The Stockton Team Blog

Should You Owner Finance Your Lakes Area Home For Sale? You’ve decided to put your Lakes Area home up for sale.  Now, how are you going to make the most money selling it and get it sold the fastest?  Perhaps you should consider providing owner financing, also known as seller financing.   Why Isn’t The Buyer Getting Bank Financing?Usually a buyer gets bank financing when buying a home.  If the buyer approaches you with a deal that involves you doing the financing, you’ll want to ask why.  It could be that they can’t afford a big down payment, and can’t be approved for a loan without it.  Or, they may not be able to get financing at all, due to no credit or bad credit. In that case, you’ll want to evaluate if you can afford the risk.  Can you make the monthly mortgage payment in the event they default? If you determine that the deal isn’t too risky, you can finance the home yourself for a greater profit.  But, there are some instances when you won’t be able to owner finance your Lakes Area home for sale.  When Can’t I Owner Finance My Home?You may not know that in order to finance your home yourself, you have to be able to pay off your current mortgage in full prior to making the sale.  If you can’t afford to make the full payment, you won’t be able to owner finance the property. If you already own the house outright, you’ll be able to finance the property.  You may decide to owner finance part of the sale price for a higher interest rate.  This would be an ideal situation for a buyer who can qualify for a bank loan for most of the sale price, but is unable to be approved for a higher loan amount to get the rest. After a year of making payments to the bank, the buyer may be able to finance the remaining amount, and then you’ll receive a lump sum for that amount.   What Else Do I Need to Know?There are a lot of things to take into consideration before deciding if owner financing is right for you.  Be sure to do your homework and understand the benefits and risks of owner financing.  It is also wise to consult with a real estate lawyer and a professional real estate agent. Thinking of listing your Lakes Area home for sale and offering owner financing?  Let me help you determine if owner financing will benefit you.  Call me now at [phone] or email me at [email]. KEYWORD: Lakes Area home for sale LINKS:Owner finance:   http://www.investorwords.com/3564/owner_financing.html Benefits and risks of owner financing:  http://www.owner-financing.com/ Real estate lawyer:  http://www.realestatelawyers.com/

Oakland County, MI Real Estate Agent and You 

As a Lakes Area real estate agent, I get to meet people from all ends of the spectrum: buyers, sellers, renters, etc.  I also come across other agents, and it constantly amazes me at the different outlooks surrounding the real estate profession.  Many buyers think sellers and real estate agents are out to stiff them.  On the opposite side, many sellers think buyers and agents are out to stiff them.  Unfortunately, even some agents think both are out to stiff them.

I know they say “it’s a dog eat dog world”, but if everybody was truly out to stiff everybody else (rather than just get a fair deal), nothing would ever get done.  There’s a big difference between a good agent and a crummy agent.  So, maybe we all need to be reminded of what a good [city] real estate agent really is:

Your agent is your business associate.  They are in the business of finding what you need, whether it’s a house to buy or a buyer for your house.  As a business associate, they look for the best deal for you, because the best deal for you is the best for them. 

Your agent is your negotiator.  This goes along with the first, but is more in depth.  For instance, if you’re looking at new construction and the builder has a “buyer’s agent”, do you really think that agent is there to help you get the best deal?  No, they’re there to help the builder get the best deal.  That’s why you have your own agent there – you know they’re on your side.

Your agent is your friend.  Especially when you’re having problems selling your house, you’ll have a lot of worries.  A good [city] real estate agent will be there to listen to them and either a) relieve your worries or b) be understanding of them.

As real estate agents, we understand that selling a house isn’t easy.  We understand that buying a house can be stressful.  We even understand that you may be stuck in a situation you’d rather not be in, such as during a foreclosure.  Good agents aren’t just agents; we’re good friends.

If you need to sell your home or are looking to buy one, I’d love to help you.  Call me today at 248-505-5600 or email me at janet@thestocktonteam.com.

Keyword:  Oakland County, Michigan real estate agent

Links:

A crummy agent

http://www.usnews.com/articles/business/real-estate/2008/07/14/6-signs-of-a-crummy-real-estate-agent.html

New construction

http://homebuying.about.com/od/buyingahome/qt/BuyNewHome.htm

Foreclosures vs. Short Sales: The Consequential Facts 

Foreclosures are a sad fact of life.  The truth of the matter is that, for many, even loan modification isn’t an option.  When faced with foreclosure or short sale, how do you decide which is best?  While short sales have been pushed by many as a viable option, it’s hard to know what’s best for you.  Here are some facts about the consequences of both:

 Your Credit

While both foreclosures and short sales will affect your credit score, the differences are wide.  A foreclosure can affect your score for as long as three years or more, and lower it as much as 300 points.  The foreclosure can remain on your public history for over ten years.

However, only late payments show on your credit with a short sale.  Your score can drop as little as 50 points and be affected for as short as one year.  In addition, it isn’t reported on your history; it will show that the mortgage was settled and paid in full.

 Your Job

On its own, a short sale generally doesn’t affect your employment.  However, a foreclosure is a different story.  Some employers regularly check their employees’ credit records.  As well, many require credit checks for new hires.  A foreclosure on your record can jeopardize your current position or future opportunities, as well as cause the revocation of a security clearance.

 Judgments

In the event of a foreclosure, many banks have the right to try and get a deficiency judgment, stating that you have failed to pay the entire amount of the mortgage.  With short sales, however, lenders will normally agree to give up the right to that judgment and put it in writing.

Lastly, keep in mind that foreclosures generally close below the price they would get from a short sale, so the remaining balance might be significantly higher with a foreclosure.

If you want to stay out of foreclosure through short sales, I can help.  Call me at 248-755-7500 or email me at janet@thestocktonteam.com for more information.

Keyword:

Michigan foreclosures

Links:

1.  Loan modification

http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm

2.  Credit checks for new hires

http://www.privacyrights.org/fs/fs16-bck.htm

3.  Deficiency judgment

http://www.foreclosurefish.com/blog/index.php?id=412

How Do You Price Your Home For Sale?If you’re looking for the right price to list your home for sale, you may need to call on a real estate professional.  Pricing your home to sell in this buyer’s market is part research and part experience. You don’t want to overprice your home for sale because you don’t want it to sit on the market week after week.  A home that is priced too high for the area will not attract as many buyers as a more reasonably priced home.  If you price your home below market value, you’re likely to receive several offers that will drive the sale price up, so you don’t have to worry about getting less money for your home than it’s worth.A good way to get an idea of the current value of your home is to get the sale prices of homes that have recently sold in your area.  Your real estate agent can gather that information for you. Look for homes similar to yours in size, location and condition.  When setting the price of your home, you may also want to take a look at the listings that have expired in your area.  You may find that the homes were overpriced for your neighborhood or that some homes remain on the market because the home wasn’t updated or in good condition.  Try to learn what caused the listing to expire and work to avoid the same mistakes.You should not list your home for sale at a price that you aren’t comfortable with.  Explain to your agent the concerns that you have about the home’s sale price and ask for his or her professional opinion about the price that you have chosen.  Want help pricing your home correctly?  Let me put together an analysis of current home prices in your neighborhood.  It’s free and at absolutely no obligation.  To get your analysis, call me today at 248-755-7500 or email me at janet@thestocktonteam.com. KEYWORD:  Oakland County home for saleLINKS:1.  Pricing your home to sell in this buyer’s market:http://realestate.msn.com/article.aspx?cp-documentid=13108482 2.  Market value: http://en.wikipedia.org/wiki/Real_estate_appraisal  3.  Overpriced:  http://homebuying.about.com/od/sellingahouse/qt/Ovepricedlist.htm

6 Credit Score Myths You Need to Know Before Buying Real Estate 

If you’re buying Michigan real estate, you might start worrying about your credit score.  Unfortunately, there are a lot of myths about that score, and many individuals actually end up making things worse by following them. 

Read this list of common credit score myths and be in the know before talking to a lender:

1.  Close out your credit cards.  This is a big no-no, especially when you want to buy real estate.  Closing out your older credit cards, especially, can actually make your credit score drop.

2.  Lower your credit limits.  Lowering your credit limits can hurt your credit score.  Part of your credit score is based on how much credit you have available.

3.  Get good credit by paying all your cards in full.  If you’re buying a home, part, if not most of the cost will be credited.  What lenders want to see is that you know how to handle credit, not that you don’t have any debt.  Instead, use 10% to 20% of your available credit and pay your bills on time.

4.  Comparison shopping for the best credit rates is a no-no.  Not true.  However, if you’re comparison shopping, do so in a short period of time.  That way, all queries hit around the same time and get lumped into one “hard” inquiry.

5.  Checking your score can hurt you.  You’re entitled to one free credit inquiry from each of the three top credit agencies per year.  Just make sure you’re the one who asks for your credit scores instead of having a friend at a financial institution do it for you.

6.  The more you make, the better your score.  This is only true if you use the extra income to pay off your debts.  Making more money, by itself, will not increase your credit score.

Of course, you want to make sure you have the best credit score you can if you’re buying real estate.  However, before you listen to the hype and myths, make sure you know the facts! 

If you’re looking for a new home, I can help.  Call me at 248-755-7500 or email me at janet@thestocktonteam.com for more information.

Keyword:  Lakes Area real estate

Links:

1.  Make your credit score drop

http://www.homebuyinginstitute.com/help/2009/05/why-did-my-credit-score-drop-off.html

2.  Comparison shopping

http://www.pricingcentral.com/finance/index.htm

3.  three top credit agencies

http://www.fdic.gov/CONSUMERS/CONSUMER/news/cnwin0203/three.html

One of the Possible Foreclosures in Michigan?  All is Not Lost! 

Thanks to President Obama’s ambitious plan to improve the housing market, being on the list of foreclosures in doesn’t necessarily mean that foreclosure is inevitable.  You have options, and the President’s loan modification program makes keeping your home even more possible. 

 Overview of the Plan

The President’s plan to reduce foreclosures in is based on the thought that struggling homeowners wouldn’t sell their houses if they could only make the monthly payments.  Due to this belief, participating lenders are required to reduce monthly payments for homeowners who qualify until they’re no more than 38% of the homeowner’s monthly gross income.  After that, the government lends a helping hand.  Between the lender and the government, the mortgage payments would be dropped to no more than 31% through various means (extension of the loan, reduced interest rate, etc).

Even with the 31% threshold, many are afraid that’s not enough incentive for homeowners to keep up payments on a depreciating home.  They speculate that homeowners may default on the loan anyway.  To cover this possibility, the administration is offering cash incentives to lenders and struggling homeowners.

Each lender that participates will receive $1,000 per loan modification.  Those lenders will also get an annual $1,000 for up to three years as long as the homeowner keeps their payments up.  For homeowners facing foreclosures in, the good news is that borrowers can get their principal lowered by $1,000 per year for up to five years.  Again, however, it depends on whether they keep their payments up.

 You May Qualify

This is fantastic news for many.  If you’re facing foreclosure due to financial hardship, you may qualify for loan modification under the administration’s plan.  If you live in the home, the principal balance still owed is less than $729,750 and you received the loan before January 1, 2009, you’re eligible.  Be aware, however, that you have to prove that you live there, that it’s your primary residence and that you’re having a financial hardship.

If you’re behind on your mortgage or facing foreclosure, I can help you figure out your options.  Time is of the essence, so give me a call now at 248-755-7500.

Keyword:  Foreclosures in Michigan

Links:

1.  Obama’s ambitious plan

http://www.neighborhoodlink.com/article/Homeowner/Obama_Loan_Mod_Plan_Explained

2.  Loan modification

http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm

3.  Financial hardship

http://ezinearticles.com/?Obamas-Home-Stimulus-Package—What-Qualifies-As-Financial-Hardship?&id=2603854

Turning Away Buyers for Your Michigan Real Estate?  

You don’t have to!  Many sellers are turning away buyers for their real estate because the buyer can’t get the necessary financing.  Understandable, but remember, the downturn in real estate has definitely made it a buyer’s market.  Simply put, you may have trouble finding another one. 

So what’s the “holy grail” of options?  What can you do to sell your home when nobody can afford to buy it straight out?  It’s called “owner financing”, or “Owner Will Carry” in real estate terms.  In other words, you finance the sale.  It’s not the end-all, be-all answer, but it’s worked for many as a win/win situation, and here’s why:

• Maintenance – Owner financing isn’t the same as “rent to own”.  Once the contract is signed, you no longer have to worry about keeping up repairs.

• Interest – One of the nice things about owner financing is that, since you’re lending money to the buyer, you can charge interest on that loan. 

• Quit Claim Deed – You can require the buyer to sign a Quit Claim Deed, which goes into the escrow account with additional instructions.  The Quit Claim Deed allows the real estate to be restored to you if the buyer is late with payments by a set amount of days.  In this event, the buyer loses the title, as well as all payments they’ve made.  Not only is this a big incentive to make payments on time, it’s also a good way to keep yourself protected from nonpayment.

• More potential buyers – Many potential buyers are unable to get financing for a large loan, but can qualify for a smaller loan.  This means a larger amount of people will be interested in buying.

The best time to provide owner financing is when there are more houses than buyers.  Now is a perfect example of such a time.  If you’re having trouble selling your real estate and can afford to finance another buyer, owner financing is choice you should consider to get your home sold.

Would you like more information on owner financing?  Call me today at 248-755-7500 or email me at janet@thestocktonteam.com.

Keyword:   Lakes Area real estate

Links:

Owner financing

http://homebuying.about.com/od/financingadvice/qt/091007_OwnFinan.htm

Quit claim deed

http://www.thinkglink.com/quit-claim-deed

Best time to provide owner financing

http://www.artipot.com/articles/127386/why-now-is-the-best-time-to-sell-with-owner-financing.htm

Checklist for Moving When Facing Foreclosure

If you’re one of the many people dealing with foreclosures, you will probably be moving to a smaller, more affordable place.  When it’s time to move you don’t want to leave the important things behind, but you may not have room for everything, either.  Here’s a checklist to help you get the important stuff taken care of within the last month:

1. Change of address – With the rate foreclosures happen, you want to make sure your change of address is one of the first things you do.
2. Find a moving and packing company.
3. Clean out your safe deposit box and transfer it to the new area.
4. Get your family’s medical records, school records and other important papers.
5. Change your insurance policies for your home.
6. Get a fire resistant safe and put all records, cards, birth certificates, etc.  Make sure you have it with you during the actual move.
7. Pack less used items.
8. Arrange to have the utilities disconnected/changed over.
9. Plan your remaining meals so you can pack the nonperishable items you don’t need.
10. Make a list of everything you’re personally taking with you.
11. Walk through and decide what you really need to take.  Hold a garage sale or call a charity to get rid of the rest.
12. Let your friends and family members know where you’re going and how they can reach you.
13. Confirm arrangements with the moving and storage companies.
14. Check the yard and sheds for left over items.
15. Take apart any furniture or other items for packing.
16. Start a “survival box”, which includes anything you might need for overnight or for a few days.
17. Defrost the refrigerator and freezer.
18. Close bank accounts if needed.
19. Do a last walk through before leaving to make sure you haven’t forgotten anything.  Be sure to look through the attic, basement, closets, etc. 
20. Drop off your keys with the bank or new owner.

Being one of the foreclosures isn’t fun; it’s stressful and you’re more likely to forget things in this type of situation.  Make lists to keep track of what you’re doing and then use them!

When you’re ready to buy your next home, let me help you find one that fits your lifestyle, budget and needs.  Call me today at 248-505-5600 or email me at janet@thestocktonteam.com for more information.

Keyword:  Michigan Foreclosures

Links:

Find a moving and packing company

http://moving.about.com/od/hiringamovingcompany/a/research.htm

Fire resistant safe

http://wickedhowtos.com/index.php/2007/03/07/how-to-buy-a-quality-fire-burglary-safe-what-to-look-for-things-to-consider/

hold a garage sale

http://www.ehow.com/how_109027_hold-profitable-garage.html

How Much Mortgage Can You Afford For a Condo?If you’re thinking of buying a condo, then you’re probably looking forward to the convenience of condo life.  Freedom from landscaping chores and home maintenance tasks is just ahead.  But, first you must determine how much condo you can afford to buy. Before you do anything else, make a detailed list of your finances.  You’ll need to factor in all your income, and list all your normal monthly debts.  Make a separate section for things you don’t want to do without, but can if it’s required.  These are the first things that are eliminated when looking to save money in your budget.Next make a budget for your household.  Remember to include extras like going out to eat.  A good budget will have all of these elements:·         Fixed expenses.  These include food, clothing, housing costs, car payment, even taxes that are regularly billed are included in this category.·         Retirement.  At least 10% of your income should go into a retirement account.·         Savings.  This is any money that has been put aside for big purchases, to pay off debts, or for home repairs.  Your savings budget should be 20% of your income.·         Miscellaneous.  You should put 10% away to cover entertainment expenses.  Going out to dinner and a movie would come out of this section. Most finance experts will recommend that you don’t spend more than twenty-eight percent of your income on housing costs.  Still, some lenders may offer loan packages that are more than what you have budgeted to spend.  No matter how great that condo deal sounds, you need to stick to your budget. Once you know how much you can afford to pay for your condo, you can shop around for the best mortgage rates and loan terms for your personal situation.  With careful planning, you can avoid making a mortgage mistake, and getting more house than you can afford.  Need more help determining how much mortgage you can afford?  Give me a call today at 248-505-5600 or email me at janet@thestocktonteam.com , and I’ll give you my professional advice.KEYWORD: Metro Detroit condoLINKS:Finances:    http://www.mint.com/?utm_campaign=TLP&utm_medium=organic&utm_source=YSSP&utm_term=Simple+Budget+Planner+and+Planning++Mintcom Budget:  http://www.ehow.com/video_4468230_budget-bills.html Best mortgage rates:  http://www.bankrate.com/brm/compare_rates_home.asp

5 Tips on Choosing the Perfect Piece of Real Estate for DIY 

If you’re a do-it-yourself kind of person who really likes getting your hands dirty, now is a great opportunity to find a piece of real estate you can enjoy.  As an occasional DIYer myself, I know how hard it can be to find that perfect piece of fixer-upper real estate, but here are a few tips on what to look for:

1.  More ground than house – Almost every do-it-yourselfer I’ve ever met enjoyed puttering in a garden and beautifying a yard.  Not only can it be relaxing, but done right it can also up the value of the place if you decide to sell later.  Having a beautified yard increase the value of the property is much easier to do if you have a large amount of ground to work with.

2.  Expansion possibilities – If it’s a small house (or even a large one), estimate how much room there might be for building an extension.  Sunrooms, an extra bedroom, widening small rooms – everything is a possibility if you have the land and skills necessary.

3.  Wear and tear – While you probably don’t want a piece of [city] real estate that’s falling down around you, a little bit of wear and tear isn’t bad.  Walls that need to be painted, ceilings that need spackling and little things like this give you plenty of room to get dirty without wiping out your budget.  A warning, however.  Make sure you get a place with a little wear and tear, not a money pit.

4.  Lots of small rooms – Nobody likes a small room.  However, if there are a lot of them, you have the option of being able to knock down non-load-bearing walls to expand.  The nice thing about this is that you can rearrange the inside of the house to fit you.

5.  Sloped ground - While you’ll want flat ground around the [city] real estate itself, sloped ground farther out is ideal for building rock walls or terraces without having to buy a lot of backfill.  Done correctly, terraces can make a beautiful, somewhat inexpensive project.  The trick here is to find large rocks from construction sites.

DIY can be a blast and having a house you can turn into a dream house makes the finished product all that more satisfying! 

If you’re looking for that perfect piece of fixer-up property, I can help.  Call me at 248-505-5600 or email me at janet@thestocktonteam.com for more information.

Keyword:  Oakland County real estate

Links:

Beautifying a yard

http://www.diylife.com/2008/05/28/quick-ways-to-beautify-your-yard/

Building an extension

http://www.ehow.com/how_2095914_expand-house.html

Building rock walls or terraces

http://www.allanblock.com/RetainingWalls/Newsletter/Contractor/April08/Terraces.aspx?ta=2&product=nl