2003 and it was my 1st "Short Sale"

It was back in 2003 and I had been licensed for maybe a year. I was still on a team (although I use the word loosely).  Short sales were not unheard of then but they were nowhere near as common as they are today. Some old friends of mine had hit hard times and needed to sell or be foreclosed. They had refinanced their home AND taken out a second mortgage. They owed $135,000 and the very highest comp in the neighborhood had recently sold for $132,000.  That was for a home in good condition.  This one needed some TLC.

Yes, they were friends of mine, but since I was newly licensed they had called some other agents first.  For some reason nobody would list it.  

In retrospect there were a few things working in our favor to get this done.  Even though there was a 2nd mortgage, the sale price of $109,000 would pay the 1st and leave about $5000 for the second.  So the second at least got something out of the deal.  We also had a very well qualified and very patient buyer.

We got the home under contract and I got the neccesary permissions from the seller to contact the lenders. Oh my, I just was not prepared for what I was in for.

Lender told me we need a BPO.  

me:A what?

lender:Broker Price Opinion.

me: I'm only an agent, not a broker.  How can I do that?  Yes, I really said it :-)

lender:We need a HUD closing statement.  

me: How can we prepare a HUD when we don't have a payoff?

OK, we were also fortunate that the loss mitigator was helpful and patient :-)

Somehow or another, we muddled through it and got to closing.  The house sold for $109,000.  The first mortgage got paid in full.  The second got their $5000 or so.  The seller avoided foreclosure and the buyer got a good deal on a solid home.  Woohooo! I lived through my 1st short sale.  My team lead made most of the commission and I got a real good education.
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Postscript- A few years later after I had left the team and gone out on my own, I was driving down the street and saw a "For Sale by Owner" sign.   Yes, I made the call! Hello Mr. homeowner...remember me?  I got the listing, sold the house, and got a real nice referral letter.

Are you underwater on your home? Behind on payments?  Has your listing expired with another agent?  I sell the homes that the other agents can't (or won't) sell!  If you want serious marketing and exposure for your home to get it sold fast, even in today's market, give me a call or email!  I'm always here to help.

Marietta, Kennesaw, Acworth, Powder Springs, Smyrna, Cobb, Roswell, Sandy Springs, North Fulton, Cherokee, Bartow, Paulding, Douglas, Short sale, expired, 

Well, I've always wondered about this myself..& now I know.

People born before 1946 were called The Silent generation

The Baby Boomers, are people born between 1946 and 1959.

Generation X, are the people who have been born between 1960 and 1979.

And Generation Y, are the people born between 1980 and  2009  

So, why do we call the last group Generation Y? I never really knew until I saw a cartoon which explained it very eloquently below...& sure makes sense doesn't it!!
Scroll on down.
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Do you need to sell your home for less than what is owed?  This is possible to do and it can be a good alternative to foreclosure or simply mailing the house keys to the lender.  With a short sale there will be a ding to your credit but it will be much less than having a foreclosure.  After a foreclosure the minimum time to qualify for a new mortgage will be 2-3 years.  After a short sale it would be very feasible to qualify again in a year or maybe even less. Every situation is different and a short sale may not always be the best solution. Here is a link to a recent blog post that I wrote on some of the choices a seller may face. Foreclosure, short sale,loan mod or bankruptcy? What's a seller to do?

What's green and irish and sits outside all night? 

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Patty O'furniture.

Happy St. Patty's day!

 HUD Homes in Georgia

The U.S. Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA).  Whenever an FHA insured loan is foreclosed it becomes a "HUD home".  In the arena of foreclosures, HUD homes can be a pretty decent deal for an owner occupant buyer.

• In Georgia, an approved  HUD home can be purchased with an FHA loan using only $100 down payment.
• HUD homes have already had an inspection done. You should always get your own inpsection but the one provided will still give you good background information about the home.
• On some of the homes that need repairs, there is money already set asside that HUD will allow toward those repairs. 
• The homes are sold by an online bid process with the end date posted.  No more going to look at a home then finding out it went under contract yesterday.  Of course there is also no gaurantee that you will have the high bid.
  

Currently there are over 100 HUD homes in Cobb priced under $100,000. There are many, many more in higher price ranges.

If you are searching for a home and are interested in HUD homes, shorth sales, bank foreclosures, or just a downright good deal,  give me a call or email.  I'm always glad to help!

Move over Law

There is a new traffic law that everybody should be aware of.: If  a patrol car is pulled over to the side of the road with their lights  flashing, you have to move to the next lane (away from the stopped  vehicle) or slow down to 20 mph.......Every state except Hawaii  and Maryland and the D.C. has this law.

It is a fairly new law that states if any  emergency vehicle is on the side of the road with its lights  flashing, if you are able, you are to move into the next lane. The cost of ticket and the points are very high
Here in Georgia the law was implemented in 2007 and allows fines up to $500!

Please let everyone you know who drives about this  new law. It is true (see details at the  following web address). It states that except two states, all the other  US states (even Canada ) enacted a similar kind of law. 

Watch the first few seconds of the video and you'll see why htis law is so important.

 http://www.moveoveramerica.com/

                   

4805 W. Village Way unit 1404, Smyrna, Ga. 30080

This is a great short sale bargain in a fantastic Smyrna location.  Located right at 285 and Atlanta road, this condo is convenient to everything!

Short Sale Bargain! - $160,000 Bedrooms: 2 Bathrooms: 2 Parking Spaces: 2 Year Built: 2007 Subdivision: West Village Located on Floor #: 4 Floors in Bldg: 4 School District: cobb Square Footage: 1175 Agent Name: Bob Southard Broker: Solid Source Realty, Inc MLS #: 4032508 Price: $160,000 Flexibility: Negotiable Additional Pricing Information: Bring offers! Homeowner Dues: 204 4805 West Village Way #1404 Smyrna, GA 30080 View Map View More Photos Map it! Range/Oven Dishwasher Sink Disposal Microwave Fireplace Security System Patio Elevator Great 2/2 condo in the Flats at West Village. this is a great Smyrna location right at Atlanta Road and 285! Mixed used development with restaurants and shopping all within walking distance. This home originally sold for over $220,000. Current tax value is @ $213,000 square footage shown is according to Realist tax records. Bob Southard Bob@AgentBobSells.com 770-656-9134 Powered by vFlyer.com Equal Housing Opportunity VFLYER ID: 3165092

All information in this site is deemed reliable but is not guaranteed and is subject to change

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Kennesaw Ga.- Honest Car repair at Rapid Rotation!



Honest car repair shops are few and far between.  A few years ago I was having problems getting my car to pass Ga. emmissions. Rapid Rotation was recomended to me and the owner, Jeff Starling, took a look at the Jag made a few minor repairs and adjustments. The total cost was about $100. Anytime you can get a Jag in and out of the shop for $100 there is something good going on.  

A few days ago my wifes mini van started running really rough.  I took it to Jeff who did a free diagnosis and gave me an estimate of $450 + tax to replace the fuel injector and repair a bad oil leak we have in a valve cover gasket. The estimate was for the repairs that I need and not a bunch of extra junk.  Even though the name is Rapid Rotation, they do a whole lot more than just rotate your tires. They do oil changes, emissions, and all types of tire, brake, and other mechanical services

I am sitting in the waiting room right now using the free wifi.  They had the appointment made for me for the repairs and got the van in as soon as I got here.



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The best part: Jeff just told me that some of the parts that he quoted on the original estimate won't be needed.  The final cost is going to be over $50 less than the original estimate!

If you live or work anywhere in the North Cobb, Town Center, Kennesaw area stop by Rapid rotation and tell them I sent you!

Rapid Rotation
Jeff Starling, owner
2490 South Main St.
Kennesaw, Ga. 30144
770-419-4995

SEARCH KENNESAW GA. HOMES FOR SALE

Foreclosure, bankruptcy, short sale, or loan mod?

Distressed home owners here in Georgia, or anywhere else for that matter,  have many choices to make. Some of those may involve us as real estate professionals. However some do not.  We need to look at each situation and give our best advice.  Each possible alternative has its positive and negative results and should be carefully considered.

Here are what I see as the primary choices and my thoughts on each.

Foreclosure: Some home owners will choose to simply stop making payments and walk away.  Of course this will have a huge negative impact on their credit and they are homeless.  However, once it is done they rarely (not always) have no more liability for any unpaid debt on the loan.  Rarely would this be the best option for the home owner.  I can see how it may be the easiest choice to make but just about any other choice would be better for the home owner.

Bankruptcy:  This is an area where I think that we as agents may have a clouded view. We tend to really push sellers to a short sale.  However I believe that we need to look at the bigger picture beyond just selling the home.  Does the seller have other debts besides the mortgage?  Will those debts still represent a hardship for the seller after the home is sold?    If so it may be that the seller should at least consult with a bankruptcy attorney.  On the other hand I have seen situations where people file bankruptcy only to try to save the house.  In those situations I think the seller may have been better off with a short sale or loan mod.

Short Sale: In many cases now, it can be negotiated for the home to be sold for less than what is owed to the mortgage company.  Very important... The short sale needs to be negotiated so the seller has no further liability on the debt!  It is very common now for the bank to agree to the short sale but in the closing docs they will insert something saying the seller agrees to pay the remaining unpaid balance.    What's the point for seller to agree.  There isn't one that I can see.   If  a short sale will solve the sellers financial crisis and if there is no other liability on the debt, then a short sale is a great option.

Loan modification:  In many cases restructuring the loan will solve the problem.  Maybe there was a temporary job loss or there has been a permanent reduction in income. Many times the mortgage company will agree to reducing the payments in order to avoid foreclosure.  They don't want the house, they own enough homes already.  The seller gets to keep the house and continue living there.

Of course all of this is a pretty simplified explanation but here's the point.  Sellers have important decisions to make and we need to give them the right advice.  That advice may or may not include our services.  Give the best advise we can today, provide the best service we can today, and the result may be business today, or it could be healthy seeds planted for the future.

Those are my thoughts.  What are yours?

 

Larry Bettag, an Illinois FHA specialist, wrote this great article on the new good faith estimate that is required for new loans.

It seems that like many government programs, the intent is good but the result is a mess.  The end result is more confusion and a higher cost to the consumer.

I'm from the government and I'm here to help..... yeah right.

 

 

Do think our tax system needs an overhaul?  

Join the online tax revolt.  It is a virtual march on Washington that will culminate with a live event.  Signing up easy.  Give your name and email address, pick an avatar, pick a team.  That's it!  Then you can check in anytime and see your progress on the interactive map.

Online Tax Revolt to Storm Washington to Demand Tax Reform

The first-ever Online Tax Revolt, a free, interactive march on Washington was launched today.  Using state of the art technology, concerned Americans can have a voice on tax policy, culminating on April 15 with events in Washington, D.C.

“The Online Tax Revolt is open to every American who believes taxes and spending are out of control, harmful to our country and a threat to our nation’s future,” said Campaign Chairman Ken Hoagland.  ......

Read the entire story here and join the online revolt

Why do a prelisting home inspection?  Here is a great post from Sheree Wilkerson in Wichita Kansas. It has several great points for dooing a home inpsection prior to listing it for sale.

This is something that I have been encouraging sellers to do years now.  I will even offer a discount on the listing commission to offset the cost of the inspection!

 

Chef Mac,  cooking it up again!

I have had a couple of posts before about my friend and Powder Springs neighbor, Chef Rian MacDonald. Here is a recent feature in Living in Atlanta magazine! Way to go Chef Rian!

For more info or to order his cookbook "Taste Buds" visit his website at www.ChefMacllc.com




Related posts

http://activerain.com/blogsview/1109713/young-local-chef-already-cooks-up-big-things-
http://activerain.com/blogsview/1137895/a-couple-of-great-grilling-recipes-and-help-my-friend-
http://activerain.com/blogsview/1105393/is-there-hope-for-public-education-

Its a sign, its a flyer, its always there!

I got tired of always filling up flyer boxes, owners calling because the box was empty, flyers get all wet, yucky and crinkly, etc. I think I saw this idea on Active Rain and I liked it.  I had the flyer printed on to a sign!.  Now the sign is there 24/7 with no flyers to refill and people don't even have to get out of the car to get more information!  

Google it!   Somebody had also posted an idea of putting a sign rider on inviting people to Google the address.   I thought that was great also and incorporated that in with the sign.

Here is the pic and the actual sign.

When I get the signs made I have an extra one made just in case the first one gets lost, stolen, or damaged.  I also get property specific directionals made.  The cost is reasonable and no more wet, soggy or missing flyers.

Daytona Racing, scariest thing I ever saw...

Whenever Daytona 500 time rolls around I remember this one.

Here is a slide show video of a fiery crash in the Daytona 500 consolation race from 1984.  I was standing on pit road when this happened.  If you have been to Daytona, it's a really big place.  From where I was on pit road it was several hundred yards maybe even a 1/4 mile away.  A few seconds after the crash I just felt a huge heat wave blow over me.  To make it even worse my dad was in this race.  He was way behind this accident.  Look at :52 in to the video and you'll see car #50 pass under the accident.  He was 50 years old at the time and trying to be NASCARS oldest rookie.

This was  scary stuff and quite amazing that both drivers survived, although with some serious injuries.

Neighborhood blog plus evaluation Subdivision search blog

Alexander Farms subdivision, Marietta, Ga., West Cobb

Bill Cosby - 200MPH, It's a real car

Bill Cosby did a really funny routine about a car that Carroll Shelby Gave him.  What a lot of people don't know is that it really happened and it was a real car!  It was a 427 Cobra souped up with not 1, but 2, Paxton Superchargers!  7 or 800 horsepower packed in to a 2200 pound car!  Stick your foot to floor and it'll suck your eyeballs to the back of your head and make certain body parts pucker up :-).  Shelby built two of these cars.  One went to Bill Cosby and the other Shel' kept for himself up until just a few years ago.  He sold it the Scottsdale AZ. Barrett-Jackson Auction for $5.5 million (5million plus a 10% buyer premium)

Listen to Bill Cosby's 200MPH!

See the car!

After foreclosure or short sale in Georgia,  Do I still owe any money?


After foreclosure or short sale in Georgia,  Do I still owe any money?  Believe it or not the answer may be yes! Georgia is one of over 30 states that does allow the lender to collect from the home owner after a foreclosure. A recent article on CNNMoney.com explored some of the reasons but here is my explanations as simple as I can make it.  

When you obtain a mortgage the loan is based on two factors.

1. Your credit. One component of the loan is your promise to repay.
2. The value of the collateral.  This is the security that the value of the home provides.

When a home is foreclosed the value of the collateral is gone.  The bank can resell the home for as much as they can get but if it is less than the entire loan amount they are still owed money.  The foreclosure does not erase your promise to pay.

An agreed short sale can be the same.  However since a short sale is a negotiated agreement it is very important that the negotiations include a release of liability from the loan.  If that is not included then you still owe and the bank has the right to attempt to collect the shortfall even if they have agreed to the short sale.

Here is a portion of short sale contingency provided by the Georgia Association of Realtors:
 "...This Agreement is therefore contingent upon Sellers mortgage lender(s) agreeing to: (1) take a reduced pay off on its mortgage(s) in an amount sufficient such that the purchase price of the Property pays off the reduced amount of the mortgage(s), any other liens, judgments and other encumbrances on the Property, the real estate commission(s) owing to the Broker(s) and the other expenses of sale for which Seller is obligated under this Agreement, without Seller having to pay any additional sums; and (2) release Seller from any claim, cause of action, suit or judgment for the amount of the reduction in the payoff on said mortgage(s)...."

Item #2 says the entire sales agreement is contingent upon the bank releasing the seller from future liability.

In either short sale or foreclosure the money is collected through the use of a deficiency judgment.  Deficiency judgments have been fairly routine and common in the past after a car repo. The gets repo'd, sold at auction, and then the bank comes after the former owner for loss.  Its the same process with houses but the numbers are a lot bigger.

This is another blog post in the works, but here is where I think a lot of us agents may fall short.  Selling the home is not always the best option for the seller! Sometimes we are not the answer.  A struggling home owner needs to explore other options like a loan modification or bankruptcy.  

And that brings me to my final point. There are 3 ways the seller can be released from the liability of the debt.

1. Pay it off.  OK, probably not really an option but it does release the liability.
2. Negotiate the release of liability. If the home owner is doing a short sale or deed in lieu of foreclosure this needs to be a part of the process.
3. Bankruptcy. Chapter 7 bankruptcy is the legal action that removes the personal liability from the promise to pay. In some cases the home owners best option may be to consult with a good bankruptcy attorney.

 Are you a home owner struggling to make payments?  Feel free to contact me to see which options may be best for you.

NEW YORK (CNNMoney.com) -- As terrible as it is to lose your house to foreclosure, at least it's a relief to put your biggest financial headache behind you, right?

Wrong.

 

 

Cobb County Ga.  - Code Red Alerts
Marietta, Kennesaw, Acworth, Smyrna, Austell, Mableton, Powder Springs

Cobb county has a system set up so that you can receive emergency alert notices for a variety of situations.  According to the Cobb County website you will ... "be notified by your local emergency response team in the event of emergency situations or critical community alerts. Examples include: evacuation notices, bio-terrorism alerts, boil water notices, and missing child reports."

Take a moment to visit the website and get signed up.   You can have the alert calls sent to 2 different phone numbers including your cell phone and they will also send text alerts if you choose.  They also recommend that you save the Code Red phone number in your cell phone contacts so that if you receive a call you'll know it is a Code Red alert.  The number that the call will come from is 866-419-5000.

I signed up already it only took a minute.  It fast and easy.  Go ahead and sign up today !