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Displaying blog entries 1-7 of 7

Fayetteville Bank Robbery

by Terri Lynne McNaughton Team

First Federal Bank Robbery

There’s nothing like your second week on the job and finding a police man standing outside the door of your office with a loaded M16.  Check out the complete story at http://www.fayettevilleflyer.com/2010/07/29/robbery-at-first-federal-bank-on-college-ave/

Foreclosure vs. Short Sale

by Elizabeth Rodgers

 Foreclosure  vs. Short Sale 

         

It’s good to know what your options are… But do you know the consequences? 

Issue

Foreclosure

Successful Short Sale

Future Fannie Mae Loan – Primary Residence

A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 3 years

A homeowner who successfully negotiates and closes a Short Sale will be eligible for a Fannie Mae Backed mortgage after only 2 years

Future Fannie Mae Loan – Non Primary

An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of  7 years

An investor who successfully negotiates and closes a Short Sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years

Future Loan with a Mortgage Company

On any future 1003 application, a prospective borrower will have to answer YES to “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?”  This will affect future rates.

There is no similar declaration or question regarding a Short Sale

Credit Score

Score may be lowered anywhere from 250 to over 300 points.  Typically will affect score for over 3 years

Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated.  This will lower the score as little as 50 points if all other payments are being made.  A Short Sale’s effect can be as brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record on a person’s credit history for 7 years or more

Short Sale is not reported on a credit history.  There is no specific reporting item for “Short Sale”.  The loan is typically reported “paid in full, settled”.

Security Clearances

Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony.  If a client has a Foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in most cases clearance will be revoked and the position will be terminated.

A Short Sale on its own does not challenge most security clearances

Current Employment

Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions.  A Foreclosure may be grounds for immediate reassignment or termination

A Short Sale is not reported on a credit report and is therefore not a challenge to employment

Future Employment

Many employers are requiring credit checks on all job applicants.  A Foreclosure is one of the most detrimental credit items an applicant can have and can challenge employment

A Short Sale is not reported on a credit report and is therefore not a challenge to employment.

Deficiency Judgment

In many states, depending on the kind of loan, the bank has the right to pursue a deficiency judgment

Depending on the type of loan some lenders who accept a Short Sale may be able to pursue a borrower for a deficiency judgment.  In many successful Short Sales it is possible to convince the lender to give up this right as part of the Short Sale

 Deficiency Judgment (amount)

In a Foreclosure the home will have to go through an REO process if it does not sell at auction.  In most cases this will result in a lower sale price and longer time to sell in a declining market. This will result in a higher possible deficiency judgment

In a properly managed Short Sale the home is sold at a price that should be close to market value and in most all cases will be better than an REO Sale resulting in a lower deficiency

 If you or someone you know is going through a financial hardship and need someone on YOUR side, keep in mind... Help is a phone call away!  For your private consoltation please call your local Certified Distressed Property Expert at 479-442-9099.  We are always here to help.

‚óŹNOTE: I am not licensed as an attorney or CPA, and this information is in no way advice on the consequences, legalities and/or tax ramifications of a short sale.

The Next Heavyweights in The Housing Market

by Elizabeth Rodgers

 

   

 The Next Heavyweights in The Housing Market  

       The largest generations of young people since the ‘60s are beginning to come of age.  They’re called “echo boomers”.   Echo boomers were born roughly between 1977 and 1995.  There are approximately 76 million echo boomers between the ages of 15 & 28.  In 2009 their spending habits exceeded $192 billion.  As you wrap your head around those figures, think about the impact that this generation is going to have on the housing market in the coming years.       

      According to current U.S. Census, 67.2 percent of this generation can be expected to become homeowners by their mid 30s.  Considering that builders are currently developing about 500,000 housing units a year, and within the next 5-7 years echo boomers will have purchased 35.5 million homes, one can quickly surmise that in the foreseeable future we are going to have a housing shortage! 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 Mistakes Every For Sale by Owner Should Avoid

by Elizabeth Rodgers

10 Mistakes Every For Sale by Owner Should Avoid

 

1.     Drafting the real estate contract on your own.  Although you maybe tackling the challenge to sale your property on your own regarding the marketing, showing and negotiating details trying to do the legal side of the real estate transaction is something most for sale by owners should avoid. It is always good practice to hire an attorney to help with your real estate contract if a real estate professional is not involved in the transaction.

 2.   Failing to provide the potential buyer with a seller’s disclosure. Normally most real estate transactions involve a detailed disclosure provided by the seller to the buyer outlining minor and major issues regarding the real estate that is being sold.  Things such as: mechanical and structural defects that have occurred over the owner’s ownership. Some courts have determined that if particular items are not disclosed to the buyer that a contract could be resented or monetary damages could result to the previous owner. Naturally only a court of law can make these determinations and it is good practice to provide a sellers disclosure any time you are selling a property. Consult your attorney for this form if you choose not to hire a real estate professional for this transaction.

 3    Failing to provide the federal lead based paint disclosure documentation.  If your property was built before 1978 (in certain circumstances for properties built during the year 1978) then you’re required to provide a lead based paint disclosure to the buyers. Failing to do so could result in legal consequences. Consult your attorney for this form if you choose not to hire a real estate professional for this transaction.

 4.   Neglecting to register all potential buyers who preview your property.  Although ever one that comes to look at your home may appear and seem to be a potential buyer in reality and unfortunately some people previewing you property have more in mind than buying your home. It is always a good idea to make note or register potential buyers along with their license plate numbers and other details incase a problem was to occur after the sale. Such as a theft or loss of personal property.

 5.   Providing too much information.  Although many sellers know how much money they have invested in their property and believe that is a good selling feature to provide potential buyers. Sometimes telling too much information during the showing of the property can make it appear as though you’re desperate or that something is wrong with the real estate.  This mistake is not emphasizing to hide information from the buyer but just to remind for sale by owners not to appear over anxious in selling your real estate.

 6.   Failing to disclose material defects.  As noted earlier with the sellers disclosure which normally does provide for this situation. Failing to disclose a material defect in the property can become a major liability in the future after the sale. If you know any major defects in the property, structural, mechanical or other issues or items that you feel the buyers should know about then it must be disclosed! Always disclose all material defects in the property.

 7.   Pricing your property incorrectly.  Even though most for sale by owners want to sale their property because they can save the marketing fee a real estate brokerage charges. Studies have indicated that most for sale by owners end up selling their property for less monies than what it is actually worth on today’s market. Even though you maybe planning on selling the property on your own it is always a good idea to have an independent appraiser or two or three real estate broker offer you a price opinion so that you can feel confident that your property is priced accurately.

 8.   Neglecting to negotiate.  Most for sale by owners are not used to negotiating price and other terms during the real estate transaction.  Understanding important issues such as earnest money, possession, loan commitment and inspection dates all can play a major role in negotiation in the sales contract. Understanding what items can be negotiated for more or better terms is something the for sale by owner should take into consideration.

 9.   Failing to understanding contingencies. Sometimes it may be easy to get an offer to purchase on your property as a for sale by owner. However, what kind of contingencies have been placed in the verbiage of the contract? How quickly must the buyers get their loan approval? What about building inspections? All of these issues can play a major role in determining whether your real estate will close or not in a timely fashion or at all. Most for sale by owners generally have problems in this area of the sales contract and a good knowledge of all contingencies and how they work is suggested and required for any for sale by owner.

 10.  Choosing an unqualified closing agent.  It is always a good idea to make sure the transaction is closed at a local escrow or title insurance company that handles in a certified and insured to participate with a real estate closing. You could as choose a local attorney to close your real estate transaction. But the bottom line is that you make sure an insured and qualified settlement closing agent is selected. 

 These are only ten mistakes that many for sale by owners make when trying to sell their property on their own.  Although this is not a comprehensive and through list of mistakes that could arise, it is a compellation of mistakes that do occur on a regular basis for many for sale by owners. Naturally as a real estate professional, I encourage all potential home sellers to use the services of a qualified residential real estate agent or an attorney when selling their home or real estate.  However, I understand the need and desire for many people to try to sell their real estate on their own. If you choose in the future to secure the services a real estate professional I would love to have the opportunity to visit with you and share my detailed marketing plan with you. You can reach me at 479-442-9099 or   e-mail me at Elizabeth@McNaughtonRealtors.com

The Home Buying Process

by Elizabeth Rodgers

Buying a home can be stressful without a good plan of attack.  At McNaughton Real Estate, we have the tools you need to make your next purchase fun and easy. The flow chart below is one of the tools you can use to help you navigate your way through the purchase of your next home.

Fayetteville Farmers' Market

by Elizabeth Rodgers

Don’t miss out on the Fayetteville Farmers’ Market tomorrow around the Fayetteville Square!  Come rain or shine, local vendors will there with fresh picked fruits, vegetables, eggs, meats, herbs, plants, and plenty of fresh flowers. 

The Fayetteville Farmers’ Market is open SATURDAYS 7am –2pm, until Nov 20th and TUESDAYS and THURSDAYS from 7am – 1pm,  through October 28th.

Great New Look, Now Even Greater!

by Sarah Tuller, Client Services Manager

You've heard about our great new logo and signs. They can be seen all over town! But now the McNaughton Team is excited to announce we have a great new sign, as well! We wanted to stand out, new and improved, day or night! You can now see our flashy new sign during the day, or drive by and see it illuminated at night! We're proud of it and want to share it with all of you! Check out the pictures or drive by for yourselves and let us know what you think!

 

 

Displaying blog entries 1-7 of 7

Contact Information

Photo of Don McNaughton Real Estate
Don McNaughton
McNaughton Real Estate
4299 W. Persimmon
Fayetteville AR 72704
479-442-9099
Fax: 479-442-0948
       

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