As a Member of the Top 5 in Real Estate Network®, I am frequently asked these days for my advice on loan modification…specifically, how quickly new loan terms can be arranged. Waiting to find out if your application for loan modification has been accepted can be a nerve-wracking and frustrating experience—especially if you’re still receiving late payment notices and creditor calls. Here are some important insights into the loan modification process from consumer advocate and author Ralph R. Roberts.
1. The loan modification process typically takes 30 to 90 days, depending mostly on your lender. The loan modification timeline, however, is not set in stone. The more complex your situation, the longer the process takes. Borrowers with a lot of collateral issues can see their loans take longer than what has become the typical 30- to 90-day timeframe.
2. A professional can often reduce the amount of time required by processing your paperwork efficiently, presenting your application exactly the way the lender wants it, and knowing from past experience what the lender is able and typically willing to agree to. Find out how long the process is likely to take and mark the dates on your calendar.
3. Refer all matters to the professional who is representing your loan modification. Anything you say to the lender could confuse things or compromise your representative’s ability to negotiate the best deal on your behalf.
4. Log all phone calls and correspondence between you and your lender or representative. Keep track of important dates. Consistent follow up is paramount to a successful modification.
5. Explore other options. If the lender denies your request for a loan modification or presents an offer that you cannot accept, you will need a plan B. Consult a real estate agent about listing your home for sale. Talk to a mortgage broker or loan officer about refinancing. Speak with a bankruptcy attorney to find out whether filing bankruptcy would be a better choice.
6. You might continue to receive delinquency notices or late payment phone calls. Push to have all default and foreclosure actions put on hold while your workout attempts are underway.
The loan modification process can be long and trying, but doing your part to keep the process on track by remaining informed can increase your chances of a positive outcome and reduce stress. For more advice on loan modification, please e-mail me—I can point you in the right direction. Please also forward this important information to your social network; it just might help someone you know.
While there are many different variables that contribute to selling a home, during the course of my real estate career, I have witnessed one constant: the kitchen.
Today, the kitchen has become more of a multi-functional space than ever before, where cooking happens alongside bill paying and homework, not to mention the kitchen’s role as social hub for family and friends. That’s why it’s more important than ever to buyers and sellers alike that this key room be fresh and inviting.
While home improvement experts report that kitchen remodels provide anywhere from an 80-100% return on investment, based on my years of experience working with homeowners, I have found that just by updating certain aspects, the entire look and feel of the kitchen can be refreshed and modernized—and your home’s value increased in the process.
As design expert Melissa Birdsong, vice president for Trend, Design & Brand at Lowe’s Companies, Inc. (www.lowes.com), says, if the kitchen is outdated and tired, the whole house can feel that way; a few simple updates can make all the difference in getting the green light on the buying decision. So whether you want to update your kitchen for your own lifestyle enhancement or to help move it off the market, try these tips from Birdsong:
1. Color and light are the easiest, most cost-efficient elements to add personality and ambience to the kitchen. Use your vegetable bin and spice cabinet for inspiration! A scheme of natural greens, yellows, mustards and russets washed with dimmable overhead and under-cabinet lighting can add energy as well as create a level of calm.
2. If the existing cabinets are sturdy but the finish is sending out a distress signal, a well-executed paint job can turn it around. Mismatched appliances and worn flooring are other leading visual cues, so if the budget permits, replace them.
3. Last but not least, add sparkle and a new point of view to the kitchen by replacing the metals palette–cabinet hardware, faucet, lighting and outlet covers. A few thoughtfully chosen, simple finish updates can seal the deal.
As a Member of the Top 5 in Real Estate Network(R), I have access to more great ideas for improving your kitchen as well as all areas of your home…both for your own lifestyle enjoyment and to increase your home’s value. Please e-mail me to discuss other ways to improve your home’s value and please forward this email to your social network who may also find it helpful.
Home prices and interest rates are down, and your desire to buy a home is high. But many of my clients worry that their credit score just isn’t good enough for lenders to see them as a worthy credit risk, especially in light of today’s tougher credit and lending standards.
As a member of the Top 5 in Real Estate Network®, I am often asked if there is anything that can be done to improve your credit score. There are, in fact, several steps you can take. Here are five great suggestions from Bankrate.com:
1. Order your credit reports. You can do it for free once a year at annualcreditreport.com. If you’ve been denied credit, you are entitled to a copy of your report from the reporting agency. The company you applied to must supply the contact information and you have 60 days after denial to request a copy.
2. Examine your credit reports. Creditors do not necessarily report to each agency, so you may find differences in reports—and credit bureaus do not verify the information they get from creditors. Note any errors, such as incomplete or outdated information or inaccurate account histories. If you find errors, such as a paid-up account that was not reported or a difference in the amount owed, proceed to step number three.
3. Dispute and document. Complete the dispute form that came with the credit report or write a letter identifying each mistake and stating why it is wrong. Include a copy of the report with errors circled and copies of any supporting documents. Keep copies of everything you send. The credit bureau must investigate disputes within 30 days of receiving your letter. Items not verified as accurate by a creditor are removed and you will be sent a free, updated report.
4. Fix negatives. Call your creditors and ask for reduced monthly payments to help you keep current. See if the repayment schedule for fixed-rate loans can be extended. This may end up costing you more, but may keep you from being reported as delinquent. Arrange to pay off accounts in collection. Slowly close out unused credit accounts. Don’t cancel them all at once, as this may negatively affect your score. Remember, cutting up a card is not the same as closing the account.
5. Add positives. If you have a good credit history from a company that does not report to a credit bureau, ask them to do so. Apply for a secured credit card and build a solid payment history. Open a savings account to show creditors you are working to save and have reserves to help pay down debt.
Remember that your credit score is not always set in stone. There are actions you can take immediately to raise your score both in the short term and long term. If you would like more information on other ways to change your credit score, please e-mail me; and please also be sure to forward this important article to others who may be caught in the credit-score crunch.
These days, many homeowners are turning into landlords. Whether you have relocated and are still waiting for your previous home to sell or whether you are trying to increase income by renting a vacation or second home, you might suddenly find yourself in need of a renter.
Of course, we’ve all heard nightmare stories about bad tenants destroying properties and causing prolonged evictions. As a Member of the Top 5 in Real Estate Network®, I’ve learned of a few simple guidelines for finding serious renters and thereby, preventing most bad occupancies:
1. Location – There is no question that the more desirable a neighborhood, the lower the risks of having a bad resident apply. It is also worth noting that the higher the rent, the lower the risk.
2. Condition – A very vital but controllable influence for attracting desirable residents is the home’s condition. The formula is simple. Make it look like everything was just completely redone. Exterior property condition is very important as well.
3. Pricing – Don’t be afraid to price a property slightly below what the market dictates. For every 2½ weeks a vacancy sits on the market, the annual rent could have been lowered by 5%.
4. Signage – A prospect calling from a yard sign should be treated as a serious lead. They have seen the exterior of the property and know its precise location.
5. Response Time – Rapid response time can make all the difference. Use cell phones or text messaging to allow prospects to quickly reach someone who can show the property or answer any questions.
6. Screening – Despite all of the above, screening is still vital. Be sure to adhere to a written tenant selection plan that is in compliance with all Federal, State and Local Fair Housing Laws and the Federal Fair Credit Reporting Act.
Great renters and increased income can be found by following these simple but effective steps. For more information on finding the right renters for your home, please e-mail me. And be sure to forward this article to members of your social network who may also find it helpful.
Refinancing in today’s credit-crunched market can be challenging at best. A successful refinance all begins with the appraisal, used to set the maximum amount you’re allowed to borrow against your home. The problem is, in today’s market, sinking home values are often lowering appraisals as well. If you are considering refinancing your home, heeding these important tips on appraisals before proceeding can improve your refinancing options and save you time and money:
1. Continuously research the value of your home and the other homes in your neighborhood; pay attention to foreclosures in your area as they may drive down the value of your home. As a member of the Top 5 in Real Estate Network®, I am well-equipped to provide you with a detailed assessment of the current value of your home.
2. Since appraisers use “comps” (comparable market sales) of local properties sold within the last six months to value your home, make sure your loan officer leverages their knowledge to research comps in your area, before ordering the appraisal.
3. If you use your own appraiser, research them first and ask your lender to cross check them for any potential issues that may delay the process. Great loan officers will always confirm your appraiser’s credentials. I can also recommend a credible appraiser to work with.
4. Direct your loan officer to work with local, experienced appraisal companies. Local appraisers have a deeper knowledge of the surrounding neighborhood and will likely be more readily available for the home inspection to speed your appraisal process.
5. The appraisal report is yours to keep. Find out in advance who pays for the appraisal—many times appraisal fees are the homeowner’s responsibility and have to be paid up front.
6. New lending regulations require two appraisals in some situations—ask at the beginning whether you’ll need one or two.
7. Commit to your lender before committing to an appraisal. Being comfortable working with your loan officer is imperative. They often will be the liaison between you and the appraisal company.
8. Make sure any major repairs are completed before moving forward with your refinance. Structural damages drive your home value down and jeopardize the approval process for today’s popular government-backed FHA loans.
9. Don’t overestimate the value of making cosmetic home improvements. The expense is rarely justified because in the appraisal world, only improvements that add square footage will significantly increase home value.
10. Rely on market value rather than tax assessments for a realistic appraisal value—in today’s market, tax value and current market value may differ widely, but your lender can only go by appraisal value.
Finally, homeowners should expect their lender to clearly explain the appraisal process and all of the steps for refinancing up front. I can also assist you in the refinance process and help point you in the right direction—just e-mail me with your questions. If you believe this information may be valuable to your social network, please feel free to forward this email.
