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The bank can also forgive
debt that you owe. You are thinking this would be great – right? Well there is a catch- if they do this they will send you a 1099 for difference for unearned income. I witnessed a seller get a 1099 for unearned income for remainder of debt that was owed for over $67K!
Many of these scenarios would not happen if people would just not overpay for their property to begin with. What about Realtor? I hear you ask. The realtor’s job is to sell houses. That is what they are there for, they sell. They will rely on you and your inspector to look things over. When you go get a loan, loan officer’s job is to sell loan to you. When they call appraiser, their job is to see that appraisal comes in enough to support purchase price. In some States, Law requires for appraisers to even see contract. So, appraiser knows up front what house should appraise at and they will search for comparable home sales that will support your purchase price. This does not mean that your house is worth what they say. I have seen 2 appraisals on same house come back with a difference of over $90K!
So how can you know? Here are steps that I would take: 1.Drive neighborhood that you are looking in. 2.Write down all names, addresses, and phone numbers of all properties that are for sale. 3.Find out following: ·The age of home ·The condition ·The price that they are asking ·How long it has been listed on market ·Feature of home 4.Go to courthouse and look at tax assessor’s value. This is usually a little low but will give you a ballpark figure. Look at other properties tax value and compare them all with amount of land, square footage, buildings, etc. 5.Compare homes to one you are looking at. 6.Go in and look at everyone of homes that are listed 7.Make note of everything that other homes have that yours don’t. 8.Look at how many days home has been listed. This part can be tricky. On all data sheets of homes that realtors list there is a section in top for DOM (days on market) that tells you how long it has been listed. Now, if seller only signed a 90-day contract with realtor to sell home, after 90 days this number is reset. Point blank ask realtor to find out how many TOTAL days has this house been listed. If you see that home has been listed for over 120 days, there may be a chance that they are asking a little too much for property. So keep this in mind when making an offer. 9.When making your offer, you want to figure in, if you were forced to sell in 6 months, what would you be able to get out of home? When you calculate this figure consider following expenses: a.4- 6 months of mortgage payments b.4-6 months Utility c.4-6 months of insurance d.6 % commission to a realtor e.Closing Fees f.Advertising Cost if you do not list with a Realtor g.5% - 10% discount. Rarely do people pay full asking price, so count on taking at least a 5% discount.
10.You can also hire another realtor to do a BPO. This stands for Brokers Price Opinion, very similar to an appraisal without expense. You typically can get a realtor to do a BPO for $50- $75. When you do this, get a realtor from a totally different organization. Usually Realty companies have 1-2 people allocated to do these BPO’s. 11.Now make your offer according to your research that would support you and your family. I once heard that when you make an offer if you are not embarrassed by offer, you may be offering too much. I don’t know if this is true, however it is something for you to consider and think about when you are constructing offers.
The reason that I wrote this is because I felt obligated, compelled, and duty-bound to offer advice that I have learned from years of buying and selling homes. I have seen good markets and bad markets; these are same methods I use to make sure that I am not overpaying. After I met with lady that over-paid for her property that I mentioned earlier, I felt responsible to educate market on how anyone could easily get into this situation and how you can avoid it with a little bit of research.
Now you can stop your home foreclosure.
Free Report Tells you "How to Win The War Against Your Lender and stop Foreclosure!" at http://www.48hourclose.com
John Davis owns 48hourclose.com: a website devoted to helping families that are facing foreclosure.
