How to Appeal A Property Tax Assessment

If you believe your home’s assessed value is greater than what you can sell your house for, then it is in your best interest to contest the value. The first thing you have to understand is that property taxes are one of the largest sources of revenue for your municipality, county, and state government. Tax assessments are made up of two components, they include: the value of your land and also your dwelling. The Ohio revised code and Ohio administrative code mandate the appraisal department to conduct a re-appraisal of each parcel every six years, or an update every three years if improvements were made to the dwelling based upon building permits pulled on your property. Understanding how to contest your home’s assessed value is critical to winning your appeal. You will need to consider many factors to determine the fair value of your home. The auditor will look at acreage, age of your home, square footage, recent improvements, outbuildings, decks or patios, and/or other areas of your property that have value.

To appeal your property tax assessment, you should contact your local county auditor to file a formal appeal of the assessed value of your property. You should start by requesting a copy of the property card from your local auditor’s office. The property card should include the information used to determine your homes assessed value, which includes: square footage, lot size, bedrooms, bathrooms, finished basement, etc. If there are any inaccuracies in this information, you should inform your auditor’s office in writing of the errors. You should also contact your local auditor’s office to fill out an appeal form or you can electronically file an appeal on their website. E-filing provides homeowners easy access to complete and submit a department of taxation form, which is a complaint against the valuation of real property online eliminating the requirement for a signature and a notary seal. Many of the county auditors in Ohio will only accept property valuation appeals during the first three months of the year. If you have recently purchased your home, you should provide the auditor a copy of your purchase agreement and a copy of your HUD statement or closing disclosure as evidence of the value of your property. If you have owned your home for more than a year, it would be in your best interest to contact a licensed appraiser to have your home appraised and valued. In addition to the appraisal, it would be beneficial to provide a list of recently sold homes in your area that are similar in age, square footage, amenities, and lot size to your own home. You should provide as much information and documentation as possible when you appeal your property taxes. When referring to your property, use your parcel number and address. This can be obtained from your tax bill. The more information you provide to the auditor, the greater the chances that your assessed value will be lowered, but be careful because the board of revision’s may use the information you provide to increase or decrease the total value of any parcel included in a complaint.

Immobilienmakler Heidelberg

Makler Heidelberg

Cheap Home Appraisals – 2 Ways You Can Get a Free Home Appraisal

If you are looking for a cheap home appraisal, or free home appraisal, then read this article. I will show you two ways to get your home’s value for free. In today’s real estate market you need to know the true value of your home before you list it for sale. If you are buying a home you need to know how much that home is really worth in a declining market.

Real Estate Agents – Using a local real estate agent you should be able to get a close estimate of the value of your home or property. Real estate agents have at their fingertips many tools that will give a fairly accurate estimate of your home’s value. What will this cost? Usually it is free. So what’s the catch? Well, most realtors will do this for you in hopes of getting your business. Should you let just any real estate agent do this analysis? I say no. You want to select a real estate agent that is familiar with your subdivision or area. You also want an agent that understands how the features in your home will either increase the estimate or decrease the estimate. Once you receive an home value estimate, then you should use the next method to verify that the estimate is correct.

Home Appraisal Websites – I like using some of the free online home appraisal websites, like HomeGain. HomeGain will give you a fairly descent estimate within a few seconds. All, you have to do is supply your address and a few details about your home. Click the button, and within a second or two you will have a free home appraisal. There are other sites on the internet that do this type of appraisal but many are not free. I suggest that you get at least two estimates from an online source and then compare it with a real estate agents estimate. This should give you a fairly good idea of how much your home is worth.

Immobilienmakler Heidelberg

Makler Heidelberg

Apartment Building Investing – Find Motivated Sellers

As the creator of the „Buy Your First Apartment Building E-Course“ I have many potential students and beginning investors ask me, „How do I find motivated apartment building sellers?“

There are many ways that investors use to find motivated sellers, however, what I see happening many times with beginners is that they start looking for properties to purchase before they thoroughly understand how to identify a truly profitable opportunity. Here are my recommendations for how to begin learning about multifamily investing and then how to find motivated sellers.

Begin by learning what makes mult-family property profitable by taking these steps:

  1. Study and learn about what makes an apartment building profitable.
  2. Read as many books about real estate investment and apartment building investment as possible. It is a lot easier to learn from other people’s mistakes. There is no need to reinvent to the wheel.
  3. Find a reputable real estate investment club in your geographic area and meet with the commercial investor members. These „old hands“ are a valuable source of market information.

After the aspiring multi-family property buyer has received a thorough education by reading books, industry magazines and networking with other commercial real estate investors then he or she is ready to begin the process of searching for an actual property to purchase.

Contacting Commercial Realtors

A great reference source for finding well educated commercial real estate agents is the CCIM website. The CCIM is a professional designation that qualifies a commercial real estate professional as capable and knowledgeable in the field. You can also find commercial real estate agents using a simple search on the web.

When searching for a commercial real estate agent take these steps:

  1. Speak to a number of commercial realtors in the area and ask about „pocket listings“. Pockets listings are apartment building owners that the experienced realtor might know who are serious about selling their building but they have not listed the property yet.
  2. Find a commercial realtor who specializes in multi-family investments. A good commercial realtor who specializes in multifamily properties should have a great knowledge of what apartment buildings have sold for recently.

Alternative Strategies for Finding Apartment Building Deals:

  1. Place an ad on Craigslist stating what you are looking for:
  2. „Looking To Sell Your Apartment Building? I am a commercial real estate investor interested in buying multi-family property in Philadelphia between 5 and 100 units. I am looking for owner financing over five years with 5% down or will buy with a 20% down payment and a bank loan.“

    Or, here is an ad that I copied directly from Craigslist this morning:

    I BUY MULTI-FAMILY PROPERTIES W/SELLER FINANCING OR QUICK CASH. Need to sell?
    Moving? tax benefits run out? call me for a offer.

  3. You can also place the same ad in the commercial real estate section of your local newspaper but be prepared to pay a handsome sum for the ad and also be ready for unsolicited calls for real estate agents. Newspaper ads do work but you are better off using free or more direct methods like direct mail.
  4. Another strategy is to contact the owners of commercial real estate directly. This can be done in a number of ways. Multi-family owners can be located by researching the tax records of a metropolitan area. Usually, the owner of record will be listed along with his or her or contact information. The next step is to write a letter that explains who you are and what you are trying to accomplish. The purpose of letter to have many interested apartment building owners contact you. You should leave your phone number, mailing address and email address for sellers to contact you. You should make it very easy for the sellers to get a hold of you. Remember, you will need to look at dozens of deals and sellers before you find the one that fits your investment criteria. You can also contact owners directly by telephone. Keep in mind that multifamily property owners are usually very busy so you might want to write a script or have talking points written down so you are able to get right to the point and get your message across accurately.

Immobilienmakler Heidelberg

Makler Heidelberg

German Shorthaired Pointer – Pros and Cons of Owning This Versatile Pet

Pluses and Minuses of Owning a German Shorthaired Pointer

The German Shorthaired Pointer is going to be a great pet as well as a good hunting buddy. It is an especially good hunting dog as they will retrieve both on land and in the water. This well balanced dog is perfect for someone who is looking for an outdoor companion as well as a family pet. Consider the information below when choosing whether or not one of these versatile dogs will be the right pet for you and your family.

Pros:

If you have a very active, happy family, the German Shorthair may be just the family pet you are looking for. This breed of dog is one that likes to be active and is going to have a high amount of energy on a daily basis. You will need to have room for your pet to run free and burn some of its energy every day. If you do not have this type of space, another breed will probably be more to your lifestyle. Without lots of exercise this pet will get bored which leads to destructiveness or escapism. They can clear a 6 foot fence so make sure they have plenty of room to run or if you can frequently take them where they can.

The GSP is an intelligent dog with exceptionally good temperament. This makes it an ideal choice as a pet that will get along well with children and other pets. They love being around people and are eager to please. If you want a dog that will learn tricks this one will fill the bill.

If you are looking for a great family pet that doubles as a good watch dog look no further than the German Shorthair. They adapt to their living conditions easily and with minimal training, will adapt to the needs that you have. While these dogs have too much energy to be good house dogs they will be somewhat happy to be inside if they are able to get plenty of exercise by running with you or with your bicycle. They are happiest when they can run when they want so try to have a large yard to put them in.

The grooming of the GSP is minimal as it sheds occasionally which keeps you from being too occupied with brushing of a long haired dog. The best thing for your dogs coat is to wash it every few months as well so there is no need for constant bathing. They like water so a dip occasionally will take care of most of the need for bathing.

Cons:

The trouble with owning a German Shorthair is that you are in need of constant exercise for your dog. If you are someone who lives on their own and who is at work the majority of the time, you will find that you have an unhappy dog who is not satisfied with being locked up in a home by itself all day long. If you are looking for a dog that enjoys being inside and is not too energetic look at getting another breed of dog.

If you don’t have a large yard you will doing this pet a great disservice as they like to be in almost constant motion. If you let them in the house be sure you have a fairly large one as these as fairly good sized. They like to play and often forget they are inside which can cause a lot of damage.

The GSP is not a pet that you can leave in the house by itself for any length of time as they get bored and can be quite destructive. If you do have to leave it indoors you should teach it to stay in a crate or better yet put it in the garage. If it likes to play with toys be sure they are put in with it along with plenty of water. Dog proof it as much as possible first though.

The German Shorthairs are ordinarily hardy dogs but some are prone to several problems such as epilepsy, and hip dysplasia along with a few other minor ones your vet can make you aware of and can be watched for.

If you are looking for an intelligent, active family pet that likes to hunt and roam the outdoors you won’t go wrong with a German Shorthaired Pointer. They are very high energy so make sure you can provide them outlets for this or they won’t be very happy.

Immobilienmakler Heidelberg

Makler Heidelberg

Huge Profits From Short Sales – Fantastic Pre-Foreclosure Tool For Savvy Investors

Louisville realtors, investors and debtors facing foreclosure ask me from time to time how short sales work. Consider this a primer.

I recently brokered the sale of a house for $85,000 to an investor. The house appraised for $120,000, giving the investor substantial immediate equity. The lender took a $60,000 loss. The owner/seller was forced to sell his house, for which he received not one red cent, and had to move into rental. How is it that all parties walked away from the closing table satisfied?!

In the beginning…

When a home owner owes his lender more than he has borrowed, he’s said to be „upside down on his mortgage“. This can come about in many ways, the principal amongst them occurring when he simply stops making mortgage payments, often because he is in serious financial difficulty. If his mortgage payment is $1,000 per month, and he stops paying, or pays intermittently, the fines, interest and principle can rack up pretty quickly. And if the owner can’t pay the mortgage, chances are he hasn’t been able to make necessary repairs to his home. This situation is almost invariably accompanied by despondency, which again leads to neglect of the house.

Stir into the mix bankruptcy, and perhaps divorce, and you’ll understand it’s not surprising to find the homes of these owner/debtors are often seriously degradated. That leaky roof is probably the last of the owner’s problems.

The „F“ word

Foreclosure. It’s not a happy prospect for the lender or the borrower. Lenders have different tolerances for late payments. However by the time the debtor is late for the fourth consecutive month the vast majority of lenders begin foreclosure proceedings. In Kentucky the foreclosure sale of the home by public auction takes generally anywhere from 6 months to a year from the time the foreclosure procedures began. It can take longer – I saw one artful debtor drag on the foreclosure proceedings for more that 20 months! Her mortgage payment was $1,300 a month. After 20 months that became a significant debt compounded by late fees, interest, legal costs, and the potential cost of selling the property at a public foreclosure sale. To say nothing of the continuing, moment by moment deterioration of the property. By the time she moved out the bank had written off in excess of $80,000.

The lender’s and borrower’s conflicting interests

Capitalism is a wonderfully contrived system. It hands not only the power-barons a potent array of weapons with which to fight, but also the poor and destitute. Though the battlefield is nowhere near even, double digit interest thrust too deeply down an indigent debtor’s throat may precipitate his „nuclear“ retaliatory option – Chapter 7 bankruptcy. And so these two, symbiotically entwined, are locked in an elegant dance, teetering between dividends and disaster, profit and poverty. One serious mis-step, and the band stops playing.

Thus, from years of bitter experience, lenders have learned that it’s often better (cheaper) to attempt to gain the cooperation of the owner and have him agree to voluntarily sell and vacate his home, rather than evict him under foreclosure. Lenders also understand that the chance of ever recovering the money owed to them by the debtor is slim. But many debtors choose not to sell because, around the time they realize they will never catch up on their payments, they often have another „Ah Ha!“ flash of insight: that if they stop paying their mortgage and just wait for the foreclosure axe to fall (or better yet, engage in a hatfull of tricks to keep that axe at bay) they can live „rent free“ for at least 6 months. So now the debtor turns from borrower to squatter, perceiving it to be in his best interest to prevent the foreclosure for as long as possible. And if the house, the lender’s „security“, should fall apart in the meantime, so be it.

The solution

The lender is in a position to offer the borrower a very important concession for his cooperation: to write off the entire debt if the borrower finds a buyer to buy the house at a price and terms acceptable to the lender, within the time stipulated by the lender. This is the essence of a short sale. Lenders set their own guidelines for what they will accept. They may say they need to get fair market price, but will in fact often be prepared to sell for much less. They do not want to chance selling this house at auction and risk receiving a very low price. Or worse yet, receive a bid so low that the property does not meet their reserve price, and they end up owning the property. In this case the property is administered by the lender’s REO (real estate owned) department, which will then list the property with a realtor. And the cycle begins again……

The Lender initially said The Willows house was worth $120,000, and wanted it sold at about that price. It got the $120,000 figure from someone it had hired to do a BPO. BPO is short for „Broker’s Price Opinion.“ It is similar to a CMA (Comparative Market Analysis) and serves the same purpose: to arrive at a fair market value for a property. Most are done as a „drive-by,“ meaning that the „driver“ (usually a realtor, maybe an appraiser) drives by the outside of the property, takes one to three photos and leaves. He then completes the lender’s BPO form on-line and e-mails it with the picture. Sometimes an „internal“ is requested, in which case the realtor goes into the property, takes about 3 internal and 3 external photos and sends these through to the lender with the completed BPO form.

When the debtor had realized he would not be able to save his house in The Willows, he contacted me to see if I could help. He did not want a foreclosure on his credit report, which would have prevented him from getting a conventional mortgage for three years. Even with a Chapter 7 bankruptcy, the wait period is only 2 years from dismissal. He also wanted to have his debt forgiven. I was able to accomplish both these goals, saving him about sixty thousand dollars.

The short sale process

As a Realtor, the first thing I did was explain to my client all his theoretical options, including deed in-lieu of foreclosure, loan renegotiation and others. He settled on short sale. I listed The Willows property, and had him sign an authorization for me to contact the lender to see if it would agree to a short sale. Remember, when I list the property, the owner/debtor is my client (not customer). This means I must always act in his best interest. The lender is not my client and I owe it no such duty. In a normal sale the seller and buyer have greatly divergent interests: the seller wants to sell at the highest possible price, and the buyer wants to buy at the lowest. In a short sale there is no such contest between the parties: the seller wants to sell at any price the lender will accept, and will generally agree to any price offered, contingent upon the lender’s acceptance. So in a short sale, the lender takes on the mantle of „seller“ vis-a-vi the buyer and these are really the parties who negotiate the contract. Now get your head around this one: as listing agent in a short sale I am often in the peculiar position of actively attempting to negotiate for the sale at the lowest possible price acceptable to the buyer! (But always with the caveat that this is in the seller’s best interest, and does not jeopardize the sale). This anomaly has many ramifications for the way I conduct and negotiate these transactions.

Price, Terms and Timing

Price: So how much will the lender lop off that price? I’ve generally found that as the day of auction approaches, lenders become more malleable. Pretty inefficient, because they loose a lot of time and money that way. I supplied the lender of The Willows property with objective material indicating that the drive-by BPO was inaccurate, given the condition of the house. The lender then had an internal BPO done. That was key to getting this particular deal done. I also sent off photos and comps of my own. In some cases I’ve sent the lenders well over 100 photos. Pictures speak louder than words, and it’s critical, when the property is damaged, that the lender understand the shape it’s in. Remember – the BPO realtor may be doing up to 50 BPOs a week – he could care less about this one deal. But as listing agent I need to keep the lender informed of all issues that coincide with my client’s best interests. The second Willows BPO came back at $100,000, and the lender initially tried to obtain that figure. Ultimately, with the foreclosure sale due to occur the next day, it reduced that amount to 80% of the $100,000 plus $5,000 to pay off non-mortgage related liens. At 4.50 pm the lender agreed to stop the foreclosure sale scheduled for 11.00 am next morning.

But hey, it ain’t over ‚til the fat lady sings! Because the loss on this loan was $60,000, and because the lender had authority to settle up to $30,000 only, we had to wait for final word from the mortgage insurance company, which we eventually obtained, but not without many hours additional work.

As you see, the price of The Willows property was determined by the lender looking at the bottom line – how much net it would receive. And in order to get this number, all lenders in short sales request a „fake HUD-1“ or a „net sheet“ submitted simultaneously with the offer. In a normal real estate transaction the HUD-1 is drawn up at the end of the transaction, after agreement is reached. – in a short sale the title search is performed immediately upon listing, even before there’s an offer, so that the figures can be applied to the net sheet as soon as needed.

Terms: The most common terms distinguishing these deals are that the lender often requires terms such as „sold as is“ and „proof of finance or funds required with offer“, and to protect the seller, the realtor should insert terminology indicating seller’s acceptance is subject to release from all liability for debt. None of this is carved in stone, and I’ve negotiated repairs and other concessions from lenders. Each case is unique. Paper will suffer any indignity – write the offer!

Timing: The REO, Foreclosure and Bankruptcy departments often appear to be understaffed and overwhelmed, so don’t expect instant responses. Some will take weeks to reply. Make sure the buyer and seller understand this. But once a deal is struck, the lender will often expect an unreasonably quick closing, and will attempt to penalize you with days interest for closing after a certain date. This all goes back to the net sheet calculations; because you have informed the lender how much it will receive by a certain date, it then attempts to hold the line at that date, even though they are generally very slow to respond. The Willows lender, after having not responded to multiple contacts, gave us just 2 days within which to close! Fortunately we well prepared, but it was very close.

Closing Note

The tax consequences of short sales fall outside the scope of this article. If you want info on how to handle competing offers, dual limited agency within this environment, or need a copy of the net sheet I use, you may contact me.

Update

Here’s a new twist. A couple of weeks ago I submitted a $235,000 offer to a lender on a short sale, (Seller owes about $275,000) which the lender ultimately accepted. However, in it’s acceptance letter, at the very bottom of the sheet, the lender stipulated that it retained its right of recourse against the seller/borrower (my client)! And this despite seemingly contrary language in the main body of the letter. I explained to the lender that the ONLY reason my client had agreed to the short sale (and not to jerk the lender around in the bankruptcy proceedings) was because he expected to obtain a complete release from all liability at closing. After a weeks or so of wrangling, attorneys etc, the lender „saw the light“ and agreed to the release.

CMA

Though the information provided is considered reliable, it is not complete, nor warranted accurate. Always consult your broker or an attorney.

Immobilienmakler Heidelberg

Makler Heidelberg

Understanding Motivations in a Short Sale Transaction

One of the key differences between successful investors and agents and ones that struggle (and a key factor in improving your successful closing rates) is quite simply putting yourself in all involved parties shoes and finding common ground. You need to think about the motivations of the bank or lender, the homeowner, the real estate agent, the buyer(s), and any 2nd lienholders that drive the decision making process. Understanding how these motivations conflict with each other will help you find common ground to get deals closed.

The Bank or Lender (Primary Lienholder)

This is it – the big kahuna. The bank has the keys to the castle, so don’t underestimate their motivations when it comes to a short sale transaction. The bank’s short sale decision making process is driven by a single factor – money. Remember – the bank’s ideal situation is that you continue to make your payments on the agreed-upon schedule. This ensures that they make the interest on the loan and get the balance paid in full.

Let’s circle back to motivation. What motivates the bank to accept a short sale offer? If you guessed Money, you are right! It’s a bit of an inverse situation though – banks get into loans expecting to be repaid the principal balance plus interest. In this case, you are asking them to take less money – and the only way that is going to work is by demonstrating that the alternative is even MORE less money. In other words, the burden of proof is on you to motivate the bank to accept your offer by proving to them that their financial position will be worse if they do not accept the short sale. This is typically done by carefully explaining to the bank what the outcome will look like if they go all the way to foreclosure, and then additionally proving that foreclosure is imminent.

So, let’s recap on how to motivate the bank –

  1. Prove that foreclosure is a more financially damaging than a short sale and back it up with evidence!
  1. Prove that foreclosure is imminent and cannot be prevented and back it up with evidence! ( A good  hardship letter helps)

The Homeowner

The homeowner is in a different situation. They are falling behind on their payments, are hopelessly underwater, and it appears to them there is no way out!

Similar to how the bank is mitigating their losses in a short sale, the homeowner also wants to mitigate the damage to themselves and their families. The motivating factor for a homeowner to pursue a short sale is getting themselves out of a bad situation that is going to get worse. The interesting thing about a short sale from a homeowner’s perspective is that, unlike a typical home sale transaction, the homeowner / seller really does not care any more about the sale price of the house. This is because they are already underwater – and to them, getting out of $50,000 or $75,000 really isn’t significant – it is the getting out that is significant.

The only time that changes is when the lender is looking for the homeowner to assume a deficiency judgment. In that case, the homeowner will still be motivated to minimize the loss, since they will be responsible for it after the sale completes.

Use the homeowner’s motivation to get out of their situation to get them to play their part in the transaction – including providing necessary supporting documents about their financial situation and a good, strong hardship letter. It is best if you can negotiate away any deficiency judgment (HAFA properties will automatically have no deficiency) to keep the motivation of the homeowner strictly on leaving the property – but recognizes this directly conflicts with the bank’s motivation – money. Our recommendation in this scenario is to try to work for the homeowner’s benefit – carrying a deficiency without having any asset to back it up is not a fun situation to be in.

The Realtor

Like any real estate transaction, realtors want to close the deal and make commissions (under the guidelines of NAR or other realtor ethics codes). It’s their job, after all!

A motivating factor for agents is most certainly the time involved in a transaction. Time is money, and many real estate agents despise working with short sales because (yes, it is true) they take more effort than a standard transaction. Being in the middle of a real estate transaction is enough work, now you have to throw in the multi-month bank approval process and due diligence phase and deal with additional red tape, for the same commission.

Motivating realtors, then, can be done by improving their processes or saving them time. If you are the real estate agent, then your motivation should also be to save more time. If a particular home nets you a commission check of $2000, and it took you 30 hours to make it happen, vs. 60 hours for a similar check on a short sale, you worked for half the rate on the short sale! ($66 an hour vs. $33 an hour, respectively).

How do we improve time? By building efficiencies and work flows into the process, especially for repetitive tasks. Short sale software is certainly one way to improve efficiencies. So is a simple spreadsheet. Another one is simply making win-win situations right off the bat by reading blogs like this and understanding how to meet the motivations of the parties involved in a transaction to improve both rate of a successful close as well as reduce the effort needed for each transaction.

Another motivating factor for agents is simply business. They just want business – quantity is important! Even if agents do not like short sales, the bottom line is being a successful agent in today’s market depends on understanding and working the short sale process successfully. If you want to have a good pipeline of work going, then you need to include short sales in your portfolio.

The Buyer

The buyer’s motivation is the same in a short sale transaction as a normal transaction – it is all about getting the best price! Whether the buyer is an investor looking to eventually flip the property or a family looking for a place to live, the price is what matters. Many buyers are attracted to short sales and are motivated to work through one despite the onerous timelines and red tape simply because they often represent a good deal.

We again have a conflict here – the conflict that in a normal transaction exists between the Buyer and the Seller, in a short sale transaction is between the Buyer and the Lender. In a short sale, the buyer still wants the lowest price possible, but this time the lender, not the seller, wants the highest price.

Like any other real estate transaction, keeping a buyer motivated depends on their needs. For a family, it might be demonstrating a property to be a good family home, in a good neighborhood, or demonstrating a great value. For an investor, it might be demonstrating the ability to improve the value of the property and resell it at a future point in time, or keep it and rent it out. In any case, there is really nothing unique with the motivations of an end buyer in a short sale transaction to differentiate from your typical transaction.

The 2nd Lienholder or Subordinate Lender

The second lienholder, if there is one, has the exact same motivation as the first lender – money. So the same rules apply. The only additional wrinkle with the 2nd lender is that their „loss“ in a short sale is typically much more than the first lenders. For example, a second lienholder may have a principal balance of $25,000 and only expect to recieve $1000 at closing – a measly 4% of the principal balance in such an example.

This is why the case needs to be ironclad that foreclosure is imminent (in which case, the 2nd lienholder would get nothing). The bottom line though: if there is any doubt as to the validity of the hardship, a $1000 check may not be enough to keep the lender motivated to accept the terms of the short sale arrangement. So it is doubly important to make your case well to these parties!

Keep the motivations of everyone in mind

The bottom line: when handling a transaction, you are effectively juggling the motivations of all parties involved in the short sale transaction. Keep that in mind when you are dealing with individuals, and you will close more deals and be able to find common ground when disputes occur quicker. Flexibility and some political posturing apply!

Immobilienmakler Heidelberg

Makler Heidelberg

Short Selling Contracts For Difference – Does the Uptick Rule Apply?

Short Selling CFDs or Contracts for Difference can provide some fast gains but it can also lead to some pretty unattractive results if you are not careful. Today we’re going to have a look at whether or not the uptick rule applies to short selling CFDs.

What exactly is short selling?

Short selling is where you are looking to profit from a fall in the price of the stock or commodity that you are trading. It requires that you sell the stock first before buying it back to close the position. To many new traders this is a very foreign subject and one that some people really struggle to get their head around. The good news is that it is actually very easy to short sell and Contracts for Difference have made the whole process that much easier.

What is the uptick rule?

Prior to CFDs launching around the world, traders who wanted to short sell a stock had to do that with a full service broker and the uptick rule did apply. The uptick rule simply means that to initiate a short sell position the stock has to rise before you can enter your position. So if the market was continuously falling without going back up (even 1 cent) then you would miss out on the trade. The mindset behind this is you shouldn’t be able to make a stock free fall even more, hence the uptick rule.

Trading CFDs has made the whole process that much easier. You don’t have to wait for an uptick and you can sell a stock that is rapidly falling in value, which makes it much easier to profit from.

For those who are struggling to get their head around short selling try to think of it as the exact opposite of going long. Normally you would buy a stock at $1 with the hope that it will go to $2. With short selling you are trying to sell it at $2 with the hope that it will go to $1. Your profit is simply the difference between the 2 points.

Immobilienmakler Heidelberg

Makler Heidelberg

3 Short Sale Scripts To Get The Listings You Want

When you are speaking with a prospect either on the phone or in person what you say makes all the difference. Saying the wrong sentence, word, or coming off the wrong way can destroy your conversion rate.

Short sale prospects should convert to a signed agreement 90% of the time provided you use the right scripts. Keep in mind there are a few items that you must avoid at all costs. Before we get into the short sale scripts let’s look at what to avoid.

„3 Phrases That Will Kill Your Chances of Getting the Short Sale Listing You Desire“

These 3 phrases will kill your opportunity so study them carefully. Also note that anything even remotely close to these phrases will cause the seller to have a negative opinion of you.

  • Why did you buy a home with a mortgage that had an adjustable rate? Did you know there were fixed rate options?
  • Is that nice car out there something that was bought with the money you owe to your second?
  • These pictures look like you went on some nice vacations I bet you wish you had the money from those back.

While these phrases might sound extreme even slight variations of these can lead to a sour taste in the clients mind.

With the above in mind to ignore and remove from your vocabulary let’s look at scripts that will set the client and ease and have them demanding to use your services.

„3 Short Sale Scripts That Have Clients Demanding to Use You“

  1. „Would you like to know the different options available to you to avoid foreclosure?“
  2. „Would you like to know how to avoid foreclosure and save your credit at the same time?“
  3. „How soon would you like to move from your property?“

Sellers who are considering a short sale want to know (and deserve) that someone cares about them. They do have options. Providing each seller with options allows them to choose you because you will be the only one providing them with the information they need to make a qualified decision.

Discover short sale listing letters that will generate listings for you in the next 72 hours @ www.ShortSaleMasteryProgram.com.

Immobilienmakler Heidelberg

Makler Heidelberg

Can I Represent Myself Against Foreclosure Fraud? Yes, It Is Called Pro Se: "By Myself"

„DON’T FIGHT THE PROBLEM… DECIDE IT“

„George C. Marshall“

Nearly all Borrowers who have contacted me about an imminent, or already taken place, foreclosure believed that it was imperative that they find an attorney to represent them in a court foreclosure action. For three years I believed the same thing. Many judges will suggest it so strongly that a borrower believes that it is actually a law, which it is not. But, it does make sense that we believe it. We see it on TV, in the news, magazines, and, of course, most attorneys will tell that you need an attorney

But, the reality is that this so-called mortgage melt down is so big and is rife with illegal and criminal behaviour that defies what most people regard as normal, there are few, very few, attorneys that can win for a borrower.

Attorneys, for the most part, are not familiar with the subject of Mortgage Fraud. Certainly not as familiar as they will lead you to believe I have resented this fact for a very long time. As I said, most of my clients have been advised by a judge or an attorney that they absolutely must have an attorney. They are right, except for one thing. Shouldn’t that read „they absolutely must have a Good Attorney?“

You are not better off with an uninformed attorney representing you.

Can you afford an attorney at this time? What if you think you are unable to pay an attorney? Should that automatically mean that you have no choice but to leave your home?

Well, there is another way. You don’t have to hire an attorney to start the fight to save your home. In my opinion you cannot win with 99.9% of the attorneys in your state anyway. If that is not true, then why do we hear so much about mortgage fraud and so little about the victims of mortgage fraud winning their cases?

The reason you don’t know what to do, is because trials and courts are not your areas of expertise. But, you can be strong if you get the right kind of help. You can do a lot of what an attorney should do at the beginning of the threat of foreclosure. You can do it as Pro Se, which means „I am representing myself“ if you have the right help and accurate information.

You can learn how to use your constitutional civil rights to force the courts to treat you in a fair way.

I now believe that finally you actually have the advantage. But, like anything new you must learn the rules to play the game.

DON’T MOVE FROM YOUR HOME WITHOUT IT BEING A FAIR FIGHT! YOU CAN WIN.

Immobilienmakler Heidelberg

Makler Heidelberg

Stage Your Home for "Yourself"

Many people have a horizon for when they’ll be selling their homes. It could be a year, two years, or five years. The family is growing and they need larger quarters… the kids are grown and they want to downsize… the home is too large as they get older… Florida is alluring… or whatever the reason. When the time comes to put the home on the market, they go all out painting, updating and replacing.

Why put all that money, time, and effort into the home for a new owner? Instead, put that money, time, and effort into a home you’ll enjoy for however long you stay there. When I’ve staged homes for clients who are getting ready to put their homes on the market, I’ve heard so many say, „I wish I had done that sooner so I could have enjoyed it.“ Don’t be one of those people.

Take a Good Look at Your Kitchen

An overhaul to your kitchen can be very costly, but there are a few small changes that will make a major difference.

• The least expensive thing to do is give your kitchen a new coat of paint in a color that works with the color of your counters and cabinets.

• Replacing cabinets can be expensive. If your cabinets are out of date or in need of re-doing, think about painting them and changing the knobs, handles, and hinges. That alone can make a big difference.

• Countertops can be another costly investment. If yours are worn or in need of replacement, think about going with a laminate instead of investing in granite or other high-end countertops. Laminates have come a long way in recent years; they offer a wide variety of colors and textures.

• Take all the clutter off your refrigerator door. A refrigerator door looks messy when it’s covered with your kid’s school schedules, magnets, photos, calendars, or anything else. Instead put these items in the inside a door, closet, or cabinet.

• Organize the cupboards and pantry. Remove excess stuff-you know the items you haven’t used in years and probably never will.

• Choose an attractive centerpiece for your kitchen table. Use a vase of flowers, a bowl full of fruit, a ceramic or glass piece, or anything else that appeals to your taste.

• Add a plant or two plants to liven up the room.

Now, Take a Look at Your Bathroom

The appeal of a lovely bathroom can remind you of a luxury hotel or soothing spa. You can create a taste of that in your bathroom.

• Any bathroom can be instantly transformed by adding beautiful, soft towels that you display decoratively. You can purchase a wall-wine rack, roll the towels, and place them where the wine bottles would go. Or you can roll a few towels in a basket with fragrant soaps, bath oils, natural loofahs, and candles to create a spa-like atmosphere.

• Clear off the counters. That includes toothbrushes, the jar of cotton balls, the roll of paper towels, and everything else that clutters the counter. (Instead of having everything on the counter, go to a store such as the Container Store where you’ll find all sorts of caddies, shelves, holders, and de-clutter items.) Get an attractive soap dish or use liquid soap with a dispenser for the bathroom counter.

• If your tub is old and worn and the tiles in your shower are no longer attractive, you can call a company such as Bath Fitter to install a new tub and wall right over the old one. Bath Fitter claims to do the installation in just one day.

• Mirrors often de-silver after years in the bathroom. Replace them, perhaps with mirrors with a lovely frame.

• Replace the faucets, knobs or door pulls, and towel racks for an updated look.

• Include a vase with flowers, pussy willows, or leaves. Either pick them from your garden or get silk ones.

In and Around the House

Take a look around your home to see what else you may be able to update or redo:

• If your wooden floors are worn or dirty from all the years of walking on them, it’s time to have them sanded and coated with polyurethane.

• If your carpets are stained or no longer look clean, it may be time to have them professionally cleaned or replaced.

• If your wallpaper is peeling (and that generally starts at the seams), it’s time to remove the paper and re-paper or paint?

• If your walls are full of fingerprints from the kids or the paint isn’t looking fresh and clean, it’s time to repaint.

Look Outside

• If shingles on your roof are coming lose, it’s time to have the roof looked at and perhaps redone.

• If your driveway has excessive cracks, it may be time for a topcoat or more.

• If you have shutters, make sure the paint is fresh and the shutters they’re attached firmly to the house.

• If your shingles or anything on the outside creates an eyesore, take corrective action.

Immobilienmakler Heidelberg

Makler Heidelberg