Real Estate Investing

I have no intention - none whatsoever - of suing my mortgage lender.  However, if you want to take this kind of action, there’s new help available for homeowners, according to the Foreclosure Industry blog,

I’ve established a relationship with a law firm that is ready to help homeowners fight their lenders in court with meaningful court action. This is the “big stick” I’ve been talking about for homeowners – a loan audit and an attorney who isn’t afraid to stand up to the bank.

If this is you, I’d like to hear from you to figure out your goals with the property and what your desired outcome is. At a minimum, you will need to have a loan audit done first and the ability to pay a reasonable amount for legal fees. The law firm will use the loan audit report for the basis of the lawsuit around your specific fact pattern.

I think clearly there are cases where homeowners have legitimate reason to seek litigation against their lender.  I found an article from MSN Real Estate that was published several months ago that outlined reasons someone would have to do this,

• Your broker falsified your income;

• Your broker hid his or her fees;

• You weren’t immediately given a copy of the good-faith estimate and weren’t given an accurate HUD-1 statement breaking down all fees at closing;

• After signing the contract to refinance your mortgage, you didn’t walk out with a “notice of rescission” that explains your rights to cancel the refi within three business days;

• You were led into a subprime loan though your credit would’ve qualified you for a better loan; or

• In short, you were lied to or deceived.

As I talk with buyers and sellers alike, it distresses me greatly to hear their stories of what was done illegally to get them in a home.  This should help!

I’ve been reading with a great deal of interest the FAQ’s provided by the National Association of Realtors regarding the expanded tax credit for existing homeowners who buy something else.  I am working with a couple of buyers now - and my sister is thinking about buying again after just selling her home - who have lots of questions.  For my buyers:

Can the home already have been sold and some time passed to qualify when buying again?  The answer is yes.  If the new home buyer has owned the same home for at least five consistent years, they may qualify for the $6500 tax credit.  So if they sold their home two years ago and have been renting since, but owned for five years before selling, they retain their eligibility.

What if the seller owned one home for four years, then another for three?  The buyer may NOT be eligible for the tax credit in this case because the ownership must be for five consecutive years.  I’d advise anyone in this situation to consult with the IRS to clarify if this is the case, but that’s how I’m reading the FAQ’s.

Is there a minimum purchase price on the new home?  If haven’t found where there is a minimum purchase price yet, but the maximum is $800,000.  And my own thoughts… if you can afford an $800,000 home, then you don’t really need the lousy $6500 tax credit, do you?  Yeah, I didn’t think so.

You need to be under contract no later than April 30th and close by June 30, 2010 to get the tax credit.  Happy house hunting!

I just saw the cutest post at Active Rain by Marc Rasmussen - Sarasota Real Estate where he wrote the 15 things he loves and hates about the real estate business.  I’m going to write my own list (maybe not as long) before I read his so we can see how much alike Realtors are.  Here’s a link to Marc’s if you want to get started on his!

1. I love helping home buyers get into their first homes.   Hands-down the BEST part of the job is the look of joy on their faces at closing and sometimes tears!  I hate it when my buyers lose a bid on a home because they refuse to go $500 to $1000 more.  In the bigger picture, it’s just not worth losing your dream home over that amount.
2. I love showing houses… the drive, hilarious conversations, seeing gorgeous homes, seeing how to NOT decorate.  I hate walking into houses with bad smells and sticky floors.
3. I love clean contracts… those offers that are solid, reasonable.  I hate writing contracts that are piled high with silly contingencies like “contingent upon airport flight pattern not to exceed 20 planes per day”… don’t write a contract if it comes down to that.
4. I love inspectors who don’t kill a transaction because of fear mongering.  I hate it when inspectors cast only gloom and doom even when a simple fix would solve a problem.
5. I love it when my phone rings.  I hate it when I hear crickets and birds chirping.
6. I love it when a CUSTOMER calls my phone.  I hate it when a salesman calls “would you like to increase your google ranking?”  Yes I would but not for $29 p/month.
7. I love it when the appraisal comes in above the contract purchase price.  I hate it when it comes in lower… a phenomenon that has become more commonplace this year.
8. I love it when I can tell people no.  You will be better off not selling right now, don’t put yourself in a bad financial bind… wait a little bit.  You will be better off not buying right now, save more money, establish a stronger credit history.  I hate it when I have to tell people no.
9. I love how real estate opens the door to meeting people in the community. For example, a friend called late last night needing help with a chili dinner. I made one phone call and had 160 servings of chili donated.  I hate sometimes how everyone expects you to help even when you can’t.
10. I love that we have title companies available to protect buyers from making purchases with other liens.  I hate that future claims aren’t protected unless a buyer purchases an enhanced policy.

Okay, here’s my favorite from Marc,

I love when a buyer doesn’t spend too much time in a house they know they won’t buy.

I hate when a buyers knows within the first few minutes of seeing a home that it won’t work for them, however they spend the next 15 minutes visualizing placement of their furniture or critiquing the house.

That’s sooooo true.  It makes me cringe just reading it!

Photo by Recycled Stardust via Flickr Creative Commons.