Your Options After a Short Sale

Q: I experienced a hardship two years ago and had to sell my house via short sale. I am now ready to purchase a home but heard I would have to wait another year because of FHA rules. I have been paying my rent on time and my credit is in the 700s. What programs or other options do I have in terms of obtaining a loan? I want to purchase a house for $70,000. --T. Jordan

A: I'm glad to hear that your hardship has passed, and that you've been able to get your finances back in shape. Whoever you've spoken to is correct: There is a three-year waiting period after a short sale before you can qualify for an FHA loan on a new home. As I see it, though, you have three clear options:

1. Wait a year. The fact is, time flies -- and you're only 12 months away from the expiration of the FHA waiting period. Frankly, there are so many homes on the market right now, including an enormous percentage of distressed properties with condition problems and such, that between getting their own financial ducks in a row and house hunting, it is taking many homebuyers more than a year from the time they get started to get into contract, even without any waiting period.

Unless you have an uber-urgent reason to move or are very flush with cash (see No. 2, below), my advice is to wait the year. In the meantime, pay your bills on time -- every time -- and work with your mortgage and real estate brokers to make sure all your other financial ducks are in a row so there are no surprises when your waiting period is up.

2. Get a non-FHA loan. FHA is popular -- especially among those who only have the cash to make the FHA minimum 3.5 percent down payment -- but it's not the only game in town. The vast majority of conventional (non-FHA) loans available from mainstream lenders are insured by Fannie Mae and Freddie Mac.

Both these agencies impose a shorter, two-year, post-short-sale waiting period, as long as the borrower is coming in with a 20 percent down payment. If you wait an additional two years, the minimum down payment requirement comes down to 10 percent, but by then you will qualify for the 3.5 percent FHA mortgage.

3. Plead the case of extenuating circumstances. FHA guidelines do make an exception for the three-year, post-short-sale waiting period for former homeowners/wannabe borrowers who can document that they were forced to do the short sale by extenuating circumstances. The most common fact scenarios that fit the bill are a job transfer to another area (not job loss) or a natural disaster that affected the property (e.g., fire, flood, etc.).

Beyond that, whether a "hardship," to use your terminology, rises to the level of an extenuating circumstance for purposes of qualifying for an FHA loan is up to the discretion of the lender, but things like a job loss, the adjustment of a mortgage or the decline of the home's market value do not count.
If you had, say, an accident or illness that resulted in a temporary disability, it might be worth the effort to plead your case. Speak with your mortgage professional about whether you can make a credible argument in favor of shortening your waiting period.

By Tara-Nicholle Nelson
Inman News®

I Found UNITY!

I had the most wonderful holiday weekend.  I am tired, but very content.

 This past Saturday, Go Realty, LLC celebrated its two year anniversary.   The way everyone came together and celebrated each other’s accomplishments made me proud.  You would think sales people would be pushing each other over, right?    

The next day, I attended Holly Springs seventh annual Martin Luther King Jr. Holiday Celebration.   Participants marched from the Food Lion to the Cultural Arts Center for the celebration.   Reverend Otis Byrd of First Baptist Church in Holly Springs started the festivities by making sure everyone felt welcome.  Mayor Dick Sears went one step further and made everyone feel secure by highlighting that Holly Springs is the safest city in North Carolina.   It takes people working together to pull this off.

Singers from various local churches joined together to form the first Holly Springs MLK Jr. Mass Choir.  The choir was made up of approximately 40 members from various denominations and generations.  The result of the union was extraordinary with only three practices! 

The speaker of the evening was Pastor Frederick Davis of First Calvary Baptist Church in Durham.  He made it clear that without unity there is no community and urged everyone to care for each other, especially our youth.  He made me realize even more that we only truly gain success when we are able to help others and actually do it.  Dr. King’s life was a great example.

Other celebrations continued today all around the Triangle.  For example, hundreds of people came together today for the 32^nd Annual MLK Triangle Interfaith Prayer Breakfast and Memorial March.  It was cold this morning but spirits were warm and friendly.

The past three days have made me so happy to call the Triangle home.  It is full of great people that are willing to celebrate and work together for the sake of a strong commUNITY.   Let’s keep the dream alive!

7 Reasons to Use a Real Estate Agent

Guest Author:

Escapeso Austin Real Estate
Some people choose to use a real estate agent and some people choose to go it alone. One thing I have noticed over the years is that a number of seasoned investors looking in a new city will seek out a good agent while novice investors will frequently go it alone. I have even had a number of successful real estate agents seek out my help when they are moving to our city. Why do some of these seasoned investors choose to work with an agent? Below is a list of 7 benefits of using an agent.

1. Understand potential restrictions of the property. I recently heard a story from a friend at the city development office in Austin Texas. A couple had saved up for their retirement. They wanted to retire and live out in the hill country. They went to the foreclosure auctions. At the auction they purchased a lot for 500,000. It had great views and they were going to build their dream house on it. They had researched the lot before the auction and found it was zoned SFR which means a single family residence can be built on it. After purchasing the lot they started plans to build their retirement house. At this time they discovered the lot was in the 25 year floodplain. My friend at the city development office explained that the lot could not be built on and was basically worthless.

2. Know about new developments that might affect a properties value. A good realtor will know of proposed new developments that might affect different properties in which a buyer is interested. Whether these developments are positive or negative can be valuable information when weighing different housing options.

3. Find potential problems with a property. It is always a good idea to have a home inspector look at a potential house. However, a Realtor is a good first line of defense to see if a house has inherent problems. A Realtor that can know about common problems, such as foundation or electrical, that affect a particular neighborhood.

4. Understand contracts specifics. Whenever you buy or sell a house you are entering into a large personal transaction. It helps to have someone on your side that deals with these types of transactions on a daily basis. A Realtor can help you understand contracts and can explain what is typical for your area. The most common pitfall into which I see unrepresented buyers fall is to become involved in an atypical contract that is not to their benefit. For instance a seller will sign an offer that has an option period that is 4 times longer than what is typical. A buyer might put in offers on multiple properties with long option periods. The buyer will wait and see if the market appreciates. If the market has appreciated the buyer buys the house at now and undervalued price. If the market has gone down the buyer walks away.

5. Misperception of a benefit of going it alone. Buyers frequently think that by not using a buyers agent they will get a better deal from the seller. In most situation the listing agent asks for 6 percent from the seller. If a buyer comes with an agent the listing agent splits the 6 percent with the buyers agent. If an unrepresented buyer comes the listing agent keeps the whole 6 percent. On the selling side, For Sale By Owners (FSBO) often think they are saving alot of money by avoiding a listing agent. Nationally, FSBO homes sell for 14 percent less than agent listed homes in the same neighborhoods. In addition alot of FSBO\'s still end up having a buyers agents involved. There is also money spent on advertising. Since an agent has experience marketing homes the agent often can spend money more effectively on advertising. Agents often know which advertising sources produce the most potential buyers.

6. Save time when looking for listings. Looking for listings without an agent can take up large chunks of time. When looking with an agent you can see several homes in a few hours. When going it alone you have to call the listing agent for each house and wait at the house for the agent to arrive and open up the house. In addition agents often know houses which are not listed or may have already identified potential problems with a particular house of interest.

7. Insure Security. When a home is listed with a broker, agents coming to the house have to usually log in. This allows the listing agent to keep a record of every party coming into the house. Since their business is on the line, agents are more likely to protect the house from damage or theft. For a variety of reasons, it is generally not a good idea to have random people you do not know come into your house. Often sellers simply have a phone number, but that phone could be their house, a friend\'s house, a pay phone, or even a stolen phone.

Searching for a home can be stressful and difficult but it can also be fun. Whether you choose to look for a home on your own or with a Realtor its a good idea to be a extremely careful when you seek out your dream home.

Article Source: http://www.articlesbase.com/real-estate-articles/7-reasons-to-use-a-real-estate-agent-173804.html
About the Author
Ki Gray is a realtor with the Austin Texas Real Estate in central Texas. Their website escapesomewhere has a free Austin homes search. They also offer a custom Real Estate Calculator.

Alphabet Soup? Nope, Those are Real Estate Agent Designations!

Author: Joe Cline - Austin Real Estate Broker

What do the letters behind a real estate agent's name stand for? Real estate agents, like doctors, lawyers, and other professionals can ear designations, certifications, and other credentials. These are usually shown by putting a series of initials after the agent's name. The most common designations and certifications are: Broker, REALTOR, e-Pro, CHMS, GRI, ABR, and CRS.

What does an agent have to do to obtain the designation or certification?

e-Pro requires an agent take a class on basic computer skills. It has no real estate content, but ensures your agent can use email and the web. It should really be a bare minimum bar for the technology aptitude of your agent.

REALTOR is the one of the easier credentials to obtain (but one of the hardest to live up to). A REALTOR is a real estate agent that belongs to the National Association of REALTORS and agrees to follow the Realtor Code of Ethics. You can read about the code here http://www.realtor.org/mempolweb.nsf/pages/Code?OpenDocument



Broker is a bit harder to obtain than REALTOR. In Texas, for example, a broker license is required to be able to operate your own real estate company. An agent must have their license for 2 years and complete over 600 hours of real estate education prior to applying for a broker's license. The broker's license is granted upon completion of an exam administered by the state. Brokers are basically real estate agents with advanced educations.

GRI stands for Graduate Realtor Institute. Less than 50of agents have this designation. The GRI requires 12 days of continuing education with passing grades on three exams. There are no production or time requirements so an agent can literally earn this designation by sitting in class for 12 days and passing the tests. This designation is in no way a measure of real estate sales experience.

ABR stands for Accredited Buyer's Representative. Less than 30of agents have this designation. This designation combines 2 days of classroom work and an exam with the requirement that the agent show proof of at least five buyer sales. This designation shows that the agent has had both formal classroom time and in the field experience.

CRS stands for Certified Residential Specialist. Less than 4 of all agents have this designation. This is the most difficult designation to obtain and is a measure of a high degree of formal education and real world transactional experience. To obtain a CRS, the agent must attend three 2-day classes, pass three exams, and provide proof of 25 closed transactions within the last 24 months. While the transaction experience isn't a huge amount, it does weed out the inexperienced agents and the classes weed out those agents who aren't dedicated to continuing education.

Other designations are out there, but for the most part they are issued by inconsequential groups and have no real bearing on the agent's abilities and are used more for marketing purposes than anything else.

Article Source: http://www.articlesbase.com/real-estate-articles/alphabet-soup-nope-those-are-real-estate-agent-designations-310322.html

Guest columnist Joe Cline is a real estate broker, investor, and REALTOR with Coldwell Banker Austin, Texas.   Joe holds his Broker\'s license, the ABR designation, the CRS designation, the CMMS designation, Cendant Mobility Marketing Specialist designation and the Cendant Mobility Referral Specialist designation.

Find out more about Austin real estate and Lakeway Real Estate.