Top Things To Be Careful About Prior To Home Purchasing

Buying a house is supposed to be a fun and exciting time. The problem, however, is that because we want to buy a home so badly, we sometimes don’t see the flaws the property has. Although we do sometimes fall in love with a property, we should never purchase it without running a few necessary checks. Let’s review a number of these red flags.

First and foremost, think hard before you buy a “fixer up.” These properties are often very cheap, which makes them very attractive. Most of us think that the things that do need to get fixed up are things we can mostly do ourselves. In reality, however, they are often things that must be done by qualified professionals. Qualified professionals are incredibly expensive and you may not have sufficient budget for that. You should also be wary of properties that have had DIY fixes. Although a DIY job can look great on the surface, it is likely that it actually has a whole lot of problems.

Next, make sure you know if the property has been foreclosed on or is going through a short sale. Of course, these properties are the cheapest, but they are also often in a bad condition and could be a sign of the community.

The bottom line is that you should never purchase a property without having it professionally inspected. The information above, therefore, is not designed to help you decide whether or not you want to buy, but rather whether or not you want to have it inspected. If any problems are present, you can choose to walk away from the property, or you can request a huge discount on the purchase price so you can arrange the necessary repairs. Do also make sure you listen to professional inspectors’ advice. Their goal is to make sure you get a good deal on a property.

Step-By-Step Powerful Suggestions When Looking At Selling a Property

Discovering Important Elements When Looking At Selling a Property

A lot of folks have been investing in real estate these days so if you’re planning to sell your home, the perfect time is now. The only issue here is that selling a house is quite hard.

You might have seen plenty of articles saying that selling a house is simple or you’ve seen some adverts telling you that they could sell your house within a certain amount of time. If you’ll opt to lower the asking value of your house, it could be more desirable to the customers, but it’s not an advisable thing to do.

Though the supply surpasses the demand in the real estate market, there are still tons of ways to sell your home. We’ll give you a few tips to successfully sell your house.

Look at the Curb Appeal of Your Home

First impression lasts so your property should give the customers a great impression once they see its exterior. You can place yourself in the shoes of the customer and see if the curb appeal of your home can attract them. You must determine if the house can provide an excellent impression to prospective buyers or it needs maintenance.

The possible buyer will see the exterior of the house firsthand and you have to remember that they always pay attention on how the house looks outside. You must get everything ready in the house and fix everything.

Improvements in The house

Making some upgrades in the house is essential if you want to draw in buyers. You need to improve the interior and outside of the house so it would be visually appealing to the possible customers. If you’re planning to sell your property, you should check anything that needs to be fixed and make improvements accordingly. Nonetheless, make certain that you will not over improve as there are enhancements that may not make a big difference.

Improvements will absolutely enhance the value of your house along with its chances to be sold, but you can’t make enhancements that will not pay in the end. You must make your research and invest in things that will provide the best return.

Take Away The Clutter

When you’re referring to clutter, these are things that you should eliminate from the house when you are selling it. You’ll have to remove your personal items, collectibles and art works because it is going to not help you in selling the house. Get rid of everything which are not essential and just leave the furniture to help make the rooms bigger. The aim here is to actually help the buyers visualize what they need to do in your house once they bought it. They will start visualizing the inside of your home once they are inside so remove all of the unneeded and personal items in the house. It’s going to be quite hard for them to do this if your personal items are inside the house.

Place a Competitive Price for The House

In case you are likely to sell a home in New Haven County, you should put a reasonable value for the house. If you will put a lower price, it is going to be the same as leaving money on the table and placing a high value will make it unattractive to customers.

In case you’re referring to home buying, the customers will take a look at the homes which are similar with yours and compare the prices. If your home is too costly, they will not even consider it as one of their options.

You need to keep in mind that most customers are only depending on home financing so they will not be choosing a house that is very costly. If you put a low value, you can sell the house quickly, but your investment will not be given back to you.

Find a Real Estate Agent

In case you are thinking that one could do the selling on your own, you’re making a major mistake. In case you’re not a professional real estate agent, do not even think about selling your house as you do not have the experience and knowledge to do so.

If you will do this on your own, you will not be able to sell your house or you can get a bad deal for it. You could actually get fortunate and find a great deal for your house, buy you can’t always count on luck when it comes to this because we’re referring to a lot of money.

Hire an agent and allow them to manage everything for you. You’ll have to pay them, but it’s much better than acquiring a poor deal for your property.

If you’re planning to sell your house, it is best to follow these simple ideas so you will not make any mistakes. They might be very basic, but you can assume that all these will help you sell your home quickly.

Please Don’t Do THESE Things If You’re In Foreclosure

Foreclosure is a process in which the bank takes your home from you, as collateral for not paying off your loan. This can be a very strenuous process for homeowners and comes with many problems. Most homeowners think that lenders are the enemy—in reality, most of them want to help you avoid going through this process. These are some of the main mistakes that homeowners make during foreclosure.

1. Screening calls: Your lender will try to contact you many times throughout the foreclosure process. Not answering the phone or door for your lender is the worst thing you can do; this is because you may miss the opportunity to save your home, or, force your lender to speed up the foreclosure process.

2. Not attempting negotiation: Most homeowners think that if they miss their payments, foreclosure will come eventually. Know that lenders aim to avoid foreclosure. Sometimes they will offer to restructure your loan to help you avoid foreclosure.

3. Not considering alternatives: If you file Chapter 13 bankruptcy, you may be able to stall the foreclosure process; you might also be able to even keep your home by getting on a payment plan for your other debts and mortgage payments. Don’t make the mistake of not exploring your possibilities to avoid foreclosure, because there are possibilities.

4. Neglecting your property: Many people stop maintaining their property when they have issues paying their mortgage, as they think the home is going to go through foreclosure anyway. This is not a good plan, if the bank closes on the house, you will be stuck with the money on home repairs. Aside from the fact, that, if you have followed step 3, you have a possibility of saving your home—and if you do, then you are stuck with the aftermath of not maintaining your property.

5. Vandalizing: Some homeowners will vandalize the home out of spite to the bank; this vandalization can include stripping pipes, stealing fixtures, and stealing appliances. This resorts to serious legal consequences.

6. Short sale: A short sale should be considered, if all other options are exhausted. If you find a buyer who is willing to buy your home, even for less than what is owed, you can still present this offer to your bank and they may accept the money as full payment. Don’t expect your credit score to rise—it will be a detriment; however, you will avoid the legal implications that come along with foreclosure on a home.

7. Not saving: Just because you know your home is about to be foreclosed on, you should still be saving the money that was going toward your mortgage; obviously, you will need to find another place to live. You are going to have problems with this already, as your credit will not be so great from a foreclosure on a house added to it. Begin saving while you are exploring your options.

8. Avoiding facing reality: Many homeowners are in denial when it comes to foreclosure; this is why many run out of time to find a place to live, and move their things.

In conclusion, if you are facing foreclosure it is critical to work with the bank, seek legal council, exhaust all options before closing in the towel, and if all else fails, it is best to accept the situation and start saving money planning ahead of time to move.

Here is all the information you need, from the NDC, on Chapter 13 Bankruptcy, and, an article by NOLO on Foreclosure: Defenses and Laws for Homeowners.

Pros of Paying Your Mortgage off Early

Should I Pay Off My Mortgage Early?

Living debt-free sounds great, and depending on where you are in life it may actually be attainable. But even if you can pay off your mortgage early, should you? Although it may be tempting, first consider the opportunity cost of paying off your mortgage early at the expense of other goals or investment options, as well as the impact to your tax situation. Here are some other considerations:

Opportunity cost. By paying off your mortgage early, you’ll save on the additional interest expense that would have been incurred in your regular payments. This savings can be significant, and will increase with the prepayment amount. However, by directing excess cash towards paying down a mortgage, those funds are no longer available for investment. The lower your interest rate, the less you stand to benefit through early retirement of debt. image_thumb[51]

Taxes. For many, the ability to deduct mortgage interest is a key component to their tax strategy. Consider whether you will still be able to itemize deductions without mortgage interest.

Investing. Realistically consider whether you’ll invest the cash that would have been directed towards paying down your mortgage or spend it. Consider direct deposits into your brokerage account or increasing your monthly 401(k) contribution in an effort to “set it and forget it.”

Other needs. Aside from the ability to invest excess cash, are there any other more pressing goals on the horizon? Look at your whole financial situation including student loans, credit card debt and whether you have adequate emergency reserves.

Life stage. The decision to pay down a mortgage will vary depending on your life stage, risk tolerance and time horizon. If you’re nearing retirement you may have a more conservative asset allocation, and investing the excess cash in the market may mean taking on unnecessary risk. Being debt-free may also become more important later in life.

Time horizon. If you are planning to stay in your home for the long term, it makes more sense to consider overpaying your mortgage than if you don’t anticipate ever paying off the note.

The Bottom Line: As you weigh the options, set realistic expectations and ensure the proper plan is in place to achieve your objectives. Discuss the decision with your financial adviser and tax professional before committing to a strategy. As with all financial goals, it pays to be flexible. If you’re still unsure which direction is best or whether you have adequate reserves, think about opening a dedicated savings account for your excess cash flows and revisit the decision in three to six months. By separating the funds, you will be less likely to spend it on daily expenses while you consider the options.

Check out this great article on how to Save Money By Paying Mortgage Off Early, and be sure to watch this helpful video that can help you answer, Should You Pay Your Mortgage Off Early?

You Might Still Win That Bidding War

1. A Backup Offer Is A Secret Weapon – It’s hard to accept that you’ll never be able to know the reason you lost the house to someone else. There are so many reasons…maybe they offered more money, or their terms were slightly better than yours. What you can do is ask the seller if they’d consider your offer as a backup. Vintage-House-34

2. Backup Offers – Sellers love backup offers because it puts pressure on the original accepted offer to close the deal quickly, knowing that there is another buyer ready and eager to swipe it.

3. Timing– Once a seller has a deal on the table and it is progress, they are already picturing the time in the near future where they’ll finally be rid of the home. However, things go wrong all the time on the buyers’ side of the transaction, and when something does go wrong, they’ll be contacting you for your backup offer, even if its lower than the first.

4. The Inspection – Sometimes after an inspection, the house falls out because there are problems that the buyer doesn’t want to deal with, can’t handle, or the seller won’t credit or fix. But, in reality, the good news for you is those issues won’t go away. The original buyer may walk away, and you can swoop in.

5. Loans – As loan qualifications become tougher, more home buyers are finding they can’t get their loan approved, and they may have to back out of the deal. If you have a pre-approval letter, or a secured loan from a bank, you’ll be next in line.

6. Backup Date Expiration – Set a time for your backup offer to expire. The seller will be nervous that if something goes wrong, they won’t have a Plan B to lean on. Also, a time limit will force the hand of your competition, which may make them unable to close the deal.

7. Get it In Writing – Once the seller agrees to accept your offer as backup, make sure to get a a full agreement that is signed by the both of you. This agreement should clearly state the price and contingencies.

Check out this great article on The Key to the Bidding War for a House , and be sure to watch this video for Tips on Winning Bidding Wars.

Is Chapter 7 Bankruptcy a Good Option?

Using Chapter 7 Bankruptcy to Avoid Foreclosure

If you are looking to avoid foreclosure on your home by filing bankruptcy, it is sometimes not a bad idea depending on the circumstances. However, Chapter 7 bankruptcy is usually not the best way to go. You’re usually better off with Chapter 13, but sometimes Chapter 7 can help some homeowners.

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How Chapter 7 Bankruptcy can help:

Filing Chapter 7 bankruptcy allows a homeowner to fully wipe out most debts. However, the homeowner may have to give up some property, but this usually is not the case. At the end of the case, the court enters a discharge which forever eliminates the debts included in the discharge.

It is important to know that Chapter 7 clears out the amount that a homeowner owes on their mortgage note. But it only eliminates what they owe personally on the note, not the mortgage lien. This means that if the homeowner is behind in mortgage payments, the lender can foreclose once your discharge is entered.

However, if the homeowner is current on their mortgage payments, Chapter 7 bankruptcy courts do allow the homeowner to keep paying their mortgage, which ultimately allows them to keep their home.
The bottom line here is that if a homeowner is looking to avoid liability for a deficiency judgment, this type of bankruptcy can help.

If you are trying to keep your home when you are behind on payments or to stop the foreclosure process from happening or continuing altogether, this type of bankruptcy will not be as effective as you think it will.

How Chapter 7 Bankruptcy cannot help:

If you are behind on mortgage payments, Chapter 7 bankruptcy is not usually the best way to save your home. Here’s why:

1) You Can’t Catch Up on Overdue Mortgage Payments
Chapter 7 bankruptcy does not have a mechanism for you to catch up overdue mortgage payments through your bankruptcy case. And the bankruptcy court cannot compel your mortgage company to work out any kind of repayment plan with you.

2) No Lien Stripping
Lien stripping is not an option in Chapter 7 bankruptcies. Some circuits have allowed debtors to strip lines in Chapter 7, but most courts do not follow this precedent, and in fact, the United States Supreme Court is considering whether to issue a ruling on this point in the future.

3) It Cannot Force Lenders to Offer Loan Changes
Contrary to what some believe, there are also no laws that require lenders to modify loans in bankruptcy, nor which provide a bankruptcy court the power to compel loan modifications.

Delaying Foreclosure: Bankruptcy’s Automatic Stay

Foreclosure vs. Home Surrender in Chapter 7 Bankruptcy

Should I File for Bankruptcy Before or After Foreclosure?