A short sale is the process by which a homeowner sells their home for less than what is owed to the current lender or lenders or when the cost to sell a home does not cover the current balance due the lender. A short sale is one option for homeowners who are facing foreclosure. It’s not quite as easy as it sounds, but not as difficult as many believe.

Properties sold short are always subject to lender approval. Many banks require the home be listed on the local MLS by a Realtor. I have had some banks tell my clients they have to have the home on the market for three months before they will consider a short sale.

Although banks will always do their own BPO’s and appraisals, when you are listed with a local realtor, we can judge the market based on price of recently sold, through price reductions and feedback more thoroughly. This is crucial data we can present to the bank on your behalf when we do receive an offer.

The homeowner who decides a short sale is an option for their circumstances will need to complete a package which is required by the bank with several documents, including, but not limited to:

• 2 years tax returns
• 2 pay check stubs or profit/loss statement for self employeed
• Hardship Letter - detailing the circumstances which led to the default
• Authorization to Release Information - allows the bank to speak to your Realtor
• Financial Worksheet
• Listing Agreement

If the home was financed using an FHA loan, there are additional steps which need to be taken:
FHA loans have specific guidelines for participation in the short sale process. The homeowner must adhere to the preforeclosure sales procedure for FHA loans, which includes homeownership counseling. Homeownership counseling provides the homeowner with information on all their options. You may find an alternative to foreclosure which is better for your particular situation.

Sample Counseling Form
Sample Pre-Foreclosure Sale Procedure
Sample Application to Participate

Search here to find a HUD approved Counseling Agency in the Indianapolis area.

If you are facing foreclosure and believe a short sale may be an option for you, contact me for a confidential consultation.

The Call

Today, a real estate investor called me to ask about a home for sale, which he thought I was the agent for. I don’t have the home listed, he was using my Indianapolis Real Estate search site to find homes and assumed I was the listing agent. I wasn’t, but helped him find the address he was looking for.

He begins to tell me he has been an investor for about 6 months working on wholesaling properties and does some private lending. He has a few homes he can’t get leased, so he is thinking about doing short sales on them. 

Lease Options

Here’s the deal – he doesn’t know what he is doing! He has a lease option on several homes, which he is trying to find a lessee for. Unfortunately, he hasn’t been able to. How does this happen? He finds someone who is behind on their payments, then contracts with them for a lease/option agreement. He then finds someone else who will lease option the home from him. But the home and mortgage are still in the original owner’s name.

What happens if the lessee doesn’t make a payment, or if the investor doesn’t pay the bank? The owner of record is in serious trouble. I had a recent seller who went through this very thing. We ended up completing a short sale on her home after the so-called investor left her with huge deficit and a home which needed repair.

Short Buy

Another story he told me was about an older lady who is a few months behind, with a home worth about $120,000, but she only owes $68,000. He wants to short sale or should I say, short buy the home for about $60,000. I truly dislike stories like this. As a REALTOR, I am bound by my Code of Ethics to do what is in the best interest of my clients. Honestly, I don’t need a Code of Ethics to tell me this is plain wrong!

He wants to buy the home for about $60,000 and simultaneously close on the home with another buyer. In his perfect world, the bank accepts his offer of $60,000 and he has it set up so he can sell it at the same time to someone else for a lot more. I wonder if the current owner knows how much the home is worth, because that difference could be money in her pocket, her equity. Then, he asks if I can teach him how to do a short sale. ARGHH!!!

I will not be teaching him how to do short sales! I’d rather be sitting in the living room of this elderly woman’s home and helping her sell for a profit. That’s what I would like to do.

Scam

I’m glad he didn’t tell me anymore of his stories, because I had enough. Markets like our current real estate market bring out the best and the worst of people. I know some great investors. I also know there are many out there who do not know what they are doing. They thought this was a great market to get rich in, so they became investors. Seller Beware!

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Refinancing Your Indianapolis Home

Indiana Housing & Community Development Authority (IHCDA) lowered their rate today to 5.625%. When the buyer completes their home buying class (mandatory), they can receive a rate of 5.50%.

If you read my post a few weeks ago about the advantage of using the $8000.00 tax credit along with the Indiana Housing first time home buyer program, there has never been a better time to buy a home in Indianapolis.

If you have questions or would like to explore your home buying options, call us at 317.605.4174 or send me an email.

This beautiful home is located near Saddlebrook Golf Course in a secluded neighborhood of unique architectually designed homes.

In this hidden subdivision of lush foilage and wooded lots is a beautifully well maintained one owner home. Many updates including a granite center isle in the kitchen with breakfast bar, hardwood floors and lots of cabinets.

Family room with vaulted ceilings is open and bright with direct access to backyard. Formal living and dining room complete your entertaining area.

Three large bedrooms including the master retreat with vaulted ceiling and large closet. Master bath includes dual vanities, garden tub and separate shower.

Two car side entry garage with four foot extensions for storage. Private wooded backyard for your family retreat. No HOA!

4921 Melbourne, Indianapolis 46228 MLS #2928960

Another Exclusive Red Door Real Estate Listing

Buying a home is a process which requires due diligence from the home buyer. There are definitly enough websites out there to make even the most knowledgeable buyer feel overwhelmed. I’ve located some very beneficial websites which I believe are important to homebuyers and answer some of the most common and important questions home buyers ask. The first is from the IndyGov website. The site is fairly easy to navigate and provides a vast amount of knowledge for a particular area and address. The site provides information on the following:

• Demographics
• Flood Zones
• Greenways
• Parks
• Schools
• Industry
• Airports

 Search the Website for Indianapolis Property Information

You’ll land on a page with a map for Marion County. On the bottom right, insert the address you are seeking information about. Remember this is only for Marion County in Indianapolis.

 Once you have input the address, the site will provide general information, then a link for property demographic, which you can narrow down to a parameter, based on miles around the property.

Here you will find the demographics for the area, including: population, age breakdown, household size, income, owner occupied vs. rentals, education, work force and additional neighborhood statistics.

 There are a few additional tabs at the top to look for businesses in the area and one for layer control. The layer control will identify the freeways, land use, economic incentive areas, historic districts, transportation, hydrolic features (flood zones, rivers and wellfields). I like to use this feature to identify specific information about an area. You can do this by checking the boxes of the information you want.

In conclusion, this is a great site for finding specific information about neighborhoods, demographics, Community Development Neighborhoods and amenities.

Could swapping homes be the next wave of creative selling techniques? I’m not convinced, but if you’re lucky enough to be one of the few who is able to make it work for you; I say “go for it”.

It’s not a swap as in let’s swap – I’ll pay yours and you pay mine. Each home owner qualifies for a new loan on the others home. You would have to settle the equity difference, since it’s highly unlikely the equity would be equal in each home.

I read about this in a local indiana newspaper online and while I believe it is a true story, with seller’s named Peek and Bou; I’m cautiously recommending the article for those who may benefit from the happenstance of finding a home to swap.  Check out the article here – Swap Your Home

I find a visual always helps in determining the actual location of a particular zip code. Search homes and condos for sale in Indianapolis by Zip code.

CommunityWalk Map - Indianapolis Zip Codes

First time home buyers in Indianapolis have been given a great opportunity to buy a home! Changes on Friday in the first time tax credit and Indiana Housing have created a perfect storm for home buyers who have been trying to take advantage of the tax credit, which ends on December 1, 2009. If you have never owned a home or it’s been three years since you have owned a home, you could qualify and buy your home this year. 

Changes to Tax Credit

HUD announced on Friday the first time home buyer tax credit can now be used up front for closing costs, points, buying down interest rate and additional downpayment.

You don’t have to wait to file your taxes to receive the credit.

Changes to IHCDA

Indiana Housing & Community Development Authority (IHCDA) has reduced the interest rate to 6% with an additional .125% reduction for those who take the online home buying course. Indiana Housing offers first time home buyers 5% or up to $3500.00 for downpayment on a home.

The First Home/PLUS program offers the First Home special mortgage rate, as well as 5% down payment assistance. Capped at $3,500 with zero interest , this is a perfect program for Hoosiers who do not refinance once they have moved into their new home, and who are also committed to staying in their new home for a specific period of time. The Down Payment Assistance funds must be repaid in full once the borrower sells or refinances the home.

The Power of Two

You can use both programs together; Indiana Housing for a down payment and the tax credit for closing costs. You can use the tax credit for additional downpayment with the Indiana Housing program, but can not buy down the interest rate.

If you have the 3.5% down payment for an FHA loan, you can use the tax credit for closing costs, buy down the interest rate or use for additional downpayment.

There are income guidelines for the use of Indiana Housing first time home buyer down payment assistance. To find out if you qualify, contact an approved lender or you can call Amanda Blackburn at Bank of America.

Single family home statistics in Zionsville

 

Zionsville Condo statistics

A client recently called to ask whether they need to obtain a “certified” copy of their deed. She had received a letter from National Deed Service stating she could should get a Certified copy of her deed, how important the document is, since it’s evidence the property was transferred to her. All she has to do is send $59.50 to obtain this important document. RIPOFF!

This company feeds on peoples fears that they may not have the proper documentation proving ownership of their home. They use official sounding language:

RE: Marion County Recorder Document #xxxxxxx and state The US Government Federal Citizen Information Center website recommends property owners have a certified deed. Here’s what the FCIC says:

A private company is currently sending out letters nationwide offering to sell property owners certified copies of deeds. The letters refer to information found in FCIC’s “Managing Household Records” 2003 online consumer focus article. The company cites that article as a reason for purchasing a certified deed. Consumers should be aware that it is not necessary to use a private company to obtain a certified copy of the deed to your home. You can obtain one from your local Register of Deeds for free or at a low cost.

 

If you live in Marion County you can get a certified Deed at the County Recorders Office for $5.00 if you search for it yourself. If they do the search, it’s $5.00 additional. First, check the closing documents you received from the title companywhen you bought your home; chances are -  you already have a certified copy.

Ground has been broken on the new roundabout at County Road 100N and Dan Jones in Avon, giving the city it’s third roundabout. Now, we have the rules. Nothing is ever as simple as it seems; you merge into the roundabout and get off at the appropriate turn, Right? Maybe!

Recently codified rules of the roundabouts were adopted by the Town of Avon and improper use can result in a $170.00 ticket.

Approach – when approaching the roundabout, you must yield to both lanes of traffic – of course this means you may never make it into the roundabout.

Exiting – Turn on your right turn signal  – no left turns allowed

Roundabout only runs counter-clockwise – you can turn left, you just can’t exit left

Once inside the roundabout, you must stay in the same lane until you exit – make sure you enter the roundabout in the correct lane. Except -

If you enter in the outside lane, you must exit at the first or second right.

If you enter in the inside lane you may not exit the first or second right, you must go around the roundabout, then get in the outside lane.

Vehicles in the outside lane can not overtake vehicles in the inside lane and must give them room to exit –

To me, this sounds like a mini 500 race with everyone going in circles, not sure if they can exit or change lanes. I think everyone does just fine without having to wonder if they entered in the right lane so they can exit at the appropriate time without taking home a ticket.

Makes you want to find routes around the roundabouts

These are nationally accepted roundabout rules, so I assume the same rules apply to roundabouts in Carmel as well.

Being a fairly astute user of the online media universe, I applaud the Town of Avon for their latest efforts in keeping the citizens informed of the local Town Council Meetings through the use of YouTube.

http://www.youtube.com/TheTownofAvon

Now you don’t have to miss the results of a Town Council Meeting. Keep track of the issues which involve you, your community and Town Issues in Avon, Indiana.