Effects of the Rebounding Housing Market

There’s no debating it- the housing market is rebounding. We’re going to take a look at some of the effects of the recovering housing market and why now, not later, is a really great time to buy a home.

Prices Rising

Home prices rose over 10% in the first few months of 2014. These numbers are in comparison to when the housing market were at or near their lowest, so this is expected to level off, but the fact remains that home prices in almost all markets are continuing to increase. Obviously, if you’re buying a house you’ll want to get as low a price as possible on it. Buying now instead of next year, or even next month, could get you a lot more house for your dollar.

Above Water

Because of the rising home prices, many homeowners are just now starting to see equity in their homes, which will give many people who have been afraid of losing money on their homes the impetus to start selling and move themselves. Additional buyers will create more competition and help drive prices up as well.

 Short Supply of Short Sales

With homeowners gaining equity in their homes, fewer and fewer short sales and foreclosures are on the market, which will help stabilize home prices. It will also reduce a homebuyer’s ability to find some truly great deals, once again netting less house for the money. If you’re thinking about finding a short sale or foreclosure, you’d better get moving while there are still plenty of them out there. Check out our page on short sales for more information.

Low Rates

This isn’t an effect of the rebounding housing market, but while we’re talking about reasons to buy a house now, it’s worth mentioning that mortgage rates remain extremely low. In fact, as of this writing, Freddie Mac reported that the average 30 year fixed rate loan has fallen for the fifth straight week and is down to 4.12%. As low as this is, it’s a percentage point higher than it was a year ago. Mortgage rates won’t stay this low forever, so once again, buying now while they are so low will save you a lot of money over the course of the loan.

As you can see, the improving housing market is affecting several factors that make buying a home now a really good idea if you’re planning on buying one anytime in the foreseeable future. If you’ve got any questions about buying a home in Wilmington, Leland or the surrounding areas of southeatern North Carolina, give Nilesh a call at 910-622-0319.

5 Reasons NOT to Buy a Short Sale on Your Own

Jackpot! You just purchased the house of your dreams, in the perfect location. Since it was a short sale, you got a steal of a deal. It just needs a little TLC. Or does it?

On the surface, you may think you made a great purchase, but an experienced short sale agent can offer a lot of insight on what you are really getting yourself into before you sign your life away.

Below are five reasons not to purchase a short sale without bringing an agent into the picture, courtesy of “Monday Pit.”

#1 Original doesn’t always equal awesome

We often hear people brag about “original” this and that when buying an older home.  While keeping a house’s original features can add some historical charm, you need an experienced eye to spot which originals from the past will hold up in the future.

#2 Termites and Rot

Just because the hardwood looks great after a little polish, that doesn’t mean there are no problems below the surface.  Termites, rotting wood and water damage can lead to future problems hidden at the time of purchase.

 #3 Basement does not mean bonus room

While a basement can be a great asset to a new home, not all basements are livable space.  In coastal areas, such as New Hanover, Brunswick and Pender County, flooding and mold are common problems you need to look into before trying to make your dreams of a man cave or a guest suite a reality.

#4 The expensive problems are hidden

The most expensive upgrades may not be out in the open.  Plumbing and electrical problems are often hidden in the walls, floors and underground.  When unattended, these problems can put a huge dent in your bank account.  An experienced agent will know what to look for and who to contact to check for other potential problems.

#5 You might end up looking like this

While DIY projects may seem a fun and creative piece of cake in the beginning, you can quickly become overwhelmed once you realize just how many projects you’ve taken on at once.  An experienced agent can bring these projects to light before they become your responsibility.

The bottom line is this: While a short sale can be a great investment, it can also be a huge undertaking.  The best way to ensure you are making the best decision for you is the involvement of an experienced short sale agent.  A good agent will have your best interest in mind.  They know what to look for and how big of an undertaking you are getting yourself into.  Yes, you may be able to find a good deal on your own, but taking that route also increases your chances of getting stuck in your own money pit.

For an experienced short sale agent in Wilmington, Leland, Hampstead and surrounding eastern North Carolina areas, contact Nilesh Jethwa at 910-622-0319.

 

Buying a Short Sale In Wilmington and Leland NC

How to Buy a “Short Sale” Home In Wilmington and Leland NC

What you need to know before buying a short sale home

While most first time home buyers dream about getting a great deal on their first home by buying a foreclosed property at auction, short sales can be a much easier way to get that great deal.

A short sale is defined as a transaction where a lender permits a home owner to sell their home for less than the amount of their mortgage. In most cases, the mortgage lender will not require the seller to pay any shortfall or deficiency. In addition, the mortgage lender will usually allow the expenses of the seller such as real estate commissions and conveyance taxes to be paid as part of the transaction so the seller does not have to pay them.

Short sales are listed with Realtors on the Multiple Listing Service just like regular home sale transactions. The only difference is that the listing must include the phrase “subject to lender approval.” That key phrase indicates that the transaction will be a short sale. The primary difference between a regular transaction and a short sale is the short sale must be approved by the lender as well as the sellers.

Why would a mortgage lender permit a short sale and take a loss?

With the recent drop in home values, millions of home owners have homes worth much less than the amount of their mortgage loans. For the home owners who have to sell their home due to hardship such as job loss, they are unable to sell their home without a short sale transaction. Mortgage lenders do not want the expense and liability of foreclosing, so they offer to let sellers sell and take a small loss now rather than foreclose and take a larger loss later.

What is benefit for home owner?

The main benefit to the home owner is that they can sell their home and get on with their life without being saddled with the amount of their mortgage that exceeds their home value.

Why is it great for you the buyer?

The simple answer is that you will be able to buy a home at a lower price in better condition than if you purchased a foreclosure. Sellers are getting out of their situation thanks to the lender, so they have an incentive to keep the property in good condition so you will buy it. Just as important, sellers are not getting anything out of the transaction so they do not care what the selling price is as long as the bank lets them out of their debt.

How do you Buy a Short Sale?

  1. Contact an expericed short sale agent
  2. Find the home you want that is a short sale.
  3. Make your offer but include comparable sales to justify your offer
  4. Follow up with the seller to make sure they submit their request to their lender.
  5. Be ready to close quickly (once lenders approve a transaction, they want to close fast)

By working closely with your Realtor and the seller, you can buy a home for below today’s low market values in better shape than any foreclosure you will find.

NILESH JETHWA WILMINGTON NC SHORT SALE EXPERT

http://www.shortsalewilmingtonnc.com/



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No Equity: Wilmington NC Short Sale

No Equity

Are You Upside Down on Your House Value
or Fallen Behind in Payments?

A “Short Sale” is a special transaction that allows you to sell your home even when your mortgage debt is higher than the value of your home.  Your lender takes the loss for the difference between sales price and your indebtedness, but takes an even greater loss if forced to foreclose. 

Very few Real Estate Agents have the contacts and expertise to quickly and efficiently process a Short Sale. I’ve been professionally trained on how to help with your current lenders so you can quickly sell the property and get out from under this burden. 

A Short Sale will help you:
Avoid Foreclosure
Avoid Bankruptcy
Protect Your Credit From Intensely Negative Impacts
Be Free of Financial and Emotional Burdens

There is NO charge to you for any of our short sale service. You will never be asked to pay us any money, regardless if the deal closes or not.

If you would like to set up a no obligation consultation to discuss your options to avoid foreclosure or to see if you qualify for short sale then you can reach me directly at (910) 622-0319 or submit the below form: We are here to help you!

 Nilesh Jethwa: Wilmington NC Short Sales

www.shortsalewilmingtonnc.com



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Wilmington NC HAFA Short Sale Specialist

The HAFA ( Housing Affordable Foreclosure Alternative) program is the government’s new short sale program. The government created the program in an effort to assist homeowners who can no longer afford their home and who want to avoid the damage a foreclosure does to a borrower’s credit. The following is my understanding of the program guidelines as presented in the MAKING AFFORDABLE Supplemental directive 09-09.The federal government has asked lenders to voluntarily implement a new program called Housing Affordable Foreclosure Alternative (HAFA.) The start date is April 1, 2010 although it is expected that some lenders will implement the program sooner and as I stated earlier, lender participation is voluntary. The guidelines further state that a lender who participated in the HAMP (Homeowner Affordable Modification Program) will be required to participate in HAFA. Loans in which Fannie or Freddie has an interest in do not qualify. They are working on their own short sale program.

In order to qualify for HAFA, a homeowner must meet the basic eligibility requirements for HAMP. They are:
• The property is the borrower’s primary residence.
• The mortgage loan is the first lien originated before 01/01/09.
• The mortgage is delinquent or default is reasonably foreseeable.
• The current mortgage balance is $729,750.00 or less.
• The borrower’s monthly mortgage payment exceeds 31% of the borrower’s gross income.
• If the borrower has mortgage insurance, the insurer must waive any right to collection from theborrower.

If a borrower meets the following criteria, the participating servicer must give the borrower the option to enter into the HAFA program:
• The borrower did not qualify for the HAMP trial period.
• The borrower did not successfully complete the HAMP trial period.
• The borrower is delinquent on their HAMP modification.
• The borrower requests a short sale or deed-in-lieu.

The good news for sellers who participate in HAFA:
• The lender is required to forgive any deficiency (no more waiting and wondering if they going pursue the deficiency.)
• The sellers will get $1500.00 at close of escrow.
• Servicers are expected to provide an approval letter 10 days from the date the offer is received (no more waiting for months with no guarantee that the short sale will be approved.)
• The short sale will be pre-approved and the server will provide the listing agent with a pre-approved listing price.
• The server will pay up to 3%, but no more than $3000.00, to junior lien holders.
• If a borrower meets the HAMP qualification requirements listed above, they can participate in HAFA without going through the HAMP program first; as long as their servicer is participating in the program. However, if the borrower hasn’t gone through HAMP first, it will be very difficult for a servicer to get an approval letter to the borrower ten days from the offer submission date, and it will more than likely create delays. During the HAMP program process the borrower’s hardship is evaluated. The servicer becomes very familiar with the homeowner’s situation and all the obstacles that cause short sales to take forever are dealt with. Short sale pre-approval is pretty much determined through the HAMP process, so going through the HAMP program first will help the short sale to move quickly through HAFA.

The good news for buyers:
• The endless waiting for short sale approval will be eliminated. Short sale approval in 10 days or less.
• Lenders must allow at least 45 days for close of escrow.

This program will take all those frustrating unknowns out of the short sale
process.

The HAFA summary states that it is the borrower’s responsibility (with the assistance of their Realtor) to “deliver clear marketable title to the purchaser or investor.” It further says that the servicer can assist the borrower and the listing agent in the negotiations with lien holders, but they are not required to do so. An experienced Short sale agent knows how to negotiate with junior lien holders; however juniors could create problems based on HAFA guidelines.

The program provides $3000.00 for junior lien holders. It also requires that junior lien give up the right to pursue any deficiency. If a junior wants more than $3000.00 and/or is not willing to forgive the deficiency, the borrower will not be able to obtain clear title as required. Multiple junior liens could create a problem. If there is more than 1 junior lien holder, $3000.00 may not be enough to satisfy them all.

Another potential issue is that senior liens are not mentioned in the program guidelines. Property taxes are considered a senior lien and currently lenders will pay past due property taxes in order to attain clear title. Since the HAFA program stipulates that providing clear title is the borrower’s responsibility, one could assume that the borrower will have to pay any past due property taxes, before close of escrow, so clear title can be provided.
definitely
One other important requirement:
• The transaction must be completely arms length. No one involved in the transaction can be related. This includes the Realtors, the buyers and the sellers.

Currently in a short sale transaction the lender does not automatically give up the right to pursue. Large numbers of short sales fail because borrowers are concerned that the lender may pursue the deficiency. The fact that the HAFA program requires that the lender forgives any deficiency is a huge relief for borrowers struggling with their mortgage. Other than the problems that may arise with other lien holders, this program is a major step in the right direction for borrowers who are “under water.” It gives them a real chance at a fresh start. There are so many borrowers out there that are responsible people who find themselves in a night mare they never imagined, this program is an opportunity to move beyond the night mare and begin again. It is also a win for everyone who lives in the neighborhood of the borrower who participates in HAMP. Short sales generally do not bring down the value of the neighborhood as much as an REO does. Overall we see this as a positive solution for a homeowner in a very difficult situation.

This is one of most important step in short sale, hire an experienced agent, if that agent is Certified and trained in short sale then that would be a plus. An experienced short sale agent knows how to negotiate with lender, how to prepare the short sale package and how to market your property to get buyer for your house. Before hiring, check that agent’s web presence, ask for reference and check whether they have successfully closed any short sale transactions.

If you are in Wilmington , NC  or near by area and need my service for short sale, don’t hesitate to contact me at 910-622-0319, your expert short sale agent in Wilmington area. www.shortsalewilmingtonnc.com.

 

Posted by Nilesh Jethwa

Short-Sales Wilmington, NC

 

 

A short sale in real estate is not always a pleasant transaction.

 

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy of foreclosure proceedings. One of those options is called a “short sale.”

 

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

 

Real estate investors can frequently make very profitable purchases of real estate through a short sale. Many short sales do not get approved or fall through for a variety of reasons. Learn here the step-by-step process to initiate a short sale, starting with the homeowner-borrower and moving through lender negotiations to the closing.

 

1. The Property Valuation Analysis for a Short Sale

Short sales will not work if there is sufficient equity in the home for the lender to sell it and at least break even in a foreclosure. The homeowner must be “upside-down” in their loan. Learn how to determine if this is the case.

Learn About How to Determine if the Homeowner is Upside-Down

 

2. Contacting the Lender for a Short Sale Application

Lenders will not talk to investors, potential buyers or real estate agents unless they are instructed to by the borrower. You will need to get their approval in writing, contact the lender with that approval, and make the first telephone contact. Learn about it here.

How to Get the Borrower’s Approval and Make the First Lender Contact

 

3. Writing the Hardship Letter for a Short Sale

The hardship letter is the cover for the short sale package. It is a lot like the cover letter for a job resume. It must be convincing and complete. The lender must get the first impression that it’s a short sale or a foreclosure or bankruptcy.

The Hard Ship Letter Step 3

 

4. Backing Up the Numbers With the Short Sale Package

The meat of your short sale presentation backs up the statements made in the hardship letter. You prepare a thorough and detailed set of documents and financial data to support the claim that a short sale is a good solution for the lender.

What to Submit to Convince the Lender and Get a Short Sale Approval

 

5. Elements of a Short Sale Purchase Agreement

Learn the things you need to consider in the preparation of a short sale purchase agreement. Where should you get one? Do you need an attorney? What elements need to be present in the purchase agreement?

What Does a Short Sale Purchase Agreement Look Like?

 

6. What the Lender Does With the Short Sale Package

If you prepared a thorough short sale package, the lender will be evaluating your numbers and getting some of their own. Learn about it here.

Short Sale Package

 

7. Negotiating the Short Sale with the Lender & Going to Closing               You may have to go back and forth with the loss mitigation department at the lender to get an acceptance of a short sale. Learn about this negotiation and the importance of a fast close.

 Negotiating the Sale

 

 

Posted By Nilesh Jethwa Wilmington and Leland Real Estate

Adopted from: About.com James Kimmons

 

Nilesh Jethwa is a local Realtor in Wilmington, and Leland area. If you are interested in contacting Nilesh please Click Here!

 

 I’m Nilesh Jethwa. I’m a Certified Distressed Property Expert (CDPE) in Wilmington NC and Leland NC Area. I make it my duty to provide honest and accurate information about the foreclosure process and short sales. A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales in Wilmington NC and Leland NC.The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. I believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional in the Wilmington and Leland area. We have the tools needed to help you find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.  Click here to contact me!

 

 

 

 

 

 

 

 

Wilmington, NC Short Sale Part 3

 

 

Whether you’re a real estate broker or an investor, if you’re helping the borrower behind in their mortgage to negotiate a short sale, an important piece of the puzzle is the hardship letter.

Lenders are all about numbers, so the letter isn’t a sob story about the borrower’s difficulties. It should be a factual description of a financial situation that is leading up to a bankruptcy or a foreclosure on their home, or both. The lender must be convinced that their only other option is foreclosure, and then they can analyze the numbers to see if a short sale is a preferable alternative.

Different sources quote different numbers, but the average seems to run around $50,000 in costs to the lender for the average foreclosure process. Then there are the reserves that are required to be held to back up non-performing loans. The lender must tie up resources that could be invested elsewhere to back up these loans. So, they are open to alternatives.

The borrower should write the letter in their own words, but they need to make sure that there is a clear picture of their financial condition, and back up their claims to hardship with documentation, such as pay stubs, medical bills, job layoff letters and more. The numbers should clearly illustrate that the borrower is headed for foreclosure or bankruptcy

 

Posted By Nilesh Jethwa WIlmington and Leland Real Estate

Wilmington, NC Short Sale Part 2

 

 

 

The second step in our series on short sales is the lender contact step. First, get written permission from the borrower to contact their lender. There are various forms available for this, and the lender may have their own required form. However, the main goal is to get the borrower to name you as a person authorized to discuss their situation with the lender.

You will be contacting the loss mitigation department or the person named in letters to the homeowner. This is your most direct contact, thus the most efficient. It would be best if you contact them by phone with the borrower present. That way they can ask the borrower questions if necessary.

In this step, you’re starting to build a relationship with the loss mitigation group in order to get help through the process, request an outline of what they want and how they will make a decision on a short sale.

Waterford of the Carolinas; Top 6 reasons why your home as not sold

Waterford of the Carolinas; Top 6 reasons why your home as not sold….

 Mortgage interest rates are near a record low and people are buying homes every day. So, why is it that some home sell right away while others sit on the market for months and  months.?
 
1. Overpricing. The number-one reason a house or condominium does not sell is because it is over-priced. If you listed your home with the real estate agent who recommended the highest list price, they probably “bought” the listing. Now, they may be reluctant to admit that your home is over-priced.
 
Do you wonder why you’re not getting any offers? Today’s savvy home buyers will either not look at over-priced properties, or when they do, they make offers that are much lower than the market value. Home buyers are very smart and they often know more about home values than real estate agents. If your home has been on the market for more than 30 days, it’s time to review a new market analysis to check the list price against other active listings and recent sales. Then, adjust your price accordingly.
 
2. Condition of the home. The second major reason homes do not sell is their physical condition. Few home buyers want to purchase fixer-uppers. Most want a home to be in near-perfect, “model home” condition. Does your home need a fresh coat of paint or new carpeting? Is your yard and landscaping appealing? Are the windows sparkling? Is the garage clean? Have you put off making needed repairs? Take time to put your home into tip-top condition, so that all a buyer has to do is turn the key in the front door and move in.

3. Bad location. No matter how appealing a home might be, if it’s in a bad location it will not sell, or it will sell for substantially less than comparable homes in good locations. Negative location factors include bad schools, busy roads, high crime areas, poorly maintained neighboring homes, lack of public transportation, poor shopping, power lines and poor parks. The only way to compensate for a bad location is to reduce the price.
 
4. The listing agent. Few sellers realize that their listing agent could be the reason their home does not sell. Some agents are known among their colleagues as “difficult agents.” The result is that other agents do not want to show the listings of those agents unless there is nothing else to show prospective buyers. Sellers may never know that their listing agent is not liked by other agents and is hurting the home sale. Experienced, cooperative, friendly, enthusiastic and accessible listing agents are a major asset to their clients.
 
5. Poor marketing plan. Some real estate agents get the listing agreement signed, put it into the MLS and sit back to wait for other agents to bring a buyer. That’s not enough to sell a home. The best agents have a written marketing plan and they follow it to be sure the property sells.
 
Although the MLS is a powerful sales tool, other resources are essential. The best agents have Internet sites to market their listings. They also arrange broker tours, advertise each listing regularly, send out “just listed” announcements and actively network their listings with other agents. Contact Nilesh Jethwa for his marketing plans.
 
6. Difficult to show. A common saying in real estate is “If you can’t show it, you can’t sell it.” The more a home is shown, the faster it sells. And, usually the quicker the sale, the higher the selling price. The message is clear, make your home easy to show by installing a lock box. If a lock box is not feasible, ask your real estate agent to set up a procedure that will make it easy to show your home.
 
SUMMARY:  The key reasons some homes do not sell, even when the real estate market is doing very well, can be overcome with savvy marketing. Real estate agents like to show listings that are priced right, in good condition and easy to show. If your home is not selling, talk with your agent to find out why. Have your agent ask other agents who have shown your home what they think of it. For example, a modest price reduction might be all your home needs to convert it from “for sale” to “sold.”

 

POSTED BY:  NILESH JETHWA;  WATERFORD OF THE CAROLINAS REAL ESTATE

 

Nilesh Jethwa is a local REALTOR of the Wilmington and Leland area. With years of experice in  Waterford of the Carolinas. Nilesh’s enthusiasm, knowledge of the area and his personal concern for the client’s interests combine to make me an outstanding resource for your real estate transaction. I work extensively to help Buyers and Sellers meet their real estate goals..

To contact Nilesh Jethwa please click here!!

 

Waterford of the Carolina’s market overview

For over the years Nilesh Jethwa has provided professional real estate services to this community and has established a tradition of excellence. In keeping with this tradition, personal service and dedication are Nilesh Jethwa’s hallmarks. Whether you are buying or selling yourhome, I have the resources and the expertise to provide you the excellent service you deserve. I will continually strive to provide you with excellent service because, in my business, the most profound assets I posses are your respect an trust..

 

 

Posted by Nilesh Jethwa  Waterford of the Carolinas Real Estate  

Nilesh Jethwa is a local REALTOR in Wilmington/Leland area.  To contact Nilesh Jethwa please click here! Don’t forget to ask for my relocation package! As always visit my blog often for up to date information on the Waterford of the Carolinas or the local market in the Wilmington/ Leland area.