the qualified principal residence acquisition rules, see whether another exclusion applies. Generally, debt forgiveness is taxable, unless one of the exclusions applies. Other exclusions include: •

Bankruptcy: Debts discharged through bankruptcy are not considered taxable income •

Insolvency: If a homeowner is insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable. •
Certain farm debts: If you incurred the debt directly in operation of a farm, your cancelled debt is generally not considered taxable income These exclusions as well as other tax implications of real estate will be discussed in future articles.

APPROVED SHORT SALE!!!

2010-06-19T09:39:00.001-07:00

Short sale has been approved for this property, it is a STEAL!!! Best deal on market, Over 3100 square feet in move-in condition. 2 Master suites. Incredible first floor master suite tiled, from floor to ceiling bathroom,his/hers walk-in closets. Heated tile floors. Master has huge jacuzzi tube. You have to see this house. You can't beat this deal!!!Best deal on the market for quality and sqaure footage. Don't miss out on this deal!!!Second floor bonus room plus attic storage.Large open kitchen.Huge deck. Irrigation. Paved Driveway. Must Sell. Check out http://www.moorebrittingham.com/ for more info or on the MLS at http://www.dpol.com/ MLS #458891

It's not Equator its Bank OF America

2010-06-02T11:06:00.000-07:00

It’s not Equator its Bank Of America.
I just wanted to share my two recent experiences with the Equator system. One short sale was with GMAC and the other was with BOFA. BOFA insisted when I sent in my short sale package that the Equator system was going to “speed” up the process dramatically. That I found was untrue. The funny thing is I was doing another short sale with GMAC simultaneously, and I got an approval in 37 days, and this property had two mortgages!! The BOFA short sale had only one mortgage and both BPO’s had been done PRIOR to an offer being on the table!! I have done several short sales through the equator system and I can say for the most part it has been quicker turnaround time, but as we all know it is because we are doing more of the workload. This does not ring true for BOFA , it took them over 90 days. After over 30 short sales completed with BOFA here are some tips I have learned to try to speed things up, either way, they are slower and less organized than any other bank I have dealt with in the 300 plus short sales I have completed.
1. Try to complete task early on the equator system. You are given a timeline for every task. Complete these tasks before they are due to try to speed up the process. Once you complete a task it is the negotiators turn to do so. Check back with BOFA frequently to ensure the negotiator has completed the task in a timely fashion, because more times than not they go past there due date.

2. If a negotiator task is past due, call into BOFA and tell them to escalate the task. This will help speed up the process; you can also email and call the negotiator directly to check the status. They usually will not return your calls, but repeated calls and emails will field a response. With BOFA without repeated contact and follow up, you will be moving at their pace, which is extremely slow. You have to “push” the file through the appropriate channels.

3. Don’t be afraid to go to management for help with the process or problems with the negotiator. I have had several issues where a negotiator, set-up team, escalation department, isn’t doing their job in an accurate or timely fashion. When this happens go to a higher authority, this has helped me several times get my short sales moved along, with BOFA, and other banks. With short sales you have to be very persistent, and don’t let the bank dictate the process, as it will take forever and a day if you do.

This is just a few basic tips that help to be successful in closing short sales. If you would like more detailed information on this topic and also on REO’s check out my site www.moorebrittingham.com
and my real estate education site at www.thinkreal.com.

Foreclosures plateau - finally. Repossessions soar

2010-05-17T11:16:00.000-07:00

NEW YORK (CNNMoney.com) -- The foreclosure plague may have finally reached its peak in April 2010 -- but don't expect delinquency statistics to plummet anytime soon.

The total number of foreclosure filings -- notices of default, auction notices and bank repossessions -- fell by 9% from March to April, and 2% compared with April 2009, according to data released Thursday by RealtyTrac, the online marketer of foreclosed properties.

This is the first time that has happened in the history of the report, which goes back to January 2006.

But the number of homes repossessed during April is at an all-time high of 92,432. That is a 45% increase over April 2009. If repossessions continue at this pace, more than 1.1 million homes will be lost in 2010.

"There were two important milestones in the April numbers that show foreclosure activity has begun to plateau, but at a very high level that will not drop off in the near future," said RealtyTrac CEO James Saccacio.

Saccacio said he expects the pattern to become the norm for many months, with the overall numbers of filings staying high, but not increasing, and repossessions remaining at record levels.

The reason that repossessions can rise while filings hold steady is that lenders are working through a backlog of delinquent properties, taking more of them through the entire process to repossession, rather than letting them linger in limbo.

Walkaways

The numbers of repossessed properties, also called real-estate owned or REOs, have been boosted by a spike in the number of homeowners voluntarily giving up their homes because their the value has dropped so precipitously.

These "strategic defaults" now account for nearly one in three foreclosures, according to a recent report from the University of Chicago Booth School of Business and Northwestern's Kellogg School of Management. That's up from 22% 12 months earlier.

Some homeowners walk away when they are "underwater," owing far more than the value of their home, because they realize that they will never recoup the losses. The further homeowners fall underwater, the more likely they are to leave.

About one in four U.S. homeowners is underwater, according to CoreLogic, a financial data provider. Nearly 5 million of those borrowers owe mortgage debt that exceeds their property values by 25% or more. The total of negative equity in these deeply underwater borrowers is a whopping $655 billion.

Foreclosure epicenters

Nevada continues to rank as the worst-hit foreclosure state, with one of every 69 households receiving some kind of filing. That's nearly six times the national rate which is one household for every 387 receiving a filing.

Foreclosures: How bad is your state?

Arizona had the second highest rate; Florida the third; and California the fourth. California, the largest state in the union, had nearly 70,000 filings, more than any other state. Michigan, where the vast number of foreclosures can be traced to job losses and economic turmoil, recorded more than 19,000.

The metro area market that recorded the highest rate of foreclosure filings in April was Las Vegas, where one of every 60 homes was delinquent, Second was Modesto, Calif., with one in 101, and neighboring Merced, where one in 104 homeowners was in some stage of default

WALL ST VS MAIN STREET

2010-05-10T18:34:00.000-07:00

Wall Street vs Main Street
Fannie and Freddie: Making Bank Bailouts Look Cheap
By Lauren Tara LaCapra 05/10/10 - 07:00 AM EDT

UPNEW YORK (TheStreet) - According to the formula for taxpayer rage -- big bailout + housing + rich executives + lack of humility = angry -- it's puzzling that Fannie Mae (FNM) and Freddie Mac (FRE) have largely escaped Average Joe's wrath.
The two firms are emblematic of everything that went wrong with the financial system, and of what seems to be making taxpayers so mad. Fannie and Freddie have been kept alive by the largest taxpayer-financed bailout to date, and now have the luxury of a blank check from the Treasury Department. Their housing-related losses continue unabated, with Fannie Mae saying on Monday that it needed another $8.6 billion in taxpayer support, and Freddie Mac having requested another $10.6 billion last week to keep its balance sheet in tact.

They're also at the center of the housing crisis. If you own a home, there's a good chance you've interacted with Fannie and Freddie indirectly; they own or insure more than three-quarters of the U.S. housing market. The mortgage-backed securities they create with those loans are repackaged and traded and bet upon by investors. In some sense, they're where the alphabet soup of Wall Street products that have confounded the average citizen -- the RMBS, CDS, CDOs and the like -- all began.
And while executive pay at Fannie and Freddie has become a lot more rational since the firms were taken over by Uncle Sam, their top guns were getting paid quite a bit at the height of the housing frenzy. The CEOs of Fannie and Freddie brought home roughly $60 million combined in 2006 and 2007, just before the punchbowl was yanked away. And even last year, as losses continued to pile up, their top executives received $13.4 million in pay.
Investors, too, have profited on the backs of subprime suffering, via Fannie and Freddie shares. Their returns beat the S&P 500 index by a wide margin, starting in the early 1990s, straight through most of 2007. Short bettors won handsomely as Fannie and Freddie's market caps plunged tens of billions of dollars in 2008, and their penny-stock volatility has given day traders a reason to smile.
So, what gives? Why isn't anyone angry at - or even talking about - the absurdly large liability that Fannie and Freddie represent to the American taxpayer

Brandon Brittingham Wins Top Regional Producer Award!!!

2010-04-12T14:23:00.000-07:00

Brandon Brittingham with a banner real estate year in 2009 was just named the Long and Foster regional top producer for units sold. With over 60 units sold and over 10.2 million in sales Brandon eclipsed several hundred agents in the Eastern shore region to claim the convenant top regional spot. Brandon is looking to focus on the same type of production in 2010, and looks forward to the coming year in real estate.

Now Is the Time To Buy In Salisbury Maryland!!

2010-03-28T15:44:00.000-07:00

Think now isn't the time to buy?? Cnnmoney.com and Money magazine just ranked Salisbury Maryland the 24th best value place to buy in the country for 2010!!! Salisbury was ranked just below Los angeles. There can't be a better time to buy!!. Low prices, interest rates, and government incentives. What is there to wait for?? Click the link for full story and see rankings below:http://money.cnn.com/magazines/moneymag/moneymag_realestate/2010/snapshots/24.html
1
Hanford, CA
2
Miami, FL
3
Fort Lauderdale, FL
4
West Palm Beach, FL
4
Phoenix, AZ
6
Las Vegas, NV
7
Tampa, FL
8
Pensacola, FL
9
Gainesville, FL
9
Suffolk, NY
11
New York, NY
12
Ocean City, NJ
12
Bethesda, MD
14
Deltona, FL
15
Washington, DC
16
Atlantic City, NJ
16
Naples, FL
18
Fort Walton Beach, FL
-
19
Edison, NJ
19
Minneapolis, MN
21
Orlando, FL
22
Prescott, AZ
23
Los Angeles, CA
24
Salisbury, MD
25
Jacksonville, FLMore information on Salisbury at http://www.moorebrittingham.com/

Brandon Brittingham full page article in the Daily Times on his short sale knowledge and success!!

2010-03-25T11:49:00.001-07:00

All the agents and homeowners I helped has started to pay off. Just featured in a whole page article in the Daily Times. The book is on the way!! Check the story below:
!!! http://www.delmarvanow.com/apps/pbcs.dll/article?AID=/201003220432/BUSINESS/3220336

SALISBURY -- Meet Brandon Brittingham, a Salisbury guru of short sales -- an out for a homeowner facing foreclosure and financial ruin.
But short sales are a niche tool tall in complexity, and shied away from by many real estate agents. So few homeowners are encouraged to pursue the option that would allow them to sell their property at a price less than what is owed on the mortgage.
Brittingham is a Long & Foster Real Estate property executive working to change that. In the fall, a nationally recognized publishing company intends to release his book advising real estate agents and homeowners on the mortgage-sales option to foreclosure.
The book coincides with the federal government's offer of financial incentives to lenders who do more short sales, effective starting early April. Industry watchers say new rules also are supposed to help standardize the process that buyers and sellers complain drags on at lending institutions already bogged down in the housing crisis.
Renewed attention to the less-used option puts Brittingham in a unique position as an expert. Restricted by limited capital, Brittingham launched a career in real estate seven years ago buying property priced lower through short sales. The perceived disadvantage has put him out front.
"I started doing short sales when I was 20 years old; now I'm 27," he said in a recent interview. "I was limited in capital, so I purchased short sales. I did it all over the country, and when the recession hit, nobody knew how to do them. The difference between me and a lot of guys, from a teaching and instructional standpoint, is that they're not doing it every day. Experience counts."
He wants brokers to promote the mortgage-sales tool and position the real estate industry as a leader in foreclosure prevention and restoration of the national economy.
"You must get an agent well versed on short sales, and there are about 10 in the country with the same amount of experience with short sales as I have," Brittingham said. "It is fairly new to the real estate community although it's been around forever."
lender would have to agree to the terms of the sale, and many of them are willing to reduce the price of a house to avoid the hassle of a potentially unprofitable foreclosure sale, Brittingham says. For homeowners, a short sale can be less damaging to credit and can alleviate possible IRS tax gains and bank deficiencies, he also says.
A better option
"Last year, three million properties went into foreclosure; this year will be more," he said. In Wicomico County alone, industry watchers expect at least 200 foreclosures in 2010, Brittingham said.
"At a minimum, 150 are to come in 2010; it's a good possibility without the options. And there are more options now than there ever have been in the history of our nation."
One option would be to consider a loan modification for a reduced mortgage, or renting a property for income, he said. Selling the property "to bring cash to the table" is an option if there is equity, but not enough to sell it in the current market, Brittingham notes.
To be eligible for a short sale option, a house must be worth less than the amount owed on it, and a homeowner must be able to prove true financial hardship, such as decreased wages, job loss, or a medical condition that reduced earnings from when the loan originated, he said.
Starting in April, new rules take effect for the federal Home Affordable Foreclosure Alternatives program, or HAFA, offering incentives to lenders and struggling homeowners who select options to foreclosure. Under the rules, a borrower can receive pre-approved short-sale terms before a property is listed for sale, and is released from the first mortgage debt within 10 business days, according to a HAFA fact sheet.
Brittingham gets hundreds of telephone calls and e-mails on short sales from real estate agents hoping to bone up on what could become a lucrative trend for all parties involved. On average, he spends 70 hours to complete a short sale.
Through personal contact and his book, which he hasn't decided on a title, Brittingham intends to push short sales as a viable option.
"The book is an education for the consumer and the agent; there's a demand for it," Brittingham said. "There is no helping hand for anybody in a short sale. I felt I could take my knowledge out there."

FHA FLipping:Under the 90 days must meet all ten requirements

2010-03-25T11:45:00.000-07:00

FHA Flipping: Under the 90 days must meet all ten requirements:

I recently thought that the lifting of the 90 day ban on flips for FHA financing was going to make it easier for investors like myself to sell my properties and easier for buyers to purchase these investment flips by taking out the 90 day rule. In trying to sell one of my properties recently I found out it is actually harder if the property has been held less than 90 days. Granted the rule was used for good reason, and I'm not here to dispute the validity of the rule, as it stopped a lot of predatory lending and flipping practices just wanted to educate investors and realtors alike, on what it entails. You could enter into a transaction, not knowing, that has no chance of getting to the table. So make sure you know this information.
The 90 day rule has been lifted but, the property has to meet ten out of ten requirements before FHA will finance it, if the current owner has held title for less than 90 days. Here are the ten:
1. Sales price cannot exceed 20 %( If seller paid $100,000 the new sales price cannot exceed $119,999).
2. Must be an Arms Length transaction.
3. Based on contract dates 2/1/2010 to 2/1/2011.
4. LLC's are allowable/borrower cannot be affiliated with the LLC.
5. Loan Safe report will be pulled on every loan.
6. 12 month chain of title-with evidence of no flipping activity.
7. Property was exposed to open market.
8. Appraisal: comments on improvements with photos, specific comments to acknowledge increase & support value.
9. Re-dating contracts not allowed
10. Buyers agents cannot be seller/Buyers agent cannot be employed by, related to or affiliated with the seller.
All utilities have to be turned on for the appraisal, and the property must conform to the minimum HUD standards.
Again, the 90 day rule along with these requirements hedge the flipping scams that are out there, but just be aware of these rules, because this is something new, and most agents are not privy to this information.

New Listings!

2010-03-05T12:05:00.000-08:00

Old Ocean City Rd.

WHAT A STEAL!! Two seperate parcels totaling almost 2 acres, one of the last properties zoned R10A in Salisbury. Property just appraised for $189,900. House has new windows, roof, flooring,and appliances. You will not find another deal like this. Zoning allows up to ten units per acre!! Buy as a homeowner and watch your money grow, or as an investor you won't find a better deal!!This will not last at this price!!! Prelimanry skecth on file, convey with site, possibly of several multi-family units. Prelimanry site work/survey completed convey to the new owner. Plans so ability for up to ten duplexes townhouses. Original owner paid $225,00

Call Brandon @ 443-783-3928 today!

Westbury Acres

$214,900!!!

Can you believe this price?? The neighborhood you want at the price you can afford. Recently replaced roof, paved drive way, 2 car garage, all nestled on a half acre with a huge back yard. Compare with other houses, cheapest in price range!! You won't find another house in this location, at this price!! Don't wait. This won't last!!

Call Brandon today! 443-783-3928

Get Your Commission Protected On Short Sales!

2010-03-03T12:12:00.000-08:00

I know we all constantly run into this on short sales, you get to the point of getting an approval and the bank/investor wants to cut your commission. I hope most of you know that on FHA and Fannie Mae backed mortgages you are to receive a 6% commission no matter what. A servicer, or investor will try to cut your commission if you let them, so one easy thing to do is check at the beginning to see if the property is FHA, or Fannie back. You can go to http://loanlookup.fanniemae.com/loanlookup/ , to check to see if it is Fannie backed, and for HUD, you can go directly to their website to check as well.

Your commission, regardless of who the servicer or investor is, should never be cut to less than 6% on any short sale, but you have to stand firm, and have to know how to negotiate to keep your commission. Keep in mind if they foreclose on the property, there is a potential for a five to six figure loss on the property vs. them paying you several thousand for doing your job, and probably part of their job!! This is just a quick bit of information that helps me on short sales. If you would like to learn how to negotiate short sales, and become officially certified to do short sales, go to www.thinkreal.com and sign up for our next certification class. I have completed over 263 short sales nationwide, and have designed CE courses for real estate boards throughout the county. Hope this helps!!!

Social Media: Better Than Your Business Card!

2010-03-03T12:09:00.001-08:00

I know a lot of agents out there can be overwhelmed by social media, and may doubt its benefit. I have blogged and written post about social media in the past of the success it has brought me. One aspect of social media than we all can utilize as agents, is the point that social media can be your digital business card!! Okay but how?

When you give a client or another agent your business card, they may call you, or they might lose your card, or not call you at all. Point is, it is one business card you give them one time. It isn’t a constant reminder of who you are and what you do. When meeting someone, if you ask them to become a friend on facebook, or follow your blog (assuming you have one) or Twitter feed (if they have either of these you offer to follow them as well), every time they check any of these sites they are reminded of who you are and what you do. (Heck, my 73 year old grandmother even uses Facebook now!) If you use these new tools of social media to provide good market analysis, business insight, or real estate information, people may pay closer attention and even tell friends about you. Real estate is a hot topic these days, and you would really be surprised how much general interest the consumer has in all facets all real estate. As I have said in other posts: Ability does not translate into visibility. A client cannot get your expertise from your business card, but that client, along with everyone else on the internet, can recognize you and learn your ability through social media. I think too many people discredit website traffic, and internet recognition through social media because they simple don’t track it. If potential clients become linked with you on the internet, you are fresh in their minds all the time. You can set up campaigns to produce new content, and this is a simple and easy way to do free marketing and consistently stay in front of the eyes of the consumer. This doesn’t even take into account the networking capabilities of other agents, which is something you should be hitting hard (as a matter of fact, friend request me, follow me on twitter and subscribe to my blog and I will do the same for you, and let’s start networking now!) It is a widely known golden rule of business that the more new people you meet on a daily basis, the more likely you are to receive new opportunities. I have, through social media/internet presence, received referrals from all over the country and also sent out referrals!! We all know real estate is a face-to-face people business, but this can help you get clients in front of you.

Take social media into consideration as your digital business card. An easy way for people to see who you are and what you do 24 hours a day, and be constantly reminded. Now with all things you cannot just simply wave a magic wand and get overnight success, but you will not get anywhere without starting somewhere. If you would like tips on blog building, social media, internet marketing, SEO that have made me successful and worked for me, please contact me and I would love to help!!

Brandon Brittingham named Top Producer for January

2010-02-12T10:21:00.000-08:00

Long & Foster Real Estate, Inc.
Salisbury, Maryland
February 2010

Susan B. Megargee, Branch Manager of Long & Foster Real Estate, Inc. in Salisbury, Maryland announced the Top Producers for January 2010. Brandon Brittingham was Top Producer in both Units and Production for the month with 5.5 units and sales topping $1.1 Million. Joan Catlin was a Top Producer as well with 4 units and over $1 million in volume.

Brittingham has been a consistent Top Agent with the office since joining Long & Foster's Salisbury Office and Catlin has been Top Agent in many categories for more than a decade! Long & Foster’s Salisbury Office always has the most top agents of the Coastal Board of Realtors’ Top 25. To contact a Long & Foster agent please call 410-546-3211.

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Short Sale negotiation companies… BEWARE!

2010-02-12T08:52:00.000-08:00

I wanted to share several recent experiences I have had with not only my fellow agents, but also with consumers out there who are involved in short sales. I have come across more than a few companies that claim to be “experts” in short sale negotiations, only to find that not only is the information they provide not accurate, but sometimes they are just out-and-out scams. Most are newly formed companies, with no true experts on site. Typically they’re just trying to take advantage of the current market. We are in a time where many people are desperate financially and emotionally, and there are those out there who are eager to take advantage of people in these types of situations. Granted, there are some agencies out there that are good, legitimate short sale companies but, you have to know the difference between the good and the bad. I have run into several of these companies that have been taking the uneducated consumers’ and agents’ money, and provided absolutely nothing in return. They told both the agent and the consumer to gather all the package items and send them over, and they would begin the short sale process. Once they received payment, they stopped returning calls. Even some of the so called legitimate companies I have dealt with, I have been extremely unimpressed with their knowledge and process. It seems everyone and their mother now is a short sale expert, but here is some news: doing a couple of short sales doesn’t make you an expert! To truly be an expert you have to have closed an array of deals with myriad complicating factors, in a slew of different situations. You have to have closed short sales with every lender (as every lender has different guidelines), FHA back, Freddie and Fannie, different property types, multi-lien holders, and a whole host of other qualifications. I mean it when I say that you really have to live and breathe short sales and perform them on a daily basis, as guidelines and lender protocol can change that fast.

Now, despite what you may have heard, you don’t have to be an expert to close short sales. You just shouldn’t claim you are and expert unless you really have the experience. The good news is, you can start today on your journey to becoming an expert! Short sales are difficult, sure, but they can be conquered with the RIGHT training and education. I have completed over 263 short sales in just about every scenario possible. Three mortgages, IRS liens, mechanic’s liens, trustees involved, divorce… you name it, and really I haven’t met one I couldn’t tackle. I have mainly closed them in the Maryland area (Wicomico, Somerset, Dorchester, and Worcester County) but through my training and teaching I have closed short sales all over the country. I am one of the only agents in Maryland who can certify other agents in short sale technique.

As agents we can learn this material—we just have to want to learn it. With short sales being such a real part of our market, why wouldn’t we? Think about it: when you started as an agent you may have felt overwhelmed with the information you had to absorb in such a short time. But you did absorb it, and now it’s second nature. Short sales are the same; you just have to learn the material.

Okay, so back to my point. If you have considered using a short sale specialist/negotiation company or you have run into a consumer who is thinking about using, or is currently using one, here are some red flags to look for:

1. Is their type of practice even legal in your state? In Maryland there is a very, very fine line for these types of companies; they have to be formed a certain way, and operate a certain way to even be legitimate. Check your local and state laws, and thoroughly research the company. Ask how many short sales they have closed, and how long they have been involved in short sales. Ask who negotiates the short sales. Ask if they have on-staff attorneys. Who is the qualified specialist, and what makes them qualified? Also ask for past references of clients they have helped with short sales.

2. If they ask for any money up-front, there may be a problem. First off, in some states, in a short sale situation, it is totally illegal for anyone to get any type of compensation from the seller. I would be very wary of any company asking for any type of compensation before they performed any work. Agents get paid at closing, as should these types of companies. Not saying there is anything wrong with a legitimate company getting paid up-front, but just make sure you are 100% comfortable and that it is legal before you give compensation up-front.

3. Be wary of any company that claims to specialize in this type of negotiation but has no affiliation to a real estate broker. A lot of the companies I have run into that are running scams or offer no real service are not affiliated with a broker for a reason. Brokers and agents have to follow a legal, moral, and ethical code to our clients and consumers. These types of companies do not affiliate with brokers for that very reason, so they don’t have to follow these codes. Now there are good legitimate companies that aren’t affiliated with a broker, but just be cautious of the companies who aren’t, because more times than not it’s because they’re trying to avoid playing by the same rules.

If you would like some short sale training, coaching, or would like to become short sale certified, contact me today! I have created certified CE classes all over the country, and currently I am one of the only agents in the country who can actually give other agents a short sale certification. Live classes start every month at www.thinkreal.com . Go there for more information.

SHORT SALES: GET YOUR SELLERS REALEASED FROM DEFICINCIES.

2010-02-09T12:07:00.000-08:00

There has been a lot of controversy recently (and even a CNN news story) about sellers not being fully released when they sell their property through short sale. I think, for the most part, a majority of the information that I have read has been accurate, but there is a major glaring issue that no article or blog has touched on. As agents we can get our sellers released from deficiencies! This is all part of the negotiation, and I think there is a huge lack of education when it comes to this subject.

First off, in some states (depending on state law), the bank cannot pursue the seller for a deficiency, so check your state law to see if you are in a state that qualifies. Where I am in Maryland, banks can. I think a lot of agents assume that if the bank accepts the short sale, they are automatically letting the seller off the hook for the deficiency. This, unfortunately, is far from the truth. If the terms are not clearly spelled out in the approval letter with language such as, “seller shall be fully released from all further liability or debt, and we, “XYZ”, shall not pursue a deficiency judgment”, then you, as an agent, should be negotiating to have that language in the approval letter. On a principal residence this is a lot easier because most banks (not all) take the IRS perspective of letting the seller off the hook, but only if you make that part of the negotiation.

If you are unfamiliar with the IRS perspective, The Mortgage Forgiveness and Debt Relief act passed in 2007 brought relief to sellers in this position. In most cases on a principal residence, this new rule relieves the buyer of any taxable “gain” on their home through short sale. In the past, the seller would receive a 1099 for the difference of the mortgage balance vs. what the property sold for at short sale (i.e., if the balance was $200,000 and the property sold for $150,000, the seller got a 1099 for a $50,000 gain) and they were taxed on that difference as income. (Another bright idea from the IRS. Don’t you love bureaucracy? ) Banks would certainly rather perform a short sale than perform a foreclosure, and if you are involved in a short sale it should be a requirement that your seller is fully released. If not, you’re not negotiating for the seller’s best interest, and if you’re not acting in the seller’s best interest, then what really are you negotiating? Yes the bank will accept the sale, but if they reserve the right to pursue your seller later on, that doesn’t sound too much like a negotiation to me. Banks are more prone to doing this on principal residences and I have found that is fairly simple to get my sellers fully released when it is their principle residence. When they have balked at doing this, I simply went over all the factors with them, and reiterated the amount of money they would lose along with the other factors I had presented with my package, and got it in the approval letter that they would release my seller! (If you would like to learn some of these strategies or get short sale certified, go to www.thinkreal.com and sign up for the next class)

Please note that with any approval letter, you and your sellers should consult with an attorney to know the ramifications of the letter once received. I suggest never attempting to interpret an approval letter, no matter how versed or experienced you are, without a lawyer’s interpretation first. The reason behind this is the simple fact that as agents, it is not our job to interpret law, and with a lot of approval letters, state and federal law can get drawn into the equation. If you interpret something the wrong way, you could find yourself facing a law suit.

Second homes, investment homes, and second liens take a bit of a different approach. These are tougher situations to get your sellers fully released, but they’re not impossible. With these three cases make sure your seller talks to a short sale versed accountant, because these types of sales may have some tax ramifications. Second liens are the easiest of the three because the bank is in a second position, and, in almost every case, if the property goes to foreclosure, they get absolutely nothing. Second lien holders will usually require some type of payment from the first, and they will generally fully release the seller on a primary residence. (but only if you get in writing to get them released)

Even in a second position, on second homes and investment homes the situation can be tougher though. In a perfect world every second lien holder will be easy to deal with, but we’re talking about banks here! Principal residence or not, sometimes you come across that second lien holder that is going to try to hold the seller to some type of promissory note, or will not fully release them without some kind of debt repayment. There are going to be some cases where the second’s loss is so great they cannot stomach the small payment they are getting from the first. Again, if they are in a second position and the property goes to foreclosure, then they get nothing. Please keep this in mind when negotiating.

So what do you do if they won’t budge?: If a second lien holder simply will not budge(though in almost every case I have been able to get them to…), then whatever promissory note they hold the seller to should be a minimal amount with very favorable terms. Then of course, your seller has to agree to the terms which they may not want to do, so they have to be favorable to the seller not the bank. Out of the 265 short sales I have closed, I have only had two in which my sellers had to sign a promissory note. Both were under $10,000 and in both cases the notes were zero interest payable over ten years. In both these situations the second lien holder’s loan loss was over $150,000. Now, if your seller agrees to this, they have to be fully realeased from any other future liability. (If you run into this, please consult with an attorney as this can get complicated, and you and your seller need to have a full understanding of the situation before moving forward.)

With second homes and investments, you will have a harder time getting your seller fully released. Banks think of second homes as “luxury” items, and try not to let sellers off the hook as easy. Investments are often treated the same way, because the all-knowing banks think your sellers should be able to rent or sell the property (Obviously, if they could they wouldn’t be performing a short sale!). In both of these situations, remember—if they foreclose, their probable loan loss could be in the six figures, and depending on your state’s law, they may not get the property back for over a year! Keep this in mind, and just make sure whatever the bank throws at you to get your seller released, negotiate on your seller’s behalf!!!

Regardless of what the banks tell your or what you read in the media, you can get your sellers fully released, and successfully close short sales to your sellers benefit. I am living proof, and so are all the agents that I have trained and continue to train. To let you in on a little secret, there is no better word of mouth referral in the world than helping a seller complete a short sale!!! I hope this helps, and if you would like more information on short sales or would like to become short sale certified, please don’t hesitate to contact me. I am one of the only agents in the country who can currently certify other agents, and have helped develop short sale and REO coursed for accredited CE in several states.

Facebook, Twitter, Blogger, LinkedIn, Active Rain… Social media can be overwhelming, but don’t fear!

2010-02-05T08:01:00.001-08:00

Facebook, Twitter, Blogger, LinkedIn, Active Rain… Social media can be overwhelming, but don’t fear!

Recently, in the middle of teaching a foreclosure seminar, I gave a brief moment to the importance of social media in growing your presence and business as a real estate agent. The response I got from most of the agents was that they simply don’t know where or how to start. I couldn’t believe it; they have no clue about how to even begin the process of social marketing, and don’t know where to turn to find out. This Coupled with the fact that a lot of agents do not understand the importance, or potential return on investment of social media, means most agents just overlook this aspect of marketing. Even those who do embrace this form of marketing typically only scratch the surface, and do not use it to its full potential.

The fact of the matter is social media marketing can bring you leads. And not just some—a lot!!! It also helps build your internet presence and brings traffic to your website. You may know you’re a good, knowledgeable, experienced agent, but what does that matter if no one can find you? Ability doesn’t translate into visibility; not without proper marketing.

It’s a known fact that 80% of consumers find their real estate agent and home they want to buy on the internet. I can personally attest to the power of social media. I have received referrals from all over the country, and referred out deals all over the country as well!

A couple weeks ago I was teaching a short sale seminar to some real estate executives of top real estate companies across the country and a few of the people I was teaching told me they didn’t even know where to start or what to write about. I couldn’t believe that because this group was overseeing thousand of agents and had collectively 40 years of real estate experience. Their knowledge alone could fill blog post for months! I told them, as I tell you, just start! We all have direct niches and specialties, and we are filled with experiences to share with the public and other agents. Make a plan and start working on the plan, and try to take time out of your week to spend on your social marketing. Real estate is a people business no doubt, but the internet grows everyday on more and more people go to the internet for their answers. I am located in Salisbury Maryland, and just the other day I received a referral from Rochester New York, because the people found my blog from keywords, went to my website, saw my Active Rain profile and twitter posts, and basically interviewed me before I had ever even spoken to them. They had inherited a house in my area, and thanks to my internet presence, they asked me to list it.

Starting your own Twitter, Facebook, Active Rain, LinkedIn or Trulia account, and posting on real estate blogs works really well to help drive traffic to your agent website. With all of these you need to consistently update with good content that people want to come back and read. Produce content about your market, your personal real estate knowledge, interesting content, every property you list. This type of content can help you “sell” yourself without directly “selling” yourself. Be very careful with all the internet marketers and social media companies trying to “sell you the dream” of making you an overnight internet superstar. There are good companies out there, just be wary if you decide to choose one. I do all my SEO and internet work with marketing staff in my office, and as a result of the demand, and companies who will take your money and give you no results, we have been helping agents with blog building, content creation, and overall social marketing. We also can help “sync” all of your social media and internet items cohesively to send traffic back and forth and ultimately to your website. For more information on the services we offer please contact me, we are number one through six on Google for several different keywords in our area. Our website and blog traffic are growing at a fast pace and we are converting leads on a daily basis.

Hope that helps, contact me via email if you would like further information.

Maryland's Anne Arundel County reverses rule on short sale tax

2010-01-29T06:17:00.000-08:00

Looks like Anne Arundel did the right thing and overturned the tax on short sales. From Hometown Annapolis:

Anne Arundel County has done an about-face on how it charges taxes on short sales of homes.

Just a week after real estate agents and title lawyers started complaining publicly, the county government is ending its practice of calculating taxes in a way that collected more money.

The county's decision is based on an opinion from the state Attorney General's Office that said the county didn't have explicit authority to collect the tax in the way that it was doing.

"We're going to follow the AG's opinion," said Richard Drain, the county controller.

The opinion was issued yesterday afternoon, and Drain said the change in policy is effective immediately.

Five short sales on homes had gone through the old process and the county will refund the extra taxes paid. The extra tax totals $4,000 on the five sales combined.

In a short sale, a home is sold for less than the value of the seller's mortgage.

Anne Arundel's policy was to calculate certain taxes based not on just the sale price, as happens with regular home sales. Instead, the county taxed the sale price plus any amount of the mortgage that was "forgiven" by the lender.

For example, on a house mortgaged for $300,000 but approved for a sale at $250,000, the county was charging taxes based on $300,000.

Realtors said the taxes should be based on just the sale price of $250,000.

Read the rest of the story HERE.

2010: The year of the short sale?

2010-01-29T06:12:00.000-08:00

Was tweeting today about another short sale that I closed and received a 6% commission and got an approval in 30 days (man, was I happy...) when I came across this article that I think would be of interest to all of my fellow agents. Original post was at the WSJ Blog. Here is the link: http://blogs.wsj.com/developments/2010/01/27/why-2010-could-be-the-year-of-the-short-sale/. I'm certainly seeing more lender cooperation and faster closings in the past six months. What are you guys seeing out there?

Here's the WSJ article:

By Nick Timiraos

See housing data for six specific markets, including Phoenix.

If 2009 was the year of the foreclosure (and loan modification), then 2010 may be shaping up as the year of the short sale.

In the Phoenix metro area, the number of completed short sales, where lenders allow a home to sell for less than the value of the mortgage, increased by 60% in the last three months of 2009, according to Fidelity National Title Insurance Co. In December and January, sales of bank-owned homes fell by 25% from one year ago, while short sales increased by 16% and traditional sales rose by 9%.

For years, real-estate agents have groaned about the difficulty of pulling off a short sale, which can involve a handful of third parties-the first and second mortgage holders, the mortgage insurance company, or Fannie Mae and Freddie Mac. Locking up all the approvals for a short sale can take months, leading potential buyers to walk away from the deal or a lower appraisal to scuttle the deal.

That's especially frustrated agents because short sales let banks avoid having to foreclose and manage the property themselves, and it often results in a better price than the bank would receive if the property went to foreclosure. According to Fidelity, sales of bank-owned homes in the Phoenix region often result in $38,000 less per transaction than short sales.

A another quarterly report on loan metrics from bank regulators, which includes data on around two-thirds of all first mortgages, found that around 31,000 short sales were completed in the third quarter of 2009, more than double the level from one year earlier. (By comparison, there were 118,000 foreclosures during that quarter, a 7% decrease from one year earlier).

Housing economist Thomas Lawler has predicted that an uptick in short sales as a share of total sales could also provide an unexpected lift to home prices this year. He estimates that short sales accounted for around one in five distressed sales last year, up from around 9% in 2008.

"Given recent lender behavior, increased staffing in the loss mitigation area of mortgage servicers, and the administration's recent "push" ... to encourage more short sales," he writes, "it is extremely likely that the recent uptrend in short sales relative to foreclosure sales will continue this year."

HUD Lifts ban on 90 day "flip" guideline

2010-01-19T08:28:00.000-08:00

Here is some good news!!! If you are an investor or real estate agent, I'm sure you have run into this before. I know as an investor this has held up settlements of my investment "flips" several times, and in some cases has caused me to lose a buyer. HUD has decided to lift the ban for one year. Follow the link at the bottom for HUD article.

If you’re not familiar with the HUD guidelines on "flips", HUD requires that a seller must hold title to a property for over 90 days before it can be resold if it is going to be purchased through an FHA mortgage. If you are a property investor this can cause a problem because in most cases you can get your rehab done in thirty days, and then turn around and sell the property quickly. This rule limits the speed of your turnaround. This rule had investors waiting 90 days from the time they purchased it before a buyer could even be secured. I know in some cases I only had about two weeks of work that needed to be done before I listed my investment "flip". I was stuck paying interest for the rest of the time period until my 90 days was up. I primarily focused on areas where FHA buyers can afford to buy; this caused a problem with selling my properties sometimes because the buyers had to wait 60-90 days before we could even go into contract. So why not just try to secure a non-FHA buyer? Well, I don't know about your market, but 80% of buyers in my market get FHA financing. The market being the way it is (with oversupply of homes) most buyers just moved on to the next property. As an investor, I have always priced my homes to move quickly, and always picked attractive areas to invest in. I have never had a problem securing a buyer, it was just the fact that the 90 rule would drag out settlements, or not produce a buyer until the 90 days had passed. In some cases my potential buyers were not willing to wait that long. In cases where I had an FHA buyer who really liked the house and wanted to wait, I still sold it to them, but had to pay more carrying cost, and they had to make living arrangements (most FHA buyers want to move in 30-45 days from contract date.), or pay a longer rate lock, which in turn led to them incurring more costs as well. This new rule will eliminate costs on both ends. This was never a huge drawback to reselling properties, but it has caused some issues for investors and agents alike in recent years.

With real estate fraud increasing over the last several years, FHA had this rule for good reason. There were numerous "flip" schemes out there that affected uneducated buyers, and left them in financial shambles. Local and national banks were taken to the cleaners as well on these kinds of frauds. There will still be strict guidelines on "flips"( so please read the article) that are secured by FHA mortgages, but I think this is a step in the right direction. Why punish the good agents and investors because of the few bad ones? Most guidelines state and nationwide recently have deterred investor from buying because of the real estate fraud in recent years, this will encourage them again. Investors are a big part of why houses are selling now, and investors help rid communities of foreclosures and short sales. In many markets over the past few years, investors have been a huge part of the market, both on the buying and selling side. Speaking from personal experience, I have bought the "ugly houses" in neighborhoods, fixed them up, resold them, and helped bring neighborhood values up for a long time. Fixing foreclosed and abandoned properties in neighborhoods helps value move in an upward direction. This new rule will encourage more investors to do just that, because their turnaround time will be shorter. This gives investors more of an incentive to continue to buy property fix it up and resell it.

For agents this will be a big help as well. Investors in most cases price properties extremely aggressive when selling "flips" (I know I do!). The point of an investment "flip" is to sell it as fast as possible, and it is no secret that price is usually the most important factor in securing a buyer quickly. These types of properties attract the attention of many FHA buyers, because they are usually in the FHA buyers’ price range. Most investor “flip" properties have had many recent improvements, or modernization, and are in desirable areas. As agents our FHA buyers will not have to wait 90 days anymore to purchase aggressively priced properties from investors, or skip these properties because of timing issues.
I have high hopes that this rule will not be taken advantage of, and that this will benefit us all in the coming year!!

Follow the link here: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10

ThinkREAL.com and "Get Foreclosures Now!" go live!

2009-12-23T10:36:00.002-08:00

Want to grab hold of an extra income stream? How about one that can lead to getting foreclosure listings?

Want to get paid to do CMA’s?

Now you can! Over the past 16 months, I have compiled a list of the best, highest paying companies that will give you leads to do BPO’s for banks—the first step toward landing REO’s! Foreclosures are a real part of our market, and you can make serious income listing properties for banks. If you know how to do a CMA, you know how to do a BPO! Find out how at ThinkREAL.com!

To get national bank listings, you must first perform BPO’s. Banks score your BPO’s based on several key criteria, and the higher you score, the better your chances of being offered their listings. We’ve consulted banks, asset managers, BPO auditors, and experienced REO agents, and compiled a comprehensive guide to filling out BPO’s correctly and completely—giving you the best shot at turning your BPO’s into listings. This list has been featured on Business weekly as the best and most informative BPO list available!

On average, agents who have used our list have received a minimum of $500 BPO income per month, and at least 2 bank listings in the first six months! I personally received 60 BPO’s in 2009, for a total of $8,500 in supplementary income! (That’s just from BPO’s!) From there, I was offered 15 bank listings, which translated into over $4 Million dollars in sales!!! I’m too busy to take on any more than that, so I was receiving more requests from banks than I could handle! Yes, I was actually turning them away! Every one of those bank listings was offered to me because I had completed solid BPO’s for the banks.

A bank which offers you a listing can become a client for life! You could potentially become the go-to REO agent in your area! Find out how at ThinkREAL.com!

Regardless of whether the market is up or down, there are always going to be foreclosures.

Now is the time to get into this niche part of real estate, and this is the tool to save you time and money, and get you started today! Visit us at ThinkREAL.com today and learn how to turn BPO's into forclosure listings!

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HUD Help on FHA-Backed Short Sales

2009-12-22T12:48:00.000-08:00

Just wanted to let all you fellow agents out there know that HUD can be of great assistance if you need to perform a short sale on an FHA-backed mortgage. I just had a short sale that was denied by Chase, but HUD got it reopened and got it approved!!! This is information that any agent who deals with FHA-backed mortgages needs in their toolbox.

First off, you need to familiarize yourself with HUD guidelines. (Click here for a copy, and link to their loss mitigation department...)Working directly with HUD, as well as the bank involved, can give you a better chance at a successful outcome when performing a short sale. This can also ensure that the bank follows all rules (most of the time they don't) and can ensure that your commission does not get cut. When you have a short sale that is an FHA-backed mortgage, contact HUD as soon as you begin the process, so that you are working with them and the bank simultaneously. Submit to them the same package you would to the bank, and keep them in the loop throughout the process.

There are many possible scenarios where banks will deny short sales because they say the property does not fit HUD guidelines. Bear in mind, the way the bank sees things, and the way the HUD guidelines are laid out can often be two very different things. As an example: In the most recent sale I worked on, the client had to move out because he couldn’t even afford to pay his electric, heating, etc. He actually moved out of state to seek employment because, in his line of work, there weren’t any jobs available locally. I made Chase aware of this and, at the time, they said it would not affect the short sale. We went through the whole process, BPO and everything. At the very last minute, the negotiator denied the file because she said HUD wouldn’t pay the claim. She insisted that since the borrower had moved out, Chase couldn’t approve, because there would be no reimbursement for their loss. My knowledge and experience with short sales told me she was wrong. I referenced the HUD special exception which states that if the borrower is unemployed, they may move out to seek employment if necessary. I pulled this from the HUD website and provided it to her, but she still said I was wrong. She got quite nasty at this point, and stopped returning my phone calls. I had been working with HUD on this file the whole time and made them aware of the situation. HUD agreed with me, and contacted Chase to inform them that their claim would be paid.

If I had not been working with HUD, this deal would have been D.O.A., and I would not have gotten an approval. I suspect the negotiator didn’t keep her job very long after that file, because when I called in again to get the approval letter, I was told she was no longer employed by Chase.

HUD is more helpful and compassionate when it comes to borrowers in default. HUD is also a lot easier to work with, and they try to make a short sale work to benefit all involved. In a lot of cases, banks are so overwhelmed that the negotiator may see closing the file as an easy out, or they simply may not see the file from HUD's point of view. After all, they are following HUD's guidelines, so why not work with the source, as well as the bank?

The overwhelming majority of the time, however, banks deny short sales that are FHA-backed because they are fearful that HUD won't pay their insurance claim. Despite this fact there are special exceptions (please reference the guide again) where the bank may be afraid to grant an approval, but HUD will grant the approval. In one very crucial way, HUD is just like the banks; the less real estate they own the, easy their lives are. I have had several denied claims that HUD opened back up and got approved. Working with HUD from the beginning can save you a lot of headache and strife. This is just one tip of many to make your life easier when it comes to short sales. Remember, even though they seem daunting, short sales can be conquered, and everyone can learn how to be successful at them.

Owner's Title Insurance a Necessity

2009-12-22T12:42:00.000-08:00

If you’re not telling your clients to get owner’s title insurance on purchases—especially foreclosures—you’re not doing your job.

In today’s market, foreclosures are very prominent—and they come with a lot of potential issues. Owner’s title insurance is a onetime expense that can cover any title issue that may arise for the lifetime of the property. Just one title lien/cloud or issue can be a five to six figure headache! If you think about it that way, you’re getting a great return on your money.

We all know lenders are covered in mandatory, but owners are not. Don't think your clients need O.T.I. because a title search was done? THINK AGAIN. Let me tell you about something that happened to me…

Recently, I purchased a foreclosed REO property as an investment to flip, and began to work on the property to turn it around for resale. I made the improvements, put the property on the market, and sold it. When we were two weeks into the sale, the settlement attorney for the buyer told me that there was an $80,000 lien against the property! The first thing he did was ask me if I had purchased owner’s title insurance. Thank goodness I had! The foreclosing bank had failed to give notice to one of the lien holders prior to the foreclosure (which is illegal in Maryland), and then proceeded to foreclose on the property. The lien was so old that the initial title company did not check it, but the lien holder was still in business and was aware of their position. I got in contact with the lien holder and they were unwilling to release their position, which they had every right not to do. So, I filed the claim, and my title insurance company paid it. *Whew!!! Had I not paid for owner’s title insurance, I would have lost $80,000 dollars!

I could tell you 20 more stories like this one, as I deal with so many foreclosures that have title issues.

Reasons why title insurance is important, and how clouds in title can appear:

1.) Due to the complexity of lending practices several years back, there can be hidden liens, or things that cannot be discovered on the regular title search. Sometimes the deed was recorded wrong, or something wasn’t correct in the initial paperwork that can expose the property to title issues. If banks had their paperwork straight, and did everything right, we wouldn’t have some of the economic problems we have now.

Just think about it in short sale terms—I’ve had short sale packages lost hundreds of times, and I have had REOs sent to me that were the wrong address. I’ve seen banks foreclose on the wrong properties!!! I’ve seen banks hold a mortgage on multi-acreage plats of land, foreclose on them, and only foreclose on part of the parcel because they didn’t record, or read the correct deed. There are all kinds of things that can arise. As agents we have to make our clients aware of this.

2. For the cost, it’s really worth the money. Paying a couple hundred dollars to save a possible five to six figures is well worth the money! What if a client called and had a title issue after they bought a property through you, and you didn’t suggest owner’s coverage to them?? This would surely damage your credibility as an agent.

3. Any type of property can have a title issue. I have seen clouds in title especially with estates. I’ve seen wills pop up after properties were sold with, at the time (and unbeknownst to anyone), heirs who were owed their share of the estate. It’s not just limited to foreclosures, either. It can affect any property; new, old, REO or regular resale.

This is a cheap cost that I think is a must in our marketplace, and suggesting it not only shows your client how much of a professional you are, but shows them that you’re looking out for their best interest. We can't force them to buy it, but we can certainly give our advice. If a title problem arises and they bought insurance because of your suggestion, well you’ve just earned yourself a lifetime client, and you can be guaranteed you will get referrals from them!!!

No documentation loan can be a disaster for a short sale!!!

2009-12-17T13:51:00.000-08:00

I hear agents at my training and seminars sessions all the time telling me that they get so close to a short sale approval and suddenly it is declined, because the seller got a no doc loan and they have no idea why. Well let me tell you why:

A no documentation loan is one of many red flags a lender checks on before giving a short sale approval. Unfortunately, they may not check on this until after you have gotten all the work done, and BPO's have been completed and are very close to an approval. When a borrower obtains a no doc loan they are supposed to be completely honest on the amount of money they make, employment etc... The fact of the matter is that a lot of borrowers "inflated" their income because they wanted to be lent more money to purchase the home of their dreams, and they were given an easy opportunity to do so. Banks did not verify income, and in some cases did not even verify employment.

As a result of this, if you come across a client who needs to perform a short sale, the first question you need to ask them is if the amount of income they put on their mortgage application is the same amount that was on that tax return. I go as far as to ask them if they have a copy of that mortgage application. Pay close attention-if they are hesitant, it's possible that they're not being completely honest with you. This can really ruin your chances of a successful outcome.

How does this affect a short sale?

When there is a no doc borrower who requests a short sale, the bank at some point will audit their application, and then request tax returns from that timeline to see if they match up. If they do not, the borrower is automatically denied the short sale and can be sued for mortgage fraud. It's really funny how the bank can consistently lose your short sale package, have horrible turnaround time with short sales, but magically always be on their toes when it comes to a no doc loan. Short sales aren't as complicated as most people would make them seem (if you have the proper training), but they surely are a far cry from easy. That is why making it easier on yourself at the very beginning can save you a lot of headache later in the transaction. Identifying potential red flags like a no doc loan can save you the trouble before it starts!!!

Kiplinger: The Rise of Foreclosure Filings infographic

2009-12-08T07:23:00.000-08:00

I found this infographic very interesting. Originally posted at Kiplinger.com.

Click image to enlarge.

Guidelines Aim to Ease Short Sales

2009-12-01T11:40:00.000-08:00

Looks like the government has finally taken notice of the horrible job banks are doing with short sales, and have finally decided to step in and help make some changes.

I think the most interesting part is that the government is saying that the homeowner must be released from any future liabilities, which if you have done any short sales lately, I’m sure you have run into the problem of the bank trying to make the seller sign a some sort of promissory note which can derail the whole short sale. (Because if a homeowner can’t pay their mortgage, how are they going to pay a promissory note back?) In most cases they’re so burdened with the situation that they would rather let the home go to foreclosure than sign any type of note.

Here's an article from today's Wall St. Journal which lays out the new guidelines. (CLICK HERE for a printable copy of the article.)

DECEMBER 1, 2009

Guidelines Aim to Ease Short Sales

By RUTH SIMON

The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes.

The guidelines are designed to encourage the use of short sales, transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. The program also makes it easier for borrowers to voluntarily transfer ownership of properties through a "deed in lieu of foreclosure."

Short sales can result in higher prices than foreclosures and can be less damaging to local neighborhoods, in part because homes aren't left vacant and exposed to vandalism. But these transactions are often difficult to complete.

Under the plan, borrowers will receive $1,500 from the government if they sell their homes for less than the amount of their mortgages. Mortgage-servicing companies will also receive $1,000 for each completed short sale. The program is open to borrowers who may be eligible for the government's loan-modification program, but don't end up qualifying, or are delinquent on their modification, or request a short sale or deed-in-lieu transaction.

The short-sale program is the latest addition to the Obama administration's $75 billion foreclosure-prevention plan, which includes incentives for mortgage companies and investors to rework troubled loans. The government first said in May that it would include short sales in the program, but it has taken months to finalize the details.

Under the new guidelines, second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgages, meanwhile, can collect up to $1,000 from the government for allowing such payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Write to Ruth Simon at ruth.simon@wsj.com

Printed in The Wall Street Journal, page A6

Vampire home hits the market

2009-11-25T07:31:00.000-08:00

For the buyer who has a few million to spend, and loves vampire movies. :-)

From the D.C. Examiner:

Twilight fans can go home Hollywood style! CNN Money has announced that the original Edward Cullen home used for shooting the movie TWILIGHT is for sale in West Vancouver, Canada (Nov.18, 2009)

CELEBRITY HOME FROM TWILIGHT MOVIE GOES ON SALE

Fans with excess cash can pick up the biggest movie memorabilia property for a cool $3.3 million.

With popularity of the Twilight Saga films around the world, the potential to capitalize in the next few years giving tours of the home where Robert Pattinson and Kristen Stewart roamed is high.

Vampire fans would certainly be eager to tour the Cullen coven fictional homestead; it's likely to be the most coveted house in town.

FAMOUS TEAM EDWARD LOCATION MAKES IDEAL REAL ESTATE LISTING AND SALE

Real estate agent Jason Soprovich is listing the five-bedroom, four-bath home for the current owner, a local who, he says, is looking for a change of pace (writes CNN Money).

Our bet is that in a sagging real estate market that it's more likely the current owners are looking to capitalize financially now that Twilight Saga: New Moon has set box office records as one of the world's highest grossing opening nights for a single film.

National Lender Goes Live With Equator Short-Sale Solution

2009-11-04T09:27:00.000-08:00

Story courtesy of Mortgage Orb

Equator, formerly known as REOTrans, says a "large national lender" has gone live with its recently launched short-sale module. A San Francisco Chronicle article from Wednesday indicates that Bank of America, in addition to adding to its short-sale staff, has adopted the Equator module.

By adopting Equator, the lender is now accessible 24/7 via a borrower portal, the company says. Borrowers can provide information and offers electronically and receive real-time status updates through the portal. The system also automates decisions, handles approvals, provides fulfillment and assures full compliance with government programs, according to Equator CEO Chris Saitta.

“This is the first time that short sales have been handled through an electronic platform,” Saitta adds. “With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors and real estate agents.”

Equator has handled more than $65 billion in default-property transactions since the company’s founding in 2003.

SOURCES: Equator, San Francisco Chronicle

The Moore-Brittingham Team Welcomes Nina Littleton!

2009-11-02T13:03:00.000-08:00

The Moore-Brittingham Team is proud to announce the addition of real estate professional Nina Littleton! Nina brings over 10 years experience to our growing team of real estate professionals.

Nina, in her own words:

I am very energetic and highly motivated. I consider it a pleasure to serve my clients in either purchasing or selling. Although I feel this is a journey that should be enjoyed, I never take my responsibility lightly. I am dedicated to serving you and my number one goal is to make your transaction a successful one and gain your trust, so you will share your experience with your friends. I can be reached 24 hours a day and I strongly beleive an "Available Agent" is a "Successful Agent". I am a 100% faithful and dedicated to my clients. I look forward to partnering with you.

With her experience, focus, and tireless commitment to customer satisfaction, Nina has earned a reputation as one of the top real estate agents on the shore. We couldn't be happier to have her on the team!

Welcome aboard, Nina!

FHFA Monthly House Price Index

2009-10-27T13:49:00.000-07:00

From the Federal Housing Finance Agency website:

WASHINGTON, DC – U.S. home prices fell 0.3 percent on a seasonally-adjusted basis
from July to August, according to the Federal Housing Finance Agency’s monthly House
Price Index. The previously reported 0.3 percent increase in July was unrevised. For the 12 months ending in August, U.S. prices fell 3.6 percent. The U.S. index is 10.7 percent below its April 2007 peak.

The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally-adjusted monthly price changes from July to August ranged from -1.6 percent in the South Atlantic Central Division to + 1.2 percent in the Pacific Division.

Monthly index values and appreciation rate estimates are provided in the table and graph on the following pages. As with FHFA’s quarterly HPI, the estimates are revised as new data become available. Quarterly HPI reports include updated monthly data presented in the same format as the attached table.

For detailed information concerning the monthly HPI, please see the HPI Frequently
Asked Questions (FAQ). The next release of monthly and quarterly index data will be on Nov. 24, 2009 and will include monthly data for September and quarterly data for the third quarter of 2009.

Click here to view the PDF file of the complete report. The graphs seem to point to a general leveling of home prices, though it is still entirely too soon to know if this is the beginning of an overall recovery.

Ideal market for new investors

2009-10-14T07:22:00.000-07:00

In the current market, investment properties are a better option than ever.

Courtesy of Reuters News Service:

U.S. property investors these days are smaller and say they are more willing to wait it out -- a stark contrast from the fervent flipping and reckless borrowing that characterized housing investment a few years ago.

Wall Street -- blamed for much of the bubble at the heart of the worst economic downturn since the Great Depression -- is mostly watching from the sidelines when it comes to homes. But it still dominates the market for bad, or distressed, loans.

For those with cash, time and room for risk, prices now are too good to pass up, providing incipient, albeit possibly temporary, relief for a market key to economic recovery.

"Investors have started to return ... they see prices have fallen so far below the trend that they consider Phoenix housing to be a good investment," said Karl Guntermann, the professor of real estate finance at Arizona State University.

Across the nation, home prices rose for a third straight month in July, encouraging investors to buy property. The S&P/Case-Shiller index of house prices in 20 metropolitan areas rose nearly 4 percent in the period.

While much of the renewed housing market activity is being driven by first-time buyers lured in by low interest rates and an $8,000 federal tax credit, absentee buyers -- investors and second-home owners like Cano -- made up 41 percent of all purchases in the Phoenix area in August.

So intense is activity in some areas in the Southwest and California that distressed homes often receive multiple offers as first-time buyers compete with investors.

"Two years ago, there were five people at auctions ... today, there are 70 of us," said Todd Kaufman, who turned investor in California real estate after 23 years on Wall Street, where he ran last ran the mortgage securitizations unit of failed bank Washington Mutual.

Click HERE to read the full article.

Loss Mitigation Direct Contacts

2009-09-21T06:16:00.000-07:00

I've compiled a list of loss mitigation phone numbers. You can get bounced around quite a bit when calling in dealing with short sales. Use this list of direct contacts to save you time and effort!

Lender/Servicer Loss Mitigation Phone Numbers & Contact Information

ABM AMRO Mortgage (800) 783-8900
Web: https://www.mortgage.com/C3/application.bus

Accredited Home Lenders(877) 683-4466

AMC Mortgage Services (Also handles loans originated by Ameriquest and Argent) (800) 211-6926
1600 McConnor Parkway
Schaumburg, IL 60173
Web: https://www.myamcloan.com/malwebapp/begin.do

American Home Mortgage Corp.(877) 304-3100*

Ameriquest Mortgage (Debt collection -- see AMC Mortgage Services) (800) 211-6926

Aurora Loan Services (Debt collection) (800) 550-0508
By Overnight Mail:
601 5th Avenue
Scottsbluff, NE 69361
Attn: Customer Service
By Regular Mail:
P.O. Box 1706
Scottsbluff, NE 69363
E-mail: ccnmail@alservices.com
Web: https://www.alservices.com/Consumer/UI/SSL/Authentication/Login.aspx?ReturnUrl=%2fConsumer%2fUI%2fSSL%2fServ icing%2fDefault.aspx

Avelo Mortgage LLC (866) 992-8356*

Bank of America(800) 846-2222

BB&T Mortgage (800) 827-3722*

AmTrust Bank (fka Ohio Savings Bank) (888) 696-4444

Beneficial (800) 333-5848

Central Pacific Bank (800) 342-8422*

Charter One (800) 234-6002

Chase (800) 446-8939
Chase Home Finance (800) 848-9136 (customer service) (858) 605-2181 (delinquency customer service)
Chase Home Finance-New Jersey(800) 446-8939*Chevy Chase Bank(800) 933-9100*
Web: https://chaseonline.chase.com/chaseonline/logon/sso_logon.jsp?fromLoc=ALL&LOB=COLLogon

Chase Manhattan Mortgage
(800) 446-8939 (Ohio Servicing Center)
(800) 526-0072 (Florida Servicing Center)
(800) 527-3040 x533 (Florida Servicing Center)

Chevy Chase Bank (800) 933-9100
Web: https://www.chevychasebank.com/htm/payment.html (Payment Addresses)

Citi Financial Mortgage (800) 753-3673

Citimortgage (800) 283-7918

Ditech (800) 852-0656 (800) 449-8582

Downey Financial Corp.(800) 824-6902, ext. 6696

Deutsche Bank National Call Number on Mortgage Statement

EMC 800-723-3004
P.O. Box 141358
Irving, TX 75014-1358
Web: https://www.emcmortgageservicing.com/ccn/ccnsecurity.asp

EverBank (800) 669-7724 ext. 4730

Equity One (Debt collection) (866) 361-3460

First Horizon Home Loans (800) 489-2966*

Fifth Third Bank (800) 375-1745 Option 3

First Merit Bank (888) 728-9931

Flagstar Bank (800) 968-7700, ext. 9780

Fremont Investment & Loan (866) 484-0291

GMAC Mortgage (800) 850-4622

GreenPoint Mortgage Funding (800) 784-5566, ext. 5383*

Green Tree (877) 816-9125

Homecomings Financial (800) 850-4622*

HomeEq Mortgage Servicing ( Debt collection) (866) 822-1471

Household Finance (A HSBC Co.) (800) 333-5848

Household Mortgage (800) 333-4489

HSBC Mortgage (800) 338-6441
Default Resolution Team (if long term problem)
2929 Walden Avenue
Depew, NY 14043
(888) 648-3124 Loss Mit
(732) 352-7519 Fax
Web:http://us.hsbc.com/personal/mortgage/existing/difficulties.asp

Huntington National Bank (800) 323-4695

Indymac Bank (877) 736-5556
C/O Loan Resolution Department
P.O Box 7014
Pasadena, CA 91107
(Monday - Friday 6:15am-7:15pm. (Pacific Time))
Web: https://www.indymacbank.com/contactus/loanResolution.asp

Irwin Mortgage (888) 218-1988
P.O Box 7014
Pasadena, CA 91107
Web: https://www.irwinmortgage.com/wps/portal/!ut/p/cxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN4g3sdAvyHZUBAAqwx 9c
E-mail: deliquency.prevention@irwinmortgage.com

James B. Nutter & Company (800) 315-7334

Key Bank (800) 422-2442

LaSalle National Bank (800) 783-8900

Litton Loan Servicing (800) 999-8501 or (800) 548-8665
Fax (713) 966-8820
4828 Loop Central Drive
Houston, Texas 77081-2226
Web: https://www.littonloan.com/index.asp

Short Sale 101

2009-08-21T10:06:00.000-07:00

What is a short sale?

It’s likely you’ve heard the term “short sale” thrown around quite a bit. But what, exactly, is a short sale?

A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property. This is not a new practice; banks have been doing short sales for years. Only recently, due to the current state of the housing market, has this process become a part of the public consciousness.

To be eligible for a short sale you first have to qualify!

To qualify for a short sale, a.) Your house must be worth less than you owe on it, and b.) You must be able to prove that you are the victim of a true financial hardship, such as a decrease in wages, job loss, or medical condition that has altered your ability to make the same income as when the loan was originated.

*You cannot qualify for a short sale if you simply want to move, as the bank will scrutinize your financial records to confirm financial hardship.

I meet all of these criteria. What do I do now?

Once the bank is onboard, the real work begins…

Find a QUALIFIED agent to handle your short sale. It’s a good idea to find one who has completed at least 30 successful short sale transactions, as short sales require a very specific skill set. Knowing how to successfully navigate pitfalls and avoid potential delays is key to the success of the transaction. Read through our short sale expertise throughout this site. We are two of the most versed agents in the country on short sales.

Speak to a certified accountant to determine if there are tax ramifications. If you’re listing your primary residence (meaning that you have occupied the property for at least two of the last four years), you will more than likely be exempt from any IRS penalty. However, that’s not always the case, and in some instances on primary, secondary, or investment real estate you may have some liability. Remember, real estate agents cannot give tax advice, so be sure to see an accountant prior to starting the process.

Put together a short sale package for your agent to submit to the bank. The short sale package should include:

o Your last two years’ tax returns
o Your last two months’ bank statements
o An authorization letter granting your agent permission to speak to
the bank on your behalf
o An itemized accounting of how much money you make per month
versus what you’re paying out in bills
o A financial hardship letter. (Your agent should help you write the letter.)

Give all of the information and paperwork to your agent and get that property listed!

*Once your agent has listed the property do not communicate with the bank anymore. All communication from this point forward should be handled by your agent. Remember, dealing directly with the bank can cause confusion and lead to unnecessary delays.

Once you’ve completed these steps, you can look forward to selling your property and moving on! Bear in mind, the short sale process is extremely complicated, and best handled by a trained, experienced professional. If you need further information on short sales please contact us!

The information above is just an overview for consumer education purposes. There is much more involved in completing a successful short sale! Contact Marshall or Brandon to find out if a short sale is right for you.

Team Bio: Marshall Moore

2009-08-21T06:53:00.000-07:00

Marshall Moore is an Eastern shore native and has been a real estate investor in this community for over 30 years. Marshall and his father have built over 500 homes all over the Eastern Shore and Marshall has always been motivated to help improve his local community. He has extensive education and experience in short sale/foreclosure areas of real estate as well as certification and accreditation, and was one of the first investors/agents to implement a system to help sellers liquidate their house in 14 days or less. Marshall was 2008 Top Producer at Sharon Real Estate in Cambridge before moving to Long and Foster. He teaches seminars and trains other agents in all facets of real estate from foreclosure to negotiating. Marshall brings an immeasurable amount of experience and knowledge to Moore-Brittingham properties as well as a huge local network established over the last 30 years. Marshall insists on using all local contractors and community banks to assist in Moore-Brittingham's success and to help improve the local economy.

The Moore-Brittingham team continues to stay on the cutting edge to ensure the success of anyone looking to sell their house. Contact Marshall today about getting your house sold!

HUD Short Sale Guidelines

2009-08-12T09:08:00.000-07:00

Here's some information everyone should know about HUD-backed mortgages for short sales:

HUD requires a 6% commission on all short sales which is clearly defined on their website. They also spell out their guidelines for offers to pay off junior lien holders, which I think most people are unaware of. Freddie just changed their guidelines in the last thirty days, and I can point you in the direction of that literature as well. Here is the HUD info:

Do you own a HUD-FHA financed home, and need to do a Short Sale? Here is a summary of the requirements do perform an FHA-insured HUD Short Sale or "Pre-Foreclosure" Sale:

You must be delinquent 31 days or more delinquent at the time of sale.
You must list the property with an unrelated Licensed Real Estate Broker
You must actively market the property for four months (up to six).

For the first 30 days of marketing, the short sale lender (mortgagee) may only approve offers that will result in a minimum net sale proceeds of 88% of the "as-is" appraised Fair Market Value (FMV). During the next 30 days of marketing, the lender may only approve offers that will result in minimum net sale proceeds of 86% of the "as-is" appraised FMV. For the rest of the marketing time (60 days), the lender may only approve offers that will result in minimum net sale proceeds of 84% of the "as-is" appraised FMV.
The property must be an owner-occupied, except for cases of job transfer, death, divorce, job loss
There should be written proof of your decrease in income showing inability to pay the mortgage, job loss, etc.
HUD will pay up to 1% of buyer's mortgage as part of closing costs if the new mortgage is also FHA, plus reasonable "seller" costs
HUD allows 6% Realtor commission
HUD will not pay for Home Warranties, points or lender's title insurance
You must get approval to participate in the HUD Pre-Foreclosure Sale Program in advance
Upon acceptance into the program, you will be given Approval To Participate Form which will outline program restrictions

Here are details of the HUD Short Sale (Pre-Foreclosure) Sale Program. Remember, these guidelines apply to FHA-insured loans only, and there may be some latitude in those requirements. These guidelines are subject to change.

HUD Frequently Asked Short Sale Questions

For more information contact the HUD National Servicing Center, your lender, and an experienced Short Sale Specialist.

Check out http://easternshorehomesolutions.blogspot.com/ for more updates on Short sale/foreclosure and investment real estate updates.

New Rules Give Buyers More Protection at Closing

2009-08-10T13:06:00.000-07:00

All real estate agents should be aware of a set of new Federal consumer protection rules which went into effect July 30th. Keeping clients up-to-date with the latest, best information is key to closing successful transactions, and keeping happy clients. Kenneth R. Harney wrote a really thorough article which lays out all of the rules. Here are a few of what I find to be the most important parts (Some in my own words, some quoted directly from the article):

1. The new guidelines "require lenders to give you initial disclosures of your mortgage costs within three business days of your loan application. If you don't get them, you can pull the plug."

2. Lenders are prohibited from collecting anything more than a reasonable fee for credit check until the borrower has been given loan cost disclosures. Says Harney, "This means no more out-of-pocket, upfront application charges until you have received the truth-in-lending disclosures and an annual percentage rate (APR) calculation of those loan costs."

3. So-called "quickie closings" are a thing of the past, as the new law requires a 7 day waiting period which begins either upon applicants' receipt of early disclosures OR when disclosures are mailed. This means borrowers have up to a full week to think over the transaction and decide whether or not it's right for them.

4. Lenders are now required to deliver a copy of the appraisal no later than three business days prior to closing.

5. If the APR on the "Truth In Lending" disclosure goes up more than 1/8th of a percentage point, the lender is required to provide a corrected version of the disclosure, and allow an additional 7 business days for the borrower to reconsider before settlement. Unexpected increases can occur when the initial rate on the loan is allowed to float with the market and rates increase, or as a result inaccurate estimates from third party participants, or junk fees which can pop up at the last minute.

6. "Actual closing dates will be more closely tied to lenders' and settlement agents' accurate estimates and their ability to deliver disclosures and appraisals by the required dates. For example, if appraisers are backlogged and can't produce valuation reports quickly enough, settlements will have to be postponed. "

The title of the article is absolutely correct; these new rules do give buyers more protection at closing. Knowing the rules, and keeping your clients abreast of changes/updates in the law is crucial in making the transaction smooth, and creating repeat customers.

Mr. Harney's original article can be found here.

HUD Information

2009-08-10T06:50:00.000-07:00

The HUD website is an invaluable source of information. For example, HUD requires a 6% commission on all short sales. Their website also spells out the guidelines for money to pay off junior lien holders; something I think most people are unaware of. Freddie just changed their guidelines in the last thirty days, and I can point you in the direction of that literature as well. Here is the HUD info:

Do you own a HUD-FHA financed home, and need to do a Short Sale? Here is a summary of the requirements do perform an FHA-insured HUD Short Sale or "Pre-Foreclosure" Sale:

You must be delinquent 31 days or more delinquent at the time of sale.
You must list the property with an un-related Licensed Real Estate Broker
You must actively market the property for four months (up to six).

For the first 30 days of marketing, the short sale lender (mortgagee) may only approve offers that will result in a minimum net sale proceeds of 88% of the "as-is" appraised Fair Market Value (FMV). During the next 30 days of marketing, the lender may only approve offers that will result in minimum net sale proceeds of 86% of the "as-is" appraised FMV. For the rest of the marketing time (60 days), the lender may only approve offers that will result in minimum net sale proceeds of 84% of the "as-is" appraised FMV.

The property must be an owner-occupied, except for cases of job transfer, death, divorce, job loss
There should be written proof of your decrease in income showing inability to pay the mortgage, job loss, etc.
HUD will pay up to 1% of buyer's mortgage as part of closing costs if the new mortgage is also FHA, plus reasonable "seller" costs
HUD allows 6% Realtor commission
HUD will not pay for Home Warranties, points or lender's title insurance
You must get approval to participate in the HUD Pre-Foreclosure Sale Program in advance
Upon acceptance into the program, you will be given Approval To Participate Form which will outline program restrictions
Here are details of the HUD Short Sale (Pre-Foreclosure) Sale Program. Remember, these guidelines apply to FHA-insured loans only, and there may be some latitude in those requirements. These guidelines are subject to change.

HUD Frequently Asked Short Sale Questions

For more information contact the HUD National Servicing Center, your lender, and an experienced Short Sale Specialist.

Of all the short sales I have done I have never had my commission cut less than 6%, and in most cases I get 8%. The bank would rather pay a couple thousand dollars over losing $50,000-100,00+ by foreclosing, and I truly earn that because of the work I put in. I send over 150 pages and spend hours on the phone each day working on short sales, and every negotiator I have ever dealt with thought I deserved my commission because of the effort that was put in.

For a full, .pdf copy of the HUD guidelines, or if you need any help at all, email me at brandon.brittingham@longandfoster.com. I'll be glad to help!

.

Short Sales!!!

2009-08-07T12:58:00.000-07:00

Agents, investors, consumers - there are answers to the problems you may be facing with short sale - you just need the right ones.

There is alot of misleading information out there on the internet about short sales, but I'm here to tell you in any short sale you can have a positive outcome.

I have successfully completed 150 short sales, and was the first agent in Maryland to become a certified short sale instructor. I teach seminars locally and nationally on a regular basis, and train agents and consumers how to approach and navigate short sales.

If you are an agent, learning how to complete a successful short sale will make you a better agent overall, besides the fact that short sales are now a real part of our market.

If you are a consumer and are looking to purchase a short sale, you can get a great buy, you just need to educate yourself first.

Give me your questions, concerns, thoughts - I would be glad to help! I am currently closing 5-7 short sales a month, so what I'm telling you comes from experience and not philosophy. LET ME KNOW HOW I CAN HELP!!!

Salisbury foreclosure rates rise

2009-08-03T12:12:00.000-07:00

The Daily Times reports that foreclosure rates in Salisbury are up over this time last year:

Foreclosure rates in Salisbury have increased for the month of June over the same period last year, according to First American CoreLogic, a collector of real estate and mortgage data.

First American Core-Logic reports that the rate of Salisbury-area foreclosures among outstanding mortgage loans is 2.20 percent for the month of June, an increase of 1.20percentage points compared to June 2008.

You can read more about it here.

Remember: FORECLOSURES CAN BE AVOIDED! If you're facing a foreclosure, contact us to learn about the best possible options available to you!

Welcome to Our Blog!

2009-08-03T06:41:00.000-07:00

We at Moore - Brittingham Properties are excited to bring you news, updates, and insight on the real estate market, short sales, foreclosures, special deals, and happenings in and around our region! Be sure to check in often, as we plan to offer a truly dynamic site with daily updates!

We're glad you stopped by!

-Brandon Brittingham, Moore - Brittingham Properties