Thursday, September 12, 2013

Value

First Time Buyers Find Value and Security

Times are tough and home buyers, like all consumers are looking for ways to reduce the cost of buying and furnishing a home. Can anyone blame them? In this market buyers need to be assured that when they are spending their hard-earned dollars it makes sense to them.

This is why we believe that NOW more than ever, renters and all first time buyers in Southeastern Pennsylvania  will have peace of mind knowing their dollars can go even further.


There are many reasons to retain the services of Jean and John burns. Our experience in Real Estate sales goes back to 1988, over the last two decades we have experienced many of the markets UP's and DOWN's. As a client this will be an invaluable resource. As an added PLUS our clients will have the peace of mind knowing that our negotiating skills have been honed over these years in many different types of markets. JB REALTY SERVICE is a full service Real Estate firm.

 Our experience in working at the larger national firms taught us we could provide a more personal and detailed relationship and maintain a full service office.

There are many reasons to commit to a relationship with a Realtor or Real Estate firm. I would strongly submit that by accident is not the right reason. I believe that most Real Estate horror stories are the result of the consumer feeling obligated to a Realtor because they spent some time answering minor Questions or possibly showing them a property. The consumer would be well advised to understand the Real Estate documents they are being asked to sign and seek the advise of an attorney if necessary as the documents can be confusing. Jean and John are committed to providing the personal small town service we all deserve along with the skills and abilities of any of the larger firms.

Our business thrives on referrals. We hope our unique and forthright approach to Real Estate will not only help You with your home purchase, but potentially a Friend, co-worker or family member also.



Contact us now to start your customized home search and register for your FREE mortgage pre-approval. You can call 215-721-6300 or see our website http://www.jbrealtyservice.com/ also you may e-mail john@jbrealtyservice.com. There is much to learn, we are Real Estate and financing experts that an educated client will make the right choice in a home purchase.

Thursday, March 14, 2013

Short Sale

A Short Sale is the sale of a property which the owner owes more to the lender(s) then the property is worth. The seller makes no money on the sale. 

Short Sale agreements are contingent on the approval of the lender(s) to all the terms and conditions of the Agreement. This is a very time consuming process, sometimes in excess of 6 months depending on the different lien holders.

The Pennsylvania Association of Realtors has found it necessary to create an addendum for agreements to short sale properties. The addendum is very helpful BUT in most cases the buyers do NOT give enough attention to the addendum. Realtors should educate themselves in the Short Sale process if they are going to attempt a Short Sale. Buyers need to understand they are attempting to purchase a " distressed property" a heart beat away from foreclosure.

A "short sale" purchase agreement is first reviewed with the sellers. In the case of multiple offers the listing agent and seller will do their best to choose an offer to present to the lien(s) holder. The priority being the offer has the best chance of surviving the bank review and the time needed to complete the process. Price although a high priority is NOT always the determining factor. The agreement for sale has the option of many contingencies in an attempt to protect the buyer. Just a few are the mortgage contingency (dates for completion of certain critical parts such as the appraisal). Inspection contingencies, zoning, and on and on. The seller with their advisers need to understand the possible affect these contingencies may have on the agreement to survive until settlement.

The seller will be required to submit very detailed financial information to the lien holder to help them evaluate the seller(s) situation. The seller will be required to submit a hardship letter to the lender explaining why they are unable to continue making the payments as agreed. The lender will usually require updates to bank statements and other information several times to assure themselves the seller is truly distressed and that a short sale is the best option for the lien holders.

The lien holder will be very interested in the buyers ability to purchase the property and the buyers willingness to extend the time needed to complete this process. Each time a buyer gets frustrated and walks from their agreement the process has to start over again for the seller and the new buyer. All new documentation is required and even if a prior short sale was approved OR very close to being approved, this approval is NOT transferable even if the new offer is for more money.

In addition the lien holders are very aware of the temptation of investors, with the help of professionals, to try to take advantage of these situations. Lenders will do their best to be sure the sale is an " Arms Length " transaction another reason to fully process every subsequent offer. It is sometimes in the sellers best interest to try ensure an existing offer close settlement rather than start the process again with a new buyer.

In the time it takes to process a new offer the delinquent interest payments, fees, fines, and attorney fees are continuing to grow. There sometimes comes a point that the seller is better served to bring their own funds to the settlement, if possible, close and move on.

These are some suggestions when thinking about getting involved in a short sale.

- Do you have the time ?
- Do you understand the process ?
- Can you think somewhat like an investor ?( after all look at the potential savings )
in most cases the higher the reward the higher the risk.


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