Archive for December, 2010

Short Sale Considerations

Wednesday, December 29th, 2010

The name Short Sale came from the fact that the Lender’s payoff is coming up “short”.  It occurs when a Lender agrees to the sale of a property for less than the amount owed on a mortgage. A short sale package includes: Purchase and Sale Agreement (from Realtor), Addendum to Purchase (from Realtor), Authorization to Release Information, Two Years FULL Tax Returns , Two Months Bank Statements (Most recent), Last Two Pay Stubs, Fill Out Financial Worksheet, A Handwritten Hardship Letter, If FHA, Form 90036 and Homeownership Counseling Certificate.

The rest of the seller’s debt is forgiven with short sale. Rather than suffer the lengthy and expensive foreclosure process, a homeowner agrees to a short sale though the sale of your Leesburg VA home, for instance is less than the owner owes on the mortgage.

Perhaps, foreclosure is not the only option. A Short sale is a good alternative. The Home buyer will get the home in a bargain price. Then, the seller will not face bankruptcy but will get out of the mortgage liability. The lender on the other hand though agreed to a loss from accepting fewer benefits will not be facing the protracted process of foreclosure.

Short sale is a better option to foreclosure, however, waiting for the lender to agree on it can be a lengthy process. But if you’re on the way to short sale your Virginia Home, Realtors advise that you seek help from a real estate agent short sale expert. Here’s what they say:

1. Check if the indeed the Lender agrees in writing that all debts in the short sale process was forgiven.

2. Make things clear with the Lender how the short sale will be reported on your credit report. A short sale can gie you a negative credit report although the report wil just say aas ‘settled for less than the full balance,’.

3. Make certain that you are well-informed about the tax repurcussions.. So, if your Home in Chesapeake Virginia was agreed to a short sale for $30,000 less, then a 1099 for $30,000 will be issued by your lender and you would have to pay taxes on.

Short Sale, as Realtors say, is a win-win situation. Foreclosure doesn’t have any credit advantage over Short Sale yet, the latter is an advantage over the former if you ever decide to buy another home.


Repairing Your Storm Damaged Roof by Hiring a Roofing Specialist

Wednesday, December 29th, 2010

Having a great deal of storms rampaging through your neighborhood may have you wondering, does my roof suffer from storm damage? This answer is not always so easy to figure out. Typically you can first take a look around the area, your driveway will obviously have hail on it, looking at your mailbox, your air conditioner, the window screens, your vinyl siding on the home and etc. If you notice any damage to these particular items around your home and you probably will since these items can take a beating from hail damage especially if the hail is of considerable size.

Other signs of hail damage can be noticing shingle granules collecting at the bottom of your downspouts and denting. In general the hail damage done by the hail storm will weaken the roof amount of protection and therefore shorten the life of your roof. This results in the damage that will be caused by water damage from the hail storm.

Hail can fall at an amazing and fast rate of speed, doing much damage to your roof. The velocity alone can cause large sizes of holes in the shingles and if you do not take care of this as soon as possible, you can have even more damage happen to your home, such as inside damage on the walls and leaky ceilings.

Hail damage is usually caused by large sizes of hail. If you can see damage on the items listed then your will most likely have hail damage on your roof. But just looking at these items will not tell you the specifics of any damage on the roof; most times the homeowner will not even know the extent of the damage done to the roof by hail until the part of the roof that is damaged actually falls off. In this case, you must call a Carrollton Georgia Roofing Specialist. They will come out and inspect the roof so do this before calling your insurance company.

Since hail damage takes an expert  Georgia Roofing Company to diagnose how much damage is really there, it is wise to call as soon as possible to get the details on the damage and to get the ball rolling on getting the roof repaired. In most cases, the damage done to the roof may only be concentrated on one particular spot, which in turn can mean not having to replace the whole roof, only the part that was damaged by the hail storm.

If you suspect your roof has been damaged by a hail storm, search the internet for a Carrollton Georgia Roofing Specialist to come out and take a look at the roof, talk to you about the extent of the damage and what can be done to repair the problem

To find out more about how to install asphalt roofing products and make sure your roof is or is not damaged by hail or wind please visit the following links: Georgia Storm Damage Roofing Companies or Carrollton  Roofing Contractor.This article was Authored and Submitted by Joseph Vann Hamby. All editing and summaries are Authored by Joseph Vann Hamby in a collective effort to encourage proper roofing installation practices.

Everything You Need To Know About Stamp Duty Land Tax

Wednesday, December 29th, 2010

Stamp Duty Land Tax was introduced by the Finance Act 2003, to replace Stamp Duty. It’s a tax payable on land deals by the buyer of land relying on the value of the exchange and subject to any relief reported.

A real estate transaction is where the legal title of the property will be transfered from on person to another, such as a purchase, transfer of equity or gift (remortgages where there isn’t any transfer are chargeable for duty) and the amount of duty payable depends on the specific consideration (purchase price) paid, the total amount attributed being a proportion of the consideration, between 0% – 5%.

SDLT Thresholds:

Duty is charged at a different rate depending on the amount of consideration covered for the property. The table below demonstrates what rates are payable:

0 – 125k            =0%

>125k – 250k    =1%

>250k – 500k    =3%

>500k                =4%

From 06 April 2011 a new higher rate of 5% for transactions worth over 1,000,000 will be introduced.

New Purchaser Relief:

For purchases finished between 25 March 2010 and 24 March 2012 inclusive, where the buyer is a first time buyer and also the price is 250k or less, the purchaser will be able to claim full respite from duty. An SDLT return will still have to be filed and an SDLT5 certificate acquired.

Any individual (in contrast to a company) who may never have owned a property, both alone or jointly, from any location, is a first-time purchaser and will qualify for relief. An individual who may have owned a property in the name of his company wouldn’t meet the criteria. Be aware that a person who buys a property in the UK or Wales but was once a resident in a different nation and held a property there wouldn’t be eligible. A person who possessed a property with a wife or husband orpartner but included in any divorce settlement or break up agreement did not keep any interest or some of the equity would also fail to qualify.

Where two different people are buying jointly and one never owned a property but the other has, there won’t be any entitlement to relief for either party.

Disadvantaged Area Relief:

Certain areas of the country are selected “disadvantaged areas” for the applications of stamp duty. In these locations total relief from duty might be enforced on transactions between 125k – 150k. Just like any claim for relief, an SDLT return will need to be registered.

To let you find out if a location qualifies for relief you need to use the postcode search tool on the HMRC website. Just use the search box within the website and seek “stamp duty land tax”. Be careful nonetheless that this tool is not definitive since locations are split by council ward in lieu of postcode and also the postcode search might not be accurate for properties which can be on the border of a disadvantaged area. If you’re uncertain, contact HMRC.

Equity Transfer:

Any transfer of land which results in a minumum of one of the first holders still left on the title subsequent finalization is known as a transfer of equity. These types of exchange do entice duty and also the consideration on which it is based is the amount of anything paid to an outbound owner or by an inbound one and the amount of liability for any mortgage loan that an inbound or remaining owner takes on. The two cases below illustrate this:

Example one: Jack and Jill got married and Jack makes a decision to include Jill to the deeds. The property is mortgaged and so Jill must become jointly liable for the financial obligation. Unwilling to reap some benefits and Jack’s  excellent nature she also decidesto repay Jack for her portion. The home is valued at 320k. The remaining mortgage is for 200k leaving behind 120k of equity. Jill as a result pays Jack 60k and takes accountability for 1 / 2 of the mortgage debt (100k). The entire consideration she has given consequently is 160k which means duty of 1.6k (1%) is payable. Even if she is a first-time buyer she can’t claim relief simply because Jack isn’t.

Example 2: Ben and Holly possess a house together but have decided to split up. They aren’t married. The property is valued at 200k, and the outstanding mortgage is for 150k, for which Ben and Holly are collectively accountable, leaving equity of 50k. Ben decides to acquire Holly’s share and she agrees to sell it for 25k as long as Ben takes lone responsibility for the mortgage loan, which he concurs to undertake. Ben as a result will pay Holly 25k and assumes here 50 % of the mortgage debt (75k) making a total consideration of 100k Duty is therefore “payable” at 0%. It means that even though transaction is not exempt and the SDLT return should be filled out by your conveyancing solicitor, because the consideration is lower than the 125k threshold no tax is due.

Extracting Water from a Flooded Basement

Wednesday, December 29th, 2010

Water can get through vents, floors, ducts and other areas that people would normally not think that water can be found. As a result, damage can be sustained by the home in the most unusual places. Regardless of where the damage happens , there is a need to perform restoration quickly and efficiently .


Water damage sometimes comes in the form of a flooded basement. Fortunately, there are ways to remove the water from the area. First, the flood waters would have to dissipate before any work could be done. Otherwise, the water would simply keep flooding the basement and the cleanup efforts would be in vain. Although this may seem like an obvious fact , it is surprising to note that there are a large number of households that try to scoop out or mop off the water as it comes in. Generally, this is just a waste of time and unnecessarily exposes the homeowner to contaminated water.


The best way to remove water from a flooded basement is to use a pump set outside of the house. Place the suctioning hose in the basement to suck out the water. Avoid using gasoline-powered pumps indoors because the fumes can cause the occupants to suffocate . At its worst, the carbon monoxide produced can be fatal. Sump pumps can be rented or borrowed from a home improvement store . However, the best way to deal with the water is to access the services of a professional contractor for their knowledge and equipment .


Pump the water until it reaches a level of less than a foot. Mark the level of the water and leave it for about eight hours to see if the water is stable enough to continue with the work . If after that time, the mark that was made was covered by water yet again , it is too soon to conduct any kind of restoration or cleanup process. Wait another 24 hours before attempting to remove the water again.


Ventilation is the key to basement drying because the sun and airflow can help dry out the surfaces. An improved airflow also makes the basement safer for the workers to stay in . It reduces the probability of them inhaling contaminated water droplets from the flood.

Paying Your Mortgage Interest Can Be Really Stressful

Wednesday, December 29th, 2010

Buying homes has never been this exciting, but the question is, how will you manage to pay for your home loan.  Piled up mortgage interest can really be stressful. Paying early can release you from the binding stress of paying your newly bought real estate. Yes, home improvements, a baby is coming, the eldest is going to college, health savings, mortgage payment, another property, etc. These are just a few of the things that you need to consider the moment you take hold of your money. Indeed, it’s just so hard to do the budgeting, but I am not going to talk about how to budget here because this is a matter of setting your priorities the moment you begin hunting for Salt Lake City Homes .

Release the stress in your budget? Paying on time is not that difficult. Here are undemanding ways you can pay your loan down before it is actually due:

Advice #1: Pay more!

Add extra dollars to your payment every month. It doesn’t have to increase or more. $5 dollars doesn’t take that much in your budget especially if your mortgage payment can take you 30 years to pay and so. It’s like paying off your mortgage a few months earlier.

Advice #2 Don’t Delay, Pay on time!

Everybody falls short financially. Expect the worse in your budget. You can prepare yourself by saving before the rainy days come by doing so Prepare yourself by saving before the rainy days come. Paying on time or earlier is a smart financial move. A missed payment can disturb your payment scheme which can make the next payment difficult. It’s difficult to return to your paying and budget mode this time. Besides, it will have an impact on your credit history.

Advice #3 Haven’t paid one payment? Ask for a “hardship variation”

A hardship variation is a creditor right under the Consumer Credit Code. check if the missed payments were due to valid reasons before you apply for this privilege which can result to either short-term or long-term payment problem. If it has been a long-term problem, ask for some legal advice.

By paying off your home quickly, you won’t have to hire Logan Utah Moving Company Ogden Utah Movers  , and can stay in an affordable living environment for many years .

Trends Today that Real Estate Investors Need to Know

Tuesday, December 28th, 2010

Real estate investing news is full of action today. There is a lot of data in the news. I have been following these stories all morning. I want to be sure to be as informed as possible before I start my day.

I have found that the best networking tactic in real estate is to be informed. If you are aware of the news you will have a big advantage. I can definitely say that a lot of my client relationships stem from this strategy. A number of my business deals are a result of my reading. I can see opportunities everywhere because I am current on the newest investing methods.

Not everyone has time for this type of research. That is why I started putting my notes online. I want all sorts of investors to read them. My work can benefit other investors in this way.

My top 3 real estate investing news items are below:

* You will soon see FHA mortgage premiums rise. – This is a decision that has been evaluated by Congress. Both real estate investors and homeowners will feel this impact. The FHA hopes that this move will result in stabilization over time. Possibly, this move could be beneficial.

* This clause can save your skin in commercial real estate investing. – You need this clause in your commercial contract. It is completely legal and gives you a way out of a deal. Also, most sellers will not elect to cross it out. This is a positive thing. Otherwise, a seller might refuse to sign a contract with an exit clause.

* Experts say that investor confidence is on the rise. – This is the case for all types of investors out there. In fact, many more than last month feel that their finances are in good or excellent shape. I am quite glad to hear this. It likely means that more real estate investing will happen. Every aspect of the economy will benefit.

Make sure that you check tomorrow for more real estate investing notes.

Should You Invest in Real Estate With Hard Money?

Tuesday, December 28th, 2010

Many of the so called real estate “gurus” out there preach the value of using OPM (other people’s money). They say it’s best to use other people’s money to defer risk, but really it’s because they want people without money to invest in real estate. In my opinion, if you don’t think a real estate investment is good enough to use your money, you probably better not ask others to invest their money. Anyways, that’s a different subject, this article is focused on the wisdom of using hard money.

Privately funded, high interest, high fee real estate loans are known as hard money. These loans aren’t hard because they are hard to get, but because the terms of them are very “hard”. It’s not cheap to get hard money financing. They usually have an upfront origination fee of 3 to 5 percent, and double digit interest rates.

The main difference between hard money loans and traditional mortgage loans is the criteria used to determine finance worthiness. The loan worthiness for traditional financing is determined by the borrower. The lender will only loan money if the borrower has a good credit score, a low debt to income ratio, and a consistent stream of income in which they will be able to pay for the debt. Hard money lenders in Arizona place their emphasis on the value of the real estate. When the value of the property is worth significantly more than the amount financed, hard money lenders will typically grant financing. If the borrower is unable to pay back, they have no problem foreclosing and aquiring the property that is worth substantially less than what was paid for it.

Hard money loans do have a purpose, and can be a valuable tool for people getting into real estate investing. Many foreclosure auction and other deals need financing very fast. They must come up with money fast. Good hard money lenders can provide financing within just a few days. If the property purchased really is a good real estate investment, and the buyer has a good timely exit strategy, then even though the borrowing cost may be high, the profit made is worth the cost. With real estate investments it’s not how much money is spent, but what the net profit is.

If a real estate invester borrowed 100 Grand, and sold it three months later for 140 Grand. The upfront fee was $3,000, or 3 points. Their profit would have been three times greater than the hard money lenders..

Utah Hard money loans can provide a good way for real estate investors to aquire deals and make profit, but they should be used very carefully.

How An Adverse Remortgage Can Benefit Homeowners

Tuesday, December 28th, 2010

It can be hard to find a lender for someone with bad credit; given the current economic climate, that should be easy to understand. Then there are people whose credit and mortgage loans have already slipped. Their credit is getting worse every day and they’re having a hard time keeping up. At lot of these mortgages have adjustable rates, which tend to be at least partially responsible for the credit problems many people face. This is where the adverse remortgage can come in. An international view is sometimes a good way to understand how other countries solve problems like this in lenen met bkr.

The adverse remortgage is also called an adverse credit remortgage. This is because these loans are designed for those with less than ideal credit ratings. These people can repay what they owe on their mortgage while they create new terms for a separate loan which is more favorable to them.

If you have a high credit score you wouldn’t want to do this, because the fees and interest rates would be higher than you could get with a regular refinancing plan.

The credit records of those seeking adverse remortgages are usually divided into three different levels based on risk as identified by their credit report. Those who are only a little behind in payments and have no judgments against them or bankruptcies are assigned to a low risk group.

There is the medium risk group, who have had credit problems over a great length of time, have one or more judgments against them of low value, but have no bankruptcies. All others fall into the high risk group.

The advantage of seeking an adverse remortgage lies in the fact that financial institutions who make these kinds of loans look not only at a person’s credit score, but at how the person got into credit trouble and what steps are being taken to alleviate the problem. Your current efforts towards repaying your current mortgage are also an important factor.

After you’ve been assigned a risk level, your lender will present you with the terms of a loan with a fixed interest rate. This rate will probably be higher than usual, because you present a risk to the lender. Usually, your interest rate will be relatively high, but still more advantageous to you than your current adjustable rate mortgage. These loans will also allow you to repay additional debt, such as your credit cards, allowing you to establish a lower payment every month.

With banks currently taking fewer risks on their customers, it’s not easy to find an adverse remortgage currently. You can help yourself by establishing a solid relationship with the institution that is responsible for your mortgage. Usually, unless you present a very significant risk to them, your bank will be very willing to help you prevent foreclosure on your property. Banks know full well that the only way they are going to sell a foreclosed property in the current housing market is by taking a serious loss on it. On the other hand, working with the homeowner to get an adverse remortgage will ensure that they will, eventually, make back the full amount of the loan.

Searching For a High-Quality Real Estate Spot

Tuesday, December 28th, 2010

Location is an important indicator of the price of the property. Though you are in the same subdivision, the price of the lot varies depending on its position from the main road. Residential homes in urban areas are more expensive than in the rural areas. As location does matter in real estate, we want to give you some important guidelines to help you find a good location.

What is good location?

Actually, no definite standards have been set to determine a good location. Real estate experts are very much willing to discuss with you what a good location is. For now, the following will give a nice idea of a good location:

People – The quality of location can be gleaned through the people who live there. Reputation of homeowners speaks whether the place is a good place to live. If you live next to people with reputable profession, wouldn’t it make you happy?

Accessibility – A good location is accessible. Convenience is the factor here. But do not compromise your peace of mind. A location is accessible if it is just a few minutes from the malls and the workplace, transportation is available and it is near important institutions like the school.

Security – It is important that the environment is secure. Guard-gated communities like Scottsdale Homes are good examples. Zero crime rates are good indicators of security.

Safety – Safety in terms of natural calamity. You would never want your biggest investment to be in rubbles of course! Check the history of the location.

Neighborhood – A child friendly neighborhood is a big consideration if you have children. A day care center, a park and a children’s library will surely make your children happy and your daily routine easy.

Environment – Well-maintained environment is an edge for a good location. Check for garbage regulations, as well as pet and noise regulations.

A perfect location will not come to you in handy. You will need a little research and testimonials. Each of us has our own unique ideas of a good location like Scottsdale Homes. Basically, you just have to make sure that the location answers your need and it guarantees safety. Never settle for anything available in the market. You can ask the help of a real estate company to provide of the listings of the homes that you deserve.

Location is very important in the aspect of finding a house you can call a home. Do not sacrifice your safety in exchange of a cheaper deal. Do not be impatient. Careful evaluation is needed for you might be spending the rest of your life there. Find a place that you really want and make your money worth by finding a good location with the help of Scottsdale Real Estate.

Pre Offer Property Evaluation

Tuesday, December 28th, 2010

There is a growing need for the use of Property Evaluation services by potential owners of residential incoome investment properties who can not personally insect the real estate in question.

Independent evaluation offers help for purchasers requiring local eyes and ears when a buyer can not be physically present to explore the suitability of a prospective purchase Pre-offer evaluation reduces financial risks by using familiarity with the local investment market conditions.

Property evaluators are not real estate brokers or agents and do not alter the need for the use of a property inspector once an accepted purchase and sale agreement has been reached..  A property evaluators income is fee-based and not dependent on commissions. A property evaluators work only for the prospective buyer and have no conflicting loyalties.Their   only purpose is to provide buyers with valuable knowledge they can use to make good decisions before making an offer.

There are many general factors which indicate the future success or failure of a real estate investment. 

    * Economic climate
    * Initial Price
    * Potential future value
    * General property condition
    * The costs of expected repairs
    * Suitability of location
    * Neighborhood
    * Tenants
    * Rents
    * Vacancy rates
    * Expected cash flow

Who will you trust?
(Check One)

   1. __  A salesperson who only gets paid if you purchase the property he/she is selling?
   2. __  An expert who’s vested interest is in telling the truth?

Due diligence raises questions that can’t be answered without a visit to the property site.  Unless investors can actually travel to a property vital information will remain unknown until after  a formal offer is made and accepted and earnest money is deposited – perhaps even until the sale is finalized. 

Property evaluation satisfies a vital need in today’s real estate market that can save you thousands of dollars and untold hours of angst.  An investor in real estate who can not visit a property they wish to purchase before the offer should never fail to engage an evaluation service that can provide written information and opinions to assist your decision making process.