A person would need to have his own home, sooner or later. Thus, it is important to prepare all of the possible resources so that he can afford to purchase the house that would suit his needs. It is needed that you are able to have your own home because this will be your way of securing your family with their needs in the future. Now that there are many properties that can be bought, what you have to think about is how you will be able to get the kind of property that is in line with your needs and resources.
There are different locations that can work for you and one of your options can be the Miami real estate. The area can be good to the families that are starting or those single individuals. There are homes and condominiums of varied sizes so you will be able to adjust your choice to the house that you will buy. Now, you can start with the Miami real estate properties that are available and assess if they are what you probably need.
However, there are times that not all of the Miami real estate properties are affordable. But if you really need a kind of property, then you should try to get some help from financial institutions. Getting a loan for a house would be a big help. But you should carefully do this and be wary in applying for a loan as big amount of money is at stake. An individual purchases many things in a lifetime and one of the biggest and most expensive things that he will buy is a house. Thus, it is just right that you carefully weigh all possibilities. Having a loan may help but when you are not careful enough with it, this may put you in a worse situation financially.
There are many financial institutions that can provide you with a mortgage loan if you want to buy a Miami real estate property. You just have to select the kind of property that you would need and make sure that the company that you will trust is credible enough. Also, you have to know more about how a loan works and make sure that you are capable of paying the monthly dues of your loan. With this option, it is easier to have a house that you will love to live in. the loans can be a big help for anyone who does not have the bulk of money that is needed to pay for the house. If you prefer to stay in Sarasota, you have to find ways to purchase a property but you should make sure that it is safe and will not put you in a financial crisis.
Sunday, July 5, 2009
About Foreclosures, Preforeclosures, and Short Sales
For the last couple of years or so, the new terms "short-sale","pre-foreclosure" , "bank-owned" have become very familiar to any active realtor. Yes, there are courses and classes and conferences to make us aware of the opportunities of this new sector in real estate. And I am continuously receiving emails offering leads on foreclosures and short sales and "BPO's".
I have been involved in a few short sales and I even lend occasionally advice to people who ask me what I know about the subject.
The fact is that there is not so much to explain about it. It's just a logical way that a lender can use to handle bad or problem-loans and cut its losses.
So far so good. However, every time I get involved in a short sale or "pre-foreclosure" deal, the bizarre takes over the rational, and weirdness supersedes common sense. Let me explain why I think so:
1) There are some conventions in how we usually handle a real estate sale in the US. Usually we list a property when a seller designates us as his "listing agent" and we place it on the MLS. There are some requisites to do that. He must give us an exclusive right of sale; otherwise we wouldn't put it on the system.
2) If we have a buyer looking for a property, we will search on the MLS system and establish a relationship with its "listing agent" by asking to show it to our buyer, or requesting additional information.
3) Once an offer is made, an answer is received within a short term, usually 2 or 3 days. It can be an acceptance, a counteroffer, or a rejection. A non-reply within the given term is considered a negative answer. Now let's compare this to what a bank involved in a short sale, or foreclosure sale usually does:
A) After talking to his bank, the seller of the troubled property agrees with a real estate agent to list his condo for sale in the MLS. The agent will place a special clause in the listing, stating its special status as a short sale and its contingency to a bank's approval.
B) When an offer is received, the bank sometimes requires that it must be accompanied by a loan approval or a proof of funding if it's a cash offer.
C) The buyer's agent will often find a clause in the listing, stating that no commission is guaranteed. It is known that banks do not like to pay co-operating brokers more than a 2.5% compared to the usual 3%, but even this is not guaranteed. You must accept whatever the bank will definitely wants to pay you. No discussion.
Do you think that this is the perfect way for the banks to attract the best and most motivated realtors? Work double for less money? Usually, in a buyers' market, a smart seller often increases the commission, so buyers' agents are motivated to give him some priority. But apparently, banks have discovered that they can dictate their conditions, nickel-and-dime us so that they can save a few pennies after sinking billions of dollars in dubious transactions.
Naming a listing agent who lives 200 miles away from the property isn't the smartest move either. But let's not discuss their marketing skills. They must know what they are doing.
D) When an offer is presented, the bank does not answer within any standard period.
E) First difference: the listing agent does not remove the property from the MLS.
F) Second difference: the bank can take many months to reply. Meanwhile other offers are frequently received and presented to the bank by the listing agent. The process gradually resembles an auction and the higher bidder might get finally an answer.
Or not.
G) Third difference. When a buyer's agent contacts a bank-owned or foreclosure sale, and even some short sales, we often observe that the same agent or broker has his name on a lot of listings. This agent is sometimes based in a location that is distant from the property. I have seen brokers in Tampa handling listings in Miami. Do these guys have some special connection with the bank? What is the criteria of the banks when they choose their listing brokers?
Frankly, I don't get any calls from any bank offering me listing business. And I have called a few of these "loss-mitigation" departments! I haven't seen many of the best agents in my area involved in this kind of transactions, either.
H) Fourth difference: Frequently, many of these listing agents don't even bother to show the property. They designate a "showing company" to take the buyer's agent call and arrange a showing, usually by means of a lock-box key. The "showing company" does not usually provide information about the property. So much for great sales techniques, indeed.
I) Fifth difference: these listing agents very often do not respond at all to phone calls or emails. Perhaps because of the sheer amount of listings they carry, or because they are just disgusted by the whole process. It was transparent to me in some of the cases where I was involved that these listing agents didn't care too much. In all truth, it looked like nobody cared, except me and the buyer. Some business must result though, and I am not trying to mock or belittle those agents; it's just the whole system that looks so unprofessional.
K) In the case of a short sale, the listed price doesn't mean too much. It can be very low to attract offers. The listing can sometimes falsely indicate that the price was "approved by the bank". Correct me if I am wrong but It often bears the mark of "bait and switch".
L) Now let us study the short-sale transaction from the seller's point of view: he has possibly initiated the case providing the information required by the bank, often with the assistance of the real estate agent who will list it on the MLS.
M) The seller starts calling the bank. He will get all kind of conflictive information. A different employee will respond to his call every time and everybody looks completely disconnected from what has been done so far. They hang up promising him to call him back the next day, which of course never happens. In many cases, when the seller asks to know what is the exact pay-off of his mortgage, he can get different amounts every time.
N) The seller often gets simultaneous calls from the bank, threatening foreclosure. He sometimes tries to explain that there is a short sales procedure going on. But in spite of having spoken to dozens of bank employees, nobody seems to have any idea of what has been done the day before.
Does this look like a comedy? You bet. Everybody chasing his own tail in a mad dance. That's what it looks like. My personal opinion: Complete disaster. Ridiculous. Tragic. Catastrophic. A waste of my time, and everybody's time.
They are the reason I lost a few possible sales, and gained the frustration of a few good buyers with cash in hand. I now try to discourage my clients of getting involved in this joke. Am I wrong? Maybe.
But if these banks expect to get out of this mess, they'd better get their act together.
Quickly...
I have been involved in a few short sales and I even lend occasionally advice to people who ask me what I know about the subject.
The fact is that there is not so much to explain about it. It's just a logical way that a lender can use to handle bad or problem-loans and cut its losses.
So far so good. However, every time I get involved in a short sale or "pre-foreclosure" deal, the bizarre takes over the rational, and weirdness supersedes common sense. Let me explain why I think so:
1) There are some conventions in how we usually handle a real estate sale in the US. Usually we list a property when a seller designates us as his "listing agent" and we place it on the MLS. There are some requisites to do that. He must give us an exclusive right of sale; otherwise we wouldn't put it on the system.
2) If we have a buyer looking for a property, we will search on the MLS system and establish a relationship with its "listing agent" by asking to show it to our buyer, or requesting additional information.
3) Once an offer is made, an answer is received within a short term, usually 2 or 3 days. It can be an acceptance, a counteroffer, or a rejection. A non-reply within the given term is considered a negative answer. Now let's compare this to what a bank involved in a short sale, or foreclosure sale usually does:
A) After talking to his bank, the seller of the troubled property agrees with a real estate agent to list his condo for sale in the MLS. The agent will place a special clause in the listing, stating its special status as a short sale and its contingency to a bank's approval.
B) When an offer is received, the bank sometimes requires that it must be accompanied by a loan approval or a proof of funding if it's a cash offer.
C) The buyer's agent will often find a clause in the listing, stating that no commission is guaranteed. It is known that banks do not like to pay co-operating brokers more than a 2.5% compared to the usual 3%, but even this is not guaranteed. You must accept whatever the bank will definitely wants to pay you. No discussion.
Do you think that this is the perfect way for the banks to attract the best and most motivated realtors? Work double for less money? Usually, in a buyers' market, a smart seller often increases the commission, so buyers' agents are motivated to give him some priority. But apparently, banks have discovered that they can dictate their conditions, nickel-and-dime us so that they can save a few pennies after sinking billions of dollars in dubious transactions.
Naming a listing agent who lives 200 miles away from the property isn't the smartest move either. But let's not discuss their marketing skills. They must know what they are doing.
D) When an offer is presented, the bank does not answer within any standard period.
E) First difference: the listing agent does not remove the property from the MLS.
F) Second difference: the bank can take many months to reply. Meanwhile other offers are frequently received and presented to the bank by the listing agent. The process gradually resembles an auction and the higher bidder might get finally an answer.
Or not.
G) Third difference. When a buyer's agent contacts a bank-owned or foreclosure sale, and even some short sales, we often observe that the same agent or broker has his name on a lot of listings. This agent is sometimes based in a location that is distant from the property. I have seen brokers in Tampa handling listings in Miami. Do these guys have some special connection with the bank? What is the criteria of the banks when they choose their listing brokers?
Frankly, I don't get any calls from any bank offering me listing business. And I have called a few of these "loss-mitigation" departments! I haven't seen many of the best agents in my area involved in this kind of transactions, either.
H) Fourth difference: Frequently, many of these listing agents don't even bother to show the property. They designate a "showing company" to take the buyer's agent call and arrange a showing, usually by means of a lock-box key. The "showing company" does not usually provide information about the property. So much for great sales techniques, indeed.
I) Fifth difference: these listing agents very often do not respond at all to phone calls or emails. Perhaps because of the sheer amount of listings they carry, or because they are just disgusted by the whole process. It was transparent to me in some of the cases where I was involved that these listing agents didn't care too much. In all truth, it looked like nobody cared, except me and the buyer. Some business must result though, and I am not trying to mock or belittle those agents; it's just the whole system that looks so unprofessional.
K) In the case of a short sale, the listed price doesn't mean too much. It can be very low to attract offers. The listing can sometimes falsely indicate that the price was "approved by the bank". Correct me if I am wrong but It often bears the mark of "bait and switch".
L) Now let us study the short-sale transaction from the seller's point of view: he has possibly initiated the case providing the information required by the bank, often with the assistance of the real estate agent who will list it on the MLS.
M) The seller starts calling the bank. He will get all kind of conflictive information. A different employee will respond to his call every time and everybody looks completely disconnected from what has been done so far. They hang up promising him to call him back the next day, which of course never happens. In many cases, when the seller asks to know what is the exact pay-off of his mortgage, he can get different amounts every time.
N) The seller often gets simultaneous calls from the bank, threatening foreclosure. He sometimes tries to explain that there is a short sales procedure going on. But in spite of having spoken to dozens of bank employees, nobody seems to have any idea of what has been done the day before.
Does this look like a comedy? You bet. Everybody chasing his own tail in a mad dance. That's what it looks like. My personal opinion: Complete disaster. Ridiculous. Tragic. Catastrophic. A waste of my time, and everybody's time.
They are the reason I lost a few possible sales, and gained the frustration of a few good buyers with cash in hand. I now try to discourage my clients of getting involved in this joke. Am I wrong? Maybe.
But if these banks expect to get out of this mess, they'd better get their act together.
Quickly...
Miami Beach Real estate for the Investor
More Florida real estate agents are found working in larger cities. This is because many constructions take place in larger cities than the smaller cities. However many Agents also work in smaller cities that develop quickly. More houses are bought and sold in smaller cities too. A person, who has a flair for selling, enjoys selling and at the same is good at it, should always opt to become a Miami Beach Real estate. Though selling may not be everyone's cup of tea, it is the knack of selling, which makes a real a good, Real Estate Agent. After the client has selected the house, the Miami Beach Real estate agent helps the seller set the exact price of the house. Special forms and documents have to be filled in, where both the buyer and seller sign on the respective papers, so that now the sale of the house becomes legal. The Florida real estate agent will then make his client aware of the various housing loans available from different financial institutions. The Miami Beach Real estate buyer is then ready to settle for a loan providing a reasonable rate of interest. A number of formalities have to be completed on buying the house. The two most important formalities are paying the stamp duty and the registration charges to the Sub Registrar of your area. They are very important in registering you house agreement. The Florida real estate Agent is aware of these formalities and thus helps you to execute your document. He looks after all matter pertaining to registration of documents of all types including agreements, assignments, power of attorney, mortgage, leave and license, etc. After buying your house, you may decide to give the house on rent or in other words, give it out on leave and license on a contract. Here again the Real Estate Agent comes to your rescue and helps you to find a suitable Miami Beach Real estate customer, who uses your house for a specific period of time and pays you the required rent accordingly. The Estate Agents charge a nominal amount for this service.
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