Facing Foreclosure: Is Bankruptcy an Option for you?

Written by:  Dania S. Fernandez, Esq., Attorney at Law

Of The Law Offices of Fernandez & Associates, P.A.

When facing foreclosure there are many options available to avoid foreclosure and maintain your sanity all together.  These options include: Loan Modification/Loan Workout with your lender, Refinance, Obama’s Plan “Making Home Affordable” (go to website http://makinghomeaffordable.com) and Bankruptcy Chapter 13.  How can Bankruptcy save my home from foreclosure?  When should I file for Bankruptcy? Which Chapter should I file, Chapter 7 or Chapter 13?  These are three of the most frequently asked questions in my office.  First, in very simple terms here are the definitions of both Chapter 7 and 13:

Chapter 7: liquidation, wipes out most of your debts and in return, you may have to give up some of your property.

Chapter 13: reorganization, enables you to pay off all or a portion of your debts during a three to five year period, yet does not require you to give up any of your assets to pay creditors that you owe.  As long as you keep making payments creditors will not bother you for payment or continue the foreclosure against your property.

If you are considering a Chapter 7 Bankruptcy and you are behind in your mortgage, then make certain that you first reach a loan modification/ loan workout or Refinance with your lender and then file Chapter 7.  In the Chapter 7 Bankruptcy there will not be a loan modification option of your existing mortgage and therefore if you stop paying your mortgage you could lose your home.  Your homestead is exempt, however if you do not pay, it can be foreclosed on.  In the Chapter 13 Bankruptcy you can save your house.  However, this should be your final option and by that I mean you have tried reaching a loan modification, you have been represented by a Real Estate Attorney to defend your foreclosure and time is ticking towards the auction date of your house.  Bankruptcy is a perfectly legitimate way to stop foreclosures and repossessions, put an end to lawsuits, protect paychecks from garnishments and regain control of your life once again. 

If bankruptcy is an option for you it is important to know what is or will be required of you.  Bankruptcy is regulated by Federal law and may be affected by Florida state law.  Even though  you are not required by law to work with an attorney to file for bankruptcy, it is highly recommended.  When filing for bankruptcy, it must be filed correctly in order to have the chance for it be successful. 

It is important to consult a bankruptcy attorney or debt relief lawyer in your area in order to ensure that you fully understand your options regarding bankruptcy and whether this is the best decision for your financial future.

The following is a list of facts you should know about filing Bankruptcy:

• Stop Foreclosure.
• Avert Repossession.
• Bankruptcy is a matter of public record.
• You will need to take a credit counseling course and financial management course before you can file for bankruptcy.
• When you initially file for bankruptcy, the court will mail a notice to all the creditors listed in your bankruptcy schedule. Creditors will then be prohibited from contacting you concerning you debt. 
• Florida law will exempt certain assets.   A lawyer can help determine what is exempt and can help protect particular property. 
• You can suffer some discrimination (Prospective employers may refuse to hire you and some Governmental agencies and employers may not allow it as part of their employment policies.).
• In a Chapter 13 bankruptcy, you and your lawyer will need to work out a payment plan wherein you will pay creditors over a period of up to 5 years.
• Your income, bills, assets and property will all need to be evaluated in order to determine what is subject to liquidation, what debts can be discharged, the amount and duration of your payment plan (if any) and much more.
• A stigma may still be attached to filing bankruptcy.
• A record of filing for bankruptcy may remain on your credit profile for up to 10 years, depending upon the particular circumstances.
• While a bankruptcy filing does appear on your credit report, most people fail to realize that the damage has already been done to their credit due to missed payments or late payments.  By eliminating your debt in chapter 7, or making payments in a chapter 13, you will immediately improve your credit score.

In the midst of the economic crisis we must not forget the importance of life and your priorities.  It is your health, your family and God that should be first.  I have clients falling apart not only financially, but also emotionally and physically.  Saving our homes is not the only solution, we need jobs that can pay for the revised monthly payment, we need activities that will stimulate good health and family events that will create those memorable moments with our children, family and friends.  Take all the necessary steps to preserve that which is important to you by taking advantage all of your available options.  There are options for you and more continue to come with the evolving laws.  Know your rights, now your options call an attorney today to guide you towards life stability once again.

Written by:  Dania S. Fernandez, Esq.  Attorney at Law

The Law Offices of Fernandez & Associates, P.A.

Located at 6705 SW 57 AVE, Coral Gables, FL  33143

Telephone:  305-254-4492

E-mail:  Dania@fap-law.com

Website: www.daniafernandez.com

For more information on Foreclosure, Loan Modifications & Bankruptcy go to www.daniafernandez.com.  Or, call The Law Offices of Fernandez & Associations and schedule a free consultation with one of our attorneys at 305-254-4492.

LOAN MODIFICATIONS: Can I qualify for Obama’s loan modification plan?

The key components to Obama’s program to avoid foreclosure are through loan modifications and refinancing. He has put forth a strategy to stabilize the housing market by providing homeowners the opportunity to get a loan modification or a refinance. This initiative has been called the Homeowner Affordability and Stability Plan (HASP). Many of us know it as “Making Home Affordable”.
Eligibility is based on the following:

• The property must be your homestead.
• The amount you owe on your property is either the same as the value of the property or slightly less.
• There is sufficient income to begin paying a new mortgage payment.
• The original loan must have originated on or before January 1, 2009.
• There must be a hardship.
• There must be an unpaid principal balance of $729,750 or less.
• Your mortgage payment must be more than 31% of your gross monthly income.

Aside from these eligibility requirements, there are several frequently asked questions that I am faced with on a daily basis, for example:

1. Do I have to stop paying my mortgage to qualify for a modification?

Technically, NO. We are suppose to be responsible individuals and continue paying our mortgage and still qualify for a modification. As much as I would love to say that lenders are providing loan modifications to all individuals that are current on their payments and meet the above qualifications, is not true. There are several lenders that have given loan modifications even to those that are current. However, the majority of lenders are giving priority and providing modifications to those that are at risk of losing their home for non-payment due to some kind of hardship.

I will never advise my clients to stop paying their mortgage, because there are ramifications. Non-payment will affect your credit score and foreclosure proceedings will commence against you. Therefore, for those that have no other alternative but to stop paying, do not lose hope. Consult with your lender or seek the advice of an attorney.

2. Will my equity line be modified
together with my first mortgage?

No. The loan modification program is only for the first mortgage. The second mortgage/equity line will need to be negotiated directly with the Lender or Servicer. It is best to modify the first and know how much money you have left in the month before negotiating with the second. It makes no sense to start modifying the second without knowing if you can even afford the first mortgage payment.

3. What type of interest rate is being offered through Making Home Affordable?

The interest rate may go as low as 2%. The idea is to get you an affordable payment. Through Making Homes Affordable, the first step is to reduce the rate of interest, second the term of the loan and last the principal of the loan. Each step will be given as needed depending on your particular situation and financial status.

4. Will I have to pay the property taxes and house insurance separately?

No. The new loan payment will include a monthly escrow amount for the payment of property taxes and insurance. This will be required.

5. What will happen to all my past due amounts, late fees and/or penalties?

Those that qualify for a loan modification through Making Home Affordable will not have to pay past due late fees. All other cost such as unpaid taxes, past due interest, etc. is usually added to the amount you owe. This also the case for many loan modifications that are not through Making Home Affordable.

The most important information to recognize from this article is that there are options available. The hardest part is acknowledging that you need help. We are all in this together and together many things can be accomplished. My best advice is to call an attorney for a consultation. Know what is available to you and plan your next steps accordingly.

For more information and a free consultation call now 305-254-4492.
Attorney Dania S. Fernandez, The Law Offices of Fernandez & Associates, P.A.,
6705 Red Road, Ste. 310, Coral Gables, FL 33143,
www.daniafernandez.com, email:dania@fap-law.com

How & What For After School

 

Kids are back at school and parents are debating, wondering or seeking extracurricular activities. Is it too early for my child to start? What’s the best one? How do I find a good program? We have compiled some information that will help you keep your children safe, entertained and healthy.

 

 

Why Extracurricular’s Matter

 

After-school activities benefit your child in ways that might surprise you. The Nellie Mae Education Foundation has conducted a study which demonstrates that children who participate in after-school programs are more engaged in and have a better attitude about learning, academically perform better, and benefit from a sense of accomplishment, capability, and self-esteem. Participation also lowers children’s risk of becoming depressed, using drugs and alcohol, and experiencing other behavioral problems.

 

After school activities let your child enjoy some exercise and make friends outside of school. If he or she displays a special talent, cultivate that ability through lessons or classes. Don’t make the mistake of assuming an early start in anything will lead to a career — remember that most children do not grow up to be professional musicians or athletes. Pushing your child into tons of tennis lessons or dance classes in order to get a “head start” will most likely lead them to resenting both you and the activity. Give him or her other options and encourage other interests, so he or she doesn’t feel an overwhelming pressure to succeed at just one thing.

 

 

 

Some Ideas to Start With

 

A good place to start is your child’s school. Ask teachers or the principal what options are available there. It’s also important to talk to other parents about what their children are involved in and get recommendations for kid-tested classes and activities.

 

Also check out community resources such as:

 

• Community and recreation centers
• Places of worship
• Museums libraries
• The YMCA
• Boys & Girls Club of America
• Police Athletic Leagues
• Sports leagues

 

 

 

How to Choose

 

Discuss with your child what he or she is interested in. Most kids will demonstrate signs that will give you a good idea of what they are good at and what they like. Give them some options that complement their interests — an artistic child might enjoy a ceramics class, while a boisterous one can work off energy dancing or playing a vigorous sport. But don’t overlook what might seem like unlikely matches. Shy children often enjoy expressing themselves on stage in a drama class; fidgeters can find a way to focus through martial arts. You can also target specific skills through different activities: music lessons enhance math aptitude, and team sports boost social skills. If your child will attend a daily after-school program, try to select one that offers a variety of activities, including ones that get him or her on their feet, as well as a quiet area to relax and do schoolwork.

 

Also consider your family’s schedule when planning activities. Make sure that these activities do not interfere with your family time. Consider travel time into the activity and allow time off your schedule to chauffeur. If not, consider activities that can be done at home, such as music lessons and crafts, or those that are held at school.

 

There is no one-size-fits-all answer, and it’s important to watch your child for signs of over-scheduling. In younger children, this most often takes the form of irritability, avoiding eye contact, and tantrums. In older children, look out for mood swings, recurrent sickness such as stomachaches, and complaints about the activities themselves. At any age, if schoolwork begins to suffer, it is time to cut back.

 

The kids are not the only ones who have a say or have concerns. Parents should consider safety, cost, and an overall good environment.

 

 

When making your decision, look for:

 

 

• At least 1 adult for every 12 children — in younger groups, the ratio should be closer to 1 to 10
• Whether there any “hidden” costs, such as for uniforms, costumes, or equipment
• Friendly, enthusiastic staff. Are they certified or otherwise expert in their field? Feel free to ask for references and check them.
• A space clean, safe, and spacious enough for the activity. Is there enough equipment and other resources for everyone?
• A calm, but energized environment. Does the activity appear well organized and supervised?
• Happy, enthusiastic kids
• Grade-by-Grade at a Glance

 

 

 

 

Use the following guidelines to steer your decisions, but remember that you know your child’s maturity and temperament best.

 

 

 

 

 

Kindergarten

 

Keep your kindergartner’s after-school life simple and free — one or two after-school activities a week are more than enough. Wait until he or she has adjusted to the daily school routine. Find an extra-curricular that involves their creative and/or physical side, such as an art, dance, or music program.

 

 

Grade 1

 

Balance your 1st grader’s schedule with play dates, playground visits, and one or two days of an after-school activity per week. Best bets are non-competitive sports and other physical activities since this is around the age when your child is starting to get a grip on the abilities of her own body. Plus, after being in school all day, kids need an outlet to play and run. Avoid sports with strict rules. At this age, kids need free reign to make mistakes and not worry about winning and losing.

 

 

Grade 2

 

Get your child involved in choosing extra-curriculars. Steer them towards activities they like and don’t get to do at school. For example, sports such as swimming, skating, computers, or music lessons. Many kids start learning piano or violin around this age. Make sure your child has at least one or two days free a week for alone time to unwind. If after-school activities are starting to interfere with schoolwork or if your child seems stressed, you need to drop an activity or two.

 

 

Grade 3

 

Your 3rd grader needs to move and shows the need to socialize after school. Team sports are a great choice! Other good choices are activities that use and develop fine motor skills, such as painting, sewing, or learning to play an instrument. Let them explore different interests but make sure to set aside still-needed family time among the team practices and play dates.

 

Grade 4

 

Try to get your 4th grader involved in one or two extra-curricular activities that he or she is good at and loves doing. It will build confidence and help them manage stress, which is key at this age when cliques and social pressure in school are beginning to build.

 

Homework is becoming a larger load, so make sure there is adequate time to complete work without having to stay up late. Set limits on seeing friends and activities if kids get irritable, grades drop, has trouble sleeping or complains of mysterious illnesses. Look for signs of stress like overeating.

 

Don’t put too much pressure to excel at what should be fun activities. Last, don’t forget family time is still essential. It may need to be scheduled in so your child understands that it’s important.

 

 

Grade 5

 

Over scheduling is a problem you and your child will probably face this year. Your 5th grader is full of energy for everything and wants to spend time participating in activities and hanging out with friends. To ensure schoolwork is getting done and not becoming burnt out, you should make sure they get two free afternoons a week. While you’re at it, block out a once-a-week family time that you and your child stick to so that family is a priority. They should be guiding their own activities, but now is a great time to suggest community services, like helping senior citizens or young children.

 

 

Middle School

 

Most important try to steer you adolescent away from TV and towards activities that reward their achievements. On average, adolescent spend an equal amount of time every week watching TV and socializing with friends — about 20-25 hours apiece.

 

Encourage your preteen to spend time volunteering, to join school clubs like band, chess, or foreign language clubs, or to sign up for extra-curriculars with a leadership element, such as the school newspaper or student council. It will help them feel more connected to the school community while forging friendships based in common interests and experiences. As always, keep an eye out for signs that they are over extending themselves with after-school commitments. As a general rule, preteens should be spending fewer than 20 hours a week participating in after school activities.

 

 

Conservative Gardening-Looking Good yet still cost Effective

 

Eliminate lawn where it is not necessary. Lawns require the most intensive maintenance and the most water consumption of any landscape feature. During the summer lawns require weekly mowing, weed-eating and edging, and during the dry periods frequent irrigation.

Plant beds of perennials (plants living more than 1 year). They need only infrequent trimming. Selective pruning to leave plants in an informal state is also a way to conserve money. Using a lot of topiaries or hedge material typically increases the amount of trimming necessary and therefore the cost of maintenance.

Choosing the right plant for the right spot is very important. I would suggest using a professional who knows what size the mature plant will be and in what light it will grow best. Over trimming could lead to a susceptibility to disease and therefore a decline in the health and life expectancy of the plant. Relocation years after installation has at best a 50-50 chance of survival, so choose your locations well.

Rectify any irrigation problems. By monitoring your irrigation, you can identify any leaks, broken heads, overspray, etc, that could lead to increased water bills or damage done to the landscape or to hardscapes.

Hardscapes are a great way to decrease the amount of lawn or beds you have to maintain while enhancing your entertainment areas. During these difficult economic times many people are entertaining in the comfort of their homes and making the outdoors an extension of that entertainment area. The ambiance of an outdoor cooking station, a Tiki hut with a television for the football games (go Dolphins), or just sitting areas amongst the gardens surrounded by a gently wafting misting system, all add to a great night. Your friends at Turf Management would love to help you create that special outdoor living space or help with recommendations on any maintenance saving projects.

 

Daina Daniel

Landscape Designer

Turf Management

305-255-7000

Avoiding Foreclosure

By: Michele Rivera, Esq. 

 

 

Avoid Foreclosure

Foreclosure – the very words strike fear into the hearts of even the bravest men. Nothing is more personal or more scary than the thought of losing the home that you saved for, bought, and sunk so much time, effort, money and energy into. Yet, in today’s economy, the risk of foreclosure is high. It only takes one change in your life’s circumstances to put you down the road of financial uncertainty, and even foreclosure. That change could be as simple as an illness that takes you out of work for a small period of time, or a reduction in your work hours, or worse, a total job loss. It is important to have that financial backup savings plan to allow you the money to be able to pay the mortgage and property taxes through the time that you are going through financial difficulty.

Foreclosure

 

Once you are served with a foreclosure lawsuit, seek the advice and representation of a reputable attorney as soon as possible. Once served with the initial complaint, you only have 20 days to respond. Failure to respond leaves you open to a default judgment being entered against you and then you have no defenses. With no defenses, the bank or mortgage company is then free to enter final judgment against you, set your house for sale, and have a deficiency judgment entered against you if your house does not sell for the amount of your loan. Then, not only will you have no place to live, you will also have a judgment hanging over your head that the banks can take 20 years to collect.

 

However, hiring an attorney can give the foreclosure process the time it needs to allow for mediation and/or loan modification. First, most lawsuits can be dismissed just by the way the bank has prepared the complaint. A defense attorney knows what to look for in defending a foreclosure action. Do not prepare your own response to the complaint unless you are an attorney, and do not ever, at any time, write a letter to the judge. Anything you say can and will be used against you by the bank.

 

Because the bank is the one bringing the lawsuit, it is up to it to prove every aspect of their case. Many times homeowners think that the court will be sympathetic if they write a letter detailing their hardship. The judge personally may be sympathetic, but ultimately, if a homeowner writes a letter saying that they had financial difficulties and could not pay the mortgage, he has just admitted everything in the complaint. That sets the case up for a final judgment to be entered against the homeowner.

 

Please do not wait until a judgment has been entered against you to seek the assistance of an attorney. Many judges are reluctant to lift a final judgment, barring exceptional circumstances, therefore, it is important to get an attorney at the beginning of the lawsuit process because there are many defenses that can be asserted regarding the case, which will buy you more time to, hopefully, reach an agreement with the bank and restart payments. Most lawsuits, typically, have at least three defenses that can be used just from the face of the complaint. Failure to assert those defenses could possibly mean that you have waived their use, depending on the stage you enter the lawsuit.

 

When you seek the counsel of an attorney, make sure that the attorney has some sort of procedure in place to assist with loan modification, otherwise, you are relying strictly on foreclosure defense, and at the end of the day, unless the bank and the homeowner reach some sort of agreement about the loan i.e. through mediation, the bank is likely to prevail. Most homeowners do not have major issues that would overturn the original note and mortgage that they received when they bought their house. Most homeowners cannot claim that the mortgage was paid and it was wrongly applied to a different account as their defense. Thus, it is extremely important to have loan modification working hand-in-hand with foreclosure defense.

 

So you might be thinking, “if the bank generally wins anyway, why defend the foreclosure?” The answer is simple and twofold: 1) if you want to stay in your house, you will need to defend; 2) if you want to prevent a deficiency judgment from getting entered against you, you will need to defend.

 

Final Judgment and Sale Date

 

Once a final judgment has been entered against you, the court will set the house for sale. At this moment, depending on the jurisdiction, sales are being set from 30 days out to over 150 days. Of course, the longer the court gives to sell the house, the better for the homeowner, because it allows for more time to modify the loan and/or work on mediating the matter. Courts have been fairly liberal at resetting a sale one or two times from the final judgment, but after three times, unless a deal is imminent with the bank, the court has not been inclined to extend.

 

If an attorney has just been retained at this stage, there are a couple of avenues to be taken. First, the attorney can move to continue the sale of the house, to allow for more time for loan modification. The attorney can try to set aside the final judgment, and try to mediate, all with the plan of eliminating the final judgment.

 

Final thought

 

 

 

Brought to you by Corona Law Firm, P.A.  

 

Attorney At Law

1-800-BANK-911

Once again, try to avoid going into foreclosure, but if you do get foreclosed on, make sure that the attorney you retain is reputable and is knowledgeable in the field of foreclosure defense.

 

 

 

First and foremost, never buy a house that is more than what your means can purchase. Often, even more conservative thinking is appropriate. Instead of buying a house that both you and your spouse can afford, buy a house that could be completely paid for with one income. In today’s market, that practice will likely buy you a much larger house than it would have just three years ago, especially if you purchase a house that has been lost to foreclosure.

Second, pay your mortgage, unless you absolutely have no means to do so. Most banks and mortgage companies will not start foreclosure proceedings until you have missed two or three payments, and sometimes, more. Therefore, if you can pay the mortgage, do so. Do not rely on the banks and mortgage companies who tell you that they will help you but you have to miss payments in order for them to help. It is not worth it and you will be playing a game of Russian roulette with your house. You will eventually be served with foreclosure papers if you do not pay your mortgage, no matter what the bank tells you. Even if you are trying to work out a loan modification with the bank, if you are not paying the mortgage, the bank will start/continue foreclosure proceedings against you. It is a guarantee.

 

Avoid foreclosure

How to know if your home has Chinese drywall?

Drywall imported from China has recently become a cause for concern because it is believed to emit a sulfuric gas, causing respiratory illness in those living in homes containing the drywall, as well as corroding copper wiring and mechanical parts in air conditioning units and other major appliances. 

Since ‘’Made In China’’ may not be visible — and not all drywall is marked — the Florida Department of Health has established some basic criteria for determining whether a home contains it. 

Homes constructed from 2004 to the present must meet two or more conditions of the following conditions; those built prior to 2004 must meet three or more:

•  There is presence of sulfur-like or other unusual odors; 
• Confirmed presence of Chinese-manufactured drywall in the home.
• Observed copper corrosion, indicated by black, sooty coating of uninsulated copper pipe leading to the air handling unit.
• Documented failure of air conditioner evaporator coil (located inside the air handling unit).
• Confirmation by an outside expert for the presence of premature copper corrosion on uninsulated copper wires and/or air conditioner evaporator coils.

 Furthermore, beware of sales pitches for commercial testing kits, as there currently are none on the market. The DOH suggests environmental consultants, builders, home inspectors and certain types of contractors may be able to confirm the presence of Chinese drywall.

 For more information visit http://chinese.intellaclaim.com and click “Imported Drywall”.

 If you feel you may have this problem, you need to address it NOW!

The team of experts at Intellaclaim Public Adjusters will help you resolve this matter as quickly as possible. 

Contact us at 305-303-7012 for a FREE Consultation. 

YES You Can! The TRUTH on getting a mortgage…

It is true that getting a loan today is very different than getting a loan a few years back, between 2003 and 2007 investors were practically giving away loans to anybody who had a semi decent credit score without even verifying income and many times without verifying employment. During this abnormal period the mortgage industry experienced a fantastic phenomenon. I don’t mean fantastic in a good or bad way but simply by its mere definition “imaginary or groundless in not being based on reality; foolish or irrational” the same applies to phenomenon “something that is impressive or extraordinary”. It is because of this fantastic phenomenon we experienced that lenders have become ultra conservative. They have literally lost their shirts on many poor performing loans. However, they have no choice but to march on, after all they are still in the business of lending money. And the way they are staying in business is by offering the safest mortgage product available to our industry, the FHA loan. FHA has always been there, it was just not the preferred choice especially when lenders were not requiring income docs and when wholesale investors were offering 100% financing, low rates, no mortgage insurance, oh! And lets not forget no employment verification. Borrowers with high scores were practically insulted if you asked them for so much as a W2 or a bank statement. There is plenty of blame to go around, but let’s not digress.  

 

1. Is it possible for me to get a loan in a reasonable time frame with a reasonable rate?
2. How do I get a loan when lenders are so tight?
3. What do I need to ensure I get the right loan for me?
4. Who do I call?

 

Answers:

1. Yes, it is possible to get a loan today in a reasonable time frame at a reasonable rate. However, you have to do your part. You must choose a mortgage company that is FHA approved (directly by FHA). It is important that they are an FHA directly approved lender because there will be no additional parties that will delay your closing. Also, if you are dealing with an FHA approved Mortgage Company you will get a better rate than if there was an additional party involved. To find an FHA approved lender you can go to http://www.hud.gov/ll/code/llslcrit.cfm and type in the name of the lender you want to check or use the different criteria available on this page. You can also go to www.hud.gov and type in “lender list” at the top right hand side and click search, it will be your first choice in the results.
2. Lenders are tight because they have to survive, they are tight because they have lost a lot, they are tight because they are helpless to change their past decisions, they are however still in business and are still willing to offer loans to qualified buyers/borrowers. For the most part there are a handful of mortgage programs available today. The most popular and most obtainable are the conventional and FHA Government programs. These programs have similarities and both offer fixed rates and adjustable rate mortgages. These programs do require full disclosure of income and assets but have several options for buyers who are limited in down payment and assets needed to pay closing costs. FHA is a more obtainable program because if allows a buyer to put as little as 3% down payment and that 3% may come from several flexible sources (not just from you). Speak to a reputable mortgage company to guide you through this process.
3. Here is what you need to get a loan today: last 2 pay stubs, last 2 years W2s or last 2 years tax returns (if you are self employed or a 1099 worker), last 2 months bank statements of all your accounts (ALL PAGES even if they are blank), last quarterly retirement account (401K, IRA, Deferred Comp ALL PAGES even if they are blank), copy of your social security card and driver’s license. Before you start shopping you MUST GET PRE-QUALIFIED with a reputable mortgage company that can spend the time with you to review your credit, your income docs and your assets. This person can give you your maximum sales price and will be very useful throughout your process in giving you payment scenarios to help you and your family budget appropriately.
4. Who do you call – You call a qualified mortgage company that is willing to spend quality time with you. This is one of the most important transactions you will make in your lifetime, you should ask any and all questions you have, you should get a reasonable response time, and you should meet face to face.

 

Tricks of the trade

Here are some suggestions that will help you in your journey to home ownership:

 

  

1. Tell your realtor that you want the seller to pay your closing costs. This is very common today and represents a substantial amount of money that you will not have to pay. An FHA program will allow the seller to pay up to 6% of your closing costs and prepaid items such as insurance and escrows. 6% is more than enough to pay all your costs. You must demand it.
2. Don’t fall in love so much with a house that you are negotiating with your heart and not with your head. There is an unprecedented amount of inventory, give yourself an opportunity to shop and choose the best combination of location, sales price, and sales incentives (such as seller paid closing costs, interior and exterior upgrades and living area size).
3. If you don’t have enough money for the down payment – ask your realtor or mortgage consultant to help you in getting a state/federal/count or city grant. There are many grant opportunities out there that only require a small amount of leg work. Although most have income restrictions you won’t know unless you ask. If that doesn’t work you can always ask a family member for a gift. FHA allows the full 3% down payment to be a gift. So let’s see you get a grant or gift for the down payment and the seller pays all your closing costs, WOW! That sounds like 100% financing to me.
4. If you are currently renting and are thinking of buying a home, you picked the best time to do so. Whether you are credit challenged or not you should pay everything possible (such as rent, utility bills, car payments, and credit card payments) with a personal check because a check is traceable and verifiable. These payments you’ve made by check can serve as a compensating factor or as alternative credit in the qualification process.
5. Make sure your Realtor and Mortgage rep are full time, this is a very important decision you are about to make and you want someone that is dedicated to you and your needs, and you want to be able to reach them with ease.
6. Ask your Mortgage Rep to help you shop for a title company that is willing to give you the best service at the lowest price. Although, this may not always be your choice depending on the property you choose, whether or not the seller is paying for these fees and/or the county you live in, it is important to ask.
7. Ask your mortgage Rep to analyze your credit fro you, mortgage reps deal with credit issues all the time and are de facto experts in analyzing credit, you can get good advice from them.

 

Getting a mortgage is not hard if you have the right guidance and the right motivation. Mentally prepare yourself for the challenge and carefully choose your trusted advisors (Realtor and Mortgage Rep). My name is Mario Cerrato and I am the president of Regal Lending Group, we are located in Davie Florida and can give you the right advice. Give us a try, you won’t be disappointed.

 

 

 

 

 

The questions today are:

Betting on Advertising Insurance

The decision to spend money in order to make money has always been a treacherous one to formulate. To make things more difficult, if you ask experts or colleagues for guidance you will end up with more questions than answers.

 

My many years of marketing experience may help you to make an individual educated assessment. Allow me to start by giving you my personal views and how they may be biased. As a publisher of four print magazines, you may assume I am going to pitch you an ad. Falling short of sounding like an infomercial, I am not here to sell anything. I am here to give some facts, a little opinion and a lot to make sense of how you should view advertising. Since this is a Real Estate magazine, I will focus on two groups; Realtors and home sellers.

 

First analogy, advertising can be viewed as buying health insurance. Usually insurance will barely pay for its self on the day to day medical expenses. Advertising is similar in that when you advertise there are long periods of small rewards such as picking up a listing contract, name recognition and new “potential” customers. The rewards from these examples yield little profit and may discourage your need to advertise. Using insurance as an example once again, we all have that day when we end up in a hospital. ¹ The average total patient charges for South Florida hospitals is $27,871 per case. It is at this point most of us utter those famous words “Thank goodness I have insurance”. In comparison, consistent advertising will yield you that sale that pays for many years worth of advertising and at that point you will swear by that advertising media. Studies show that consistent advertising promotes earnings as low 7% and as high as 30% per year. Keep in mind that different advertising outlets perform better on the day to day, while others out perform the return of investment ration in time.

Now that we have an illustration of the advertising dynamics, let’s talk about different advertising outlets. Bear in mind we are focusing on local Real Estate.

 

Let’s start with Realtors. Your options are many and range vastly in cost. The first thing you should do is forecast your earnings. Just like a large corporation, forecasting helps you set goals and allocate for expenses. Remember to consider market conditions and growth. Think about forecasting in manageable periods, like yearly quarters or market seasons. This will allow you to adjust if unforeseen circumstances occur.

 

Once you have forecasted your earnings, allocate and commit moneys to advertising. Small or large work this budget to the best of your abilities. I recommend developing a short mantra which describes you and how you differ from other realtors. Strive for multidimensional marketing campaigns that relay your mantra. In other words, don’t just list properties online and neglect your image and services. Develop a campaign that achieves three things:

Exposes your listings

Brands your image

Depicts your specialties (Farming Areas)

Do this by using multiple formats of advertising. Focus on saturation and not so much on quantity. As a result, I would recommend using three advertising formats for every $10,000 spent yearly (e. g. $4000 on print media, $4000 on internet and $2000 on networking). Stay away from blowing your budget on one media, such as television. Select advertising formats that focus on your farming area and target your clientele. You are throwing your money in the air if you choose advertising outlets that flood large geographical areas which will yield low quality calls from neighborhoods you rather not work.

Find balance between exposure, image and cost. For the most part you will achieve two if the three. For example, you may advertise on a “life-style” magazine that has phenomenal image and a great distribution, but uses up your budget. Another example, you may choose to do a radio show on satellite radio which is cost effective and brands you as an expert in your field, but it airs at 6:00 am when your core market is sleeping. Lastly, posting your listings on as many free web sites as you can will generate several emails and leads, but these don’t portray who you are and all the services your offer. Be careful to not spend countless hours on the computer which carries several hidden costs. Before you know it, you hired an assistant, you are outsourcing web services and you are developing a site that never seems to be complete. Focus on being a realtor not a webmaster.

 

Sellers, lets start by stating the market is not favorable right now. Remember I started by questioning the decision to spend money in order to make money. DEMAND that your realtor advertises your property. If you have a high ticket property for sale, your realtor may ask for an advance to market your property. This is a common request which, for the most part, it is a good practice to engage into. Large ticket properties take much longer to sell; therefore your realtor may need your help to keep your property exposed. This in the long run could save you loads of money. In that order, selecting a realtor who has a marketing plan is imperative. It helps that the realtor focuses on similar properties to your own. This will ensure he or she is targeting the sort of buyer that is looking for your type of property. This is one of those times when competition helps. Make sure their marketing plan has several advertising medians. In fact, look for traits that are similar to the ones cited on the previous paragraph.

 

Don’t let realtors convince you that any particular advertising format “is dead”. Yes there are outlets that work better than others, but all advertising Medias have a niche and serve a purpose. Today there is a large push to sell properties on the internet, and for the most part I would agree. The problem occurs when an agent is trying to evade the expense to advertise. Don’t allow this type of agent to convince you that properties are only selling via the internet. The World Wide Web works, but the internet limits the selling abilities of your agent to get you the best deal possible. The net is a great way to generate leads, but without the proper substance to back it up it is just another email inquiring about your property. To qualify a realtor as a strong internet driven marketer, ask them what they are doing for SEO (Search Engine Optimization), visit their site and see how it ranks using the Google ranking tool, and ask how they are advertising that web site locally. Moreover, how are area visitors or area residents locating their web site amongst the estimated 340,000 real estate web sites? Finally, ask what other web sites or online services he or she is affiliated with to generate leads. This goes back to focusing on saturation and farming within your target demographic.

 

Second analogy, advertising could be a little like gambling. Most of you have at some point visited a casino. I’m not talking about a slot machine arcade, but rather a full blown slots, tables, booking, and money making machine. In advertising you are the casino. Choose your theme, mantra in your case. Arrange several options in which your patrons can gamble, advertise in multiple medians in your case. Be ready to loose a little, but keep them playing and you will bring loads of profit. As a result, advertising should never be purchased in single units. For example, do not run just one ad, do not send out one mail out, and do not just do one open house. If you are going to carry out this practice all you will do is squander your money. Going back to the gambling analogy, you chance to loose much more if you put down a single chip on one number, the odds are far too great. If you commit to craps, you increase your chances to win by playing at least for a complete shooter’s session. This way you have multiple opportunities to adjust your bets and spread the risk.

 

Your odds greatly improve when you have knowledge of the game. One method you earn that knowledge is by playing the game. Advertising is the same way. Do your homework on each advertising resource, but use your budget to implement a campaign. On print media do not run less than two issues and do not commit to a longer contract than six issues for your first attempt. Newspapers still work well when you run single line ads for multiple days. Radio and television is a great resource that could be extended by joining forces with other agents or choosing programs that run multiple short slots. Use your budget to negotiate volume discounts. For those Medias you are confident with, work out prepaid discounts.

 

Internet advertising is a little more complicated. While many will argue, I feel it is still in its infancy. Changes to search engine algorithms occur often and every web site has a better way to do the same thing. Many web sites offer “free” services that attract sellers and realtors, but be careful. Today many people are scrambling to help their Search Engine ranking by linking to directories that do not bring any value to the seller or agent. In fact, the majority are promising more than what they can deliver.

 

As per NAR, the internet contributes 24% of the leads that sell homes. I recommend you focus on web resources that have valid credentials such as being ranked by Google. Don’t be fooled by web sites that look pretty or have multiple gadgets. The ones that work have content, are affiliated to another advertising media and have good search engine ranking. Try to use web resources that use multiple input methods to fulfill its database. For example, choose sites that have IDX capabilities and a private database. This way the content is fresh and several formats are contributing to its content. Content equals more search engine exposure.

 

To conclude, advertising should be an educated venture that insures your growth. Develop a budget, diversify your Medias, commit to campaigns, try new technologies and favor what works. Accept that everything has a cycle and what works today may not work tomorrow, so educate yourself and try new vendors and/or formats. Furthermore, try to use advertising providers that combine Medias. To give you and idea, some home magazines offer good internet exposure and services for little or no additional expense. Remember to do your homework and ask what the web sites monthly visit and hit counts are. Verify ranking by using search engine tools. Remember that saturation of your farming area and clientele is key; therefore choose sites that cater to your needs. If you are trying to grow your web site’s exposure offer to exchange links with advertising vendors. Link exchange grows your link popularity which in turn helps your placement in Google and other search engines. Choose providers which are focused on helping you grow your business, not selling you ad space or ad time.