Entries for September, 2010

What is Procuring Cause?

The agent who ultimately caused the buyer to purchase the home and earned the commission is generally the procuring cause agent.  Every state Realtor association has its own guidelines that establish procuring cause, none of which set in stone.  As a Buyer, your best bet to avoid procuring cause disputes is to be upfront with [...]

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What Does POF Stand For?

No…not the Plenty of Fish online dating site…lol.    POF in regards to real estate transactions stands for Proof of Funds.   If you are looking to purchase a property using cash, then you are required to show your proof of funds.  Usually this is a bank statement showing the current balance in your account(s) or a [...]

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What is Foreclosure Mediation?

On December 28, 2009, the Florida Supreme Court mandated mediation for Floridians who are in danger of losing their homes through foreclosure.  Mediation enables troubled homeowners and their attorney to meet with their lenders at the bargaining table to renegotiate the terms in their mortgage and address other issues and circumstances surrounding the borrower’s default.   The [...]

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What Does HUD Stand For?

“HUD” stands for the U.S. Department of Housing and Urban Development.  They are the primary housing and lending regulatory authority in the United States.  HUD is responsible for the operations of the Federal Housing Administration (FHA), which is the agency that insures mortgage lenders against loss on FHA home loans. When FHA borrowers default on [...]

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What Does REO Mean?

REO is an abbreviation for Real Estate Owned.    An REO is a property that is acquired by a Lender through foreclosure.  A Real estate owned (REO) property reverts back to the Lender if it does not get sold off at a foreclosure auction.  Once a property is REO, the Lender will try to get the property out of [...]

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What is a Distressed Property?

A distressed property is usually a home that is in danger of going into foreclosure.   The Owner is usually behind on mortgage or tax payments.   When a distressed property goes on the market for sale, a Buyer can sometimes purchase for below market value.

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Do I Need To Provide a Financial Statement to the Lender for My Short Sale?

As a Seller, your Lender will require a Financial Statement to be submitted with the short sale packet.   Here is an example of a Financial Statement

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How To Create A Budget For Renovations?

If you are thinking about buying and renovating a house, your first task will be to create a realistic renovation budget.   The best way would be to create an Excel spreadsheet.   Your spreadsheet should include the following: Construction Materials- items such as paint, lumber, flooring, fixtures, cabinets, hardware, countertops…etc Contractor Fees and Labor- fees charged [...]

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What is a Hardship Letter?

A hardship letter is a letter you send to your financial institution explaining why you are no longer able to make the payments on your house and indicate exactly what happened to cause your payments to fall behind. These letters are widely used by investors and homeowners today in order to help them avoid house foreclosure, [...]

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What if I Don’t Have Money to Pay the Realtor Commissions for a Short Sale?

You, as the Seller, do not have to pay any commissions.  Since there is no equity in the house, the lender ultimately is the one paying the entire sales commission.

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