Friday, October 31, 2008

Alabama real estate for sale

If you are looking for some real estate in Alabama, I must tell you it's comprises of series of great places. Its Montgomery, Birmingham or Huntsville you will enjoy them all. You will find condos, apartments, and all the other types of houses in Alabama. I would first like to list some facts which are the result of survey conducted by Alabama real estate organization.

I will list some facts for you. The number of houses for sale in Alabama in 2008 is 37,538 and their median price was $189,500. However the numbers of new homes in Alabama is only 11 and their median price is $154990. The number of foreclosure is 3053 whose average price was $87500.

You can really easily find out that it will be really profitable to buy foreclosure houses. Yes it is really profitable as it is in other places. You can get foreclosure property in the same way as is in other properties. Do you really understand what foreclosure is? I will explain it to you. A foreclosure property really requires some hard work.

Many times it happens that the borrower is not able to pay back the loan amount. Hence lender has to take some steps to get the money back. He does nothing else but nominates the property for foreclosure. After he nominates the name for foreclosure the borrower is informed for the same. There is one step by the borrower can be saved from the burden of foreclosure. You must have heard about short sale. In this process the lender is convinced about the bad position of the borrower. The lender show sympathy with the borrower and shows his interest for short sale. I must tell you that the lender is not far behind as far as loss is concerned related to foreclosure and short sale. However the lender feels happy because he gets a part of his money back.

I would also like to tell you about the loan facility in Alabama. I must tell you that there is no problem on most of occasion but nowadays due to very bad positions of economy many banks and lender and avoiding themselves from giving away the loans. But this is for only few months. Leaving this status of economy behind I would like to tell you about some loan schemes. You can go for fixed loans or adjustable interest loans. If you plan to live in the house you are buying for a long period of time then you can go for long term loans otherwise you should go for adjustable rate loans. I must tell you that you should be very careful while selecting the types of loans. However I wish that you get a good house in Alabama.

Monday, October 27, 2008

Understand What is a Short Sale

If you are not able to pay back the loan you will have to face the foreclosure. How true is this line? Is it a must? Or there is some other way to avoid it. The answer is yes. You can really avoid foreclosure if you are ready for short sale. Now the question arises what is short sale. For your knowledge I must tell you that a short sale is a method which can save you from the headache of foreclosure. It is the legal process which is carried on when the lender agrees to sell the property in fewer amounts than the actual cost of the property. It might be that the value of the property in the market falls below the actual process and it might lead to a situation where the owner might realize that he is not even able to pay back the mortgage amount which he has taken while buying the property.

There can be many reasons for the bankrupts of the owner. He might have suffered a loss in his business or he might have lost his job. He might have got injured due to some accident and would have lost lots of money in hospital. In fact he can have endless list of reasons. However he will be required to explain the reason to the lender. Believe me that no lender is so inhuman that he will not understand your problem. I really recommend that if you have any reason then put it forward in front of the lenders and present it in good words. I assure you that the lender will surely understand your problem and will be ready to help you. He can only help you through the short sale. He will really accept your request for short sale.

What is the process after lender agrees for short sale?
If the lender is ready for short sale then the next step is to search for the buyer. You will be required to do an advertisement and make sure you find a buyer very soon. The next step will be to put forward a proposal in front of lender. You must make sure that all the documents are properly placed in the proposal. If this is not the case then the lender might not agree with your proposal. Hence both the buyer and the seller should make sure that everything is properly placed.

I have told in the beginning that lenders are also human being. However you should have appropriate reasons for the lenders to show their humanity.

Advantages of short sale
Short sale has many advantages. The first and the most important advantage is that you are able to safeguard your credit score. The second but not the least advantage is that you are able to avoid the headache of foreclosure.

Saturday, October 25, 2008

Properties mortgage Loans

Real estate investment is a great field to invest. However the amount needed for real estate is very high. You can look for any real estate deal and can easily find out that the minimum amount required is in five figures. Its quiet tough invest the whole amount on your own. Hence on most of the occasion you have go to go for loans.

Loans are available in plenty. However at present US economy is seeing a great set back. Most of the banks are experiencing a bad period. Hence at the present time most of them are hesitating. However this is just for a small period. We should really neglect it from the details. Few months before the loans were available in plenty. Almost all the banks provide instant loan. However there are some requirements to be completed. They are as follows:
1.Good credit score:
Credit score is very important as far as getting loan is concerned. You should maintain a good credit score always. If you don't do so then you will be facing a great difficulty. No bank will give you loan if you don't have a good credit score. You should really take precaution to keep your credit score in good shape. You should not waste your credit in buying various products. You can else go for cash. But make sure you are having a good credit score always.

2.Bridge loans for flipping:
Let's suppose you are engaged in wholesaling. You will be requiring paying as quickly as possible. Getting a big loan is not always possible in such a short period of time. In these cases you can take a loan from lender for few days and you can pay back the loan as soon as you flip the house. Such loans are called bridge loans. The interest is very high in bridge loans and it is taken for only few days.

Interest rates for various types of loans:
  1. Fifteen year fixed: 6.195%
  2. 30 year fixed:6.585%
  3. 1 year ARM: 5.533%
  4. 5/1 year ARM: 5.633%
There are many schemes related to long term loans. You should go through each loan policies and decide accordingly. You might contact your accountant for further help.
Real estate is one of the highest loan demanding filed. A recent survey suggests that more than 60% of general public go for loans when they buy a real estate property. However you cannot get the full purchasing amount as the loan. You will have to keep ready some amount for down payment. If you are an investor and invest in some commercial apartments which are to be completed by a developer then you have to sell some part of your projected commercial building. Once you are able to book some of the apartments you will get tremendous help while getting a loan.

Know about the Role of a Realtor

Survey suggests that most of the real estate buyers and sellers are not aware of the value of the realtors. At the same time regrettably, realtors have generally assumed that the expertise, professional knowledge and just plain hard work that go into bringing about a successful transaction were understood and appreciated.

Many of the most significant services and steps are performed behind the scene by either the realtors or the brokerage staffs and traditionally have been viewed simply as a part of their professional responsibilities to the clients. But without them the deal will be in danger.
You can really not say that real estate agents and realtors are same persons. Really, there is a great difference between realtor and real estate agents. I would like to put forward one point which is a difference between real estate agents and realtors. Realtors are members of a real estate association whereas real estate agents are not. A realtor must subscribe to realtor code of ethics.

The ethics are strictly enforced. It contains 17 articles and various underlying standards of practice. It's not just a bunch of rules. It's while there is neither evidence nor guaranty that all the realtors are better that unauthorized real estate agents this is just an attempt.

I am listing some of the things that realtor's promises to do but the non affiliates do not:

  1. They promise to keep the interest of buyers and sellers ahead of their own so that they can treat the party reasonably and truthfully.
  2. They promise to cooperate with the real estate brokers and agents if it is in favor of the client.
  3. They promise that they will not accept any fees from the third party without telling the seller.
  4. They promise to not take fee from multiple parties.
  5. They promise that they will not inter mingle the clients fund with them.
  6. They promise to maintain a degree of truthiness while advertising.
  7. They promise to not practice law unless and until they are lawyer.
  8. They promise to cooperate if some charges are put forward them and are ready to provide all the evidences.
  9. They promise to not indulge in any other realtor's job.
  10. They promise to not discriminate the clients on the basis of caste, race, color or any reason.

There are similarly seven more rules which are followed by the realtors. I will appreciate if you have got some idea about the realtors from this article and realize that there are some difference between realtors and real estate agents. You should keep these points in mind when you meet any realtor in future.

Eight steps for Short Sales

A real estate short sale is when a lender agrees to sell the home at a price less than the mortgage amount. It's true that the lender as well as the seller faces loss but it's far too low than the foreclosure. Short sale is a deal which is to be finalized by lenders and nobody else. It depends upon the mortgage lender that he agrees on the deal or not. On most of the occasion the short sale turns out to be a good deal but there are some drawbacks as well. When a lender agrees to do a short sale in real estate it means that the lender is ready to suffer a little loss.

If you are going to buy a short sale then you must know that there are some drawbacks as well. For safety I project following points which a borrower should keep in mind:
  1. Obtain a legal advice from a repudiated lawyers.
  2. Call the accountant to discuss short sale tax ramification.
Although different lenders have different requirements but in all following points will be a great help for you:

1.Call the lender
You will be required to do half dozen phone calls before you find out who is responsible for real estate short sale. You will really have to work hard for the same reason.

2.Submit letter of authorization
A formal authorized letter will be required. The authorization letter should contain: buyer sellers name, the reason why seller is ready for short sale, his financial position, property address, loan reference number, your name, the date, your agents name and contact information.

3.Preliminary net sheet
This the total detail about the financial statement related to the property. You should specify the sales price which you are expecting, all the tax related documents, any liability which is left including real estate commission. You should make sure that the lender realized that a short sale should take place urgently.

4.Hardship letter and bank statement
You should prepare a document named hardship letter and make sure you let the lender know about your position. You should give the details of how you fell in this financial crisis. No lender is inhuman and will certainly understand if you will give reasonable reason. However criminal behavior will not be accepted by any lender. You are also required to give the bank statement which explains your worries.

5.Proof of income and asset
You are required to give the details of your income and you should also mention in detail if you have lost your job. Believe me you will really get sympathy from the lenders.

6.Comparative market analysis
You should specify the details of the market analysis and explain how you have faced loss as far as market is concerned.

7.Purchase agreement
You should also put forward the agreement which you have signed at the time of purchasing the property.

Short sale is an alternative of foreclosure and you should keep this in mind. It is for your help. Whenever you get caught in the trap of foreclosure you can really go for short sale. If you follow the points which I have mentioned above you will realize that the foreclosure problem will never trouble you. You will also be able to save your credit score.

Best Tips for Building Real Estate Listings

Real estate agent is not a one mans game. There are many players who play this game as a team. You can find number of real estate agents and realtors. Lawyers are not far behind and so are the mortgage lenders. You will really find all of them in plenty. As far as real estate listing is concerned you can find lots of member of different locality and filed who can be listed at on place. Many of them are part of different teams. Now the question arise what should you include in the list. Believe different people have different idea. Also there will be a question mark whether for whom we are preparing the real estate listings. It can be for the real estate investors, agents or home buyers. There are many options. But as a whole you will have to include following things while preparing the list.

You will have to include following points in your real estate listing:

1.Real estate agents
The first thing which you should include in your listing is real estate agents. You should mention clearly that who are the licensed real estate agents. This will be a long list and you will have to do a great amount of research. You should make sure that you list all the real estate agents. You can also prepare the profile of the real estate agents. This will be great help for someone who will read your listing. Its really a great idea. You can also manage your website and I am sure you will earn lots of money.
2.Realtors
Lots of persons believe that realtor is the second name for real estate agents. But this is really not the case. Not many would like to hire a realtor. But I assure you that they are fools who do not hire realtors. Realtors really are of great help and you should really add them in your listing. You can also mention that who are licensed realtors.
3.Lawyers
I would not like to waste time because its self understood that real estate lawyers should really be a part of your list.
4.Real estate properties
Your listing will really be wasted if you do not include the real estate properties in your listing. You should properly list the properties and what type they are. You should properly list that what are the steps required to buy that real estate property.

You can really make your own website on real estate and list all the above points on it. you can also list the mortgage lenders and you will really find out soon that your earning is increased fore fold.