Let's Talk About It

With all of the media reports today, both in print and television, about the real estate bubble burst and the number of foreclosures, the amount of mortgage fraud that is being uncovered and the sheer number of homeowners who just can't make their mortgage payments for whatever reason, the term "short sale" should be familiar to most people.

I have been reading other blogs and news articles about individuals and companies that promise to help a homeowner through a short sale. Some companies even promise to help the unfortunate families stay in their home, payment free, for up to a year while the lender forecloses on the property.

Please, PLEASE, if you or anyone you know is having difficulty making the mortgage payments, CONTACT THE LENDER IMMEDIATELY and try to work out a solution that will work for you and the lender. They may offer to refinance the loan, they may allow interest only payments for a period of time...they don't want the home, it is a liability to them. If a solution can't be negotiated, ask them if they will work with you on a short sale. They will probably ask that you submit a "hardship package" that includes a letter explaining why you can't make the payments. DO THIS AS SOON AS YOU KNOW YOU ARE GOING TO HAVE PROBLEMS, NOT AFTER THE MORTGAGE IS 3 MONTHS OR MORE PAST DUE. DON'T WAIT UNTIL YOU RECEIVE NOTICE OF A SHERIFF'S SALE. START IMMEDIATELY. I can't emphasize this enough, start immediately.

Many Realtors® are familiar with short sales and know the ins and outs of the process. If you have any questions, please contact me or a Realtor® that you are comfortable working with. We are here to help you and your lender, not to place blame on anybody for the situation you are in.

Bottom line is this; don't fall for the schemes and scams that are popping up regarding short sales and foreclosures today, contact your lender now and contact a Realtor® next.

Back in October of last year, I worte a post on my other web blog about purported haunted houses and whether that "fact" has to be disclosed to a potential home buyer. In that post, I mentioned that I was intrigued by the paranormal and that I was a fan of the Sci Fi channel's series, Ghost Hunters.

I recently discovered that we have a similar organization right here in central Indiana; Nocturnal Investigative Ghost Hunting Team (N.I.G.H.T.).

I find both of these organizations' work to be very interesting, especially since they both do not accept payment for their services. (I am sure T.A.P.S. receives payment from the Sci Fi channel though). They both use scientific means to try to disprove any activity that a client suggests. Their goal is to find a logical reason for what the client is experiencing, not enhance or exaggerate the claims.

If you know of, or have experienced any activity along these lines, I would be very interested to hear about it. After learning about this interesting field, I would never label someone as crazy for experiencing anything out of the ordinary. There may be normal explanations for the experiences or they may be "para" normal experiences that defy a logical explanation.

Take a look at the web sites and see if you don't agree with me.

Whether you are selling your home with a Realtor® or trying to sell your home yourself, PLEASE be careful if a buyer wants to purchase your home using a land contract.

I recently had a home listed for sale and we received an offer that seemed to good to be true. The more questions I asked for my seller, the more vague the buyers became.

http://www.theindychannel.com/call6/15980115/detail.html

These two mentioned in the news article are not typical buyers...they are bordering on scamming home sellers and potentially face criminal charges. If you receive an offer to purchase from a buyer using a land contract, you have every right to ask for a credit report, income verification, job history...anything that will tell you your buyer is legit or not.

Feel free to contact me if you have any questions about land contracts or any real estate related questions.

Over the past weekend, my wife decided that we have subsidized the Indianapolis Water Company enough and demanded that I repair the leaky bath tub faucet.

OK, I thought, I'll just visit the local big box hardware store where they have miles and miles of stuff, surely I can find the simple little parts I need to stop Niagara Falls.

I begin my trek early on Saturday morning with full confidence that I will be back in the wife's good graces by evening. I proceeded to the plumbing acreage in the store and began my search...up and down the aisles until I spotted just what I was looking for; bath tub replacement faucet parts. After looking high and low (and behind) I realized that my simple little parts were not to be found here. Onward to the next prospect.

After the same experience as with the first stop at my second stop, I began thinking "Where did I originally buy the leaky faucet in question?" Maybe I will have better luck at the place where I bought this thorn in my side. Well, give it up for now, there was a cubic yard of hardwood mulch in the back of my pick-up that was stinking the parking lot up, so I gave up my search for parts to spread some mulch.

I got up bright and early Sunday morning so I could locate the replacement parts, install them and sit with a chilly beverage and listen to the race. Just a quick thought here...have you ever tried to get a good night's sleep with a leaking bath tub faucet? I bet I have been getting up 5 times a night to, um, leak. Anyway, back to my search. What is this? You don't carry that brand anymore? I can't even buy them online anywhere? I have to buy a whole new faucet assembly? But, I don't want to have to cut and sweat anymore copper!

I went home with my new faucet assembly hoping that this manufacturer doesn't go belly-up just as this one starts leaking. After checking to make sure my homeowner's insurance was paid up, I got out the propane torch and spent Sunday afternoon playing with pipes.

Just one last word of advice to anyone in my same situation. If you are unsweating copper pipe, don't wear shorts while doing so...I had hot solder splatter everywhere, especially on my exposed limbs. Job is done, wife is happy and the water company will have to look elsewhere for their major capital next quarter.

If you are, has your landlord informed you that your rent will be increasing? How many times have you experienced a rent increase in the last two years? If you like to move from one location to another after a year, has it been easy to find the perfect rental?

With the larger number of foreclosed properties coming on the market, I have to assume that most of these former homeowners have to live somewhere; they just aren't vanishing into thin air. They are moving ino rental units. I am not sure what the vacancy rate is right now in the Indy area, but it has to be lower than it was a few years ago. As supply diminishes and demand increases, rents will increase.

If you are going to be staying put in this area and you have decent credit, for crying out loud, buy a home. Prices have decreased somewhat, interest rates are fantastic and inventories are high. You can have your pick of the bunch. Many sellers, especially banks, are willing to deal right now.

I think that we are at or very near the end of our local "bubble bust". If you wait much longer to buy, prices are going to start appreciating again and you will never realize the savings you can right now.

Think about buying a home next time your landlord tells you your rent is increasing $50 per month.

I have been working with a fantastic group of people from the San Francisco area trying to relocate their NHRA racing team to the Brownsburg area since the fall of last year.

Team Jesus Motorsports Evangelism, Inc. (http://www.teamjesus.org) is looking to add to their sponsorship list to maintain and improve the team. This is mostly a family run business with Kim Grasty as the founder. He started Motorsports Evangelism, Inc. in 1996 and has expanded into other areas of service and competition since.

Take a look at their web site and if you or someone you know could benefit from the advertising a sponsorship would provide, please contact me or Kim directly through his web site. Let's bring yet another race team to our state

Today, more and more home buyers are using the internet to search for a new home for their family. I am experiencing more and more buyers calling the listing agent for each house they want to see or want more information about rather than developing a working relationship with one agent that they feel comfortable with. I know I receive inquiries about my listings from a buyer, I provide the information and possibly show them the home and I never hear from them again.

Why is this? I can only come to one conclusion; home buyers think that they will get a "better deal" working directly with the listing agent. I believe they think that the 6% or 7% commisssion that the seller is paying an agent to sell their home will automatically be cut in half since the listing agent is working the transaction, or the buyer will "low ball" an offer thinking the same thing. This is not going to happen.

While a listing agent may deviate slightly to get their seller a better deal, the listing contract that the seller signed when they listed the home for sale states that the commission to be paid will be set in stone. This is what they expect to pay and are expected to pay regardless of how many real estate agents are involved in the transaction.

Please, if you are looking for a new home, by all means, use the internet to your advantage. Research neighborhoods, houses for sale, schools, etc. but when you are ready to make a purchase, choose one real estate agent that you feel comfortable with and stick with him or her until you have found the perfect home and the transaction is closed. It will be a much smoother transaction for both you and your agent and may actually save you more than you perceived you could going it alone.

I have to admit that I get wrapped up in my work sometimes. Little things like wrong directions to a house I am trying to show, wrong lockbox combinations, appraisers that don't see the value I do...you know what I mean, I am sure you have the same frustrations daily in your work and personal life.

Another Realtor was having a bad day on top of fighting the flu bug. A good friend sent her this video link and I had to share it here.

http://www.youtube.com/watch?v=USUvzKDroqM