How Long do I Have to Wait – FHA?

Here are the FHA Guidelines for Georgia Short-Sale, Foreclosures and Bankruptcy.   Other than VA, FHA is the most lenient when it comes to these situations.  Most of the time, this will be the route we go, as far as getting you a new Atlanta home loan.  One question we get asked a lot is, “what about a loan modification?”  Unfortunately it is treated just like a foreclosure, 3 years.

Georgia 203K loan •           Georgia Mortgage Blog•        Atlanta Refinance•       USDA Rural Development

How Long do I Have to Wait to Buy a Home?

Here is a great chart my company put together on how long you have to wait after a Georgia foreclosure, short-sale, or bankruptcy.  This chart is for people trying to obtain Georgia conventional loans only.  Different guidelines will apply to other types of mortgages.  I will post those at a later date.

 

Georgia 203K • Atlanta Refinance • Atlanta FHA • Atlanta Jumbo Loan

 

203K Renovation Loans

There is a misconception about the limitations of the HUD 203k renovation amount.  Many lenders state that you can’t do renovation projects that exceed $35,000.  The fact is true, however misleading.  Many lenders are not approved to do a full 203k loan and can only do a 203k streamline which has a limit of only $35,000.   A full or traditional 203k is limited up to the maximum Georgia FHA loan amount for the area the house is in.
Make sure your lender is approved to do a full 203k renovation loan. This may allow you to get more renovation funds to complete projects such as adding a master suite, a second floor or even a garage.

Many lenders that state they know the 203k renovation loan but in reality the lenders that know the program well are very limited. Ask your lender a few questions such as:

1.    Are they approved to do a full 203k and if they can’t, find one that is. Don’t settle for less when the possibilities could be so much more.

2.    Do they have full time staff dedicated to the 203k program?

Here are a few examples of some recent projects showing some of the possibles of the 203K renovation loan.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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My name is John Fendley and I have been a certified Georgia 203K Consultant for over 15 years.  When you get ready to start your Georgia 203K Renovation project, give me a call 678-957-6269.

GA Real Estate Contracts: 2011 GAR Form Changes

Courtesy of MaryAnn McReynolds of Prudential Georgia Realty

Georgia REALTORS® are using new contacts and forms which were changed significantly for calendar year 2011. Few changes were made to the actual Purchase and Sale Agreement, but several new forms were created to make the practice of real estate easier for brokers and agents. Some highlights by form are found below.

1. F4, Exclusive Buyer Brokerage Agreement

This GAR form was rewritten to make buyers (who don’t expect to pay a commission) more comfortable with signing an Exclusive Buyer Brokerage Engagement Agreement (which clearly obligates them to do so in certain circumstances). The previous Agreement simply provided that the buyer paid the commission whenever the seller did not. The new approach is: a) define what commission the broker expects to be paid in the transaction; and b) provide that the seller pays the commission except in certain limited circumstances. They include a) when the buyer leases instead of buying and thus owes a leasing commission; b)when the buyer purchases a FSBO and seller does not agree to pay commission; and c) when seller defaults. In most cases only the default section will apply to most buyers.

2. F20, Purchase and Sale Agreement

a. Time Limit of the Offer Section

This section clarifies that an offer expires unless prior to time of expiration it is accepted by the person receiving the offer and delivered back to the party making the offer. Most agents assumed in the past that it had to be returned before the time limit expired, but this change now makes that clear. Fax is an acceptable method and is deemed to be delivered when sent.

b. Paragraph 17, Default

This paragraph was rewritten so in the event a broker has a broker engagement agreement with a buyer or seller the rights of the broker in the event of a default against the broker’s client are limited to those set forth in the brokerage engagement agreement rather than the purchase and sale agreement,

c. Paragraph 15, Lead Based Paint

This paragraph was modified so that if repairs are being made to a home built prior to 1978, they should be performed in accordance with EPA’s “Renovate Right” brochure. These new rules are designed to prevent lead-based paint fumes and chips from causing injury to the renovator or others.

d. Signature Block

Listing and selling brokers can now identify the Board of REALTORS®, if any, in which they are a member. Since non-REALTORS® are not required to arbitrate commission disputes with REALTORS® (unless they are required by virtue of belonging to a MLS) it  is important to know whether or not the broker you are working with is a REALTOR®.

3. F94, New Short Sale Contingency Exhibit

The Short Sale Contingency Exhibit has several important modifications. Bold face language has been added that “If the mortgage lenders and, if applicable, other lien holders, agree to take a reduced payoff, it shall be the sole responsibility of seller to verify that they are also releasing seller from further liability”. This change was made to protect REALTORS® against claims that it was the REALTOR’S® job to secure such a release.

The above are just some highlights of the recent changes, a competent REALTOR® can explain in detail other important modifications such as those made to the Seller’s Disclosure Exhibit.

For more information contact:

MaryAnn McReynolds, REALTOR®

Prudential Georgia Realty

770-891-3314

Your source of information for Dallas GA Homes for Sale, featuring fantastic Paulding communities such as Seven Hills Dallas GA and Bentwater Acworth GA.

Academy Mortgage ♦ Atlanta Home Loan ♦ Atlanta Home Search

Time to Buy a Home in Atlanta, GA

THE WALL STREET JOURNAL

“With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents…the best low-risk buying opportunity out there today.”

DONALD TRUMP

I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump.’

- January 2011

WALL STREET JOURNAL

“If prices come down another 10% but interest rates increase by 1 percentage point, that would mean the same monthly payment today versus waiting.”

Atlanta Jumbo Loans ♦ Georgia Realtor ♦ Georgia VA Loans ♦ Atlanta Builder

If You Bought a Home in 2010

If you bought a property last year and closed by December 31st, 2010, your name should be on the tax records for 2011, even if your deed did not get recorded until January of 2011.

Here are a few reminders and tips:

1.      File the homestead exemption if this property is owner-occupied; most counties have extended their filing deadline to April 1st, but confirm with your county.  If the property also has city taxes, there may be an additional homestead exemption available.  Most of the cities require a separate homestead application (except City of Atlanta), and may have a different deadline.

2.      If the property is owner-occupied by a senior citizen, disabled person, low-income owner, injured veteran or veteran’s widow, there may be additional tax exemptions and discounts available.  Some of these applications are due much earlier and may require a copy of last year’s income tax return or other supporting documentation.

3.      If the property is rental or investment property, the new owner should confirm that the correct mailing address was provided when the deed was recorded.  You can check the GSCCCA website (look at the PT-61 form filed with the Warranty deed), the county tax website, or your HUD-1 from the closing to see if the mailing address has been shown (rather than the property address).  Tax bills sent to a vacant lot or rental house rarely get forwarded or paid on time!

4.      File a real property tax return to confirm the current market value and also to confirm the mailing address.  Your 2011 assessment should reflect last year’s purchase price (under the new Georgia law), but it never hurts to provide this information.

Leigh Clack, Partner and Managing Attorney
Jane Hedgepeth, Attorney
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, Georgia 30324
Office:  404-705-3690  Fax:  404-705-3697
lenox@neelandrobinson.com

Mortgage Calculator ♦ Georgia Home Search ♦ Georgia Realtor

Georgia FHA Fee’s Going up Again

It was just announced by HUD that they are increasing the FHA monthly mortgage insurance, again.  This will be the second time in less than a year.  The upfront mortgage insurance premium will remain the same at 1%, but the monthly mortgage insurance premium (MIP) is increasing from .90 to 1.15.  This is another considerable increase in a short amount of time, especially if you remember the MIP was .55 in September of 2010.

FHA claims the increase is necessary to bolster their capital reserves, but many question if this move is really needed.  So, what does this mean to the average Georgia FHA customer?  It means your payment is going to be higher if you don’t act fast.  Here is an example-  You are getting a $200,000 FHA loan.  The monthly mortgage insurance factor is currently .90, so $200,000 x’s .009 is $1,800 divided by 12 is $150 per month in MIP.  When the factor goes to 1.15, MIP goes to $192.  Forty-Two dollars more a month, $504 more a year!  Less than 6 months ago, it would have been $92 a month.  Gee, thanks HUD!

In many cases, $42 a month can mean the difference between you qualifying for a mortgage or not.  $42 can effect your qualifying ratios.  You will need to act fast to avoid the increase.  Call me now to find out how.

Atlanta FHA ♦ 203k Georgia ♦ Credit Repair

Mortgage Defaults Slow in January 2011

According to recent reports, fewer homes in US defaulted on their mortgage payments and thus fewer homes entered the mortgage foreclosure processing. The total number of homes which received notice on their default lowered by 1%, in January, 2011. However, still the percentage of homeowners who owe (in mortgage) more than what their house is worth is supposed to double to 48% in 2011 from 26%.

Reasons for the Decline

The foreclosure rates fell mainly due to the paperwork problems during the fall last year. As a result, many foreclosure proceedings were stopped. Most of the mortgage lenders were forced to reconsider their foreclosure cases. This was mostly the case in Florida. Still Florida has the second highest rate of foreclosure. Some other states that had high foreclosure levels in 2010 were Michigan, Georgia, Illinois and Colorado.

But with the advent of the New Year the rate of foreclosures dipped all the more. In Atlanta, Georgia, the foreclosure rates dropped to record lows. It is at its lowest level for the first time in 18 months. The reason is the same as discussed above. Freezes were put on most of the banks due to the problems in the paperwork.

Other than Atlanta, Cartersville showed the greatest decline in the rate of foreclosure. However, financial experts are of the opinion that this drop in foreclosures is only short lived. This is because the banks are adapting new foreclosure proceedings. It was discovered that the mortgage foreclosure was on a record level at 1.2 million in the United States before the trouble with filing the documentation was discovered late in the month of September in 2010.

Most of the banks who were on a temporary hold, have resumed their processing of foreclosures, but at a slower pace.  There are lingering after effects of the paperwork issues. In the state of Florida, the total number of homes which received warnings in relation to foreclosure dropped by around 16% in January and about 54% in December last year.

The foreclosures also lowered as the real estate market did not perform well in the last couple of years. The main reason for this is the economic downturn of the country after the recession. As a result, many banks suffered huge losses. For example, Crescent Bank & Trust, the $ 1 billion Jasper bank, which was heavily invested in the real estate market, suffered many losses due to the lows in the market. Crescent has suffered the most in Georgia.

But, as said before, though the foreclosure rates have lowered, it is expected that the proceedings will increase again. This is because most homeowners owe more than what their home is worth. Experts say that of the total prime conforming mortgage loans, about 41% of these will be “underwater” within the first quarter of the year 2011, which is up from 16% of that at the end of first quarter of 2009. About forty-six percent of the prime jumbo loans are also going to be larger than the property value and will be up from 29%.

There has also been serious drop in the home prices in the last year, which eliminates homeowner equity. This will cause many borrowers to walk away from their mortgage and the foreclosure rates unfortunately, will rise again.  As foreclosure rates increase, opportunities will arise for new buyers and investors.  There has never been a better time to buy a home.

Courtesy of Mortgagefit.com

Georgia Mortgage Blog ♦ Georgia 203k loan ♦ Georgia Rural Housing ♦ Georgia Realtor

February’s GA Realtor® of the Month

My job is to get homes sold and help potential buyers find their dream home.  Fortunately, in my 6 years in the real estate business, I’ve succeeded in doing that.  Even in this tough market, I’ve excelled as a top agent in South Forsyth.  I work for both buyers and sellers and would like to share with you how I’m able to beat the odds in this difficult market for my clients.

If you are listing your home, you should know the 6 factors affecting the value of your home; square footage, location, condition, terms, market and price.   Buyers are number savvy in today’s market.  They want to know that the price per square foot is fair and represents a good investment.  No longer can prestigious neighborhood home owners put their homes on the market at elevated prices, and expect them to sell simply because of the luxury upgrades.   Location will play a big role in the home’s value.  The better the location the more buyers will be willing to pay.   The state of the economy determines whether it is a seller’s market or a buyer’s market.  Financing terms available to buyers make it either harder or easier for purchasers to get a loan thus affecting the cost.  All these factors combine to create the housing market.

Owners of course, don’t have control over 4 of the 6 factors; however they do have control over the condition and price of the home.   In my role as your agent, I can reveal some secrets to help you beat the market.

Condition of the home: To help sellers get their home looking warm and inviting, I give my sellers a complimentary staging package.  If buyers cannot connect with a property and imagine themselves living in the home, then they will not make an offer on that home.  Staging is about illusions.  My stager will make recommendations on how to obtain the results needed.  Cleaning, de-cluttering, disassociating yourself with your home, staging and minor improvements have proven to pay off tremendously, by selling faster for top dollar.

Price: The best way to get the highest profit in a short amount of time is to get the 5 other factors in sync.   If one of the 6 ingredients is out of proportion, then the price must be adjusted to attract buyers.  As your agent, I guide the sellers in determining the appropriate price to sell their home quickly.  Why is selling quickly so important?  If a market is declining, the highest price a seller can receive is soon after the home comes on the market.  If sellers have priced it incorrectly, they will lose that opportunity and lose money each day the home remains on the market, without receiving an offer.    Incorrect pricing costs sellers in the end.   I use a multitude of advanced technology tools to analyze the market conditions.

In working with buyers, I use my refined and in-depth knowledge to a buyer’s advantage.  I help them invest in their future.  I help them build their personal wealth by guiding them to prime deals.  I can help buyers complete normal resale purchases or more complicated transactions such as short sales or foreclosures.

Should you need a realtor, please give me a call.  I have a record of integrity and personal service as I have worked with buyers and sellers in Gwinnett, North Fulton, Forsyth and Cherokee County.

Melody Parker
678-456-2116
melodywparker@yahoo.com
Suwanee Home Sales

Atlanta 203k ∏ HUD $100 Down ∏ GA VA Loan

December’s GA Realtor® of the Month

It is my business to sell houses.  Just as it has always been, the following applies in any real estate market: price, location and motivation.  A client that is ready, willing and able to buy or sell is always a huge factor in the success of a transaction.  Another key component is “hiring”-yes hiring-the right Real Estate Agent to work with you in achieving your real estate goal(s).  There are various niches within the sales arena, and hiring the agent who specializes in the niche you need is very important.  Real Estate is a complex, detailed and emotional business.

If your goal is to avoid foreclosure-   Hire an agent who focuses on Atlanta Short Sales.

The outcome of a short-sale is going to be as good as the agent you hire and your own motivation from day 1, until closing. Don’t hire someone who has only taken a seminar or read a book, who is negative about real estate or just hasn’t accepted the reality of what the business is now.  You don’t want someone that has you do all of the work.  Hire someone who is a specialist in short-sales.  Specialist meaning: day to day focus, training, and majority of sales are short-sale transactions.

My career in real estate began in college when working as a Mortgage Processor while obtaining my Real Estate Bachelors Degree.  I spent 4 years in the banking industry, then on to sales, beginning with Luxury Homes in Buckhead, then managing new construction communities across Metro Atlanta.  Upon the large increase in foreclosure activity, it quickly dawned on me, every foreclosure is a pre-foreclosure first.  Although short-sales have been around for about 25 years or so, it was not a part of real estate training whatsoever.  It wasn’t until sometime in late 2008 that the training courses became available to the real estate community.   I knew that I must reinvent how I do business in order to help homeowners sell their home in a dignified manner.  Systems, extreme attention to detail, and a desire to help distressed homeowners, is why homeowners hire me to help with their Short-Sale.

Christy Cole, Short Sale Specialist
schristycole@gmail.com
Direct 678-300-3756
www.henryrealestateblog.com
www.stopforeclosurehenrycounty.com

GA Mortgage ♦ Atlanta Mortgage ♦ Atlanta Home Loan

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