April 30th is the Deadline for FIRST TIME HOME BUYER CREDIT!!!

Happy New Years!

What a great start it has been! We’re seeing positive activity from both ends of the transaction. Other positive notes are we’re seeing better response times from BANKS regarding short sales. From 6 long months down to about 60 days. On a personal listing we submitted all of sellers required docs for the BANK including contract and assigned a negotiator in about 3 weeks give or take. From there typically 60 days for approval, some banks are shorter and some longer.

As a reminder for those that aren’t familiar with SHORT SALES, price listed is price that “US” Realtors come up with as a marketable value. The buyer needs to understand that the owner OWES more on the property and is trying to obtain as much as they can for the property. Once a contract and all items from seller are needed, a NEGOTIATOR from the bank will review the file and comment on the price. Some cases the NEGOTIATOR can come back with a higher price that the buyer will not be happy with. There are a lot of moving parts to real estate transactions and more with SHORT SALES. Nothing to be afraid of at all, just patiences. It is now common to see some SELLERS asking for a small non-refundable. Keep in mind there are a lot of banks with A LOT of mortgages this is why response time takes a while. Trying to comprehend how many loans that are out there is well…….. you get the idea.

Some typical items if you were a SELLER thinking about listing you home are:

1. Purchase Contract, MUST include BUYER pre-approval letter, or if cash Proof of Funds letter.
2. HUD Settlement statement *title company*
3. Financial Worksheet, outlining monthly expenses within 60 days.
4. Paystubs for last 60 days, if self-employed 6 months PnL’s (proof/loss)
5. Hardship Letter
6. an Authorization to Contact via 3rd party if you are working with a realtor. Meaning we can call your bank on your behalf.

Negotiator then:
gets interior/exterior BPO (Broker Price Opinion) like an appraisal but not just a tedious way of comping a property BUT properly. Appraisals are typically ordered as well in this 60-90 day time frame.

Most the properties now are foreclosed bank owned property or short sales. Bank owned or known as REOs (Real Estate Owned) are more responsive because there is an Asset Manager acting as the seller, sort of like a typical BUYER/SELLER transaction. So not like a SHORT SALE where as the SELLER is NOT the GATEKEEPER, their NEGOTIATOR is and they have the final say on PRICE!

Back to the FIRST TIME HOME BUYER THING!

Make sure you have an EXECUTED contract by April 30, 2010. That’s this year case some were wondering! Property needs to close by June 30, THIS YEAR! I know some like to wait till they get their tax return then go house shopping but please plan accordingly, and allow yourself enough time.

Great info if you have anymore questions!
www.federalhousingtaxcredit.com

Dalat Nguyen
eXp Realty
Cell: 480.580.8680
Fax: 480.718.7552
dalatn@gmail.com