Working with reputable lenders...

How is it that in today's market, we are still coming across lenders that are not fully qualifying their clients?!?!

My partner has been working a short sale file for 2 years and finally had everything in line with both banks that she had to negotiate hard with! And a week before closing she finds out that the buyers credit isn't good enough to get final commitment for their loan??? And this is after they gave her the run-around saying they needed a 30 extension to ensure that the well water testing was in... however, that wasn't the case she soon found out! They did need the water test to pass, but more importantly they really needed time to check on the buyers credit score!

But how did the buyer get an approval letter if their score was too low in the first place?! When she asked the lender why they gave them a pre-approval letter, they told her that they gave the letter based on the buyers future score! What in world is going on here? I sympathize with the buyer because he has actually invested money in the property and has done work there to ensure that they passed any appraisal issues and township inspections! How does a lender like this stay in business? How could they not inform their client of the situation?

Stories like this are exactly why we only use reputable lenders that we know are honest and upfront about all situations! I want to know when they cannot approve a buyer and we want a plan in place to better a buyers credit if needed! In markets like the one we are in, there's too thin of a line to work with anyone that you don't have faith in...

U.S. House Extends Closing Deadline for Homebuyer Tax Credit

IT'S ABOUT TIME THEY DECIDED! I wish they would have done this sooner because I bet there are a lot of buyers that let their contracts go because of they figured they would be missing out on the opportunity to get the $8,000!

See the link for more details!

How to price a short sale listing...

Many may say to price it at a price that will net the full amount due to the bank before reducing the price... my opinion is to price it around the fair market value. Overpriced listings don't sell, so what's the point of overpricing a short sale home if you aren't going to sell it? And ya know what, the fair market value still might not generate enough activity! Buyers want a deal, so why not price your short sales competitively.. maybe 10-15% below the market value? And make appropriate adjustments in price if you aren't seeing any results. I think that's the fairest way to go about it. The Federal Governemnt passed the Debt Relief Act so homeowners are not liable to pay the balance of their loan if it is a primary residence. So price your short sales appropriately and get them sold!

3 bedroom home in Malaga - SHORT SALE APPROVED!

Tax credit extension standstill?!

I just read an article that congress has not passed the tax credit extension!!! What are they waiting for? There are roughly 4,300 New Jersey buyers that will lose out on the tax credit if they don't extend it. And it's all because their sales were postponed or short sales haven't been approved. This should be an easy decision and it's taking so long! What are your thoughts? Should they pass the extension?