Lately we have been successfully negotiating and working more and more short sales for those that are truly in need of them, however we also know that many of you have been inquiring about short sale possibilities on your own homes and it is apparent that there is alot of confusion out there regarding short sales.

If I would sum all of this up, even to agents out there I would say that the process of consulting homeowners and sucessfully negotiating short sales is purely an art form and not a science!  Each homeowner and their situation is unique as well as each bank’s own policies and procedures are different and unique so there is no universal system that can break all of this down, but there are certainly ways to help minimize the confusion and erroneous beliefs.

You the seller are faced with a tough position, first you must understand what your rights and know what options are available to you.

1. Refiance (If current, take advantage of current low rates to decrease mo. pmt)
2. Sell and Bring Cash to closing (Liquid assets brought to bring up balance due)
3. Lender Workout (Loan modification, Forbearance, Reinstatements, Repayments)
4. Short Sale (Bank will accept a pay off less than owed to avoid foreclosure)
5. Investor Exchange (Lease Options, wraps and qualifying and unqualifying assumptions)
6. Bankruptcy (If you desire to stay in the house, contact legal counsel for protection)
7. Deed in lieu of foreclosure (just trade over property to lender to cancel out the note)
8. Foreclosure (Bank takes over possesion and attempts sale on courthouse steps)
9. Walk-away and Do Nothing

So many times I have agents come to me and tell me that their client would like to pursue a short sale because they don’t have any equity in the house and are being relocated.  Unless they are also not making their monthy payments (either full or short pays) at that time they would probably not qualify for a short sale.  There MUST be a qualifying hardship present which includes but not certainly limited to:

• Job Loss
• Business Failure
• Illness and Medical Costs
• Divorce or death of spouse
• Natural Disasters

A bank will not desire to perform or be in need of loss mitigation unless they do have a note that is “non-performing” or delinquent.  Of course, a Realtor can never advise you to actually “fall-behind” on your mortgage to qualify, but if you do have recourse concerns or questions; it’s always advised to seek advice from a finance, tax and legal professional.  The U.S. Foreclosure Network can be a possible source to locate attorneys who specialize in bankruptcy and foreclosure that may help on little or no fees.

There are some other major requirements that would qualify a seller for a short sale such as sufficient time left before foreclosure date, amounts owed and to the number of liens currently on the property, condition of the property and the willingness of the homeowner to do all that is required of them before and during the process.  More information regarding these and much more is available at www.thetallshortsaleguy.com.

One last soap box comment from me and my opinion is that if you are truly in need of some help and guidance, why on earth just call up some “jo-blow” Realtor or any other real estate agent that has little to no experience in not only short sales, but experience in guiding distressed and desperate sellers to getting the right help?  There is many resources out there for help available and since everyone’s situation is different, we are always happy to offer a free counsultation to you to see if we can help point you in the right direction.

In the meantime, here are some more very helpful links that will be a great benefit to you:

• www.makinghomeaffordable.gov
• www.hud.gov/foreclosure
• www.foreclosurelaws.org
• http://www.nfcc.org/
  

As always, feel free to give us a call for a free consultation.
210-286-4440

I just saw this in an e-mail I get from this awesome site called Investopedia.com.  The news has been referring to Richard Madoff alot lately, so in attempts to understand a little more about what happened.  Here’s what it means when they claim he was orchestrating a Ponzi Scheme to wield people away from there money.  In my life, I’ve seen a few of these here locally and the last ones on the totem-pole were always the ones that got burned!

What Does Ponzi Scheme Mean?
A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop.

Investopedia explains Ponzi Scheme
The Ponzi scam is named after Charles Ponzi, a clerk in Boston who first orchestrated such a scheme in 1919. 

A Ponzi scheme is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. One difference between the two schemes is that the Ponzi mastermind gathers all relevant funds from new investors and then distributes them. Pyramid schemes, on the other hand, allow each investor to directly benefit depending on how many new investors are recruited. In this case, the person on the top of the pyramid does not at any point have access to all the money in the system. 

For both schemes, however, eventually there isn’t enough money to go around and the schemes unravel.

What’s all this talk about the $7,500 and $15,000 Tax Credit?  by Josh M. Boggs

What a crazy past couple of weeks we all have been living through.  I don’t know about you, but my head is still spinning over all this talk over the HUGE and Historical Economic Stimulus Package that President Obama and the government are proposing to enact.  Little alone the fact that we keep hearing that our beloved banks and other large corporations whom have been blessed with our hard earned tax dollars are still not taking things so seriously and are out lavishly pampering their corporate employees with expensive junkets.  What’s really going on here?

The biggest concern for myself personally is what will happen and be in store for the Real Estate market, not only because it’s my profession and career; but because history has proven to us that Real Estate is a vital backbone to the stability of our U.S. economy.  So that in turn leads to my initial question about these well sought after tax credits for new home buyers?  I have fielded about 20 of the same questions about this topic and so I thought I’d try to dig deep into the research and post the results here in my attempts to learn a bit more myself and help to clarify the news around the water cooler.

The current available $7,500 tax credit which was part of the 2008 American Housing Rescue and Foreclosure Act is still active and in place for those whom have not owned a residence for at minimum for the last 3 years or not at all until June, 2009.  However, this is not free money and has to be repaid within 15 years, but is INTEREST FREE!  There are many advantages with this credit and it was a great spark that helped fuel many buyer’s interest in the last year.  However, we are now hearing about this “new kid on the block”; the $15,000 tax credit which is part of the new proposed Economic Stimulus Package that is awaiting a final vote.  And better yet, we are hearing news that it WILL NOT have to be paid back baring a few stipulations.  Here’s an excerpt from Georgia Senator Johnny Isakson’s (R) website whom himself is the prime sponsor for this bill.  Senator Isakson is also a former Real Estate Broker.

Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

Isakson has pushed hard for a non-repayable tax credit for homebuyers because he knows that it will work. In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction.  Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.

So, here’s the MILLION DOLLAR question that everyone wants to know:  What do we do and how can we take advantage of this?  I’ve got my suggestions, what’s yours?  If you want to hear my thoughts; call me or e-mail me and I’ll be happy to share my thoughts.  However, I’d love to hear your feedback and comments here, so please feel free to share!

God Bless,

Josh

After a long haitus, we are finally able to get this blog up and running again.  2008 was really a very hectic year for myself and my company as some great changes and exciting things have been happening this past year as our company is growing and growing every year by almost 100%.  And for that, we all owe it to God and of course all of our wonderful clients whom have made everything possible, for without you; we would not be here!

2008 was now a year in the past, so let’s all look forward to some incredible changes that are in store for all of us and make this year such a fantastic year!  Let’s get 2009 rocking!!

God Bless,

Josh M. Boggs
eXposed Homes

Click on the link below to read a rather hot and debated topic….

TRULIA VOICES (FSBO VS REALTOR)

Why People Are Afraid To Buy From You!

Many homeowners believe that to maximize their profit on a home sale they should sell it themselves. At first glance, they feel selling a home is simple and why should they pay a broker fees for something they could do themselves? In fact, close to 25% of all the homes sold last year were sold for sale by owner (FSBO).

However, close to half of the FSBO’s said that they would hire a professional next time they sold. Thirty percent said they were unhappy with the results they achieved by choosing FSBO. Why?

Many FSBO’s told us that the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the amount of fees paid to outside consultants, inspectors, appraisers, title lawyers, escrow and loan officers, marketing, advertising… they would have been better off having paid the broker’s fee which would have included many of these charges up front.

Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. Some FSBO’s discovered that the lost money as a result of poor decisions outweighed the commission.

Before you decide to sell FSBO, consider these questions and weigh the answers of assuming the responsibility versus employing a professional. A little time spent investigating up front will pay off tenfold in the end.

Questions To Consider:
Do I have the time, energy, know-how, and ability to devote a full forced effort to sell my home?
One of the keys to selling your home efficiently and profitably is complete accessibility. Many homes have sat on the market much longer than necessary because the owner was unwilling or unavailable to show the property. Realize that a certain amount of hours each day is necessary to sell your home.

Am I prepared to deal with an onslaught of buyers who perceive FSBO’s as targets for low balling?
One of the challenges of selling a home is screening unqualified prospects and dealing with lowballers. It often goes unnoticed… how much time, effort and expertise it requires to spot these people quickly. Settling for a lowball bid is usually worse than paying broker commissions.

Am I offering financing options to the buyer? Am I prepared to answer questions about financing?
One of the keys to selling, whether it’s a home, a car… anything, is to have all the necessary information the prospective buyer needs and to offer them options. Think about the last time you purchased something of value, did you make a decision before you had all your ducks in a row? By offering financing options you give the home buyer the ability to work on their terms and open up the possibilities of selling your home quickly and more profitably. A professional real estate agent will have a complete team, from lenders to title reps for you to utilize…they’ll be at your disposal.

Do I fully understand the legal ramifications and necessary steps required in selling a home?
Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your states disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice.

Do I have the capability of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented?
Ask yourself if you are well versed in legalese and if you are prepared to handle disputes with buyers. To avoid any disputes it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misinterpretation of what was negotiated.

Have I contacted the necessary professionals….title, inspector (home and pest), attorney, and escrow company?
Are you familiar with top inspectors and escrow companies? Don’t randomly select inspectors, attorneys, and title reps. Like any profession there are inadequate individuals who will slow, delay and possibly even cost you the transaction.

Teachers,

 You all deserve a break for your unwaivering hard work and determined dedication to our children. 

The J&B Group Web Blog is officially underway as we are tweaking the articles, aligning our publishers and editors and just getting excited to prepare you and keep you up to date on your requested and respective areas!  We will be providing you the consumer, client, neighbor, friend or family member with live and rapidly updated information that can prove to be extremely useful for you in your daily lives.  Track the real estate market for your neighborhood, get the most current local events, know what are the best restaurants and shops in the area, find discounts and free gifts through this blog and so much more! 

We look forward to your participation and support to make this blog one of the most useful local tools that you can have on the internet!

 Sincerely,

Josh and Bryan

Welcome to Josh Boggs’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in San Antonio.