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The truth about loan mods

By Tara-Nicholle Nelson, Monday, January 5, 2009.

Q: When I'm driving to work, it seems like every five minutes I hear another advertisement for loan modification services on the radio. I'm not behind on my mortgage, but it is set to adjust next year -- will my mortgage company actually work with me to stop that from happening? I'm also upside down by about $75,000 -- will they reduce the amount I owe, too? If so, will they charge me points like when I refinanced? Can I do it myself or do I need to hire one of those services?

A: Believe me -- we've all heard those ads! And they are not all scams. Loan modification is a legitimate possibility, and there are do-it-yourself options as well as legitimate loan modification consultants with successful track records at helping their clients obtain modified mortgage terms that work for them.  more...

How will bank bailout affect my mortgage?

By Tara-Nicholle Nelson, Friday, December 19, 2008.

Q: My home mortgage is held by a bank that was just bought out, and the bank that bought it has received some of the bailout money. How will the buyout and the bailout impact my mortgage?

A: Despite all the hyperbole in the media, the buyouts and bailouts will not affect the vast majority of homeowners. If you are happy with your mortgage, the biggest impacts you might see are an institutional name change and/or a change in Web site address and mailing address for your mortgage payment. However, if you are struggling with your mortgage, the buyout may have an impact on your situation.  more...

Checking up on the Joneses

By Tara-Nicholle Nelson, Thursday, December 11, 2008.

Q: I am looking to buy a house, and have focused in on a particular home I really like. We're about to do inspections, and I want to know more about the neighbors. My Realtor didn't give me any information about them, and she sort of made me feel like I was being a snob to be so curious about the people who live nearby. Is this a reasonable thing to investigate? How can I get more information?  more...

Get sellers to pay closing costs

By Tara-Nicholle Nelson, Thursday, December 4, 2008.

Q: I hear that sellers are more often chipping in on costs that are typically paid by the buyer (like inspections, closing costs, etc). How can I find out how often that's happening in our market?

A: You are smart to understand that market dynamics are highly localized -- what is standard practice in Missouri might be completely unheard of in Texas. Generally speaking, though, it is the case that in the current buyer's market (which exists everywhere relative to the market of several years ago), sellers are more likely to contribute to buyer's transaction costs.  more...

Tax lien surprise disrupts escrow

By Tara-Nicholle Nelson, Monday, December 1, 2008.

Q: We got preapproved for a loan and started house hunting in June of this year. In August, we made an offer on a bank-owned home (REO), and the bank accepted. Three days before we were supposed to close, the mortgage broker told us that the loan was in jeopardy because we have a state tax lien on our credit reports for $6,000. The thing is, we told him about this tax lien back in June, when we gave him a copy of our payment arrangement letter from the state! We have always made the payments on our lien on time. We signed a three-week extension of escrow.  more...

Couple divided on real cost of fixer-upper

By Tara-Nicholle Nelson, Thursday, November 20, 2008.

Q: My husband is dead set on buying a fixer-upper for our first house -- he thinks he's going to somehow become handy once we buy a house, even though he's never actually done a home improvement project. I want a place that just needs paint and carpet, because I don't think he'll finish the projects he starts and I don't want to live in chaos in our new home. Do you have any advice for us?  more...

What happens if home fails inspection?

By Tara-Nicholle Nelson, Thursday, November 13, 2008.

Q: If the house I'd like to purchase doesn't pass inspection, will the entire transaction be canceled and money refunded?

A: Oh, if only life (and real estate) were so black-and-white -- being a grown-up would be so much easier! Unfortunately, home inspections are not pass-fail. Rather, they are part of your due diligence duties as a responsible home buyer. They give you the information you need to decide whether to proceed with the purchase and/or renegotiate terms with the seller. Your ability to cancel the deal and get your deposit money back is governed by the terms of your contract, and standard practices vary from state to state.  more...

Purchase offers: How low is too low?

By Tara-Nicholle Nelson, Thursday, November 6, 2008.

Q: How low of an offer should I make on a 4-bedroom, 3-bath house in Atlanta listed at $300,000? It's not a short sale or an REO, but I searched the title records and found out that the owners paid only $90,000 for it about 10 years ago.

A: The answer to your question is, as with everything in real estate, "it depends." As you can probably already tell, you're not going to get a straight dollar amount answer from me. The decision of how much to offer on any particular property is, in my opinion, the single toughest decision a home buyer has to make once he or she has selected a property -- in fact, this is the single most frequently asked question I receive.  more...

Buyers, be careful what you sign at escrow

By Tara-Nicholle Nelson, Wednesday, October 29, 2008.

Q: I am about to buy a home. I have heard that I should request a copy of my closing documents several days prior to my scheduled signing. What should I be looking for, and who can I hire to help me go over them?  more...

Lease-options: the good, the bad, the ugly

By Tara-Nicholle Nelson, Wednesday, October 22, 2008.

Q: I owned a home for eight years, but borrowed heavily against it, took a subprime loan and recently lost it through foreclosure. My credit is shot from the foreclosure, but I have found another home I would like to buy. The seller will agree to do a lease-option, and I think it sounds like a great way to buy. What are the pros and cons of a lease-option that I should know about? Are there any pitfalls I need to beware of?

A: A lease-option arrangement may present a great opportunity for someone who has just gone through a foreclosure to immediately regain some of the benefits of homeownership.  more...

Choosing the right buyer's broker

By Tara-Nicholle Nelson, Wednesday, October 15, 2008.

Q: I have to decide between two Realtors -- the two finalists of my search. One lives in the area we want to buy and knows everybody, but is a snob and works mostly with sellers in a higher price range than mine. But she says she can show us houses before they go on the market. She has eight years of experience, is a member of our church and has connections in high places. The other one is a pro with 29 years of experience but does not usually work in that area of town. Generally, though, she seems more knowledgeable and down-to-earth. I have to say I like her better.  more...

Buying, selling or refi? New laws will help

By Tara-Nicholle Nelson, Wednesday, October 8, 2008.

Q: It seems like every month the federal government passes a new housing bill that's supposed to help the real estate market crisis. I'm a homeowner, and nothing has gotten easier for me -- my mortgage payment is still about to adjust, the interest on my adjustable-rate line of credit is still going up, and I'm still upside down on my home by about $25,000! Are there any of these laws that I should really know about or that can really help me out?

A: Late last year, the federal government started responding legislatively to the upheaval in the housing market. Some argue that the resulting laws have been too little; others feel they are too late.  more...

Lesser of two evils: short sale or tenant?

By Tara-Nicholle Nelson, Wednesday, October 1, 2008.

Q: I bought a house about four years ago, and relocated for work last year. My old house has been on the market for almost a year. I thought about renting it, but I really don't want to deal with tenants from a long distance. The place is almost fully remodeled, and people have been viewing it, but my Realtor says I need to lower the price and try for a short sale. The one thing I haven't tried is putting in stainless steel kitchen appliances -- the appliances currently in there are newer, but they are black. Should I invest my last few thousand dollars in upgrading the appliances to stainless steel, or should I attempt a short sale?

A: Contrary to popular belief, everyone doesn't love stainless steel appliances. In fact, some folks actively dislike them. Buyers generally want updated appliances; if yours are up-to-date, they are not likely the thing that is stopping your home from selling.  more...

Home buyers confused by listing lingo

By Tara-Nicholle Nelson, Wednesday, September 24, 2008.

Q: I'm thinking about moving up. I've just started browsing through real estate listings online. But it seems like every other listing I see has some arcane notation in it. The house descriptors are easy enough to figure out, but there's lots of stuff in there that I don't recall seeing when I bought my first home 12 years ago, and that I don't really get, things like "Not a Short Sale," "REO," "Subj to lender's approval," and the like. What does this stuff mean, and which of these things should I care about?  more...

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