Should I walk away? Unfortunately not all real estate stories are funny, but some need to be told. I own a property management company and we have a tenant that "Walked Away" from their mortgage. Their attorney advised them that this was the best financial decision they could make at the time. I wasn't their agent when they bought this house, but this is the story that I was told.
They bought their house at the height of the market (for about $300,000). Their mortgage was about $2,400/month. It was going to adjust to a new and improved payment of much more. We had the identical home offered for rent at $1,200/month. Their attorney (and/or possibly financial advisor) advised them that they could "Walk Away" from their mortgage, move here and save the $1,200/month. The property was worth about $175,000 when they decided to do this. The attorney advised them that in five years when they are able to purchase again, they should have $75,000 (if they put the $1,200 in the bank each month) for a down payment and closing. The property most likely isn't going to be worth much more than it is now, and they should be able to buy the same house for much less money. On top of that, someone else is responsible for the repairs.
Is this the right decision for you? If you are thinking of this, please contact me. I will get you in touch with some free agencies that will help you make this very personal decision.
Contact Joan Lord with Horizon Realty to star in your "Episode."
Friday, March 2, 2012
Friday, February 24, 2012
Episode 18 "The Red Wall"
We have all heard about "staging" your home. The ultimate in getting your home ready for sale. New paint, new carpet, new appliances, new everything! Make it new and it will sell!!!
Wow, was I surprised when I went to a sellers home for a possible listing and found that their new paint was fire engine red! Yes, there were new light fixtures and new appliances too. This home was "staged," but not for sale. Yes, it turned out beautiful, but this is not the look that most buyers want. As I'm writing this, I'm getting my home ready to put on the market. My style preference is Victorian. I should live in an old house, not in a 60's rancher. I have a very ornate ceiling fan in the living room, glass door knobs with a lot of filigree, beaded dining room light, a Tinkerbell themed work out room, and more very personal features in my home. This is my style, not what most buyers are looking for. I had planned on changing the furniture too (it's Victorian), but imagine my surprise when my brother told me that I needed to get rid of my "old people" furniture! I have had this furniture and style for years, long before I got "old." Watch out Johnny (I"m the only one that can call him that), you aren't far behind!
Contact Joan Lord and/or a professional Real Estate Staging representative BEFORE making any changes. We can come up with a plan of action for you to get the most out of your property.
That seller loved the changes so much that they never did put their house on the market. I'm glad they were able to enjoy their home again.
Contact Joan Lord with Horizon Realty to star in your "Episode."
Wow, was I surprised when I went to a sellers home for a possible listing and found that their new paint was fire engine red! Yes, there were new light fixtures and new appliances too. This home was "staged," but not for sale. Yes, it turned out beautiful, but this is not the look that most buyers want. As I'm writing this, I'm getting my home ready to put on the market. My style preference is Victorian. I should live in an old house, not in a 60's rancher. I have a very ornate ceiling fan in the living room, glass door knobs with a lot of filigree, beaded dining room light, a Tinkerbell themed work out room, and more very personal features in my home. This is my style, not what most buyers are looking for. I had planned on changing the furniture too (it's Victorian), but imagine my surprise when my brother told me that I needed to get rid of my "old people" furniture! I have had this furniture and style for years, long before I got "old." Watch out Johnny (I"m the only one that can call him that), you aren't far behind!
Contact Joan Lord and/or a professional Real Estate Staging representative BEFORE making any changes. We can come up with a plan of action for you to get the most out of your property.
That seller loved the changes so much that they never did put their house on the market. I'm glad they were able to enjoy their home again.
Contact Joan Lord with Horizon Realty to star in your "Episode."
Friday, February 17, 2012
Episode 17 "Rubber Ducky"
Scott didn't know he wanted to buy a house. He was perfectly content living in his parents basement (as most 20 year olds are). Michael (from earlier post) knew there were incredible opportunities. Gotta LOVE a client that picks up their friends and MAKES them look at houses. We found this duplex in Hagerstown that sold for $119,000 in August 2007 and had been foreclosed. Scott just went along for the ride. His parents came out, his friends came out. Everyone kept telling him to buy this house. OK! I'll do it!
Is this all the paperwork there is? Michael said there was a lot, Page (yes Scott knows Page too) said there was a lot. This is a HUD property Scott, this is all the paperwork they use. What do I need to get to the lender? I know I need pay stubs and bank statements, but what about the rubber ducky? I heard I need a rubber ducky too. Scott never got excited, scared, concerned, overwhelmed, or any of the usual emotions most buyers go through. Scott just went along for the ride because everyone kept telling him to do it. Scott got the deal of the century. He bought that house in 2010 for $33,250 and has mortgage payments of less than $375/month (including taxes and insurance).
Can you imagine what a "chick magnet" it is to own your own home at 20 years old? He didn't really need the rubber ducky, but I did give him one.
Contact Joan Lord with Horizon Realty to star in your "Episode."
Is this all the paperwork there is? Michael said there was a lot, Page (yes Scott knows Page too) said there was a lot. This is a HUD property Scott, this is all the paperwork they use. What do I need to get to the lender? I know I need pay stubs and bank statements, but what about the rubber ducky? I heard I need a rubber ducky too. Scott never got excited, scared, concerned, overwhelmed, or any of the usual emotions most buyers go through. Scott just went along for the ride because everyone kept telling him to do it. Scott got the deal of the century. He bought that house in 2010 for $33,250 and has mortgage payments of less than $375/month (including taxes and insurance).
Can you imagine what a "chick magnet" it is to own your own home at 20 years old? He didn't really need the rubber ducky, but I did give him one.
Contact Joan Lord with Horizon Realty to star in your "Episode."
Friday, February 10, 2012
Episode 16 "A Stove?"
Michael knew he wanted to live for free. Living in an investment property is the only way he could do it. Page (from a previous post) told him I was the best! I LOVE referrals (who are you going to refer to me?). We found an incredible property. One of those old buildings that no one destroyed by remodeling. But, this was a short sale. During the process, the house went to foreclosure. VERY annoying, especially because we didn't even know that the seller was behind in his payments.
As is always the case, Michael found something better. I had shown this property many times in the past, but the exterior paint was always an issue. We discussed a way to make this work for him and set up the appointment. Eureka! When we got to the property it was already painted! Two of the three units were ready to rent. The third unit needs TONS of work. This would be Michael's new home. You see, FHA doesn't care how ugly it is, it only needs to be safe. And have a stove. Why a stove and not a refrigerator you ask? I'm sure it makes sense to some underwriter out there. I can eat cereal, cold cuts, and use a microwave to live. But, FHA wants me to cook my spoiled food (since I don't have a refrigerator) on a stove. While Michael was at work I got a stove delivered for him and had it reinspected by the FHA appraiser. I don't always understand (or agree with) the rules of the game, but I follow them and help my clients win the game of Real Estate!
Contact Joan Lord with Horizon Realty to star in your "Episode."
As is always the case, Michael found something better. I had shown this property many times in the past, but the exterior paint was always an issue. We discussed a way to make this work for him and set up the appointment. Eureka! When we got to the property it was already painted! Two of the three units were ready to rent. The third unit needs TONS of work. This would be Michael's new home. You see, FHA doesn't care how ugly it is, it only needs to be safe. And have a stove. Why a stove and not a refrigerator you ask? I'm sure it makes sense to some underwriter out there. I can eat cereal, cold cuts, and use a microwave to live. But, FHA wants me to cook my spoiled food (since I don't have a refrigerator) on a stove. While Michael was at work I got a stove delivered for him and had it reinspected by the FHA appraiser. I don't always understand (or agree with) the rules of the game, but I follow them and help my clients win the game of Real Estate!
Contact Joan Lord with Horizon Realty to star in your "Episode."
Friday, February 3, 2012
Episode 15 "Helper"
When your schedule changes minute by minute, you never know where you are going to be, or with whom (or is it who? or what?). Are you one of my lucky clients that had Anna with us? She has "helped" me show off the benefits of a large yard many times.
She never gets to go in the homes, but she really loves showing the
yards. You never know (actually I would warn you in advance) when Anna will be with me.
When you come in my office, don't knock. Apparently if you walk in, you are ok, but if you knock, you are not really supposed to be there. Anna turns into something different if you knock. She loves visitors and I try to bring her in the office around the first of the month because some of the tenants bring in their rent (instead of mailing) just to visit with her.
Anna is a mutant Rhodesian Ridgeback. I say she's mutant because this dog breed is only supposed to get to about 70-90 pounds (male). She's about 150 and outweighs many people! I have an album devoted to her on my Facebook page. www.Facebook.com/JoanLord Be my "friend."
Contact Joan Lord with Horizon Realty to star in your "Episode."
When you come in my office, don't knock. Apparently if you walk in, you are ok, but if you knock, you are not really supposed to be there. Anna turns into something different if you knock. She loves visitors and I try to bring her in the office around the first of the month because some of the tenants bring in their rent (instead of mailing) just to visit with her.
Anna is a mutant Rhodesian Ridgeback. I say she's mutant because this dog breed is only supposed to get to about 70-90 pounds (male). She's about 150 and outweighs many people! I have an album devoted to her on my Facebook page. www.Facebook.com/JoanLord Be my "friend."
Contact Joan Lord with Horizon Realty to star in your "Episode."
Friday, January 27, 2012
Episode 14 - "The Bloody Kitchen"
Chrissy loves older homes. She didn't want to go and see this one, but from our discussions, I knew this house would be perfect for her. We parked out front, but the lockbox was on the back door. It was pouring down rain (why do so many posts have something to do with weather?). The gutters on the house needed to be replaced and the water was extra heavy in the small walkway between the houses. Because of this, I had my head down and was walking very fast. SLAM! I briskly walked right into the neighbors window air conditioner. I'm nothing if I'm not totally professional, so I finished walking to the back door holding my head. Chrissy got in the back door and immediately started exclaiming her love of the built in cupboard in the kitchen, skipping through the house (holding her nose because of the stench), talking about the wood floors, high ceilings, pocket doors, large rooms, and there's even a bath on the main level! Woo Hoo! she exclaimed while dancing through the house. I love this house! FINALLY she comes back in the kitchen. Yes Chrissy, I still have blood spurting profusely (not really) from my head and I'm running out of tissues. Thanks for your concern (I say with my best professional sarcasm). No, I didn't need stitches, and yes, she bought the house!
Contact Joan Lord with Horizon Realty to star in your "Episode."
Contact Joan Lord with Horizon Realty to star in your "Episode."
Friday, January 20, 2012
Episode 13 "Investor?"
Page walked into her bank and saw the big sign that stated "It's a great time to buy a home!" Is this possible for me? Yes, Page, not only is it possible, but your mortgage will be less than your rent. Let's get started! Andrea (lender at the bank) told her to call Joan Lord, she's the best! Ok, I wasn't at the bank, but Andrea did refer Page to me and I'm sure she said I was the best. We found home after home and put in offer after offer. But, when you are in a very competitive price range, and using this type of grant money (yes, Page didn't have to use any of her own), you are competing against investors and cash buyers. Every time (without fail) my buyer doesn't get a house they want, something else comes along that is better for them. Page was having trouble believing this, but she kept trudging forward. Finally we decided on a different tactic. We found her a terrific two-unit home in Hagerstown. Her mortgage is about $300/month less than her rent was in Frederick, and she can rent out the larger space and not only live for free, but have money towards her utilities too!
What's the funny part of this story? I have some super secret recipes! Shhhhh, don't tell.
I can't resist putting in a epilogue. Page got married (I was invited to the wedding!), moved into her husbands home, and is renting her first floor unit for approximately the mortgage payment. Once the second floor unit is rented (it's not ready as of January 2012), she will have a great positive cash flow and will be on her way to winning the real life game of Monopoly!
Contact Joan Lord with Horizon Realty to star in your "Episode."
What's the funny part of this story? I have some super secret recipes! Shhhhh, don't tell.
I can't resist putting in a epilogue. Page got married (I was invited to the wedding!), moved into her husbands home, and is renting her first floor unit for approximately the mortgage payment. Once the second floor unit is rented (it's not ready as of January 2012), she will have a great positive cash flow and will be on her way to winning the real life game of Monopoly!
Contact Joan Lord with Horizon Realty to star in your "Episode."
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