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Are
you only going to show me your own listings? How
much will you charge me? Why
Should I sign a Buyer's Agreement? What
do I have to expect when making an offer on a short sale? Your agent should find out who is in title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer. If there are two loans, you could have a problem. The first mortgage lender's position is protected by the second lender, unless the second lender does not want to foreclose. If a seller owes $150,000 on the first and $30,000 on the second, offering $150,000 leaves nothing for the second. The first will need to give something to the second to gain its cooperation. Once the seller has accepted your offer, your agent will submit all required documents such as pre-approval from your lender, copy of earnest money deposit, comparable sales to support your offer to the listing agent, who will in return submit the entire package to the lender. Do not be astonished if the lender asks you to increase your earnest money deposit. Your offer should be contingent upon the lender’s acceptance. Give the lender a time frame in which to respond, after which, you will be free to cancel. If the lender is under no pressure to make a decision, the paperwork will sit on an underling's desk. Regardless of the commission the seller has agreed to pay, the lender is actually the entity paying the commission. The reason is the seller is not receiving any money with which to pay a commission. Since the lender is losing money, the lender will likely negotiate the commission directly with the listing broker, who will then share the commission with your agent. If you have signed a buyer's broker agreement with your agent, ask if the agent will waive the difference due or you might have to pay it out of your pocket. Some brokers feel it is unfair to penalize the agent, but the lender is calling the shots. Generally, the lender will not pay for customary items that a seller would pay. These include home protection plans for the buyer, buyer credits of any kind and pest / termite inspections. A buyer will be asked to purchase the property "as is," which means no repairs. It is extremely important that a buyer obtain a home inspection and pay for other types of inspections such as pest, roof, sewers, septic tanks etc. Do not waive your right to obtain these inspections and make your offer contingent on approving them. Why
Do I Need Title Insurance? The results of the record examination is then summarized in a preliminary document called “Commitment for Title Insurance” or “Preliminary Title Report”. This report documents the status of ownership and enables the lender or purchaser to evaluate the legal condition of title to the property before it is acquired. The commitment also constitutes and agreement by the title company to issue a title insurance policy if certain requirements stated in the commitment are satisfied. Occasionally, in spite of an exhaustive title search, hidden hazards can emerge after closing. Things such as mistakes in public records, previously undisclosed heirs claiming ownership of property, or forged deeds could cloud the title. Title insurance protects you from hidden risks not revealed by the attorney’s or abstractor’s search. Common
issues include: Refinancing?
New
Construction There are two primary types of title insurance policies: lender’s title insurance, also called Loan Policy, and owner’s title insurance, also called Owner’s Policy. Most lenders require a Loan Policy when they issue you a mortgage and it is usually based on the dollar amount of your mortgage. HIGHLANDS COUNTY WANTS TO HELP YOU ACHIEVE THE AMERICAN DREAM SHIP - State Housing Initiative Program Second mortgage loan for down payment and closing cost assistance - $10,000 HOP - Homeownership Pool 0% deferred second mortgage loan for the lesser of 25% of the purchase price of a home, $70,000 or the amount needed to meet underwriting criteria (new construction only). HOP may be combined with SHIP. CWHIP - Community Workforce Housing Innovation Program At least 50% of the affordable housing units built using CWHIP funds should be set aside for essential service personal such as teachers, educators etc. 80% oif the units built using CWHIP funds should be available to households earning incomes up to 140% of AMI (area median income). HOW TO APPLY? In order to apply for any of the above programs, you must apply through one of the local financial lending institutions within the county. Almost all bankers, savings and loans, and mortgage companies that do business in Highlands County are partners with the County in these programs. If you are eligible, the lender will contact the Housing Department to reserve funds in your name. You will need to apply through the Housing Department for all except SHIP funds.The purchase price for an existing home or a new home cannot have a sales price that exceeds $189,682. FOR MORE INFORMATION CONTACT YOUR LOCAL LENDER OR THE HIGHLANDS COUNTY HOUSING DEPARTMENT: 501
SOUTH COMMERCE AVE Property foreclosures are on the rise across the nation, presenting significant financial opportunities for real estate investors, first time home buyers, and those looking to move up within the real estate market. A foreclosed property refers to a piece of land or real estate that has been repossessed by the mortgage company or financial lender. During the foreclosure process, the financial institution searches for interested buyers. In the event that an interested buyer does not wish to invest in the property during the initial stages of property foreclosure, the property will go to auction where it will be sold to the highest bidder. So, how can you benefit from the current foreclosure market? Foreclosed properties are often offered at prices significantly lower than fair market value, offering strong financial opportunities to individuals and investors. Investors can purchase foreclosed properties to resell or rent for an immediate income. First time home buyers can often purchase a larger or nicer property. And individuals who are looking to move up within the real estate market can often find a larger property at competitive prices, allowing them to purchase a larger property than they originally anticipated or to buy their dream property at a reduced price. Whether you are a real estate investor looking to flip properties for a profit, or an individual searching for their first piece of real estate, or looking to move up in the real estate market, foreclosed properties present an ideal buying situation. We have the expertise required as REALTORS® to help you navigate through the foreclosure market, explaining each nuance along the way. We look forward to the opportunity to work with you on purchasing a foreclosed property. July 1, 2009 Highlands County removed the impact fees for new construction permits. With the added burden removed we are anticipating the demand for vacant land to increase as the market improves. Many sellers have been sitting on the sidelines and many buyers have been unable to purchase vacant land due to the increased costs. Now buyers and sellers alike are meeting in the middle. If you are interested in buying or selling vacant land, contact us today.
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