A few weeks ago, I attended a 2 day seminar in Lansing.

The first day was all about loan modifications, the government programs that are meant to help like the Making Homes Affordable Programs, as well as HOPE, HARP, HAMP and HAFA programs.   I wouldn’t say that I am an expert at these programs, but I can honestly say except for the instructor, I know more about them than anybody else that I have ever met.

The seminar was a wealth of information, and I am looking forward to helping clients SAVE THEIR HOMES!   I have done some more research and partnered with the Stop Foreclosure Institute to have access to their help and resources!   Check out the website:   www.westmichigansfi.com

If you or someone you know needs help, please call!

Probably the coolest feature that I have on my website (aside from this blog) is the HOME VALUES button at the top.

 If you click it and then put (almost) any address in the ENTIRE COUNTRY in there, it will show you a map with all of the surrounding homes that have actually sold recently AND the prices they sold for.   I think the best part is that it works for the entire country.

With home values being down so significantly, you never know what a home is going to sell for by just looking at its list price.   I’ve seen homes so overpriced by today’s market that they will never even have anybody go through them…but you never know-until NOW!

 It is still important to look at other factors, and I would be happy to help you come up with a more accurate estimate of your home’s value, but it get’s you in the right ballpark.

The past month or so has been heavy with home buyers…I believe there are a couple of reasons for this:

1) It is spring.   Typically in the spring time, there are more buyers.   I don’t know if it is the fresh air, the green grass, the warm weather, but it is home-buying season.

2) Pent up demand.   The end of last year was very, very slow.   When the stock market crashed in September, it was as if a great big giant switch was flipped and nobody was buying homes except if they were priced dirt cheap!

3) $8,000 tax credit.   First time home buyers, or someone who hasn’t owned a home in 2 years are being offered $8,000 to USE FOR THEIR DOWN PAYMENT!   This is a big one.   When it was first introduced, it wasn’t to be used for a down payment…now it is  and it is having an impact.

Now is the time to sell if you need to…don’t wait for the end of summer!

Well, I actually have a Masters from WMU in Engineering Management, if you would like to take an IQ test I am game…

The biggest reason is that you don’t know, what you don’t know.   I have been through the home buying process over a hundred times the past couple of years…you probably haven’t.   I have learned that each transaction is different and if you aren’t careful you could end up paying a lot more than a commission.

It is important to word the offer in such a way that it looks out for your best interest.   In addition, making sure inspections and deposits are made and accounted for, a title policy is ordered and examined are important.   There  are also addendums, liens and a HUD to make sure there aren’t any erroneous or inappropriate fees that are being charged…along with a boat-load of other minor things that could make a huge difference.

The best/worst example of this is that a home buyer was working with my mentor a few years ago.   He spent months working with them to help find a home.   One evening, he received a message that they had made an offer on a for sale by owner home.   He offered to help take care of the paperwork and make sure nothing went wrong, but they wanted to avoid a couple thousand dollars in commission so they said no thanks.   A few months later, my mentor got a call from them, the woman was in tears, she said that they just received a bill from a bank for over 40 thousand dollars.   It seems that the sellers of the home purchased a title policy 3 days before closing and then bought a truck and jet ski and attached the lien to the house over that time.   The new buyers were on the hook for over FORTY THOUSAND because they owned the home!   I am not sure whatever happened, but in today’s economy, there is more and more of this stuff going on.   A Realtor is meant to look out for your best interest in a better way than an insurance policy because we help you to avoid bad situations all together not just cover you when they happen.

There are 2, but they are way better than the alternatives.

1) There is a hit to your credit.   I have heard that it is about a 200 point hit to your credit report, and that it will take about 2 years to repair.   It just depends where your credit is at before, and how hard you work at repairing it.

2) There is also taxes that may be owed on the difference that they forgive.    I’ve been told that a  good accountant should be able to get you out of any difference that you may get taxed on…but you will not be taxed on any amount that was used to buy, secure, and improve your home.

The alternatives are foreclosure and bankruptcy…and of course doing nothing.   However, doing nothing also means that you agree to  pay whatever you owe for  your current house  and in today’s market it may not even be anywhere close to that amount.   Although short term, you may think it is alright, but in  2 or 3 years when something prompts you to sell, you will still be in this situation(or have paid significantly more money  to pay down your principal) and will have to wait another 2 years to recover from the short sale at that point.

A short sale is an OPPORTUNITY!

When a homeowner is ‘upside down’ in their house and they owe more than their home is worth, their options are typically limited if they want to sell. They can:

1)   List their home for what they owe-which is also more than it is worth-and it won’t sell; because nobody will pay more for a home than it is worth…EVER!

2)   Sell their home for what it is worth-but that usually means bringing a sizable amount of money to closing to cover the difference of what is owed and closing costs and Realtor’s commissions.   Most people don’t have huge piles of cash for this to be a viable option.

3)   Persue a short sale.   That is when a short sale specialist (like myself) works with  their lenders to negotiate a settlement on  their account.   How it works is simple.   It is  lengthy but simple, it usually takes 4-6 months.   We market their home at market value and begin negotiating with the lenders for them to accept fair market value for the home and FORGIVE the difference AND all of the closing costs and commissions!

 That is right, most short sales that I have done, the seller has had NO out of pocket expenses and their debt is forgiven.   Talk about a relief!

In-fact, on Wednesday I just closed on a home with my sellers and  I got their  bank to forgive over $85,000 in debt.   They did have to bring in a check, but it was  for less than ten bucks.  I think I will be on their Christmas card list for a long time.

 For more information, check out this webpage: http://www.tomsmolinski.com/rightsideup.asp

Creating a blog has been something that I’ve been procrastinating for a long time…it requires an active time commitment to do it right.   I believe if something is worth doing, it should be done right.  

If you have any questions about anything real estate related, please email me your question, it will be posted along with an answer.

I plan on updating my blog at least twice a week.

Welcome to Tom Smolinski’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Holland.