Real Estate Information

Courtesy of New Castle County DE Realtor Tucker Robbins.

Short sales can represent interesting investment opportunities but keep in mind they are not a typical transaction. The owners will be getting exactly zero out of selling their home – but they might be preventing a foreclosure damaging their credit even more. The short sale lender will be getting less than the amount of the mortgage out of the sale – sometimes considerably less. You write up an Agreement of Sale, the sellers agree, but now the hurry up and wait game starts as you await the short sale lenders response/approval. Even so, there are things you need to know on the way in:

1. You will have little or no control over the transaction and at times there will be frustratingly little information on what is happening. The short sale lender will only deal with the buyer or the buyer’s short sale negotiator. You, your realtor (we of course recommend The Robbins Team), or your attorney will not be able to get any information from them directly. You will need patience.
    
2. Short Sale Purchases are not automatically a good deal. Sometimes it is amazing how difficult some lenders are at reconciling their valuation with real market value.
    
3. The experience of the short sale negotiator is a factor. When they present a preliminary HUD-1 to the short sale lender it must be substantially similar to the final one. Home Owner Association dues and sewer/water bills, for example must be included. If unexpected expenses to the short sale lender come up shortly before settlement, they can kill the deal. There are several commercial entities in our area that specialize in short sale negotiations, but they normally charge around 3%. This fee is paid by the buyer (usually offset by including 3% settlement help in the contract of sale).
    
4. Potentially there is very little seller motivation – they are not getting anything out of it.
    
5. Short sale lenders can change the terms of the contract, but you, as the buyer, are not obligated to accept the changes – think of it like it’s a counter offer.
    
6. Other offers can come in after yours has been submitted to the lender – creating an auction type situation – depending on which short sale lender is involved. You will have no recourse if the lender accepts another offer – unless you put in the contract wording that “Until this offer has been responded to, the seller will not consider any offers within the short sale approval period”. The problem is the buyer cannot back out until either the short sale lender rejects the offer or the short sale contingency date has passed. Some short sale lenders will strike such clauses.
    
7. Some short sale lenders (Nationstar Mortgage is the only one I am aware of, but there could be more) will actually put your offer in an online auction for 2 – 3 months to see if they can get more money. I would also avoid Ocwen Financial.
    
8. Under the home inspection contingencies “within 10 business days of short sale approval all utilities will be turned on” is a good clause to add for your protection. You want the utilities to be on for you home inspection.
    
9. Be sure you understand that in spite of home inspections, the property is really being sold “As-Is”. Even though the contract might not say that, the home inspection is defacto “As-Is”. The seller will likely not do any work and the short sale lender practically never does. The main purpose of the home inspection is to find out what is wrong with the property and decide if you want to go forward. If you are getting an FHA or VA mortgage be aware they have no escape clause for repairs. There are times that buyers will have to do required repairs at their own expense in order to satisfy FHA or VA mortgage inspections. FHA and VA financing requires they must be done before settlement and they don’t allow escrows. If you are going to do repairs before settlement, be sure you have approval to do such and be aware that if you do not purchase the property, there is basically no recourse to recoup the repair investment.
    
10. If the seller has a USDA mortgage, the USDA does not release the seller from a deficiency amount until after settlement in spite of the seller having a short sale approval from the bank.
     
11. Settlement Statement Approval – the seller’s mortgage company can have different requirements as to how different expenses are shown on the settlement statement than how the buyer’s mortgage company wants the expenses shown. This can cause delays in settlement.
     
12. Many times the seller must be delinquent on their mortgage before the lender will even consider a short sale. This can delay the process even further if you have to wait until the seller is delinquent for several months before starting the short sale process. Some lenders will even require the seller to go through a class before they can start the short sale process.
     
13. Short sale lender approvals for people selling investment properties are much more frequently not approved.
     
14.  When the short sale is approved, the deficiency (the difference between what is owed by the seller and the amount the short sale lender will actually receive) can be an issue. It can go to the seller in 3 ways:
    1. Excused (Obviously seller preferred – though it can have tax consequences, where the IRS treats the deficiency as income, but congress passed laws that prevent that – but they haven’t been extended yet to cover 2015).
    2. A note (where the seller will make periodic payments to the short sale lender after settlement to cover some percentage of the deficiency).
    3. Left as an open issue (The short sale is approved but the short sale lender don’t say what happens to the deficiency – a somewhat scary situation for the seller)
        
15. If it is a HAFA mortgage company, the process provides any 2^nd mortgage holder must also approve the Short Sale.
     
16. The settlement might never happen. The seller could abandon the deal. The buyer might find another property or run out of patience. The short sale might not be approved. A vacant property (especially one without power) could be damaged or vandalized.

By Tucker Robbins, Berkshire Hathaway HomeServices
(302) 777-7744 | Tucker@RobbinsRealEstate.com

Kitchen cabinets can be painted (if they are wood and in decent shape). Many times the cabinets themselves can be reused; it’s just the doors and drawer fronts that are tired. If they are too far gone to paint, or you just don’t want to do it, new doors and drawer fronts (refacing) can be found at the Taylor Cabinet Door Company (www.taylorcabinetdoor.com 800.852.7087). Don’t forget to get the new soft close hinges to replace the old ones. You can then install doors and fronts or hire a contractor to do the job. Taylor says it usually runs about $15 an item to get installed. For example, a good sized kitchen with 30 doors, 16 drawer fronts, and 4 false doors in painted maple (with accompanying hinges) will cost (uninstalled) around $3,800, another $300 if you want a glazed finish. There are also plenty of different woods and panel styles available. Plan on about a month, however, to receive your new custom fronts.

Cabinet door and drawer hardware – just surf the internet. There is a lot of cool stuff out there. Even Home Depot, Lowes, and IKEA have big selections.

Counter Tops – Granite is still in fashion and prices have fallen, but some of the newer materials are also gaining popularity. Quartz and silestone are less porous and just as heat resistant. Stainless steel is gaining favor. Laminates, tile, and concrete are losing popularity. Corian and wood are once again gaining popularity on the west coast – but not here in Delaware yet. It’s hard to go wrong with a decent granite and an under mounted stainless steel sink. I also really like the hands free kitchen faucets. Shop on the internet and you can find them substantially discounted!

Lighting – It’s time to get rid of the old brass bar lamps. There are a wide range of new fixtures out there that will grace any kitchen.

Appliances – Brushed stainless and nickel are the choice of the moment. Just don’t get ones that show fingerprints or discolor with heat (read reviews on the appliances you are considering). Not all expensive appliances are worth the expense. If practical get a gas cooktop/range. Obviously you need a dishwasher and refrigerator, but forget the trash compactor and maybe the wine cooler (or maybe not, they are kind of cool).

Flooring – Hardwoods and Tiles seem to rule the floor. There are plenty of exotics from which to choose from but don’t go overboard.

Backsplash – Options include tile and, well, tile. I recommend the tile!

Information courtesy of New Castle County Realtor Tucker Robbins.

You have just found out that you have been approved to buy a new home.  I am sure you are super excited as this is one of the most exciting times in your life.  I would suggest that you slow down your excitement just for a moment to consider the following warnings before you begin your search.  Once you have taking time to breathe in and out for a moment and have taken into consideration all that may come your way, get ready to have a great time searching for your dream home! Below are a few warnings for potential home buyers and tips on how to handle these warnings. 

• Buying a fixer upper may be more expensive than you can afford.  If you do decide to go the route of a short sale or  foreclosure  be sure that you not only have the funds needed to do so, but that you have a lot of patience as well.   If you are someone who has patience and you are willing to wait a while, you may find that buying a home that is being sold as a short sale or a foreclosure to be the way to go if you want more for your money. 
   
• Don’t ignore issues that a home inspector finds.  If the home inspector finds issues with the house that are going to cost you a lot of money out of pocket to fix, you may want to consider negotiating with the seller for covering the cost of these issues.
   
• If you see issues while touring a home, always point it out to your Realtor and ask them about it.  If your Realtor is a good and respectful Realtor, he or she will take the issue seriously and will talk with you about the next steps you should take if you are interested in making an offer on that particular house. 
   
• If the home you are considering has had additions in the past, make sure to have these additions checked out to make sure they are up to code.  You can check with the county that the home is in to look over the work permits to make sure things were done correctly and to ease your mind. 

Once you get all of your questions and concerns addressed, you will then likely feel more comfortable moving forward with making an offer on the home of your dreams.

If you are in the market for a new house, don't be scared to attend open houses.  As long as you go armed with the knowledge of what might be asked of you at an open house you should be ready to answer without worry or hesitation. Keep in mind that Realtors who hold open houses are not like used car salesmen, they are there to help you find the home of your dreams. Be polite and remember your open house etiquette when touring an open house. 

• You may be asked at an open house how long you have been looking for a home.  This question is only asked to find out just how serious you are about purchasing a home and in what time frame you are planning to do so.  For example if you have already been looking for a few months then you are most likely more than ready to hone in on exactly what type of house you are looking for.  Be very specific with your answer to this question.
   
• Another question you may be asked at an open house is if you already have an agent you are working with.  This question is asked because the Realtor wants to know if they can represent you in your search for a new home.  You may be asked who your agent is if you already have one.  Don't hesitate to give out names because all the Realtor wants to do is call your agent for feedback instead of bothering you with such things.  By answering this question you are keeping yourself from having to give out any of your own personal information.  This way you have a buffer between you and the Realtor who is holding the open house.
   
• You may be asked if you are looking to buy in the specific neighborhood in which the open house is being held.  The Realtor is not trying to get all into your business by asking this question, he or she is just trying to find out if you really are serious about making a home purchase and what area you are interested in.  Just be honest with your answer, there is no right or wrong answer here. 

The main thing I would suggest to you when attending an open house is that you go in with an open mind.  Be willing to open up and answer any questions you might be asked with a clear honest answer.   You never know you may just be walking right in to your new dream home!

Military families are going to like what the Obama Administration has been up to lately.  A new agreement was made last year to lower the mortgage payments of those who fight for our country.  The agreement was made with five of the nation's largest mortgage lenders; Wells Fargo, Ocwen Loan Servicing, CitiMortgage, Bank of America and Quicken Loans. 

These new lower mortgage payments are going to help military families in the following ways:

• Give military families a little wiggle room when it comes to paying their bills
• Aid military families in being able to fight for our country while providing for their families back home
• Make military families aware that this type of help does exist and is available to them

Some military families are not aware that help from the government to lower their mortgage  has been in place for some time.  This new service will help every military family to know that it is available to them and will also make it much less of a hassle for them to receive. The big banks and financial institutions will now be notifying service men and women who qualify for lower rates.  These institutions will also make it very easy to enroll in the program.   

It is expected that thousands of military families will benefit from this new program.   It will be so nice for those who are serving us in such an honorable way to receive back a little from the government and for more military families to be able to own their own home.  Not only that, but many of these military families who take advantage of the governments help to lower their monthly mortgage payment will also be able to send their children to college or even be able to put some back to retire on. 

I personally give the government two thumbs up for this new assistance to military families.  It is a perfect time to show those who fight for our freedom just how much they are appreciated. 

Along with the hard hits, the heartache and exhilaration, football is about getting people together —even if they don’t always root for the same team. If you’re one of those fans who made several mock drafts of your ideal fantasy football team or have the stats of your favorite players memorized, chances are you’re also gearing up for some serious tailgating this season. 

While everybody loves a good sofa or recliner, nothing captures the spirit of the game more than tailgating – where people gather, eat, drink and get ready for some football!  

Whether you are a fan of football, crazy cheers or delicious dips, tailgating has something for everyone. Don’t get sidelined this season, keep it simple with these tailgating tips to cover everything you need and nothing you don’t for a winning season.

1. The game plan. Tailgating is all about planning and having everything you need and nothing you don’t. An easy way to make sure you don’t forget something is to make a reusable, laminated checklist. That way you can easily check off everything you have with a dry erase marker then wipe it off and be ready for the next game.

2. Keep a variety of plays in your meal plan. In a world of changing diets and allergies, a good tailgating menu is about more than just burgers, brats and buns. Be prepared to please all of your tailgate guests by incorporating delicious health-conscious side dishes along with your tailgate go-tos.

3. Huddle up. Remember, you’re the host of your spot in the parking lot, and it’s your job to keep people together and keep them comfortable. It’s a good idea to have a stash of blankets and raingear tucked away in your vehicle. After all, there’s always going to be one person who forgot their coat.

4. Instant replays. Social media lets you share your tailgating fun with friends and family near and far. With apps galore you can snap and share pictures, text your post-game rendezvous point and check in on other scores. 

5. Don’t get sidelined. Keep the play and your social media updates in motion with touchdown cell phone service.

6. TP is for more than “team player.” Even if you think you have the most important things checked off your list, far too many people forget one of the most important items: toilet paper. Just because there’s a porta potty doesn’t mean there’s toilet paper. Keep your tailgate buddies covered by packing a few rolls.

7. Tackle the trash. Tailgating is fun but cleaning up, not so much when you have a game to watch! Go green and keep things simple by bringing real dishes and silverware. When everyone is done, place the dirty dishes in a tub in your trunk and hose down when you get home. After all, you have a game to watch!

Keep these tips in mind and you’ll be well on your way to the best season yet! (BPT)

If you’re considering a household painting project, now’s the perfect time. The summer’s hottest days are in the past and winter’s frigid temperatures aren’t even on your radar. Whether you plan to paint your kitchen, a hallway, outdoor siding or a refurbished piece of furniture, keep in mind a few helpful tips to make your project flow a little bit easier.

1. Patch holes and imperfections. For better or worse, painting a room allows you to examine all of the walls and find any imperfections in need of repairs. In most cases, these dents can be repaired with a caulk or a putty knife and some spackle or joint compound. Whatever repairs are in order, they should be done a few days before your painting project begins, to ensure that everything is completely dry when it comes time to paint.
    
2. Prepare the area before you paint. Proper preparation is key to ensure less frustration later on. First, remove draperies, pictures, switch and outlet cover plates from walls. Second, wipe off any dirt or dust from walls and baseboards with a damp cloth. If the area is highly contaminated, use a mild detergent. Lastly, tape off any woodwork, windows and trim. Using a strong, long-lasting painter’s tape can ensure your beautiful baseboards and your woodwork are protected, ultimately making them stand out.
    
3. Find the right finish for the job. Consider the amount of dirt and activity your walls will be exposed to before choosing your paint sheen. Flat or eggshell sheens should be used in low-traffic areas, because they hold dirt and are more difficult to clean. Semi-gloss and gloss finishes are best suited for high-traffic or active areas, such as a child’s bedroom, because they can be easily washed without losing their luster.
    
4. Choose a durable paint. If you’re looking for a paint that can stand up to the daily wear and tear that happens on the inside and outside of a busy home.
    
5. Work from the top down. If you’re painting a room, start with the ceiling first. If you’re painting another area or structure, begin with the highest point.
    
6. Use the proper brush or roller technique. When utilizing a brush for tight trim work, dip half the length of the bristles into your paint, then gently tap the brush on the side of the can rather than wiping it across the lip. Be sure to hold the brush handle near the base to ensure maximum control, applying light pressure to the surface being painted. When using a roller on larger surfaces, slowly roll the brush into the paint tray, ensuring an even coat on all sides. Use the ridges in the upper portion of the tray to remove excess product, then paint the surface in a capital “M” motion. Continue this motion until the area is completely covered.
    
7. Keep your workspace ventilated. This season’s temperatures are perfect for a do-it-yourself (DIY) project so take advantage of it. If your project has you painting indoors, open the windows and allow a fresh breeze into your painting space while you work. And when the project is done and your paint has dried, keep the windows open for a few hours to ensure your new room looks as great as it smells. If your project has you painting outside, make sure that the weather forecast is clear for a few days so that your newly-painted project has ample time to dry.

Whether this is your first painting project or you’re a seasoned do-it-yourself painter, there’s something exciting about picking up a roller and recreating a space with a fresh coat of paint. (BPT) 

New Castle County DE Real Estate Market Watch for July 2015.

Information courtesy of New Castle County DE Realtor Tucker Robbins.

According to a DexOne Corporation survey, as reported by CT Power Team, “42% of Americans say that their mortgage is the debt they most want to eliminate.” That is a completely understandable goal when you consider the savings. The important question is "How can I do it?” Here are some examples…

• Increase your monthly mortgage payments simply by adding a fixed amount to your required payments. The easiest way to do this is to use an increase in your income from time to time to increase the amount of your mortgage payment. Doing that does two things for you...

1. It decreases the amount of principal owed by a larger amount each month.
2. The following month, after making an increased payment, you pay less interest because of the larger decrease in the principle.
   
   The combination of the above two changes results in paying off the mortgage in less time than originally scheduled and you will pay significantly less total interest.

• Make additional payments on the principle at any time if you can’t increase your regular monthly payment. You can do this anytime you have a little left over at the end of the month, or you get a bonus at the end of the year, or you receive a gift. No matter how much, or how little, you pay extra it will decrease the time it takes to pay off the mortgage. That means you will save interest.
   
• Refinance with a shorter-term mortgage if you see the interest rates come down. Just keep in mind that refinancing means spending money on loan closing costs. Only consider this if the interest rates are lowered enough to justify paying closing costs. Otherwise, you can always choose to keep your original mortgage, but increase the monthly payment as outlined above.

Here’s just one example of how paying off early works…

Let’s assume you are paying on a 30-year mortgage for $200,000 at a 5% interest rate. If you pay off the mortgage in 30 years, you will pay $186,512 in interest. If you pay off that same mortgage with even payments over 20 years, you will pay as little as $116,779 in interest. That’s $70,000 that stays in you pocket!

Visit bankrate.com for more in-depth information. Also, use their online mortgage calculator. You will never regret paying off your mortgage sooner then planned.

Information courtesy of Wilmington DE Realtor Tucker Robbins.