Posts Tagged ‘seattle real estate’

Seattle home buyers – If you have found the house of your dreams and are curious if there is an old oil tan on the property, feel free to check. 

It is a smart move as part of an inspection or even prior to making an offer on a property to see if there is an old oil tank on the property.  To find out call King County Department of Development and Environmental Services at 206-296-6600. 

For information about having a tank decommissioned you can check out their web site at:

http://www.kingcounty.gov/property/firemarshal.aspx

The county only has records that go back about 12 years, but if they have information it is good to know if a tank has been legally decommissioned or just rotting somewhere on the property.  Decommissioning doesn’t mean that it has been removed necessarily.  Decommissioning can mean cleaning and capping and then just leaving it in place.  Generally there is no harm to the environment if they have been properly decommissioned  and certified by the county.  It is a good thing to know however.  More information is always best when buying a home.

Popularity: 8% [?]

I received the following info from a mortgage rep I work with.  Looks like FNMA is changing the rules again. 

PS – If you need any help with a mortgage.  Lance Morgan is a great resource.  He is the one who sent me this info.  His contact info is at the bottom.

Here is the info:

Timeline:
Effective with all applications dated June 1st and after.
Summary:
FNMA is requiring the implementation of their Loan Quality Initiative. 

• Requires a more comprehensive review of the initial credit report for alerts to confirm customer identity.
• Second review of Customer credit prior to funding to ensure there are no new liabilities that could affect qualification for the loan.

Impacts:

• Lenders will now need to secure signed letters of explanation for all credit inquiries showing on the credit report.  (The letter can be signed by the Customer at closing).
• The Lender will run a second credit report on the day the file is being prepared for loan documents. The second report will not update credit scores. 
• Changes to the total debt ratio that exceed 2% will require a lender to update the credit information and rerun the approval.  This could change the approval decision.  Any new inquiries that did not show on the initial credit report will require another letter of explanation from the Customer.

To Dos:
Let your Customers know about the new credit requirements and carefully coach them not to increase their debt during the mortgage transaction.  It is HIGHLY critical that once a borrower applies the DO NOT use credit cards, lines of credit or apply for new credit.
I will continue to counsel my buyers about such changes and I want you to be aware because I can foresee this being an issue especially with lenders who lack in the communication department.

Lance Morgan
Branch Manager/Mortgage Consultant
Windermere Mortgage Services Series LLC/WRE
Serving: Lake Forest Park and Wedgwood
425.478.6412  Cell
206.306.9483  Office
206.306.9463  Fax

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Rob Graham, Seattle Home Buying Expert

Windermere Real Estate

206-321-6349

www.robgrahamrealestate.com

robgraham@windermere.com

Popularity: 13% [?]

So in my last post, I explained the difference between short sales, distressed properties, foreclosures and bank owned property.  Still confused?  Don’t feel bad.  There are many agents who don’t know the difference either.

Short Sales however are when a seller is trying to sell a home but will not make enough money from the sale of the home to cover what is owed on the mortgage and the closing costs of the sale.

In this situation the bank, who is going to take a loose on the sale, needs to approve the sale.

I am sure you won’t be too surprised to find that when big banks get involved, the situation gets complicated.  In fact I have found that the bigger the institution generally the slower the process. 

Getting bank approval can take anywhere from a few weeks to several months. 

You make an offer on a short sale home the same way you would any other home.  Since the seller is not going to make any money on the sale anyway, they are more then happy to accept almost any offer.  The offer then needs to be forwarded to a bank.  Where it generally sits for a long period of time.

In the eyes of the bank they are in no hurry.  The longer they wait, the longer time for a potentially better offer on the home to come in is and the more time the owner has to come into money and decide to not sell. 

In my experience the entire process takes on average 4-5 months.  During that time you will not hear nay information from the bank at all.  Your buyer’s agent can not contact them either.  It is like you sent an offer off into the wild blue yonder. 

It can be very frustrating.

The banks almost always have the following rules in effect.

1. The bank will not make any changes to the home.  You are free to do an inspection, and should, but unless it is a major item that will prevent the sale of the home, they will not fix anything.

2.  The bank reserves the right to receive and consider any and all additional offers that may come in on the home.  Short sales tend to be priced somewhat low and get a decent amount of attention.  If another offer comes in, it gets forwarded to the same committee and we all wait for a decision. 

Again, very frustrating and time consuming.

3.  The bank reserves the right to change it’s mind and the components of the offer at any time.  The agreement to sell is between you and the seller, but the bank has the right to refuse to allow the sale for any reason at any time. 

It isn’t uncommon for the rules to change and a buyer to have to come up with additional cash after a previous deal has already been approved. 

The bottom line is that short sales are long, frustrating, and cumbersome.  The bank holds all the cards.  Despite the fact that it is them that wrote a bad loan and the market that is dictating the price and their client who is forced to sell, they will hold you over the fire to get as much out of you as they can.

If you have the stomach for it, you can get a great house at a great price.  The financial problems of the previous owner are no longer your concern after close and the bank has no more claim to the home.

Still, short sales are not for everyone.  I have had many clients try and change their minds against short sales.  Those that have seen it through to the end, are split about 50/50.  Half say they would never do it again, and half feel it was worth it.

Hope it helps.

Give me a call if you need help.

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Rob Graham, Seattle Home Buying Expert

Windermere Real Estate

206-321-6349
robgraham@windermere.com

www.robgrahamrealestate.com

Popularity: 3% [?]

Here is a great video explaining the expansion and extension of the current first time home buyer tax credit.

Give me a call if you need help!

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

robgrahamrealestate.com

206-321-6349

Popularity: 3% [?]

Ok, so we all agree that the end is in sight if not passed.  The economic climate is improving and home prices are bouncing around the bottom.  Winter is traditionally a great time to buy a home in Seattle with less competition and generally lower activity.

 Right now is a unique opportunity for some, but not for all. 

So who should be buying a home right now?

Here is the unique situation we are currently in:

• Homes overall in Seattle have come down 22% since the highs of 2007
• Interest rates while not at their lowest are still WELL below there 20 year average and near record lows
• First time home buyers as well as Repeat buyers who have owned for more then 5 years are in line for an unprecedented tax credit of $8,000 and $6,500 respectively.

So who should be buying in this environment and who shouldn’t?

As a general rule, anyone upgrading is in great shape. 

If you are currently renting or are in a smaller home and plan on buying something

more expensive, now is the time to pounce!

Why?  If you are a first time home owner you are not likely to see a better scenario.  If you are upgrading, you will see less profit from your current home. but the discount you are getting on the larger home, more then offsets the loss you will take on your current home.  This is even further exaggerated when you consider the tax credit and low interest rates.

If however you are downsizing or considering a move to a smaller home, now may be the worst time to make a jump.  If you can avoid it consider staying put or renting out your current home to avoid taking a loss until prices rebound.  Be advised however that if you are expecting a quick jump similar to what we have seen in the stock market, you will be disappointed.  Home prices should not get back to their 2007 prices for years to come. 

Plan accordingly, good luck, and give me a call if you need anything.  Happy New Year!

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Rob Graham, Windermere Real Estate

Your Home Buying Expert

206-0321-6349

robgraham@windermere.com

Popularity: 3% [?]